16th Feb 2016 08:52
LONDON (Alliance News) - Microwave electronic products manufacturer Filtronic PLC on Tuesday said its pretax loss for the first half narrowed despite a big dip in revenue, as it expressed confidence that the restructuring it has undertaken will return the business to profitability.
Filtronic's pretax loss for the half to the end of November narrowed to GBP4.3 million from GBP5.3 million a year earlier, when it was hit by restructuring costs as it shifted its business to focus on higher-margin revenue and away from a volume-focused approach.
This shift also resulted in revenue dropping to GBP4.5 million from GBP7.3 million a year earlier, with dips in sales to the wireless and broadband markets in the half but an improvement in gross margins and lower company overheads helping to cushion the bottom line.
The group said it expects the benefits of the repositioning and restructuring of the business to flow through in the second half of the year and is confident it is now in better shape to return to health.
"Having undertaken an extensive restructuring and refinancing of the business during the course of the year, and having recently received significant milestone orders for our new product solutions, we are now much better positioned to return the company to profitability," said Reg Gott, Filtronics' chairman.
Filtronic shares were down 8.1% to 5.40 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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