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FILTRONIC PLC
Annual Report • Jul 29, 2025
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Annual Report
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National Storage Mechanism | Additional information 
RNS Number : 8837S
Filtronic PLC
29 July 2025
29 July 2025
Filtronic plc
("Filtronic", the "Group, or the "Company")
Audited Full Year Results for the Year Ended 31 May 2025
Transformational year of growth, scale and innovation
Filtronic plc (AIM: FTC), the designer and manufacturer of products for the aerospace, defence, space and telecommunications infrastructure markets, announces its full year results for the 12 months ended 31 May 2025.
Financial Highlights
| FY2025 | FY2024 | % change | |
| Revenue | £56.3m | £25.4m | 121% |
| Adjusted EBITDA* | £17.0m | £4.9m | 247% |
| Operating profit | £13.4m | £3.6m | 272% |
| Profit before taxation | £13.4m | £3.4m | 294% |
| Profit for the year | £14.0m | £3.1m | 352% |
| Basic earnings per share | 6.42p | 1.45p | 343% |
| Diluted earnings per share | 6.05p | 1.41p | 329% |
| Cash at bank | £14.5m | £7.2m | 101% |
| Net cash when excluding right of use property leases | £12.3m | £5.2m | 137% |
| Net cash | £10.8m | £4.2m | 157% |
| Cash generated from operating activities | £13.8m | £6.3m | 119% |
*Adjusted EBITDA is earnings before interest, taxation, depreciation, amortisation, share-based payments and share warrant charge.
Operational Highlights
Strong execution against growth strategy
| · | Transformational performance reflecting successful delivery against Filtronic's growth strategy. Project milestones with the Group's key strategic partner providing the foundations for continued close relationship and further contract expansion. |
| · | Strengthened go-to-market capability with new leadership team appointments, restructuring of the commercial team to better align with prime contractors and the opening of a new Cambridge office attracting top-tier RF and software engineering talent. |
| · | Move to a new custom-built facility in Sedgefield underway for completion H1 FY2026, doubling the Group's UK manufacturing footprint, to meet growing demand for the Group's products. |
Expanding engagement across Space and Aerospace and Defence markets
| · | Record order intake in the Space sector, including a landmark agreement with SpaceX, and new contract awards with Viasat, European Space Agency and Airbus. |
| · | Strengthening position in the Defence sector, demonstrated by the recent airborne radar application contract with Leonardo and progress made with the QinetiQ and BAE Maritime Systems programmes. |
Continued innovation to support scaling
| · | Expanded development into higher-frequency RF bands, notably V Band, unlocking new market opportunities and achieved an important milestone with the successful launch of Prometheus, the highest-power Solid State Power Amplifier on the market. |
| · | Accelerated transition from Gallium Arsenide (GaAs) to Gallium Nitride (GaN) technology enabling higher performance for satellite and defence systems with the GaN based product range to be launched in 2026. |
Confident Outlook
| · | Healthy cash position enables continued investment in revenue growth initiatives to deliver the strategic plan. |
| · | The convergence of space, aerospace and defence is driven by the growing need for high-frequency, secure, and resilient communications infrastructure which provide the Group with supportive long-term structural growth drivers across Filtronic's key markets. |
| · | Entered FY2026 with strong commercial momentum, a robust order book, and an organisation capable of scaling further. |
| · | Expanding pipeline across key markets leaves the business in a strong position to meet market expectations for FY2026. |
Commenting on the results, Nat Edington, Chief Executive, said: " FY2025 has been a transformative year for Filtronic, showcasing the successful execution of our growth strategy. Our record revenue growth and landmark wins in the Space and Defence sectors reflect the trust placed in us by global players and that our technology is meeting real world demand. As we enter FY2026, we are confident in our trajectory, with a strong order book, healthy cash position, and a strengthened leadership team in place. The transition to GaN technology, expansion into higher-frequency bands, and our move to a new, larger manufacturing facility will enable us to scale effectively and capitalise on the significant opportunities ahead."
Enquiries:
| Filtronic plc | Tel. 01740 618800 |
| Nat Edington (Chief Executive Officer) | or [email protected] |
| Michael Tyerman (Chief Financial Officer) | |
| Cavendish Capital Markets Limited | Tel. 020 7220 0500 |
| Jonny Franklin-Adams, Isaac Hooper, Trisyia Jamaludin (Corporate Finance) | |
| Sunila de Silva (Corporate Broking) | |
| Alma Strategic Communications Caroline Forde, Hannah Campbell, Rose Docherty |
Tel. 020 3405 0205 or [email protected] |
About Filtronic:
Filtronic is at the leading edge of advanced microelectronics globally, specialising in the design and manufacture of mission-critical communication networks. Operating from two global manufacturing sites and three engineering centres of excellence, the company delivers solutions that span the full RF spectrum. An extensive patent portfolio highlights Filtronic's ongoing drive for innovation and technological leadership.
