27th Nov 2019 13:19
(Alliance News) - The chair of antenna maker Filtronic PLC said Wednesday trading was in line with expectations in the first half of the new financial year, after activity levels were "encouraging".
Chair Reg Gott - who assumed executive functions earlier in November - told the annual general meeting of the AIM-listed firm that trading for the six months ending November was "anticipated to be in line with our expectations" after "encouraging activity levels in our continuing business lines".
Gott added that order input levels for its public safety, 5G backhaul and defence products had all shown "improvement" on the year prior.
"To support the improving order book approximately GBP1.0 million has been invested in increasing manufacturing and test capacity which also improves our capability," Gott added.
Gott became executive chair at the start of November after long-standing boss Rob Smith resigned.
The sales process for its telecoms antenna unit "continues", Gott added, with more details released "when appropriate". In September, Filtronic announced plans to sell its struggling telecoms antenna after a strategic review.
Gott said the USD2.0 million settlement payment related to a warranty claim will be paid across four instalments up to the end of calendar 2020. One payment has already been made, with another due at the end of November.
In October, Filtronic agreed a USD2.0 million settlement with an unnamed customer after a component fault was identified on antenna products shipped in 2016 and 2017.
Shares in Leeds-based Filtronic were 1.9% lower at 8.34 pence in London on Wednesday.
By Ahren Lester; [email protected]
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