Filtronic slides after placing

Filtronic the radio systems product maker, has raised £1.3m through a placing of shares at a small discount to the prevailing market price. Institutional investors and Filtronic's management are paying 22.5p per share to increase their stakes in the company.The placing will see Filtronic issue 3.72m new shares, equivalent to around 4% of the issued ordinary share capital of the company, and dig out 2.46m existing ordinary shares from its treasury.The net proceeds from the placing will be used for working capital purposes.The placing coincided with the release of the company's full-year results, which saw loss before tax balloon to £7.0m from a loss of £1.0m the year before, on revenue from continuing operations that eased a tad to £15.52m from £15.58m.Cash of £4.1m at the end of the year was down from last year's £16.2m following the November 2010 acquisition of the Isotek group. Integration of the Isotek and broadband businesses is being accelerated across the group, and specialist broadband resources are being redeployed to maximise mobile base station product opportunities, the company said. In parallel, the company is expanding its business development activity on new opportunities for its innovative filtering products as operational capacity is scaled up.After having paid a dividend at the interim stage, the company has opted not to pay a final dividend. The share price was -8.00% to 23.00p at 16:32. NR Filtronic