With a track record of over 45 years', Filtronic's technology is trusted across high-performance sectors including space, aerospace, defence, telecoms infrastructure and critical communications. The company develops core IP building blocks and transforms them into highly customised solutions for high-growth target markets. Filtronic's expertise enables seamless data transmission, delivering greater bandwidth, lower latency and enhanced connectivity.
Filtronic has successfully coupled this engineering expertise with investment in state-of-the-art production equipment that enables the rapid transition of a turn-key solution from product development to full scale, high-quality manufacturing, at volume. The strategic markets of Low Earth Orbit (LEO) space, aerospace and defence are the focus of current product development programmes, where Filtronic can add significant value, realise long term sustainable margins and deliver shareholder value.
Headquartered in Sedgefield, UK, Filtronic is listed on the AIM market of the London Stock Exchange.
Forward-looking statements
The Chairman's statement and Chief Executive's review include statements that are forward looking in nature. These are made by the Directors in good faith based on the information available to them at the time of their approval of this report. Such statements are based on current expectations and are subject to a number of risks and uncertainties, including both economic and business risk factors that could cause actual events or results to differ materially from any expected future events referred to in these forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, the Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
Chairman's statement
For the year ended 31 May 2025
FY2025 has been an excellent year for Filtronic plc, marked by exceptional operational execution, accelerated growth, and strategic wins across our core markets. Building on the momentum established in FY2024, we entered this year with conviction-and have delivered record-breaking performance across multiple fronts.
Financial review
Trading in the second half of the year materially exceeded expectations, driven by our ability to consistently meet and exceed project milestones with our key customer. This enabled deeper engagement with them, providing us with the funding and products to replicate this success more widely in future years.
With our expanded manufacturing capacity now fully operational, the Group delivered revenue of £56.3m (FY2024: £25.4m), operating profit of £13.4m (FY2024: £3.6m) and adjusted EBITDA of £17.0m (FY2024: £4.9m) -more than double and triple the previous year's results, respectively.
We ended the year in a strong financial position with £14.5 million of cash at bank (FY2024: £7.2m) and £12.3 million in net cash (FY2024: £5.2m), providing a solid foundation for further investment and strategic growth.
Operational review
Filtronic operates in complex, fast-evolving markets-ranging from aerospace and defence to space and critical communications. While we anticipate continued macroeconomic and geopolitical volatility in the coming 12 months, the underlying demand for advanced RF and mmWave solutions remains strong.
We have a clear five-year product and technology roadmap and have made targeted investments in our customer-facing functions to ensure close alignment with client needs. These efforts are already yielding greater market insight, sharper product focus, and promising new business opportunities.
Innovation remains central to our strategy, driving the development of advanced technologies that enhance secure, high-performance connectivity across diverse domains and platforms. We anticipate the newly launched Prometheus V band amplifier and the development of a semiconductor chipset platform for rollout in early 2026 will both be important avenues of future growth.
Post period end, we secured the largest contract in Filtronic's recent history of $32.5m (£24.0m). This followed new contract awards from Leonardo in defence and Airbus in satellite communications, affirming the value of our technology across aerospace, defence, and space infrastructure domains.
These wins not only demonstrate the technical excellence of our engineering teams but also reflect the confidence that global industry leaders place in Filtronic to deliver mission-critical communications solutions.
Dividend Policy
Our strategic focus remains firmly on long-term value creation. Given the significant growth opportunities ahead, we are not proposing a dividend for FY2025. We believe retaining capital to invest in technology development, talent acquisition, and infrastructure expansion is the most effective way to drive sustainable shareholder returns.
Sustainability and Talent
We operate in long-cycle, high-growth markets where sustained innovation and execution is critical. To continue to succeed, we must continue to be a partner of choice-delivering innovative, high-value products through a globally connected supply chain and customer network.
A truly sustainable organisation is one that can attract, retain, and develop top talent. In the last twelve months, we have expanded to four engineering and two manufacturing sites offering exciting roles for both early-career and experienced professionals.
Resource efficiency is also a key strategic priority. Whether through energy, materials, water, or time, we are focused on reducing waste and maximising productivity across all functions. Our upcoming move to a new consolidated manufacturing facility will play a pivotal role in this regard-seamlessly integrating the additional capacity brought online during FY2025 and setting the stage for smooth operations in FY2026 and beyond.
Outlook
We enter FY2026 facing headwinds from a weakened USD but with a growing pipeline and increased customer engagement across multiple markets. With a robust order book, world-class talent, and a clear innovation strategy, we are well-positioned to lead in the converging sectors of communications, aerospace and defence, and space.
We remain confident that by focusing on what is within our control-engineering quality, customer intimacy, and operational agility-we are positioned for long-term relevance and success.
Our typical sale, design-in, and production cycles range from one to three years, offering the opportunity to grow and extend the long-term visibility of our customer order book.
I would like to extend my sincere thanks to our employees, customers, shareholders, and partners for their continued commitment and support.
