Filtronic Regulatory News (FTC)

13 Jun 2008 07:00



Filtronic plc

Trading Update

Filtronic plc ("Filtronic") has today issued the following trading statement after the close of its financial year on 31 May 2008.

Revenue and operating performance in the second half of the year in the continuing businesses has been satisfactory reflecting demand in Point to Point ahead of the Board's expectations and a steady performance in Defence.

The Compound Semiconductors disposal was completed on 29 February 2008 and that business generated £17m of cash between 30 November 2007 and completion, inclusive of disposal proceeds. Also, on 29 February 2008, the company made an additional contribution to the defined benefit pension scheme to enable the purchase of annuities with an insurance company to fund past service liabilities. This scheme is in the process of being wound up.

The company paid a special dividend to shareholders of 120p per share (£89.2m) on 30 May 2008 following the completion of the capital reorganisation. Cash balance at the financial year end was £31m. 

The Board has decided to investigate the possibility of the sale of the Defence business and a process to achieve that end is underway. If a disposal were to result, it would facilitate a significant reduction in corporate overheads. The company would then focus on the further development of its Point to Point telecom equipment business.

Stephen Mole has today been appointed to the Board as Finance Director, having already performed the functional role for the past 18 months.

Filtronic will announce preliminary results for the year ended 31 May 2008 on 28 July 2008.

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