Filtronic annual profit dives amid higher costs; outlook confident

Filtronic PLC on Tuesday announced a decline in annual profit amid higher costs as the company hired more people, noting a "strong" order book.

The Sedgefield, England-based maker of advanced micro electronics said pretax profit fell 72% to £3.8 million in the financial year ended May 31, from £13.4 million a year ago.

Revenue edged down 1.4% to £55.5 million from £56.3 million.

Operating costs increased 19% to £25.1 million from £21.0 million, as the number of employees increased 24% to 236 from 186.

Salary-related costs were Filtronic's biggest overhead, representing 74% of operating costs.

The firm said: "Engineering headcount has again increased substantially to support both product development and customer delivery. We now service a considerably larger portfolio of programmes, reflecting the growing opportunity within the space sector and the corresponding demand placed on our supply capabilities."

Filtronic did not propose to pay a dividend, unchanged from a year ago.

Chair Jonathan Neale said: "FY2026 has been another important year in Filtronic's evolution. While the financial performance reflects a deliberate period of investment following several years of significant growth, the progress made across our customer base, technology roadmap, operational capabilities and strategic positioning gives the board increased confidence in the scale of the opportunity ahead. Filtronic enters its next phase of development with stronger foundations, broader market exposure and enhanced long-term growth potential."

The company's order book provided about 90% of coverage of current market expectations for financial 2027 revenue, it said.

Filtronic shares were 7.9% lower at 231.20 pence each on Tuesday just before noon in London, however they were 56% higher than a year ago.

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