Jonathan Neale
Chairman
28 July 2025
Chief Executive's review
As I reflect on the financial year 2025, and my first as CEO, I am extremely proud of the progress we have made. It is clear that this has been a transformational period for Filtronic - one defined by commercial success, operational scale-up, and continued technical innovation, all of which translated into a strong financial performance for FY2025.
Financial performance
Our financial performance in FY2025 reflects delivery against our growth strategy. Revenue increased by 121% to £56.3m (FY2024: £25.4m), building on the 56% growth already achieved in the prior year. Profitability improved, with operating profit increasing to £13.4m (FY2024: £3.6m) and adjusted EBITDA rising to £17.0m (FY2024: £4.9m) and gross margins benefited from a greater proportion of business coming from higher-value space and aerospace and defence contracts, proving our ability to ramp quickly and respond to market needs.
Operations and innovation
A defining moment in the year was delivering significantly increased demand from our key customer in the space sector. This required a step change in production volumes and operational complexity, which we achieved through targeted investment in production equipment, talent, and process automation. Our ability to deliver on time, at scale, and to exacting quality standards has built our credibility with this strategic customer and demonstrated our ability to support long-term, high-volume programmes. We are also continuing to see wider engagement with other established verticals of the European space market, demonstrated by the contract wins with Viasat and the European Space Agency, supplying technology for the direct to device market, in addition to an order to supply Airbus for its system on the OneWeb constellation.
In parallel, we advanced our organisational structure, required to position Filtronic for the next phase of growth. This included strengthening our leadership team with key new appointments, developing our commercial team to enhance and accelerate customer engagement and implementing improvements in programme management to ensure on-time delivery of more complex programmes.
We have also maintained a focus on the development and execution of our technology roadmap to ensure Filtronic remains at the leading edge of RF and mmWave innovation. This year, we advanced key technology and product developments that support our growth market opportunities for several years to come.
Our commitment to innovation remains central to our strategy. This year, we have progressed the transition of core technologies from Gallium Arsenide (GaAs) to Gallium Nitride (GaN) processes, enabling higher power, improved efficiency, and greater thermal performance-critical advantages for aerospace and defence and satellite communications applications. Alongside this, we expanded development efforts into other high-frequency RF bands, most notably V Band, which is anticipated for wider market adoption. A significant milestone in FY2025 was the launch of Prometheus, the highest power Solid State Power Amplifier ("SSPA") on the market, capable of very high frequency communications for Geostationary satellites. FY2026 will see a launch of a range of products based on our GaN technology, which will achieve power levels and performance that will be world leading.
Our markets
The convergence of space, aerospace and defence, and communications is accelerating - driven by the need for high-frequency, secure, and resilient communications infrastructure and Filtronic is well-positioned to capitalise on this significant medium-term market opportunity. Key growth drivers include accelerating satellite launches, global 5G base station rollouts, rising military expenditure, and a shift toward higher spectrum frequencies and advanced component technologies such as GaN. With a strong foundation in high-frequency connectivity solutions and a sharpened organisational structure, we are investing in go-to-market strategies and infrastructure to expand our customer orderbook and enhance long-term revenue visibility.
Our technology and product roadmaps have been designed specifically to support these markets and capitalise on the convergence and emerging needs over the next several years. Our roadmaps are aligned with key programmes to ensure we have the right products and capabilities in time and support our growth projections.
People and investment
The investment in our commercial team, including a new Chief Commercial Officer, has already ensured an expansion and acceleration of our opportunities. In FY2026, we will further evolve our go-to-market model to build strategic relationships earlier in programme lifecycles and align more closely with the buying behaviours of large primes and government-led initiatives. We will also deepen our activities in the European and US markets while actively expanding our pipeline and opportunities in other global regions.
This year, we successfully scaled our engineering function to support more complex and concurrent programmes. This included the opening of our Cambridge office, which has allowed us to tap into a larger pool of engineering talent. This has already proved to be a great success, with rapid expansion of the team, and three development programmes already running there. The mission of the Cambridge site is also to support our strategic initiative of moving up the value chain, by expanding our capabilities beyond pure RF into digital, software and system level expertise.
Outlook
We enter FY2026 with good commercial momentum, a robust order book, and an organisation capable of scaling further. Early trading has been encouraging, with continued demand from space and aerospace and defence customers and a growing pipeline of opportunities. We are focused on broadening the customer base, completing key technology developments and relocating our state-of-the-art manufacturing site in Sedgefield to a new facility at the same science and technology park.
The medium-term outlook is positive, and I am confident in our ability to build a sustainable high-growth, high-performance business that plays a critical role in the future of global communications infrastructure.
Nat Edington
Chief Executive Officer
28 July 2025
Financial Review
I'm delighted to be a member of a team that delivered strong revenue growth for the second consecutive year, underpinned by rising demand within the high-growth space market. This sustained performance has strengthened the balance sheet and enabled the Group to invest, at pace, ensuring we maintain forward momentum to capitalise on the market opportunity ahead.
