12 December 2016 – new supply agreement
The Filtronic Broadband business unit has entered into a multi-year supply agreement with a major defence equipment manufacturer to supply specialist high frequency modules for a latest generation defence related aerospace application. This covers a period of eight years, during which Filtronic will manufacture and test the modules in Sedgefield. It is expected to generate approximately £13m of net revenue over the term of the agreement. The agreement also provides for further increased volumes in the event that the client secures follow-on project wins with its end-clients. This is further positive news and the shares remain a SPECULATIVE BUY.