NETPark based Filtronic is set to bring furloughed staff back to work after winning a £4.9m contract from a major customer.
The firm, which makes antennas and filters for the telecoms market, placed a number of its manufacturing staff on furlough early last month after delivery schedules for two key clients were subject to short term delays.
Now Filtronic has announced that it has secured a significant contract win from its lead defence and aerospace customer for the supply of high performance Transmit-Receive Modules (TRMs) for airborne applications.
The order, valued at £4.9m, is for the supply of the modules over a two-year period, with delivery starting next month.
In a stock market announcement, the firm said the order is a follow-on contract from one signed in 2017 and that the modules will be manufactured at its state-of-the-art hybrid microelectronics manufacturing operation in Sedgefield, where some staff will now be brought back from furlough.
Executive chairman Reg Gott said: “We are delighted to have received this significant new order as it also underlines our customer’s confidence in our ability to deliver this new and challenging programme.
“As identified in our trading update issued on the 30th June, we recently placed a number of manufacturing staff on furlough as a consequence of certain order confirmation delays, so we are very happy indeed that confirmation of this order will enable us to welcome some of these colleagues back to the business.”
In its recent trading update for the financial year ended May 31, the firm confirmed that its Telecoms Antenna Operation was sold during December 2019 and the sale completed in January 2020.
It said trading during the second half of the year was broadly in line with market guidance despite some Covid-19 related disruption in the final quarter.When it posts full year results in August, it expects to report revenue of approximately £17.2m, an 8% lift on last year’s £15.9m.Adjusted operating profit is expected to have doubled from £200,000 to £400,000 and adjusted earnings before interest, taxation, depreciation, amortisation and exceptional items will be around £1.2m, up from £700,000.
News source: Business Live