It has been a year of significant progress, with the investments made enabling us to add capacity, build capability and enhance our product offerings. Our long-term strategy remains firmly on track with the markets we serve benefitting from structural growth and macroeconomic tailwinds.
FY2025 saw us expand our Strategic Partnership with SpaceX for further alignment of E-band technology. The initial strategic partnership signed in April 2024 was the enabler for the revenue growth of 121% and the adjusted EBITDA growth of 248% to £17.0m (2024: £4.9m), which saw the market expectations upgraded several times in the year.
Revenue growth has been exceptional over the last two years and while our lead customer accounts for a significant percentage of our revenue in FY2025, we expect this concentration to decrease going forward as we execute on a growing pipeline of opportunities elsewhere in the market, in addition to material contracts we have already announced for delivery in FY2026 and beyond.
Revenue
Group revenue increased to £56.3m (2024: £25.4m) demonstrating an ability to scale our operation to meet customer demand requirements. This manufacturing know-how and ability to ramp up production quickly has been developed from years of supplying the high-volume telecoms infrastructure market providing a core competence which is highly valued by our customers in the space and aerospace and defence market.
Revenue growth this year has been driven by our lead customer's expansion of their constellation, contributing 83% (2024: 48%) of revenue in FY2025.
As we move into FY2026, we are determined to diversify our customer base. New space order wins were recently announced with Viasat/European Space Agency and Airbus in the LEO market whilst further contracts were awarded with aerospace and defence customers such as Leonardo. We also have material revenue to be recognised from contracts with the European Space Agency, BAE Maritime and QinetiQ, won in the prior year, which will positively impact FY2026 and beyond.
Revenue from the aerospace and defence sector grew by 11%, reflecting early contributions from new programmes with recently acquired customers. We see momentum building to deliver year-on-year growth in the coming year to this sector. This outlook is supported by compelling sector fundamentals, including a shortage of RF engineering talent, increased focus on sovereign capability, greater engagement by defence primes with the UK supply chain, and a continued rise in defence spending across Western governments.
Demand in the critical communications market normalised following elevated levels last year, which were driven by the rebound from the global semiconductor shortage. While we expect trading in this sector to remain broadly flat over the coming years, our customer is important and highly valued, and we remain committed to servicing their long-term needs.
IFRS 15 'Revenue from Contracts with Customer' requires the SpaceX share warrants to be treated as a non-cash variable consideration payable to the customer. Therefore, there was a charge to revenue in the year of £1.3m (2024: £nil). Further information can be found in note 10.
Operating costs and headcount
Operating costs increased by 68% in the year to £21.0m (2024: £12.5m) reflecting the accelerated speed at which we are scaling the business to capitalise on the market opportunities. As revenue has grown, we have realigned our cost base to support a larger, more capable organisation that can sustain higher revenue levels and deliver against a broader technology offering and customer base.
The largest area of investment was in our engineering team, where we significantly increased headcount to support both product development and customer delivery. Our success in high-growth markets such as space, servicing high-profile customers, has helped attract an impressive calibre of talent. However, recognising the RF skills gap in the UK, we proactively expanded our access to talent by opening a new engineering design centre in Cambridge at the end of December 2024. The site scaled quickly and has already proven to be an effective addition.
To maintain flexibility and manage workload peaks, we continue to partner with external engineering firms and contract engineering resource on a variable cost basis, especially where niche skills or additional capacity is required.
Manufacturing headcount also increased in the year to meet output demand. This investment proved critical in supporting delivery performance, contributing to an "A" grade awarded by our lead customer in a recent supplier performance evaluation.
Salary-related costs remain the Group's largest overhead, representing 69% of the total operating costs, increasing by 78%, or £6.4 million, and were a large driver of the overall uplift in operating costs. This is reflected in our headcount numbers which increased to 186 (2024: 133) at 31 May 2025 and is analysed below:
| Number | 2025 | 2024 |
| Manufacturing | 89 | 73 |
| Research and development | 72 | 39 |
| Sales and marketing | 6 | 7 |
| Administration | 19 | 14 |
| Total headcount | 186 | 133 |
Engineering capability remains central to our long-term growth strategy. It is particularly encouraging that, in addition to increasing capacity, we also added new skills. This enhanced our ability to deliver more complex customer programmes, accelerate product development, and expand our technology roadmap which positions the Group well to execute on its strategic objectives.
Engineering spend as a percentage of revenue is a critical key performance indicator for the Group, reflecting its importance in driving long-term, sustainable growth. Whilst this metric temporarily lagged earlier in the year due to the pace of revenue growth, a strong recruitment drive in the second half enabled us to close the year just below target at 12% (2024: 11%). Maintaining focus on this metric ensures we are appropriately resourced to capitalise on growth opportunities, accelerate product innovation, and maintain a competitive edge through continued technology leadership.
