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.
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 How the language you speak changes your view of the world
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
How the language you speak changes your view of the world
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...