We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Filtronic Plc | LSE:FTC | London | Ordinary Share | GB0003362992 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -1.50 | -3.06% | 47.50 | 47.00 | 48.00 | 49.30 | 46.00 | 48.50 | 3,721,854 | 16:05:31 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Electronic Components, Nec | 16.46M | 464k | 0.0022 | 215.91 | 102.28M |
From Apr 2019 to Apr 2024
TIDMFTC
RNS Number : 3293O
Filtronic PLC
29 January 2019
29 January 2019
FILTRONIC PLC
("Filtronic", the "Company" or the "Group")
HALF YEAR RESULTS FOR THE SIX MONTHSED 30 NOVEMBER 2018
Filtronic plc (AIM: FTC), the designer and manufacturer of antennas, filters and mmWave products for the wireless telecoms infrastructure and adjacent markets, announces its half year results for the six months ended 30 November 2018 ("H1 2019").
Financial Summary
× Revenue of GBP10.4m (H1 2018: GBP12.8m) × Impairment of capitalised development costs of GBP0.5m (H1 2018: GBPnil) × Operating loss of GBP0.9m (H1 2018: profit of GBP0.9m) × LBITDA* of GBP0.1m (H1 2018: EBITDA of GBP1.2m) × Net cash of GBP2.2m (31 May 2018: GBP3.8m) × Net cash outflow from operating activities GBP0.9m (H1 2018: GBP0.5m inflow)
* LBITDA/EBITDA is (loss)/earnings before interest, taxation, depreciation and amortisation
Highlights
× A third major multi-year defence contract valued between GBP3.0m and GBP5.7m, was received to provide state-of-the-art microwave modules for use in defence radar systems.
× Continued growth of mmWave Orpheus transceiver sales to a major Original Equipment Manufacturer ("OEM").
× Distributor with key relationships into Tier 1 Mobile Network Operators appointed for the North American operator market to sell a range of Filtronic developed antennas.
Hot Features
Premium
× Massive MIMO ("mMIMO") antennas sales launch into a major global OEM customer.
Commenting on the outlook, Reg Gott, Chairman, said:
"Our focus on high margin products and the strategic decision to target critical communications markets has been a key component of our strategy to mitigate the revenue volatility of network roll-outs in the telecoms market. This focus has provided us with a significant level of baseline business and improved visibility of future revenues, along with further opportunities to grow our product offering and customer base.
The news received in December from our mMIMO launch client that the end-customer was putting its roll-out programme on hold and thus significantly reducing its forecast demand until further notice, was a significant set-back to our growth plans. However, our client has confirmed that the programme is not cancelled and they will continue to sell and market our mMIMO products into the market. Notwithstanding this setback, we believe the outlook for the antenna market remains positive, with continued industry investment in network developments for 4G densification and 5G roll-outs.
Subsequent to the December notice we have received a follow-on order for the balancing requirement of mMIMO for H2 which underpins our confidence in the sales outlook for the remainder of the year and this, combined with our solid platform of long-term business within critical communications, means we expect trading in H2 to be broadly similar to H1.
We require a little time to fully evaluate the ongoing status of the mMIMO programme, bring the new distribution arrangement up to speed and complete a review of our options for the antenna business but, in the meantime, we are comfortable with our current cash position and cash flow outlook.
Enquiries
Filtronic plc www.filtronic.co.uk Reg Gott, Chairman 0113 220 0000 or investor.relations@filtronic.com Rob Smith, CEO Michael Tyerman, FD finnCap Ltd 020 7220 0500 Jonny Franklin-Adams/Hannah Boros (Corporate Finance) Alice Lane/Sunila de Silva (ECM) Walbrook PR Limited 020 7933 8780 or filtronic@walbrookpr.com Paul Cornelius /Sam Allen
Notes:
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Chairman's Statement
Group performance for the first half of FY2019 was broadly in line with management's expectations, with sales revenue of GBP10.4m (2018 H1: GBP12.8m). The lower revenues resulted from the anticipated conclusion of certain legacy filter product programmes, partially offset by stronger defence sales. The lower filter volumes, combined with the reduced margins during the launch of the new Massive MIMO ("mMIMO") antenna product, resulted in an operating loss of GBP0.9m (2018 H1: GBP0.9m operating profit) and LBITDA of GBP0.1m (2018 H1: GBP1.2m EBITDA), again broadly in-line with management's expectations. Net cash at 30 November 2018 was GBP2.2m (31 May 2018: GBP3.6m).
