Cheers fella. Appreciated
Will do as u suggest... |
Best you listen to it as I may not accurately reflect what they said, however:
next share price driver may well be the on-board payload announcement - development has been funded by a small contract announced earlier this year.
likely to be more than just Space X involved and possible Filtronic involvement there too.
Please note that this is my interpretation only!!
Suggest you register at Investor Meet Company as it's an excellent facility.
Cheers |
baz
What did they say mate?
Any stand out references? |
Just listened to the Rockwood Strategic Investor Meet Company presentation. Could not have been more positive about Filtronic.
FTC Results on 30 July
Cheers |
The Tory candidate could be the on-board payload fitter….!
Marvellous |
Perhaps a Tory candidate? |
I reckon we're in a great place, who knows what the next RNS may be?!!
Cheers |
 From Edison, Feb 2024. The final paragraph implies a ramp up in use of FTC product -
Space market demand accelerating
The contribution from the space market made up 6% of H124 revenue up from a negligible amount in the prior year. Since September 2023, Filtronic has won production contracts with a leading LEO satellite equipment provider worth $20m/£16m. These followed on from the original $2.8m/£2.2m development contract announced in January 2023 for customised Cerus solid state power amplifier modules for use in E-band trials for LEO satellite ground stations. With expected revenue recognition over CY24, this provides good support to H224 and H125 revenue.
Filtronic also announced that the same customer has awarded the company a £150k contract to develop a prototype E-band module that would form part of the satellite payload and provide downlink capability to E-band ground stations. We note that this customer has typically moved from prototype to production quickly and could do the same for this module. Subject to successful qualification testing and field trials, this would be Filtronic’s first completed product designed for space flight.
Filtronic is also working with the European Space Agency to develop a series of advanced mmWave products to enable broadband connectivity from LEO satellites to receiving ground stations.
In the LEO satellite market, the number of ground stations required is a fraction of the number of satellites in orbit. For example, Starlink uses roughly 400 ground stations but has more than 5,000 LEO satellites in orbit. Each ground station will have multiple antennas (8–40), with E-band currently making up c 5% of antennas although this is likely to rise as more multi-frequency satellites are deployed. |
Good point donald pond!!
I reckon that the payload contract will be well above whatever the threshold is, hopefully!
Cheers |
Handeln Sie Ihre Vermögenswerte mit Fintech-Börse, um schwach Rio zu verdienen |
A couple of years ago we were announcing contracts worth £400k. After the Starlink contract I wonder what the threshold for announcing a new contract now is? |
This is what I referred to in my last post:
From February 2024
"The second contract with the same customer is a development agreement to accelerate the design and prototype delivery of an E-band module that would form part of the satellite payload and provide downlink connectivity to the E-band ground station. Subject to successful qualification testing and field trials this module will represent the first Filtronic product designed for space flight and is key part of our strategy to address the satellite element of the LEO space market." |
My take on it is that they had already increased their numbers for FY25 and have marginally increased the most recent year given that FTC have beaten expectations.
Although FTC have successfully ramped up production, there have been no further contract wins since the previous broker notes.
I hope to hear of the on-board payload contract fairly soon - FTC were awarded the development contract earlier this year. We may also hear of the new CEO buying a few although with his amazing options, he may think he has enough!!
Fantastic all round performance from Filtronic!
Cheers |
Good point wisecat, very odd to say the last. |
Am I missing something
1) the broker uses the word significant for the ability to ramp up
2) the TP goes from 57.4p to 91.9p
3) unchanged FY25E forecasts ??? |
FY24 trading ahead of expectations
Filtronic expects to report FY24 revenue of c £25.4m (4.7% ahead of our forecast) and adjusted EBITDA of at least £4.8m (11.9% ahead of our forecast). Gross cash was £7.2m at year-end (our forecast £3.5m) and cash net of PPE lease liabilities was £5.2m (our forecast £2.5m). We have revised our forecasts to reflect the expected outturn in FY24, which results in a normalised diluted EPS upgrade of 18%. For FY25, we maintain our revenue and profit forecasts but assume a better net cash position at year-end of £5.8m (vs our previous £4.0m forecast).
Building the infrastructure to support growth
Filtronic noted that in H2 it scaled business operations significantly to meet strong demand across its core markets. In particular, it ramped production of E-band Cerus 32 solid state power amplifiers (SSPAs) for use in SpaceX’s Starlink constellation and is now delivering in line with ongoing customer demand. It is further investing in its manufacturing capabilities to support future growth and to provide flexibility as the opportunity pipeline converts. Filtronic also highlighted good progress in the aerospace and defence market, noting contracts won with BAE, QinetiQ and DSTL, and we believe it is well positioned to win further business from large defence primes as defence spending responds to growing global threats.
Valuation: Growing confidence
The stock has gained 45% since we last wrote in April, in our view reflecting growing confidence in the growth potential of the business following the strategic partnership with SpaceX, and now trades on a P/E of 47.2x FY24e and 26.9x FY25e. Using a 10-year reverse discounted cash flow with a WACC of 8%, the current share price is arrived at using revenue growth of 13% per year for FY26–34e and EBITDA margins growing from an estimated 22.4% in FY25 to 24.9% over the period. In our view, the relationship with SpaceX, as well as growing penetration of the aerospace and defence market, provide avenues for sustainable growth. |
Cavendish raise their target price to 91.9p
"Filtronic has released a trading update for the year ended May 2024, ahead of our previous expectations. The outperformance has been driven by strong deliveries to SpaceX within the scope of Filtronic’s five-year strategic partnership as a supplier of antenna components for the Starlink programme. This programme is a major contributor of revenue growth for FY25E and over the medium term, in our view. We are increasing our revenue and profit forecasts for FY24E but leaving our FY25E forecasts unchanged. The most significant takeaway for us is a derisking of the company’s ability to ramp up to scale on the SpaceX programme, and as such we are raising our target price from 57.4p to 91.9p." |
From the rns look like a spread bet covering 1,365,180 shares.
Heading - An acquisition or disposal of voting rights; An acquisition or disposal of financial instruments
To verify scroll down to the bottom of the form. |
TBF David is a very successful investor and he is only top slicing an outstanding investment - more portfolio management than baling out I would venture. If he heads from (say) 10% to (say) 5% I would be more concerned (unless the share price is c200p ;-)) |
So he's the one top slicing. Get rid of him and another SpaceX contract and you'll see a decent gain |
and another top slice by David Newlands |
With the update today i was hopeful these might fly.. just the news was already built into the price.. |
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