Filtronic orders down - but firm's optimism high

Jan 26 2010 by Iain Laing, The Journal

WIRELESS communications firm Filtronic is looking forward to ramping up production by 50% next year despite a plunge in its finances for the first half of this financial year.

The company, which is run from its County Durham base where it has 125 staff, yesterday posted figures which confirmed its continuing slide in business since before the credit crunch began two years ago.

Filtronic, which is officially headquartered in Shipley near Bradford where it has 25 staff, said revenue from continuing operations fell to £9.6m for the six months to November 30, compared to £18.3m for the same period in 2008. Profit before tax was £100,000, down from £2.4m.

But the business, which is focused on equipment for the telecoms industry since it sold its defence electronics arm last year, stressed that it had stayed in the black after cost-cutting measures which saw 25 jobs axed in both Shipley and Newton Aycliffe.

And it is continuing to invest £800,000 in its North East plant as it prepares to take advantage of the growth in its biggest market, helping mobile phone users receive data such as video and internet, which it expects over the next year. Its brokers expect revenues of £24m and £1.5m operating profits next year.

Chief executive Hemant Mardia said: “Everyone told me I was being too cautious when I said it would take this long for us to see business start to recover. But I was right.

“Now we can start to be very positive. Subscription growth for mobile phones is very strong. There is a massive growth expected in the next few years in the take up of data for phones, with the iPhone and the like.

“And we are the biggest in our field and very well positioned to grow on the back of this. We have invested in our plant and though we have had to cut staff we have improved the automation so that we have the capacity to ramp up production by 50%.

“Our orders may have gone down but we have kept our customers and won another very big long term customer, which I cannot name. I am very confident.”