- New contract valued at £16.8 million
- Shares up 186% over the past year
- 1H25 group revenue up over 200%
Shares in Filtronic (FTC:AIM) hit an all-time-high of 107p in early morning trading as the communications kit designer announced a further contract win with Elon Musk’s SpaceX.
The contract, valued at £16.8 million, is to be fulfilled over full year 2025 and full year 2026.
WHAT DID THE CEO SAY?
‘We are delighted to have secured this substantial order, which underscores Filtronic’s reputation for delivering high-performance RF solutions to our market leading customer,’ commented chief executive Nat Edington.
‘This contract, alongside our growing momentum in strategic markets, provides us with increased confidence in our ability to exceed our growth targets for full year 2025 and full year 2026.’
Last week (4 February), the company reported a jump in group revenue to £25.6 million for the six months ending 30 November compared to £8.5 million the previous year.
The company also announced two new production lines, a healthy cash position of £5.1 million excluding leases and the opening of a new design centre in Cambridge.
EXPERT VIEW
Katherine Thompson, director at Edison said: ‘As highlighted in two recent upgrades to our forecasts, the company has seen strong demand from its largest customer, SpaceX, resulting in revenue growth of 202% year-on-year. This has been achieved by expanding production facilities to cope with the additional demand, with two additional production lines added in September.
‘At the end of full year 2024 a contract asset of £2.6 million was created, representing the value of the warrants issued to SpaceX when the strategic partnership was announced in April 2024. The contract asset was amortised by £900,000 in the first half of 2025 (treated as an offset to revenue) and we forecast the remainder to be amortised in the second half of 2025 and full year 2026.
‘SpaceX has already placed sufficient orders for the 10.86 million warrants in tranche 1 to fully vest and this is already factored into our diluted EPS (earnings per share) forecasts.’
