Filtronic kept full manufacturing capability in outbreak
MOBILE PHONE technology firm Filtronic said it managed to maintain full 24/ 7 manufacturing capability and meet all contractual deliveries throughout the Covid- 19 lockdown period.
The Leeds- based company said it commissioned a number of capital investment projects and met all key customer deadlines on a number of very significant engineering development projects.
However, the measures it took to remain fully operational hit its productivity and efficiency as time went by and consequently profits suffered over the fourth quarter of its financial year ( March, April and May).
The firm said it was therefore very pleased to deliver annual results in line with market forecasts. Group sales from continuing operations rose 8 per cent to £ 17.2m in the year to May 31. The group made a pretax loss of £ 400,000, down from a £ 100,000 profit the previous year. An adjusted operating profit of £ 400,000 was achieved before exceptional items.
Reg Gott, Filtronic’s chairman, said: “Whilst our end markets held up reasonably well during the lockdown period, enabling us to maintain delivery continuity, new business development and acquisition became progressively more difficult. Many of our customers had increasing difficulty in firming up future commitments, leading to a number of programmes being pushed out.
“Consequently, we entered the new financial year with a high level of confidence in our ability to perform under the restrictions presented by Covid- 19, should conditions deteriorate again, but with a higher degree of uncertainty around customer requirements in terms of volumes and delivery schedules.”
He said that the firm’s key strategic objective has been to broaden the customer base and product portfolio.
“The business demonstrated resilience and effective management through the recent phase of the Covid- 19 pandemic but, like our peers, we are cautious on the immediate outlook with the full economic fallout of the crisis unknown,” he said.
“However, we remain confident in the underlying fundamentals of the business and look to pursue the opportunities that present themselves to create long- term value for shareholders.”
Analyst Lorne Daniel at FinnCap said: “Filtronic’s contract wins have been impressive through the year.”