28th Jan 2014 08:43
LONDON (Alliance News) - Filtronic PLC Tuesday swung into a pretax profit in the half year ended November 30, 2013, as rising revenue at its Wireless division offset a decline in its Broadband division.
The wireless technology products manufacturer swung into a pretax profit of GBP93,000 from a pretax loss of GBP1.2 million in the previous year, as a result of higher revenues, up to GBP20.1 million from GBP16.4 million a year before.
Due to investment in developing antenna products for its Wireless division, Filtronic said it expects slightly increased costs of around GBP1 million for the full year. Although Filtronic expects revenues from its Antenna products to be minimal in the year, it said that the level of enquiries and projects already secured for the products gave it confidence.
Filtronic cautioned that its Broadband division would be hit by its relocation, which had led to exceptional costs of GBP373,000 during the first half. However, it expects further exceptional costs in the second half, and the division's legacy business to continue to fall away. Filtronic said it now expects the division to return to profitability in the full year 2015.
The company noted that its forecast sales for both businesses increasingly lean towards the US, meaning it is more exposed than it had been previously to the recent strength of the pound.
The company said it will continue to invest in its product range to address the growing high-speed 4G wireless market, noting that the rollout of 4G services is still in its early stages but had become a key differentiating parameter for telecommunications network operators.
Shares in Filtronic were trading down 10% at 54.50 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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