Filtronic set to end year in line with market expectations

23rd Jun 2023 14:53

(Sharecast News) - Aerospace, defence, telecoms and communications products designer and manufacturer Filtronic reported revenue and adjusted EBITDA figures in line with market expectations in a trading update on Friday.

The AIM-traded company also announced that it had won two new contracts, each valued at £0.5m, after the reporting period.

In terms of financial highlights, Filtronic performed in line with market expectations for both revenue and adjusted EBITDA in the second half.

Subject to audit, the firm said it anticipated reporting revenue of about £16.3m for the 2023 financial year, slightly lower than the prior year's £17.1m, and adjusted EBITDA of around £1.3m, down from £2.7m in 2022.

As at 31 May, Filtronic had £2.6m in cash at the bank, compared to £3m on 30 November.

The net cash, excluding lease obligations except right-of-use property leases, stood at £1.9m, down from £2.4m in November last year.

"Throughout the year our primary markets have remained robust, and we enter the new financial year with a strong order book, a significant number of promising development programmes and opportunity pipeline that has doubled during the course of the last year," said chief executive officer Richard Gibbs.

"Notwithstanding the disruptions caused by shortages of electronic components, we believe that we are continuing to make the right investments in the business to capitalise on the exciting near-term opportunities in our core markets.

"We have been encouraged by the closing of two new telecoms infrastructure contracts early in our new trading year and will look to build further momentum as the year progresses."

At 1428 BST, shares in Filtronic were up 0.71% at 14.1p.

Reporting by Josh White for Sharecast.com.