28th Sep 2015 07:03
LONDON (Alliance News) - Filtronic PLC Monday reported a widened pretax loss for its most recently ended financial year, which it called "disappointing and unsatisfactory", however, it said it had made a "good start" on its turnaround actions.
Filtronic designs and manufactures microwave electronics products for the wireless telecoms infrastructure market.
For the year to end-May the company reported a pretax loss of GP11.0 million, widened from a pretax loss of GBP3.7 million a year before, as revenue fell to GBP17.5 million from GBP39.9 million.
The company's results were hit by weaker-than-expected demand from original equipment manufacturers, compounded by delays in product development to lead to a fall in revenue. In its Wireless segment revenue more than halfed to GBP10.3 million from GBP23.2 million, hit by the conclusion of a large contract for TV interference mitigation filters in 2014 and delayed sales from new products.
Filtronic began taking steps to improve its performance in March, after it announced the resignation of then Chief Executive Officer Alan Needle, and implemented cost cutting measures including simplifying its Wireless business, cutting headcount in the UK and closing its offices in California.
It said that annualised overhead cost savings of GBP2.0 million have been achieved.
Following the year end in August the company announced plans to move from the main market to AIM and raise GBP4.5 million in a share placing.
"The general market outlook remains positive with demand for infrastructure products being driven by increasing consumption of data-heavy apps on mobile devices," said Chairman Howard Ford in a statement.
Whilst the underlying market growth potential is substantial, the company said, the market remains very competitive, and it has made "significant adjustments" to its business model to ensure it can meet these competitive challenges.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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