The Investment Column: Filtronic is wired up for growth
Tuesday 27 January 1998
After racing to a 512p high, the shares crashed back to 200p when US customers delayed orders after running into technical hitches. But, helped by a profits bounce to pounds 5.07m in the six months to last November (from pounds 15,000 in the same period of 1996) the shares yesterday rose 10p to a two-year high of 469p.
Few British investors understand what Filtronic does. The technology is complex, but the important point is that Filtronic is one of just a handful of companies capable of supplying the mobile network equipment manufacturers. With the number of mobile-phone users set to treble to 520 million in the next five years, sales will remain buoyant. Crucially, demand for network equipment is steady compared to volatile handset sales.
Professor David Rhodes, Filtronic's chairman, is also bullish about longer- term prospects. He expects demand for "third-generation digital systems" - sophisticated mobile networks which can provide video and data as well as high-speed internet access - to start picking up in three years' time. The acquisition of two of his privately held companies for pounds 11.5m, subject to shareholder approval, will give Filtronic access to the advanced technology he has developed for military applications.
House broker Panmure Gordonforecasts full-year profits of pounds 11m, with pounds 16.5m next year, putting the shares on a forward earnings multiple of 30, falling to just 21. That's modest given Filtronic's growth prospects. The shares are worth a look - if your stomach can stand it.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
First full-length look is finally here
World cities ranked in terms of safety, food security and 'liveability'
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Sex abuse inquiry: 'Victims receive death threats' after MPs release names online
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Teenager brandishing fake gun taken down by police after demanding airtime on Netherlands' NOS TV station
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...