Filtronic PLC on Friday said revenue dropped on component shortages, but remains hopeful amid supply chain constraints ease and contract wins.

Filtronic is a Sedgefield, England-based designer and manufacturer of products and sub-systems for the aerospace, defence, telecoms infrastructure, space, and critical communications markets.

The company said it expects to report a revenue for financial 2023 of around £16.3 million, a 4.7% decrease from £17.1 million a year prior. Filtronic attributed this to component shortages. Nevertheless, it said this will be in line with market expectations.

Adjusted earnings before interest, tax, depreciation and amortisation is anticipated to be around £1.3 million, down by 52% from £2.7 million.

Cash at May 31 was £2.6 million, 13% lower than £3.0 million at November 30.

Looking ahead, Filtronic said its pipeline continues to grow. It cited two new contract wins worth £500,000 which will be delivered in 2024.

Chief Executive Officer Richard Gibbs said: ‘Throughout the year our primary markets have remained robust, and we enter the new financial year with a strong order book, a significant number of promising development programmes and opportunity pipeline that has doubled during the course of the last year.

‘Notwithstanding the disruptions caused by shortages of electronic components, we believe that we are continuing to make the right investments in the business to capitalise on the exciting near-term opportunities in our core markets. We have been encouraged by the closing of two new telecoms infrastructure contracts early in our new trading year and will look to build further momentum as the year progresses’.

Shares in Filtronic were up 4.3% at 14.60 pence each in London on Friday morning.

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