Filtronic (FTC)

Filtronic FTC Logo

The designer and manufacturer of microwave electronics products for the wireless telecoms infrastructure market and adjacent markets.

18-Dec-2017 – 10.92p – £22.6m – PER 8.34

Trading Update For The 6 Months To End November 2017 – Expected Revenue of £12.8m (FY2017: £21.6m) and unaudited operating profit of approximately £0.9m (FY2017: £1.8m) – Broadly in linewith “our expectations”. A slightly slower than expected ramp from recently announced defence contract wins which has pushed the first volume deliveries out of H1 and into H2. Sales are expected to continue to be lumpy.

I quite like the fundamentals here but do not like the sound of this update. Don’t like delays from H1 to H2 or the term “lumpy”.

2-Jul-2018 – 11p – £22.8m – PER 18.3

Trading Update For The 12 Months To End May 2018 – Fallen below my £30m Market Cap now but anyway, the second half is reported as broadly inline.

I will cease coverage here until it gets back above the £30m Market Cap value (if it ever does).

16-Aug-2018 – 13.75p – £28.5m – PER 22.9

Results For The 12 Months To End May 2018 – Seems in-line.

Still below my usual £30m Market Cap cut off (only just) but just noting that I remain Neutral – Even though the SP is up 50% in the past couple of months.

25-Oct-2018 – 21.25p – £44m – PER 35.4

AGM Statement – In-line (with a little bit of caution relating to legacy sales).

I am yet to see value here so remain Neutral.

12-Dec-2018 – 18p – £37.5m – PER 30.7

Trading Update – Sales down and expects to make a loss this year. Has enough money to survive whilst exploring what to do with the antenna business.

There’s little likelihood I will be getting involved here any time soon.

29-Jan-2019 – 6.6p – £13.8m – PER 42.4

Results For The 6 Months To End November 2018 – Revenue down to £10.4m (£12.8m last time), Loss of -£0.9m (£0.9m Profit last time) and Cash is down from £3.8m to £2.2m. Expects H2 to be broadly similar.

I will be not be getting involved here any time soon.

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