Filtronic – end-May year Trading Update sees brokers upping their estimates, are shares looking 'toppy' at 155p, brokers TP 158p

Mark Watson-Mitchell
Jun 25
2 min read

25.06.2025

Ahead of announcing its Finals, on Tuesday 29th July, the £335m-capitalised Filtronic (LON:FTC), the designer and manufacturer of advanced radio frequency solutions for the space, aerospace and defence, and telecoms infrastructure markets, has today issued a Trading Update for the year to end-May.

After several increases in expectations over the last year or so the group informs that the market that its results will still be ahead of expectations.

Subject to audit, the Board expects to report a 120% increase in FY2025 revenue of some £56.3m (FY2024: £25.4m) and adjusted EBITDA of no less than £16.6m (FY2024: £4.9m).

Cash at bank on 31st May 2025 was £14.5m (30th November 2024: £7.2m).

Net cash (net of all lease obligations except right of use property leases) at 31st May 2025 was £12.3m (30th November 2024: £5.1m).

Confident outlook and growing breadth of pipeline

A healthy order book provides significant order coverage as the company commences the new financial year which, coupled with a growing pipeline, leaves the business in a strong position to meet market expectations for FY2026.

The pipeline now includes geostationary and medium Earth orbit opportunities across a range of end-use applications, in addition to the low Earth orbit satellite opportunities where the company has had much of its recent success.

Management Comment

CEO Nat Edington stated that:

"We are delighted with this strong trading performance, demonstrating our ability to ramp quickly and respond to market needs.

This has positioned us well with our lead customer where there is strong alignment on rapid execution.

We look forward to FY2026 with further optimism as we continue to invest in the business and capitalise on the expanding market opportunity in front of us.

The focus will be on broadening the customer base, completing key technology developments and relocating our state-of-the-art manufacturing site in Sedgefield to a new facility at the same science park, doubling our operational footprint by doing so."

Brokers View

Analysts Edward Stacey and Kimberley Carstens at Cavendish Capital Markets, have upped their estimates for the year to end-May 2025 to show revenues of £56.3m (£25.4m), with adjusted pre-tax profits of £14.4m (£3.4m), lifting earnings to 6.0p (1.4p) per share.

The analysts also look for the group to have grown its net cash position to £12.3m (£5.2m) at end-May.

For the year now underway they see £54.0m revenues, £8.3m of profits and 3.2p per share of earnings.

My View

I remain a big fan of Filtronic, its products and its sales market potential, HOWEVER, I continue to be cautious of investors pumping the group’s shares too high, especially when the sales and profit figures do not back up such hefty market valuations.

The shares, which were up to 175p a week ago, are now 155