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Filtronic – year-end update, following prior ‘ahead of expectations’ announcement…

By Steve Moore | Monday 19 June 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Electronics products for the wireless telecoms infrastructure and related markets-focused, Filtronic (FTC) is “pleased to provide” a trading update for its year ended 31st May 2017 – and the shares has responded slightly higher towards 13p...

The announcement updates that “trading during the fourth quarter continued in line with the market guidance provided in the trading update on 12 May”, with the company expecting to report a swing to an operating profit before amortisation of intangibles “of approximately £1.7m”, and net cash position of £2.6 million, on revenue “of approximately £35.4m”.

It also included that “we are confident that Filtronic Broadband is now well positioned for a period of sustained improvement and a return to profitability in FY2018” and a positive immediate outlook for the Wireless business – though also noting the likes of “demand in the telecommunications infrastructure market is inherently difficult to predict” and “sales of antennas are expected to remain lumpy until we widen our customer base”.

This was reiterated by CEO Rob Smith commenting that “we are mindful that our revenues have historically been very concentrated and we are working hard to broaden our customer base and product range so that the business is more robust”.

The shares are little changed from when I wrote on the noted 12th May update – concluding that there does look to be a potentially interesting recovery story here, but having previously noted cash generation improvement looked to be needed and customer concentration concerns, I’ll await the greater detail of an update to “be provided following the end of the company's financial year” and, likely, the subsequent results statement before considering a purchase here. Following that update, and with it informed that the results “will be announced on 1 August”, this currently remains on the watchlist.


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