Unfortunately, as recently announced, having achieved the required mMIMO production ramp in H1, our OEM client advised us in December that H2 demand is now expected to be significantly lower than had originally been forecast, by their own end-customer. Our client has informed us they are still marketing this antenna, and we understand there will be an ongoing level of business, but demand volumes for this mMIMO variant beyond the current financial year are now uncertain. Whilst the lower demand now expected from the mMIMO launch programme is disappointing in the short term, the overall market outlook for antennas remains encouraging.
As a consequence of the mMIMO forecast revision we have impaired the capitalised development cost of this product by GBP0.5m. This impairment is included in the operating loss for the period.
In line with our strategy to reduce reliance on our OEM customers, we have been developing a portfolio of operator products and we were pleased to recently announce the appointment of Quintel as a distributor to the North American ("NA") operator market. Quintel is an established supplier to this market and is qualified to supply to most of the major NA mobile network operators.
Demand from critical communications customers remains strong as we continue our efforts to develop opportunities in these markets. Production of our major multi-year defence contracts is progressing well with further opportunities being developed and, having invested in additional production equipment, we hope to increase output volumes further in the final quarter of this financial year. Our public safety product offering also continues to perform well with healthy revenues in the period from the leading OEM in the market. Sales of transceivers to the telecommunications backhaul market were encouraging in the first half and we are actively developing this product line further in order to retain our market position. Increasing backhaul capacity to meet higher data rates will be a critical step in upgrading networks for 5G and Filtronic is well placed to benefit from this demand. Other development markets for high-capacity transceivers include 'track side to train' and 'air-borne' communications systems. We are actively engaging with these markets, which we see as important niche growth areas for the coming years.
We continue to assess the potential impact of Brexit as best we can in the current political confusion. We do not currently foresee any significant exposure to likely adverse consequences, but we have contingency plans available to mitigate potential disruptions in supply from certain European suppliers.
In summary, the lower demand forecast for mMIMO is a major disappointment, however, we have made good progress in recent years in increasing our resilience by broadening both our product portfolio and our customer base, which will help us cope with this unforeseen impact to the second half. Strong trading in the critical communications markets has enabled the Group to trade at a very small LBITDA despite the reduction in telecoms revenues, and the base level of business that we continue to enjoy means our cash reserves are sufficient to operate at a lower level of revenue whilst we return the business to growth and profitability.
I would like to thank our employees for all their continued hard work over the past year and to also thank our shareholders and other stakeholders for their continuing support as we work hard to grow our business.
Reg Gott
Chairman
January 2019
Condensed Consolidated Interim Income Statement
For the period ended 30 November 2018
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2018 2017 2018
(Unaudited) (Unaudited) (Audited)
Note GBP000 GBP000 GBP000
Revenue 10,444 12,801 23,995
====== ====== ======
(Loss)/earnings before interest,
taxation, depreciation and amortisation (53) 1,211 2,456
Depreciation (253) (284) (542)
Amortisation of other intangible
assets (19) (23) (46)
Amortisation of development
costs (120) (47) (95)
Impairment of capitalised development (500) - -
costs
---------- ---------- ----------
------------------------------------------ ----- ------------ ------------ -----------
Operating (loss)/profit (945) 857 1,773
Finance costs (54) (28) (61)
Exceptional finance items 5 - (247) (486)
---------- ---------- ----------
Finance costs (54) (275) (547)
------------------------------------------ ----- ------------ ------------ -----------
Finance income 58 - -
---------- ---------- ----------
(Loss)/profit before taxation (941) 582 1,226
Taxation 6 (49) 221 5
---------- ---------- ----------
(Loss)/profit for the period (990) 803 1,231
====== ====== ======
Basic and diluted (loss)/earnings
per share (stated in pence)
---------- ---------- ----------
Basic (loss)/earnings per share 7 (0.48p) 0.39p 0.59p
Diluted (loss)/earnings per
share 7 (0.48p) 0.38p 0.59p
====== ====== ======
The (loss)/profit for the period is attributable to the equity shareholders of the parent company Filtronic plc.
