Innovative NETPark firm Filtronic cautious for future despite 8% rise in revenues

County Durham tech manufacturer Filtronic has sounded a note of caution amid Brexit and Covid-19 uncertainties, despite chalking up an 8% rise in full year revenues.

The Sedgefield firm, which makes antennas and filters for the telecoms market, posted revenue of £17.2m for the year ended May 31, up from £15.9m, following a boost from the sale of its antenna business for £4.1m in January.

Adjusted EBITDA was £1.2m, an increase from £700,000, and last year’s operating profit of £234,000 also increased to £381,000.

The firm posted a pre-tax loss of £400,000, compared to a £100,00 profit last year, after adding exceptional costs of £600,000.

During the year the company also invested in the Sedgefield site, installing and commissioning machinery to double capacity and improve product yields.

Operating costs grew from £7.6m to £9.3m, a substantial part of which relates to rising salary costs after boosting headcount significantly, growing its workforce from 100 to 141 during the year as it took on new people in manufacturing, research and development, and administration.

Soon after selling its antenna business, the Covid-19 pandemic struck, leading to the company furloughing some staff.

Last month, however, Filtronic said it was starting to bring back the workers off the back of a new contract from an existing customer.

The AIM-listed business has now said the slowdown in new business acquisition over the fourth quarter, due to Covid-19 related constraints, means that it has entered the new financial year with a slightly reduced order book compared to last year.

It said: “Although we were very pleased to be able to announce a key two-year follow-on contract from our lead defence client early in the new year, there remains considerable uncertainty within our end markets.

“Many of our customers had increasing difficulty in firming up future commitments, leading to a number of programmes being pushed out. Consequently, we entered the new financial year with a high level of confidence in our ability to perform under the restrictions presented by Covid-19, should conditions deteriorate again, but with a higher degree of uncertainty around customer requirements in terms of volumes and delivery schedules.

“This uncertainty is compounded by the imminent conclusion of the Brexit transitional period with, as yet, little clarity regarding trading terms with Europe from January 2021. As a consequence, we remain cautious in our outlook for the current year.”

Meanwhile, in a separate announcement, Filtronic announced the appointment of Richard Gibbs as the company’s new CEO.

Rob Smith resigned from his position as CEO in October 2019 and chairman Reg Gott had taken on the role in the meantime.

Mr Gibbs, who starts on September 1, has led a number of business operations supplying telecoms, aerospace, defence, medical and oil & gas markets and joins from Micross Components Ltd where he has been managing director since 2016.

News source: Business Live

Filtronic are based in NETPark Plexus

Other News

Follow NETPark On Social Media

Keep up to date with the latest NETPark news and events.

NETPark Logo

The North East Technology Park provides a dynamic and supportive environment to accelerate the growth of ambitious, innovative, high tech companies into global markets. NETPark encourages collaborative multidisciplinary links, driving innovation, enterprise and economic prosperity.
We provide companies with access to a focused and international community where talent flourishes, ideas are generated and businesses have the support and resources to compete with the best in the world.

NETPark North East Technology Park

NETPark, North East Technology Park,
Sedgefield, County Durham TS21 3FD

Call Us: (+44) 01740 625250

Access to quality facilities was one of the main drivers for deciding to locate the business at the NETPark. We have been able to use this as a launch pad to link into support from CPI and world-class expertise from Durham University.

Steve Clements, - Managing Director, aXenic

It fits perfectly for us that we’re surrounded by like-minded companies at NETPark. There are a number of highly skilled people in the area who can help us grow our business. The facilities and services offered by NETPark are first class, they make office life simple and engaging.

Stuart Wilson, - CEO, Ascarii

We initially came because of the printable electronics centre but access to a highly skilled semi conductor workforce in the North East has been a key factor in us staying and growing here, as well as the value for money office space and the access to funding.

Ken Williamson, - COO, PragmatIC Printing

The quality of the facilities at NETPark and the attitude of staff is first class. It has a really dynamic, innovative atmosphere.

Dr Neil Loxley, - Chief executive, IBEX

The proximity to the universities and the infrastructure are very important factors. Ultimately having a presence in Europe is very valuable to us and we intend to stay at NETPark for many years to come.

Dr Arnab Basu, - CEO, Kromek

CPI has developed a specialist offering to support SMEs looking to develop their printable electronics applications and our partnership with Business Durham has been instrumental in attracting several SMEs to locate here in the region.

Dr Jon Helliwell, - Director of Printable Electronics, CPI
Go to Top