Other costs increased in line with the ongoing scale-up of the business. This included additional administration resource to manage higher transaction volumes, as well as increased IT infrastructure, recruitment fees and insurance costs. The opening of the new Cambridge engineering site contributed to a rise in property-related expenses. These investments are aligned with our strategy to build a scalable and resilient business, capable of supporting a significantly higher level of trading and sustained long-term growth.
The Group continues to be active in securing grant funding to further support growth initiatives and investment. We benefitted from a further £0.1m of grant income in the year from the Defence Technology Exploitation Programme ("DTEP") and secured a further £0.2m towards the cost of key engineering capex which is critical for execution of the V-band product roadmap. We are actively engaged in several open calls across both regional funding schemes and national technology grant programmes and remain optimistic about obtaining the funds. This will play a role in continuing to support our innovative roadmaps and capital investment plans.
Adjusted EBITDA
The Group utilises an alternative performance measure ("APM") to provide a clearer view of underlying business performance. This APM is adjusted EBITDA as it measures the quality of earnings without the impact of non-cash expenses such as depreciation, amortisation and share-based payments, including the charge associated with SpaceX share warrants which is recognised against revenue.
Adjusted EBITDA for the year was £17.0m (2024: £4.9m) representing a 248% increase whilst operating profit was £13.4m (2024: £3.6m) representing a 272% increase. This improvement was driven by stronger gross profit on higher revenues, supported by a more favourable sales mix. Notably, the reduced proportion of low margin 5G telecommunications equipment which is characterised by its highly competitive price sensitivity contributed to this improvement in margin.
The table below shows the reconciliation of operating profit delivered at £13.4m (2024: £3.6m) to adjusted EBITDA of £17.0m (2024: £4.9m).
| 2025 | 2024 | |
| Reconciliation of operating profit to adjusted EBITDA | £000 | £000 |
| Operating profit | 13,442 | 3,610 |
| Depreciation | 1,315 | 945 |
| Amortisation | 537 | 287 |
| Share warrant charge | 1,303 | - |
| Share-based payments | 414 | 47 |
| Adjusted EBITDA | 17,011 | 4,889 |
Taxation
Our tax strategy is aligned with our core values and fits within our overall corporate governance structure. Our strategy ensures that we comply with all tax laws wherever we do business and that we pay all taxes that we are legally required to pay when they fall due. To safeguard our reputation as a responsible taxpayer we do not participate in any tax planning arrangements that do not comply with either the legal interpretation or the spirit of tax laws.
A tax credit of £0.7m (2024: tax charge of £0.2m) was recognised in the year. The Group benefits from R&D tax credits, due to the advancement of science and technology in the new products we develop, which lowers the amount of taxable profit on qualifying R&D activities. We also make use of the Annual Investment Allowance ("AIA") which offers tax relief on capital expenditure purchases and utilise first year allowances on capital purchases above the AIA threshold.
Research and development costs ("R&D")
Total R&D costs in the year before capitalisation and amortisation of development costs were £6.7m (2024: £2.8m). The Group incurred engineering costs on a mix of customer funded developments and progression of the technology roadmap.
The Group remains committed to investing in R&D as a key driver for future revenue growth and consequently measures R&D spend as a KPI. Key areas of spend in the year included product development for space applications in both the ground station and the payload, private networks and aerospace and defence. The year ahead will see us continue to invest in the development of our own strategic technology roadmap and proprietary intellectual property ("IP"), enabling us to build long-term shareholder value in the years ahead.
Where product development is customer specific, we seek to receive a Non-Recurring Engineering ("NRE") charge to maintain a healthy flow of cash during the development phase of engineering projects and ensure commitment from our customer. When developing our own technology roadmap and IP, we invest from our own cash reserves. Technology developed for the LEO space market, across multiple frequency bands, in both ground station applications and the payload have been developed exclusively from internal funds this year. Consequently, we capitalised £1.5m of development costs in the year (2024: £0.7m).
Recruitment of RF engineers remains a significant industry-wide challenge. However, we are encouraged by recent successes in attracting new talent across our four UK engineering development sites. To further strengthen our workforce, we are focused on building an organisation fit for the future by increasing graduate recruitment and expanding our apprenticeship programme, ensuring a pipeline of skilled engineers to support our growth ambitions. This aligns well with our sustainability strategy to provide high-quality jobs in the local community.
The Group capitalises its development costs in line with IAS 38. A reconciliation of R&D costs before capitalisation and amortisation can be seen in the table below along with d etails of our conservative approach to capitalisation of R&D :
| 2025 | 2024 | |
| Reconciliation of R&D costs | £000 | £000 |
| R&D costs in income statement | 5,625 | 2,408 |
| Capitalisation of development costs | 1,496 | 677 |
| Amortisation of development costs | (440) | (245) |
| R&D cash spend | 6,681 | 2,840 |
When capitalising development costs, an impairment review is undertaken of each development programme to test the carrying value does not require impairment in line with IAS 36.
