01 August 2005
Preliminary Results For The Year Ended 31 May 2005

• Download full Preliminary Results in PDF format
  
• Preliminary Results Presentation

Results in line with market expectations; Group returned to growth; Bank facilities amended and rescheduled; Progress on sale of Handset Products division

Filtronic plc (“Filtronic”), a leading global designer and manufacturer of customised microwave electronic subsystems for the wireless telecommunications and defence industries, announces its Preliminary Results for the year ended 31 May 2005. Worldwide sites are in the UK (North of England, Yorkshire, Midlands, Scotland), USA, Finland, China and Australia.

Financial Highlights

• Group sales £262.9m (2004: £245.1m)
• Operating profit £6.8m (2004: £4.8m)
• Pre-tax profit £5.5m (2004: £0.9m)
• Basic EPS 7.10p per share (2004: loss per share 2.38p)
• Diluted EPS 7.09p (2004: loss per share 2.38p)
• Final dividend maintained at 1.80p (2004: 1.80p), payable 1 November 2005, making total dividend 2.70p (2004: 2.70p)
• Net gearing reduced from 51% to 41%
• Bank facilities amended with Barclays and ABN AMRO and repayment rescheduled over five years

Operational Highlights

• Wireless Infrastructure:
  • Dominating market for base station filters with 28% market share
  • Supplying production quantities to all major OEMs
  • Started supply of integrated power amplifiers for base stations
• Integrated Products:
  • High volume semiconductor contract supported by round the clock working at the foundry at Newton Aycliffe
  • New contract started with ITT for electronic warfare subsystem in US
  • New point to point microwave links being sold to 3 OEMs
• Handset Products:
  • In period of exclusive negotiations for its disposal
• Board Appointments: John Roulston as Group CEO on 6 September 2004, Charles Hindson as Group Finance Director on 14 December 2004 and Iain Gibson joined on 21 February 2005 and became CEO of the Integrated Products division on 6 April 2005.
• Disposal of sites in Merrimack USA and Brisbane Australia for £6.3m
• Capital expenditure of £13.0m (2004 £11.7m)

Outlook

Professor J. David Rhodes said: “We see continued growth prospects for the group. Wireless Infrastructure is experiencing a substantial market recovery and the strategic efforts undertaken over the past few years in power amplifiers is increasing our presence in this important market sector. In Integrated Products, we have acquired volume contracts in compound semiconductors for our foundry at Newton Aycliffe, which now requires to meet the ramp up in its production, and strengthened our defence position in the United States. For the coming year, the group is well positioned for growth, due to strengthening markets in the communications sector.”

Enquiries