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Filtronic soars on second space communications contract

09:50, 21st July 2023
John Hughman
Vox Newswire

Filtronic (FTC)Follow | FTC, a leading designer and manufacturer of aerospace, defence, telecoms infrastructure, and space products, has been awarded a €3.7m (£3.2m) contract under the European Space Agency's Advanced Research and Telecommunications Systems ("ARTES") programme, which focuses on "Space Deployment of 5G/6G and Sustainable Connectivity" and is fully supported by the UK Space Agency.

Specifically, Filtronic will create advanced mmWave products to facilitate high-speed broadband connectivity between low earth orbit (LEO) satellites and receiving ground stations. Revenues from the project will be recognised in FY24 and FY 25, with the design concepts and prototypes being developed during the current financial year and the final hardware delivered by 31 March 2025.

Filtronic's involvement in the ARTES programme builds upon its existing core intellectual property and extensive expertise in designing and qualifying mmWave telecommunication technology. Notably, the company recently developed advanced solid-state power amplifiers ("SSPAs") for the first LEO E-band ground station trials. 

As satellite operators increasingly turn to Ka, Q/V, and W-band frequencies to meet the demand for ultra-high bandwidth data links in LEO space communications, Filtronic is well-positioned to adapt existing telecommunications technology and meet this growing market's requirements. As broker finnCap points out, subscribers to LEO telecoms services are growing rapidly, which means maintaining network speeds is crucial.  

The latest contract award is the second in LEO space communications, following a first contract awarded in January, and comes after a concerted multi-year effort by the company to enter the market, which is supported by UK government initiatives to develop leading-edge telecoms infrastructure suppliers. 

finCapp expects sales to climb by a quarter this year to £20.5m, delivering an adjusted pre-tax profit of £0.8m and adjusted EPS of 0.3p.


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