The above results are all as a result of continuing operations.
Condensed Consolidated Interim Statement of Comprehensive Income
For the period ended 30 November 2018
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2018 2017 2018
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Profit for the period (990) 803 1,231
---------- ---------- ----------
Items that are or may be subsequently
reclassified to profit and loss
Currency translation movement arising
on consolidation (81) 52 178
---------- ---------- ----------
Other comprehensive(expense)/ income (81) 52 178
---------- ---------- ----------
---------- ---------- ----------
Total comprehensive (expense)/income
for the period (1,071) 855 1,409
====== ====== ======
The total comprehensive (expense)/income for the period is attributable to the equity shareholders of the parent company Filtronic plc.
Condensed Consolidated Interim Balance Sheet
At 30 November 2018
30 November 30 November 31 May
2018 2017 2018
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Non-current assets
Goodwill and other intangibles 3,581 3,526 3,904
Property, plant and equipment 1,378 1,207 1,411
Deferred tax 976 1,308 965
---------- ---------- ----------
5,935 6,041 6,280
---------- ---------- ----------
Current assets
Inventories 2,909 1,995 2,138
Trade and other receivables 7,836 5,985 6,388
Cash and cash equivalents 2,314 3,114 3,794
---------- ---------- ----------
13,059 11,094 12,320
---------- ---------- ----------
---------- ---------- ----------
Total assets 18,994 17,135 18,600
---------- ---------- ----------
Current liabilities
Trade and other payables 6,681 4,728 5,076
Provisions 509 499 485
Deferred Income 203 46 360
Financial liabilities 103 107 206
---------- ---------- ----------
7,496 5,380 6,127
---------- ---------- ----------
Long term liabilities
Financial liabilities 315 160 312
---------- ---------- ----------
315 160 312
---------- ---------- ----------
---------- ---------- ----------
Total liabilities 7,811 5,540 6,439
---------- ---------- ----------
---------- ---------- ----------
Net assets 11,183 11,595 12,161
====== ====== ======
Equity
Share capital 10,789 10,788 10,788
Share premium 10,715 10,640 10,640
Translation reserve (699) (744) (618)
Retained earnings (9,622) (9,089) (8,649)
---------- ---------- ----------
Total equity 11,183 11,595 12,161
====== ====== ======
The total equity is attributable to the equity shareholders of the parent company Filtronic plc.