Capital expenditure - plant and machinery and right of use assets (excluding property leases)
An elevated level of capital expenditure was undertaken in the year to support expansion plans including initial construction work on the new state-of-the-art facility at Sedgefield which will serve us well for the next phase of growth. Plant and machinery investment related to automated test providing the business with the capability to service other frequency bands in development and new production lines added to deliver the scale up of the operation. The total amount of capital purchased was £4.0m (2024: £1.5m).
Warranty provision
In line with industry practice, the Group provides warranties to customers over the quality and performance of the products it sells. Reflecting a full risk analysis of current commercial contracts at 31 May 2025, the warranty provision was £0.2m (2024: £0.4m).
Dilapidation provision
The Group leases facilities at four sites in the UK and one in the USA with each of the leases requiring the site to be restored to its original condition. At 31 May 2025, the dilapidation provision was £0.3m (2024: £0.0m).
Cash position and banking facilities
The Group recorded an increase in cash and cash equivalents to £14.5m (2024: £7.2m) at the year-end. Cash generated from operating activities in the year was £13.2m (2024: £6.3m) as adjusted EBITDA performance drove cash generation albeit with an increase in working capital synonymous with improved trading.
Net cash, when including all debt except property leases at the end of the period, was £12.3m (2024: £5.2m), whilst overall net cash including property leases was £10.8m (2024: £4.2m).
The Group's banking facilities are provided by Santander UK plc ("Santander"). The Group has a £5.0m Revolving Credit Facility ("RCF") with Santander which was signed in October 2024. This provides a high-level of cash headroom for future growth of the business. As at 31 May 2025 the facility was undrawn (2024: undrawn). Our covenants under this facility are debt service cover and interest cover measures, which have both been met throughout the year with substantial headroom available.
Regular reviews take place of our foreign currency cash flows. The Group undertakes hedging only where there are highly probable future cash flows and to hedge working capital exposures. The Group does most of its trading with customers in US dollars which creates a requirement to put in place a level of hedging contracts against the US dollar surplus that is expected to arise.
Going concern
In assessing going concern, the Board have considered:
| · | The principal risks faced by the Group which are discussed within the 'Risk management' section of the Annual Report; |
| · | The financial position of the Group including forecasts and financial plans; |
| · | The healthy cash position at 31 May 2025 of £14.5m (2024: £7.2m) and the additional headroom available through the undrawn RCF of £5m (2024: undrawn); and |
| · | Economic headwinds with the potential for customers to reassess their priorities, with opportunities postponed or curtailed. |
Following the above considerations, the directors are satisfied that the Group has adequate financial resources to continue in operational existence for a period of at least 12 months from the date of this report. Accordingly, the going concern basis has been adopted in the preparation of the Annual Report for the year ended 31 May 2025.
Michael Tyerman
Chief Financial Officer
28 July 2025
The Board
The directors that served during the year ended 31 May 2025, and to the date of this announcement, and their respective roles are set out below:
| Jonathan Neale | (Non-Executive Chairman) |
| Nat Edington | (Chief Executive Officer) |
| Michael Tyerman | (Chief Financial Officer) |
| Pete Magowan | (Non-Executive Director) |
| John Behrendt | (Non-Executive Director) |
Consolidated Income Statement
for the year ended 31 May 2025
| 2025 | 2024 | ||||||
| Note | £000 | £000 | |||||
| Revenue | 2 | 56,318 | 25,432 | ||||
| \====== | \====== | ||||||
| Adjusted earnings before interest, taxation, depreciation, amortisation, share-based payments and share warrant charge | 17,011 | 4,889 | |||||
| Amortisation of intangible assets | (537) | (287) | |||||
| Depreciation of property, plant and equipment and right of use assets | (1,315) | (945) | |||||
| Share warrant charge | (1,303) | - | |||||
| Share-based payments | (414) | (47) | |||||
| ---------- | ---------- | ||||||
| Operating profit | 13,442 | 3,610 | |||||
| Finance costs | 3 | (268) | (332) | ||||
| Finance income | 4 | 213 | 83 | ||||
| ---------- | ---------- | ||||||
| Profit before taxation | 13,387 | 3,361 | |||||
| Taxation | 6 | 662 | (220) | ||||
| ---------- | ---------- | ||||||
| Profit for the year | 14,049 | 3,141 | |||||
| \====== | \====== | ||||||
| ---------- | ---------- | ||||||
| Basic earnings per share | 5 | 6.42p | 1.45p | ||||
| Diluted earnings per share | 5 | 6.05p | 1.41p | ||||
| \====== | \====== | ||||||
The profit for the year is attributable to the equity shareholders of the parent company, Filtronic plc.
