Trading Update and Board Changes

RNS Number : 3240G

Filtronic PLC

03 March 2015

 

3 March 2015

Filtronic plc

("Filtronic", the "Company" or the "Group")

Trading Update and Board Changes

Filtronic plc (LSE: FTC), the designer and manufacturer of microwave electronics products for the wireless telecoms infrastructure market, issues the following statement regarding current year trading and changes in Board responsibilities.

The announcement made on 28 January 2015 cautioned that the Wireless business was exposed to the timing of several new OEM product introductions over the next few months.

Following recent meetings with customers and a detailed and critical appraisal of the status of key engineering developments, it is now clear to the Board that the revenues from Wireless in the latter months of the second half will not build up as quickly as expected. In particular, it is unlikely that any of the antenna projects in development will produce significant revenue before the 31 May year end. As a consequence, the board now expects revenues for the Wireless business will be around £10.0m for the year ending 31 May 2015.

The Broadband business continues to trade in line with market expectations.

The Board has set in train a series of cost-saving measures involving redundancies both in the UK and overseas. This will have a modest positive impact on profitability and cash flow in the remaining three months of the financial year. The main benefit of these actions will not be felt, however, until the start of the forthcoming financial year.

Rob Smith, Chief Financial Officer, has replaced Alan Needle as Chief Executive Officer with immediate effect.

As at 28 February 2015, net cash amounted to £1.0 million. Bank facilities, based on invoice discounting, are in place and the Board is investigating a number of measures to strengthen the balance sheet with permanent capital.

Enquiries:

Filtronic plc	www.filtronic.co.uk
Howard Ford, Chairman	0113 220 0000
Rob Smith, CEO
Panmure Gordon (UK) Limited	020 7886 2500
Dominic Morley
Walbrook PR Limited	020 7933 8780 or [e-mail]
Paul Cornelius

 

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