Company number 2891064
Condensed Consolidated Interim Statement of Changes in Equity
For the period ended 30 November 2018
Share capital Share premium Translation Retained Total equity
reserve earnings
GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 June 2018 10,788 10,640 (618) (8,649) 12,161
(Loss)/profit for the period - - - (990) (990)
New shares issued (net of
issue costs) 1 75 - - 76
Share based payments - - - 17 17
Currency translation movement
arising on consolidation - - (81) - (81)
---------- ---------- ---------- ---------- ----------
Balance at 30 November 2018 10,789 10,715 (699) (9,622) 11,183
====== ====== ====== ====== ======
Condensed Consolidated Interim Cash Flow Statement
For the period ended 30 November 2018
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2018 2017 2018
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Cash flows within operating activities
(Loss)/profit for the period (990) 803 1,231
Taxation 49 (221) (5)
Finance income (58) - -
Finance costs 54 275 547
---------- ---------- ----------
Operating (loss)/profit (945) 857 1,773
Share based payments 17 13 25
Profit on disposal of plant and
equipment - (43) (48)
Tax (paid)/received (49) (84) 56
Depreciation 253 270 542
Amortisation of intangible assets 139 69 141
Impairment of intangible assets 500 - -
Movement in inventories (781) 219 111
Movement in trade and other receivables (1,493) 2,458 2,259
Movement in trade and other payables 1,625 (3,219) (3,292)
Movement in provisions 24 (46) (60)
Change in deferred income (159) (48) 244
---------- ---------- ----------
Net cash (used in)/generated from
operating activities (869) 446 1,751
---------- ---------- ----------
Cash flows within investing activities
Interest paid (54) (7) (61)
Acquisition of plant and equipment (217) (125) (604)
Acquisition of intangible assets (316) (6) (19)
Capitalisation of development costs - - (436)
Proceeds on sale of assets - 46 49
---------- ---------- ----------
Net cash used in investing activities (587) (92) (1,071)
---------- ---------- ----------
Cash flows within financing activities
Proceeds from bank loans and finance
agreements - 267 601
Payment of bank loans and finance
agreements (100) - (75)
Proceeds from new shares (net of 76 - -
issue costs)
---------- ---------- ----------
Net cash (used in)/generated from
financing activities (24) 267 526
---------- ---------- ----------
Movement in cash and cash equivalents (1,480) 621 1,206
Currency exchange movements - (105) (10)
Opening cash and cash equivalents 3,794 2,598 2,598
---------- ---------- ----------
Closing cash and cash equivalents 2,314 3,114 3,794
====== ====== ======
Notes to the Condensed Financial Statements
1 Company information
Filtronic plc is a company registered and domiciled in the United Kingdom and is listed on the AIM market of the London Stock Exchange. The Company's registered number is 2891064. The address of the Company's registered office is Filtronic plc, Filtronic House, Unit 3, Airport West, Lancaster Way, Yeadon, West Yorkshire, LS19 7ZA.
Copies of the Company's annual report and interim financial report are available from the Company's registered office or the Company's website at www.filtronic.co.uk.
2 Basis of preparation
Whilst the financial information included in this preliminary statement has been prepared on the basis of the requirements of IFRSs in issue, as adopted by the European Union and effective at 30 November 2018, this statement does not itself contain sufficient information to comply with IFRS.
These financial results do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. The interim report should be read in conjunction with the annual report 2018, which includes annual financial statements for the year ended 31 May 2018.
The interim financial report for the six months ended 30 November 2018 was approved by the Board on 28 January 2019.
The directors have reviewed the projected cash flow and other relevant information and have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the directors continue to adopt the going concern basis in preparing the interim financial report.
The condensed consolidated financial statements for the six months ended 30 November 2018 consolidate the financial statements of the Company and all of its subsidiaries (together referred to as the 'Group'). Transactions between Group companies, which are related parties, have been eliminated upon consolidation and therefore do not require disclosure.
The condensed consolidated financial statements for the six months ended 30 November 2018 and comparative period have not been audited.
The comparative figures for the financial year ended 31 May 2018 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditor and delivered to the registrar of companies. The report of the auditor was (i) unqualified (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The adoption of IFRS 15 has not had a material impact on the interim financial statements.
3 Accounting estimates and judgements
The preparation of the financial statements requires the use of accounting estimates and judgements that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. The accounting estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of the future that are believed to be reasonable under the circumstances. Actual results may differ from the expected results. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The accounting estimates and judgements that have a significant effect on the financial statements are considered in the Filtronic plc Annual Report for the year ended 31 May 2018 which can be found on the Filtronic website. Unless stated below there is no material change from the Annual Report in the basis of calculation.
