31 January 2012 – half yearly report

The microwave and electronics group has reported interim results for the six months to 30 November showing that it is making steady progress.  Revenues from continuing operations were £10.5m and this compares with £8.2m in the previous six months.  Comparisons with the same period in 2010 are somewhat meaningless as the Filtronic Wireless business was only in the latter period for two weeks following its acquisition.  The adjusted operating loss has been reduced to £1.2m from £4.4m in the previous six months and net cash at the end of the period was £3.9m.  Filtronic Wireless continues to broaden its range of programmes following successful trials and initial production deliveries especially in the US.  Further progress in the latter is expected in the second half.  Although steady progress is likely at the group going forward, it is hard to see what the catalyst will be for a surge in the share price and the shares are a HOLD.