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(Alliance News) - Shares rose in Filtronic PLC on Monday as it announced top line growth in its recently ended financial year, cementing its guidance of profit beating market expectations despite the global semiconductor shortage.
Shares in the Leeds-based antenna maker were 11% higher at 9.95 pence on Monday in London.
For the second half ended May 31, Filtronic posted a stronger trading performance compared to the first half, allowing for continued growth in annual revenue, in line with market expectations.
For the year ended May 31, the company expects revenue to be around GBP17.1 million, up 9.6% from GBP15.6 million the year before. In addition, due to a control of overhead costs and a strong sales mix, adjusted earnings before interest, tax, depreciation and amortisation is set to be at least GBP2.7 million, a 50% rise from GBP1.8 million.
Filtronic attributed the rising performance to strong demand for telecommunication infrastructure products and demand profiles in the aerospace and defence market remaining resilient, allowing for the securing of follow-on orders for development programme wins in the prior year.
The company also said its results were "pleasing", due to the ongoing headwind from post-covid disruption in the semiconductor supply chain.
Despite not being immune to supply chain issues, Filtronic said it was able to mitigate this by securing inventory earlier than usual, as well as having direct control over its product designs.
"Throughout the year our primary markets have all continued to show a robust post-Covid recovery and, notwithstanding ongoing disruptions caused by shortages of electronic components, we have delivered another strong set of trading results for the financial year. Top line growth of 10% and a third consecutive year of improved adjusted Ebitda and cash generation demonstrates the core strength of the Filtronic business as we continue to make good progress in pursuit of our long-term strategic goals," said Chief Executive Officer Richard Gibbs.
Filtronic will publish its annual results on August 2.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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