REG - Filtronic PLC - Trading Update & Notice of Final Results

FiltronicAnnouncement

20/06/2024 07:00

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RNS Number : 1215T  Filtronic PLC  20 June 2024

 

20 June 2024

Filtronic plc

("Filtronic")

 

YEAR END TRADING UPDATE AND NOTICE OF RESULTS

 

Revenue and profit ahead of market expectations

 

Filtronic plc (AIM: FTC), the designer and manufacturer of products for the
aerospace, defence, telecoms infrastructure and low earth orbit ("LEO") space
markets, is pleased to provide the following trading update for the financial
year ended 31 May 2024 ("FY2024").

 

Revenue and earnings before interest, taxation, depreciation and amortisation
("adjusted EBITDA") has been delivered ahead of market expectations as trading
momentum continues to build, in what has been a transformational year for the
business, after entering into a Strategic Partnership with SpaceX as we
previously announced on 24 April 2024.

 

Financial highlights

 

Trading has been strong in H2 of the financial year and the Board, subject to
audit, expects to deliver FY2024 revenue of
approximately £25.4m (FY2023: £16.3m) and adjusted EBITDA of no less than
£4.8m (FY2023: £1.3m). Cash at bank on 31 May 2024 was £7.2m (30
November 2023: £4.1m). Net cash (net of all lease obligations except right
of use property leases) at 31 May 2024 was £5.2m (30 November
2023: £2.4m).

 

Operational highlights

 

The business operations scaled significantly in H2 due to strong product
demand within the core markets we serve. A key driver of this was the emerging
market of low earth orbit ("LEO") space and in particular, sales to our lead
customer, SpaceX, the market leader in this sector. We have reacted quickly in
both our engineering and operational execution. Rapid product development of
our innovative E-band Cerus 32 solid state power amplifier ("SSPA") enabled us
to meet the technical performance requirements for deployment in the ground
stations of the Starlink constellation. As SpaceX launch more satellites to
expand their constellation, this necessitates an expansion of their ground
stations to ensure high speeds and low-latency within the network. Production
ramp has now reached the ongoing demand needs, and our operation is
consistently delivering at these levels. We are investing in manufacturing
capabilities to facilitate further growth potential and give us greater
flexibility as our opportunity pipeline converts.

 

Recent success in aerospace and defence with contract wins from BAE, QinetiQ
and DSTL, augmented by demand from our long-established customer give
confidence for revenue growth in the outlook in this market. We continue to
invest in business development and will seek to expand the team with a
particular emphasis on expanding opportunities in this market. With western
governments investing more in their defence capabilities from growing global
threats, and the need for a UK sovereign defence supply chain remaining
critical, we are well placed to win more business with large defence primes
who are actively seeking to engage with the SME market.

 

Results for the financial year ended 31 May 2024 will be announced on 30
July 2024.

 

Nat Edington, Chief Executive Officer, said: "The space market continues to
present significant growth potential for Filtronic. The recent Strategic
Partnership we entered with SpaceX is exciting for all of our stakeholders. It
gives a platform to develop the business and puts us in a stronger position to
capitalise on the plentiful opportunities in the core markets we serve. We
enter the new financial year with a very strong order book, a growing list of
customers, including key strategic targets that we have secured in the year,
and an opportunity pipeline that continues to grow and mature."

 

 

Enquiries:

 Filtronic plc                                                         Tel. 01740 618800 or investor.relations@filtronic.com
                                                                       (mailto:investor.relations@filtronic.com)
 Nat Edington (Chief Executive Officer)
 Michael Tyerman (Chief Financial Officer)

 Cavendish Capital Markets Limited                                     Tel. 020 7220 0500
 Jonny Franklin-Adams/George Dollemore (Corporate Finance)
 Sunila de Silva (ECM)

 Walbrook PR Limited                                                   Tel. 020 7933 8780 or filtronic@walbrookpr.com
                                                                       (mailto:filtronic@walbrookpr.com)
 Nick Rome/Jospeh Walker

 

Note: This announcement contains inside information which is disclosed in
accordance with the Market Abuse Regulation.

 

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