LONDON (ShareCast) - (Sharecast News) - Critical components manufacturer Filtronic said in an update on Monday that it was continuing to build momentum as it developed its strategic markets.
The AIM-traded firm said top-line growth and adjusted EBITDA for the financial year just ended was set to exceed market expectations, despite challenges caused by the global semiconductor shortage.

It said that strong trading performance would enable it to continue to make strategic investments in the future of the business.

The company said trading in the second half of the year ended 31 May was 13% higher than the first half, enabling it to deliver revenue "broadly in line" with market expectations, giving year-on-year revenue growth of 10%.

However, a "strong" sales mix and tight control of overhead costs resulted in adjusted EBITDA being "materially ahead" of forecasts.

The board said that as a result it expected, subject to audit, to report full-year revenue of approximately £17.1m and adjusted EBITDA of at least £2.7m, up from £1.8m year-on-year.

Cash at bank on 31 May totalled £4m, up from £3m at the end of November.

Net cash, net of all lease obligations except right-of-use property leases, at year-end totalled £3.1m, up from £2.2m over the same period.

"Throughout the year our primary markets have all continued to show a robust post-Covid recovery and, notwithstanding ongoing disruptions caused by shortages of electronic components, we have delivered another strong set of trading results for the financial year," said chief executive officer Richard Gibbs.

"Top-line growth of 10% and a third consecutive year of improved adjusted EBITDA and cash generation demonstrates the core strength of the Filtronic business as we continue to make good progress in pursuit of our long-term strategic goals.

"The delivery of key semiconductor components will remain an industry-wide challenge for the foreseeable future, but we believe we have the resources to manage the disruption to our business and we start the new financial year with a strong order book and optimism to deliver further growth next year."

Filtronic said it would report its results for the financial year ended 31 May on 2 August.

At 1322 BST, shares in Filtronic were up 26.33% at 11.37p.

Reporting by Josh White at Sharecast.com.

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