Filtronic (AIM:FTC) H2 2024 earnings summary

Executive summary

• Achieved 56% year-over-year revenue growth to £25.4m, driven by strong performance in the space and critical communications markets.

• Secured a 5-year strategic partnership with SpaceX, resulting in significant contract wins and market credibility.

• Operational flexibility enabled rapid scaling to meet increased demand, with major contract awards from European Space Agency, BAE Maritime Services, and QinetiQ.

• Recognized with the King's Award for Enterprise in Innovation for outstanding product development.

Financial highlights

• Adjusted EBITDA rose 285% year-over-year to £4.9m, with an EBITDA margin of 19%.

• Operating profit increased to £3.6m, up 1,423% from the previous year.

• Cash at bank at year-end was £7.2m, up from £2.6m, with net cash of £5.2m.

• Xhaul (including Space) revenue increased 122% year-over-year, while defence revenue decreased 49%.

• Critical communications revenue grew 53% year-over-year.

Outlook and guidance

• LEO space market momentum is strong, with ~£23m in SpaceX contracts secured since the partnership began.

• High volume of aerospace and defence opportunities expected, with new contract wins at BAE and QinetiQ.

• Telecommunications infrastructure market remains soft, but technology roadmap is driven by early adopters.

• EBITDA margin targeted in the 20%-25% range as scale increases.