AIM-listed electronics manufacturer Filtronic is on track for a third consecutive year of EBITDA growth following a strong performance in its interim results.
The company reported adjusted EBITDA of £1.1m for the six months ended 30 November 2021, up from £600,000 in the same period of 2020.
Revenue also increased to £8m from £7.1m the previous year.
During the period, Filtronic secured a contract from a RF test equipment company in the US valued at $800,000 (£600,000) for the pilot phase of the development supplying RF front-end modules for next generation over-the-air 5G test equipment.
Jonathan Neale was appointed as non-executive chairman. Neale was previously chief operating officer of McLaren Group and, prior to that, he was the CEO of McLaren Racing F1 and managing director of Hawk Military Aircraft at BAE Systems UK.
Neale said: “We are confident we will achieve a third consecutive year of EBITDA growth despite the headwinds of supply chain disruption from global semiconductor shortages. Coupled with a healthy cash position, this provides a robust platform to further develop the business and continue investing in revenue growth initiatives and the technology roadmap.
“The board and management team are highly motivated to build on this and execute the strategic plan with a desire and focus to drive and deliver shareholder value.
“Recent investments in product development and operational capability align with the UK government’s ambition for sovereign capability within the core markets we serve, as well as emerging markets such as Low Earth Orbit Space. This positions us well to capitalise on these opportunities and we are now starting to see the flow down into the supply chain and our opportunity pipeline.
“To this end, we are confident we can achieve our key strategic objective of broadening the customer base to add to our recent contract win with a leading 5G over-the-air equipment provider.”
Filtronic is headquartered near Leeds and has a base in Sedgefield in Durham.