Consolidated Statement of Comprehensive Income
for the year ended 31 May 2025
| 2025 | 2024 | ||
| £000 | £000 | ||
| Profit for the year | 14,049 | 3,141 | |
| ---------- | ---------- | ||
| Other comprehensive income Items that are or may be subsequently reclassified to profit and loss: |
|||
| Currency translation movement arising on consolidation | 154 | (52) | |
| ---------- | ---------- | ||
| Total comprehensive income for the year | 14,203 | 3,089 | |
| \====== | \====== |
The total comprehensive income for the year is attributable to the equity shareholders of the parent company Filtronic plc.
All income recognised in the year was generated from continuing operations.
Consolidated Balance Sheet
at 31 May 2025
| Restated | |||
| 2025 | 2024 | ||
| Note | £000 | £000 | |
| Non-current assets | |||
| Goodwill and other intangible assets | 3,507 | 2,271 | |
| Right of use assets | 4,546 | 3,756 | |
| Property, plant and equipment | 4,508 | 1,153 | |
| Contract assets | 7 | 1,302 | 1,302 |
| Deferred tax assets | 1,754 | 1,047 | |
| ---------- | ---------- | ||
| 15,617 | 9,529 | ||
| ---------- | ---------- | ||
| Current assets | |||
| Inventories | 4,010 | 3,273 | |
| Trade and other receivables | 12,169 | 6,550 | |
| Contract assets | 7 | 3,504 | 1,303 |
| Cash and cash equivalents | 14,494 | 7,215 | |
| ---------- | ---------- | ||
| 34,177 | 18,341 | ||
| ---------- | ---------- | ||
| Total assets | 49,794 | 27,870 | |
| ---------- | ---------- | ||
| Current liabilities | |||
| Trade and other payables | 9,119 | 5,406 | |
| Provisions | 516 | 493 | |
| Deferred income | 851 | 1,403 | |
| Lease liabilities | 1,112 | 895 | |
| ---------- | ---------- | ||
| 11,598 | 8,197 | ||
| ---------- | ---------- | ||
| Non-current liabilities | |||
| Deferred income | 247 | 132 | |
| Lease liabilities | 2,573 | 2,121 | |
| ---------- | ---------- | ||
| 2,820 | 2,253 | ||
| ---------- | ---------- | ||
| Total liabilities | 14,418 | 10,450 | |
| ---------- | ---------- | ||
| ---------- | ---------- | ||
| Net assets | 35,376 | 17,420 | |
| ---------- | ---------- | ||
| Equity | |||
| Share capital | 8 | 10,800 | 10,798 |
| Share premium | 9 | 11,354 | 11,213 |
| Share warrant reserve | 6,109 | 2,605 | |
| Translation reserve | (676) | (522) | |
| Retained earnings | 7,789 | (6,674) | |
| ----------12,16 | ----------12,16 | ||
| Total equity | 35,376 | 17,420 | |
| \====== | \====== |
The total equity is attributable to the equity shareholders of the parent company Filtronic plc.
Company number 2891064.
Nat Edington
Chief Executive Officer
Consolidated Statement of Changes in Equity
for the year ended 31 May 2025
| Share capital | Share premium | Share warrant reserve | Translation reserve | Retained earnings | Total equity | |
| £000 | £000 | £000 | £000 | £000 | £000 | |
| Balance at 31 May 2023 | 10,796 | 11,077 | - | (470) | (9,862) | 11,541 |
| Profit for the year | - | - | - | - | 3,141 | 3,141 |
| Currency translation movement arising on consolidation | - | - | - | (52) | - | (52) |
| Share-based payments | - | - | - | - | 47 | 47 |
| New shares issued | 2 | 136 | - | - | - | 138 |
| Share warrants issued (note 10) | - | - | 2,605 | - | - | 2,605 |
| ---------- | ---------- | ---------- | ---------- | ---------- | ---------- | |
| Balance at 31 May 2024 (restated) | 10,798 | 11,213 | 2,605 | (522) | (6,674) | 17,420 |
| Profit for the year | - | - | - | - | 14,049 | 14,049 |
| Currency translation movement arising on consolidation | - | - | - | (154) | - | (154) |
| Share-based payments | - | - | - | - | 414 | 414 |
| New shares issued | 2 | 141 | - | - | - | 143 |
| Share warrants issued | - | - | 3,504 | - | - | 3,504 |
| ---------- | ---------- | ---------- | ---------- | ---------- | ---------- | |
| Balance at 31 May 2025 | 10,800 | 11,354 | 6,109 | (676) | 7,789 | 35,376 |
| \====== | \====== | \====== | \====== | \====== | \====== | |
Consolidated Cash Flow Statement
for the year ended 31 May 2025
| 2025 | 2024 | ||
| £000 | £000 | ||
| Cash flows from operating activities | |||
| Operating profit | 13,442 | 3,610 | |
| Share warrant charge | 1,303 | - | |
| Share-based payments | 414 | 47 | |
| Depreciation of property, plant and equipment and right of use assets | 1,315 | 945 | |
| Amortisation of intangible assets | 537 | 287 | |
| Movement in inventories | (797) | (531) | |
| Movement in trade and other receivables | (5,671) | (1,235) | |
| Movement in trade and other payables | 3,762 | 1,749 | |
| Movement in provisions | 24 | 129 | |
| Change in deferred income | (437) | 1,342 | |
| Tax paid | (49) | (16) | |
| ---------- | ---------- | ||
| Net cash generated from operating activities | 13,843 | 6,327 | |
| ---------- | ---------- | ||
| Cash flows from investing activities | |||
| Capitalisation of development costs | (1,496) | (677) | |
| Acquisition of other intangible assets | (277) | (107) | |
| Acquisition of property, plant and equipment | (3,835) | (666) | |
| Acquisition of right of use assets | (177) | (120) | |
| Interest received | 163 | 83 | |
| ---------- | ---------- | ||
| Net cash used in investing activities | (5,622) | (1,487) | |
| ---------- | ---------- | ||
