Filtronic Share Discussion Threads

[53cockers] 27/6/2024 20:06

https://www.teslarati.com/spacex-starlink-comcast-business-partnership/This is very interesting

[glengc] 27/6/2024 18:41

Here is Walter Magiera's interview with Mobile Satellite Users Association
hxxps://www.linkedin.com/feed/update/urn:li:activity:7212138813718978561/

[mirabeau] 27/6/2024 10:58

I wonder if FTC is involved in anyway with this?



NASA selects SpaceX to build deorbit vehicle for International Space Station
By Brett Tingley
published 13 hours ago

The contract is worth up to $843 million, not including launch costs.

NASA has selected SpaceX to develop a vehicle that will bring the International Space Station to a fiery end when the time comes.

The space agency first asked U.S. aerospace companies for proposals in March 2023 and then again in September of that year. The request was for a "space tug" vehicle that could help deorbit the U.S. sections of the International Space Station (ISS) safely.

On Wednesday (June 26), the agency issued a statement announcing that SpaceX has been selected to develop and deliver the "U.S. Deorbit Vehicle" as it's known. The contract is worth up to $843 million; that total does not include any launch costs, however, and is for the vehicle development only. The vehicle will be responsible for disposing of the space station "in a controlled manner after the end of its operational life in 2030," the statement adds.

NASA leadership praised the space station's legacy in the statement, adding that deorbiting the ISS will help pave the way for planned commercial space stations.

"Selecting a U.S. Deorbit Vehicle for the International Space Station will help NASA and its international partners ensure a safe and responsible transition in low Earth orbit at the end of station operations. This decision also supports NASA's plans for future commercial destinations and allows for the continued use of space near Earth," said NASA's Ken Bowersox, associate administrator for Space Operations Mission Directorate at the agency's Headquarters in Washington.

"The orbital laboratory remains a blueprint for science, exploration, and partnerships in space for the benefit of all," Bowersox added.

Several major ISS partners are committed to operations through 2030, while Russian space officials have confirmed their support through 2028.

[umik1] 26/6/2024 12:02

https://www.linkedin.com/posts/filtronic_tomorrow-walter-magiera-is-interviewed-by-activity-7211684275832680448-qty6?

[mirabeau] 26/6/2024 10:31

Filtronic (LON:FTC) – Progressively Spacebound Join The Flight

Filtronic, which has been at the forefront of RF communications for some 45 years, serves several distinct markets with advanced RF communications equipment, with the main applications being mobile telecommunications infrastructure, critical communication networks and aerospace & defence.

In addition to those terrestrial applications, the group is also seeing increasing opportunity for its technology in stratospheric and low earth orbit (‘LEO’) space applications.

It operates from 3 global manufacturing sites, with 2 engineering centres of excellence covering the full RF spectrum.

The £147m capitalised group’s product range and wider technology capabilities are supported by its own IP and in-house knowledge, and it has the protection of an extensive patent portfolio.

In Aerospace & Defence its products are at the cutting edge of radar and electronic warfare technology.

For Telecoms Infrastructure it enables the transfer of big data back into the core network, which is essential for 5G networks.

Its Critical Communications side facilitates reliable, accurate voice and data communications for emergency responders.

While its increasingly important Space specialist division provides high-performance transceiver modules, enabling ground to space and inter-space data transmission.

CEO Nat Edington stated that:

“The space market continues to present significant growth potential for Filtronic.

The recent Strategic Partnership we entered with SpaceX is exciting for all of our stakeholders.

It gives a platform to develop the business and puts us in a stronger position to capitalise on the plentiful opportunities in the core markets we serve.

We enter the new financial year with a very strong order book, a growing list of customers, including key strategic targets that we have secured in the year, and an opportunity pipeline that continues to grow and mature.”

After the recent Trading Update analysts Edward Stacey and Kimberley Carstens at Cavendish Capital Markets jacked up their Price Objective for the group’s shares from 57.4p to 91.9p per share.

The company’s guidance gave them confidence in doing so, impressed by the SpaceX business.

For the year to end April 2024 they are estimating revenues of £25.4m (£16.3m), while adjusted pre-tax profits could be £3.6m (£0.1m), lifting earnings up to 1.4p (0.1p) per share.

For the year now underway they go for £36.0m revenues, £6.4m pre-tax profits generating 2.7p per share in earnings.

Over at Edison Investment Research analyst Katherine Thompson has fairly similar estimates out in the market.

Stating that the group had benefited from strong demand from the space market, she expects that to continue into FY25.

The analyst noted that the company had confirmed that it has ramped its production capability to meet this higher level of demand and continues to invest in further capacity expansion to provide flexibility and support for future growth.

Furthermore, she concludes that the relationship with SpaceX, as well as growing penetration of the aerospace and defence market, provide avenues for sustainable growth.

The group’s shares closed last night at around 67p, some 7p lower than their recent 74p peak.

There is a growing momentum behind the shares, with dealing volumes on the increase, which is always a good sign.

I now see 80p being a new and easy Target.

(Profile 04.02.22 @ 11.6p set a Target Price of 14.5p*)

(Profile 04.01.24 @ 21p set a Target Price of 24p+*)

(Profile 26.06.24 @ 67p set a new Target Price of 80p)

[bazworth] 26/6/2024 09:46

Investor Meet Company

hxxps://www.investormeetcompany.com

Registration is free!!

Cheers

[mirabeau] 26/6/2024 09:46

Cheers fella. Appreciated

Will do as u suggest...

[bazworth] 26/6/2024 09:42

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

[mirabeau] 26/6/2024 09:27

baz

What did they say mate?

Any stand out references?

[bazworth] 26/6/2024 09:26

Just listened to the Rockwood Strategic Investor Meet Company presentation. Could not have been more positive about Filtronic.

FTC Results on 30 July

Cheers

[bazworth] 22/6/2024 09:44

The Tory candidate could be the on-board payload fitter….!

Marvellous

[forethought] 22/6/2024 09:29

Perhaps a Tory candidate?

[bazworth] 22/6/2024 09:14

I reckon we're in a great place, who knows what the next RNS may be?!!

Cheers

[mirabeau] 22/6/2024 09:06

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.

[bazworth] 22/6/2024 09:04

Good point donald pond!!

I reckon that the payload contract will be well above whatever the threshold is, hopefully!

Cheers

[bailey15] 22/6/2024 09:02

Handeln Sie Ihre Vermögenswerte mit Fintech-Börse, um schwach Rio zu verdienen

[donald pond] 22/6/2024 08:57

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?

[bazworth] 22/6/2024 08:23

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."

[bazworth] 22/6/2024 07:50

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

[mesquida] 22/6/2024 07:35

Good point wisecat, very odd to say the last.

[wisecat2] 22/6/2024 06:52

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 ???

[mirabeau] 22/6/2024 06:35

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.