Filtronic PLC has released its half-year results for the six months ended 30 November 2023. The company reported a revenue of £8.5m, slightly up from the previous year, and an adjusted EBITDA of £0.2m, down from £1.0m in the same period. The operating loss was £0.4m, compared to a profit of £0.5m in the previous year. The loss for the period was £0.5m, resulting in a basic loss per share of 0.24p.
The company's net cash position improved, reaching £1.2m when including right of use property leases and £2.4m when excluding them. Filtronic highlighted that its revenue and profit are expected to exceed market expectations for FY2024 and FY2025. Notably, the company secured a contract award of £3.4m from the market leader in the high-growth, low earth orbit ("LEO") satellite communications equipment market using Filtronic's proprietary Cerus 32 product.
Filtronic also made progress on a development project to supply the European Space Agency with next-generation space payload communication systems for £3.2m. The company received a £170k grant from the Defence Technology Exploitation Programme for a project titled 'Low cost and SWAP high density packaging for future RADAR'. The healthy cash position enables continued investment in revenue growth initiatives to deliver the strategic plan.
Post-period highlights include additional contract awards totaling £12.6m from the market leader in the LEO satellite communications equipment market, a development contract for £150k to develop an E-band payload module, a £4.5m contract award from BAE Maritime Systems, and a £2.0m contract award from QinetiQ.
Jonathan Neale, Chairman of Filtronic, expressed confidence in the company's outlook, stating, "We are encouraged by the recent successes we have had in the execution of our strategic plan and targeted growth initiatives." He emphasized that the impact of these successes is expected in H2 FY2024, with revenue anticipated to be ahead of full-year market expectations and profitability to be materially ahead.
The company's investments in engineering, business development, and marketing have resulted in several innovative new product launches, leading to an opportunity pipeline that is more than double that of six months ago. Filtronic remains focused on delivering robust compound growth and managing costs to drive stronger profits and margins.
In conclusion, Filtronic PLC's half-year results reflect a mixed financial performance, but the company's strategic initiatives and contract wins position it for growth and profitability in the coming periods.