Shares in Filtronic Plc (LON:FTC) rose 3% to 8.35p on Wednesday morning after the telecoms manufacturer reported that demand was looking up after a “challenging year”.
Before-tax profits were almost wiped out in the year to May at just £100,000 (£2.7mln) as revenues dropped by more than a quarter to £15.9mln.
Shrinking demand for its telecoms antennas contributed to a “significant shortfall” in sales for the year.
The AIM-listed manufacturer’s shares halved in value in December after one of its major customers said it would not be buying anywhere near as many of its specially-designed Massive MIMO (mMIMO) antennas as expected.
A warranty issue also arose in July that has now been settled for £1.6mln but Filtronic has put the antennas business up for sale,
The remaining businesses make filters and transceivers for wireless telecoms infrastructure and the group predicted 'significant organic growth' here in the coming year.
Orders for Orpheus, its transceiver used in 5G networks, so far have totalled £10mln and production capacity at its Sedgefield site has been increased to meet the rising demand.