Filtronic secures £13m supply deal with defence equipment manufacturer

12th Dec 2016 10:48

(ShareCast News) - Filtronic's broadband business has entered into a multi-year agreement with a "major" defence equipment manufacturer to supply specialist high-frequency modules for a latest generation defence-related aerospace application.The eight-year agreement - which is expected to generate around £13m of net revenue - will see Filtronic manufacture and test the modules at the company's certified advanced manufacturing facility in Sedgefield.The agreement also provides for further increased volumes in the event that the group's client secures follow-on project wins with its end-clients.Chief executive officer Rob Smith said: "This agreement is the first substantial defence related business win for Filtronic Broadband and with it we achieve a significant strategic milestone in diversifying our customer and market base."We are delighted to have been selected as a supply partner by this prestigious customer and we look forward to further successes in this sector in the future." At 1052 GMT, the shares were up 7.8% to 10.24p.