5 December 2016 – trading update
The group has issued a very positive trading update for the six month period to 30 November, with revenues for the period expected to be £21.6m (2015: £4.5m), a substantial increase over last year. Filtronic Wireless has reported significant growth due to increased sales of its new ultra wide band integrated antennas to its leading customer with improving demand for other products also helping. Although this is very pleasing, the company has only a small number of customers and sales tend to be lumpy thus providing limited visibility of future revenues. The group has expanded its sales teams to help in this regard whilst also increasing the number of product variants to attract new customers, although the benefits of these developments are unlikely to be felt until the second half of 2017. The group had net cash at the end of the period of £0.7m. Recent share price weakness means that we retain our recommendation of SPECULATIVE BUY.