Filtronic Regulatory News (FTC)

29 October 2020

Filtronic plc

 (the "Group" or "Filtronic")

AGM Statement

Filtronic plc (AIM: FTC), the designer and manufacturer of products for the critical communications, wireless telecoms and defence & aerospace markets, is pleased to provide the following update ahead of its Annual General Meeting to be held later today.

The programme reschedules, announced in the full year results, have now been finalised with the respective clients and manufacturing output has reached planned customer volume requirements. However, the reschedule delays lasted longer than anticipated, resulting in the Group trading broadly in line against the same period to date of the prior financial year.

Filtronic has remained fully operational throughout the Covid-19 pandemic and all office-based employees returned to the office during the summer months. Consequently, our core engineering developments remain on track against their respective milestone delivery plans and positive customer feedback has been received on the progress and quality of the developments, despite the disruption in the macro-environment. Recent investments in manufacturing and test capacity have also allowed more efficient loading of factory resources and the ability to respond with flexibility to changing customer demand.

The end markets we supply into remain reasonably robust but slow order intake has been experienced in the public safety market as our lead customer continues to experience in-field rollout constraints. New business acquisition remains a challenge as opportunities for customer engagement remain constrained and, to address this, we have recently strengthened the sales and marketing team and added a channel partner, Global Telecom Partners, in North America who have presence in the north eastern US states; we are actively working to add more channel partners to expand this coverage to other regions of the US market. Despite these challenges we were pleased to recently receive further engineering development contract wins, which whilst relatively small in size, have the potential to lead to larger revenues in the next year and beyond.

Cash at the bank is currently £1.9m (31 May 2020: £2.0m). The Group has in place undrawn invoice discounting facilities with Barclays of £3.0m and Wells Fargo of $4.0m in addition to an undrawn overdraft facility with Barclays of £0.5m.

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Notes:

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.