Shares have dipped by around 10% at North East space tech firm Filtronic PLC after the radio frequency specialist reported a sharp drop in annual profits.
Operating profit at the AIM-listed designer of products for the aerospace, defence, telecoms and space markets fell to £4 million from £13.4 million in its latest annual results.
Adjusted earnings before interest, tax, depreciation and amortisation dropped to £11.3 million from £17 million, on revenue that edged down to £55.5 million from £56.3 million.
Basic earnings per share fell to 2.07p from 6.42p. Net cash, excluding property leases, slipped to £10.8 million from £12.3 million.
However, the Sedgefield tech firm has entered its new financial year with around 90% of expected revenues already covered by its order book, and said it remained confident of meeting them,
despite the cosmetic dip in profits following a year of investment in capacity and technology.
The company expanded its relationship with SpaceX during the year, taking a $62.5 million order for next-generation gallium nitride E-band technology, its largest single contract to date.
Gallium nitride is a semiconductor material that allows higher-power, higher-frequency transmission than the gallium arsenide it is replacing.
Filtronic also won an $8 million amplifier development contract with a US customer, a €7 million deal with a European space company and a £13.4 million agreement with a European defence prime.
It completed the move into a self-funded headquarters and manufacturing site at Sedgefield capable of supporting revenues above £200 million a year.
The year ahead looks likely to be weighted towards the second half, reflecting the transition from gallium arsenide supply to the ramp-up of gallium nitride production.
Chief executive Nat Edington said: “FY2026 reflects the continued evolution of Filtronic into a business operating at greater scale, with stronger visibility, a growing product-led offering and an expanding opportunity across our core markets.
“We have continued to strengthen strategic customer relationships, progress our technology roadmap and invest in the capabilities required to support long-term growth. With a strong order book already providing substantial coverage for FY2027 revenues and growing engagement across key programmes, we are excited about the opportunities ahead.”
The board said the strength of the order book, together with favourable long-term demand across the space and defence sectors, leaves it confident of delivering results for FY2027 in line with market expectations.
