18 December 2017 – trading update

A trading update update has been released covering the six months ended 30 November 2017.  The company expects to report unaudited revenues for the first half of its financial year of approximately £12.8m versus £21.6m in the same period a year earlier.  Of this Filtronic Wireless will represent £11.0m (2016: £21.6m) and Filtronic Broadband £1.8m (2016: £2.9m).  The unaudited operating profit should be around £0.9m (2016: £1.8m) and there has been strong cash generation with a net cash balance at the period end of £2.9m.  The lower performance versus the comparative period last year was expected and reflects projected phasing of order fulfilment across the year.  However, some deliveries relating to recently announced defence contract wins have been pushed back to the second half.  On balance the shares still look relatively good value and we keep our BUY rating.