Filtronic PLC (LON:FTC) slipped to a half-year loss after the sale of its loss-making antenna business, but the wireless telecoms group said it is putting plans in place to step up growth in the coming years.
The AIM-listed company completed the US$5.5mln cash sale of Filtronic Telecoms Antenna Operations (FTAO) in January, but in doing so incurred one-off costs from the sale and a restructuring of the continuing business of £0.8mln in the first half, with an additional £0.7mln expected in the second half.
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The group posted revenue of £7.5mln in the six months to November, compared to £8.9mln a year earlier, and while underlying profits (EBITDA) were maintained at £0.6mln, the one-off costs contributed to a £0.7mln loss before tax against a £0.4mln profit at the same point a year earlier.
Executive chairman Reg Gott said Filtronic entered the second half with a “healthy” order book of more than £10mln and, with a “strong demand profile” from key customers, the group expects to meet EBITDA market expectations for the full year.
Gott, who continues to hold an executive role after Rob Smith resigned as chief executive in October, said the search for a new CEO is “progressing very well” and the board hopes a new appointee is in-post by the year-end.
On the outlook, he added: “The sale of the FTAO business enables us to implement an effective operating structure across a more efficient footprint and provides us with a stronger balance sheet to further develop and grow the business.
“The board is committed to revenue growth initiatives and intends to strengthen the sales and marketing organisation and extend engineering capacity across a range of disciplines during the course of this calendar year.”