Filtronic PLC (LSE:FTC) shares rocketed 15% higher after news it has won a €3.7mln (£3.2mln) contract with the European Space Agency to develop space-based 5G mobile telecoms mobile communication systems.
The AIM-listed company said it will start work immediately on the project, which is part of ESA's Advanced Research and Telecommunications Systems (ARTES) programme for "Space Deployment of 5G/6G and Sustainable Connectivity".
Filtronic said it will use its existing core technology to develop products at multiple frequencies, that can be supplied as part of next-generation LEO constellations.
Being on the programme was already part of the company's business forecast for the 2024 financial year, with design concepts and prototypes to be delivered during the current financial year and the final hardware by 31 March 2025.
Adding that it is "well-positioned to adapt existing telecommunications technology", Filtronic noted that satellite operators are progressively turning to Ka, Q/V and W-band frequencies to deliver the ultra-high bandwidth data links needed for the specific requirements of LEO space communications.