4 Segmental Analysis
Operating Segments
IFRS 8 requires consideration of the identity of the chief operating decision maker ('CODM') within the Group. In line with the Group's internal reporting framework and management structure, the key strategic and operating decisions are made by the CEO, who reviews internal monthly management reports, budget and forecast information as part of this. Accordingly, the CEO is deemed to be the CODM.
Following the reorganisation of the business in the last financial year, merging the Filtronic Broadband and Filtronic Wireless businesses, the CODM has identified one operating segment within the Group as defined under IFRS 8. In turn, this is the only reportable segment of the Group as the entities in the Group have similar products and services, production processes and economic characteristics. Therefore, there is no allocation of operating expenses, profit measures or assets and liabilities to specific commercial markets.
Accordingly, the CODM assesses the performance of the operating segment on financial information which is measured and presented in a manner consistent with those in the financial statements by reference to Group results against budget.
The Group profit measures are operating profit and EBITDA, both disclosed on the face of the consolidated income statement. No differences exist between the basis of preparation of the performance measures used by management and the figures in the Group financial statements.
The Group has four customers representing individually over 10% each and in aggregate 86% of revenue.
Revenue by Destination
The revenue presented is based on the geographic location of customers receiving the product/service.
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2018 2017 2018
GBP000 GBP000 GBP000
Revenue
United Kingdom 1,744 574 2,529
Europe 3,065 2,675 4,898
Americas 3,909 8,082 13,780
Rest of the world 1,726 1,470 2,788
---------- ---------- ----------
10,444 12,801 23,995
====== ====== ======
5 Exceptional items
Finance costs is stated after charging exceptional items as follows:
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2018 2017 2018
GBP000 GBP000 GBP000
Revaluation of US dollar denominated
intercompany balance - 247 486
---------- ---------- ----------
- 247 486
====== ====== ======
6 Taxation
A tax charge of GBP49,000 was incurred in the period for taxes relating to the Filtronic Wireless entity in China (H1 2018: GBP72,000).
7 Basic and diluted (loss)/earnings per share
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2018 2017 2018
GBP000 GBP000 GBP000
---------- ---------- ----------
(Loss)/profit for the period (990) 803 1,231
====== ====== ======
'000 '000 '000
Basic weighted average number of
shares 206,996 206,910 206,910
Dilution effect of share options - 2,933 3,219
----------- ---------- ----------
Diluted weighted average number of
shares 206,996 209,843 210,129
======= ====== ======
Basic (loss)/earnings per share (0.48p) 0.39p 0.59p
Diluted (loss)/earnings per share (0.48p) 0.38p 0.59p
====== ====== ======
8 Analysis of net funds/(debt)
1 June 2018 Cash Flow 30 Nov 2018
GBP000 GBP000 GBP000
------------ ---------- ------------
Cash and cash equivalents 3,794 (1,480) 2,314
------------ ---------- ------------
Bank loans (217) 60 (157)
------------ ---------- ------------
--------- --------- ---------
------------ ---------- ------------
3,577 (1,420) 2,157
------------ ---------- ------------
====== ====== ======
------------ ---------- ------------
Cash at bank earns interest at floating rates based on daily bank deposit rates.
At 30 November 2018, the Company had a GBP3.0m invoice discounting facility in place with Barclays Bank plc against the UK debtor book and a $4.0m factoring facility with Wells Fargo against the US debtor book. There were no drawings on either of these facilities at 30 November 2018.
The bank loan of GBP157k at 30 November 2018 was used to procure a piece of machinery at Sedgefield on a three year term with 20 months still left to run.
9 Forward looking statements
Certain statements in this half-yearly financial report are forward-looking. Where the half-yearly financial report includes forward-looking statements, these are made by the directors in good faith based on the information available to them at the time of their approval of this report. Such statements are based on current expectations and are subject to a number of risks and uncertainties, including both economic and business risk factors that could cause actual events or results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, the Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR EAXFPASDNEFF
(END) Dow Jones Newswires
January 29, 2019 02:00 ET (07:00 GMT)
1 Year Filtronic Chart |
1 Month Filtronic Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