| Cash flows from financing activities | |||
| Interest paid | (268) | (332) | |
| Proceeds from financing agreements | 137 | 750 | |
| Exercise of employee share options | 143 | 138 | |
| Repayment of principle element of lease liabilities | (915) | (784) | |
| ---------- | ---------- | ||
| Net cash used in financing activities | (903) | (228) | |
| ---------- | ---------- | ||
| Movement in cash and cash equivalents | 7,318 | 4,612 | |
| Currency exchange movement | (39) | (7) | |
| Opening cash and cash equivalents | 7,215 | 2,610 | |
| ---------- | ---------- | ||
| Closing cash and cash equivalents | 14,494 | 7,215 | |
| \====== | \====== | ||
Notes to the Preliminary Financial Information
for the year ended 31 May 2025
1 Basis of Preparation
These preliminary results have been prepared on the basis of the accounting policies which are to be set out in Filtronic plc's Annual Report and financial statements for the year ended 31 May 2025.
Whilst the information included in this preliminary announcement has been prepared on the basis of International Accounting Standards in conformity of the requirements of the Companies Act 2006 as applicable to companies reporting under those standards, this announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full financial statements within two months of this announcement.
The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 May 2025 or 31 May 2024. The financial information for 2024 is derived from the statutory accounts for 2024 which have been delivered to the registrar of companies. The auditor has reported on the 2025 accounts; their report was:
(i) unqualified
(ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The statutory accounts for FY2025 were finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the registrar of companies in due course.
Going Concern
In accordance with corporate governance requirements and the statement of directors' responsibilities, and as disclosed in the Directors' Report, the directors have undertaken a review of forecasts and the Group's cash requirements to consider whether it is appropriate that the Group continues to adopt the going concern assumption.
At 31 May 2025, the Group had cash at bank of £14.5m and access to an undrawn revolving credit facility of £5.0m.
The Board recognises the uncertain economic and political environment that the world faces and has reviewed the business outlook to reflect this uncertainty. Cash flow forecasts have been prepared to model various scenarios over a three-year period based on the Group's financial and trading position, principal risks and uncertainties and strategic plans.
A downside scenario was modelled, to stress-test the business, where programme curtailment and/or delays may adversely affect forward-looking demand to levels lower than those initially modelled in the base case scenario including reduced demand from a major customer.
A severe but plausible scenario was also modelled that took the downside scenario and removed a significant contract win that the Group expected to convert from the outlook period.
The scenarios modelled including the severe but plausible model, demonstrate the Group has adequate cash for the next twelve months from the date of the approval accounts.
New Accounting Standards
There are a number of new standards, including, amendments to standards and interpretations that are effective for financial statements after this reporting period, but the Group has not adopted them early. None of these are expected to have a material impact on the results or financial position of the Group.
Notes to the Preliminary Financial Information
for the year ended 31 May 2025
2 Segmental analysis
IFRS 8 requires consideration of the identity of the chief operating decision maker ('CODM') within the Group. In line with the Group's internal reporting framework and management structure, the key strategic and operating decisions are made by the Board who reviews internal monthly management reports, budget and forecast information as part of this. Accordingly, the Board is deemed to be the CODM.
The CODM has identified one operating segment within the Group as defined under IFRS 8. In turn, this is the only reportable segment of the Group as the entities in the Group have similar products and services, production processes and economic characteristics. Therefore, there is no allocation of operating expenses, profit measures or assets and liabilities to specific commercial markets.
Accordingly, the CODM assesses the performance of the operating segment on financial information which is measured and presented in a manner consistent with those in the financial statements by reference to Group results against budget.
The Group profit measures are adjusted operating profit and adjusted EBITDA, both disclosed on the face of the consolidated income statement. No differences exist between the basis of preparation of the performance measures used by management and the figures in the Group financial statements.
The Group has one customer representing individually over 10% of revenue each and in aggregate 83% of revenue. This is split as follows:
• Customer A - 83% (2024: 48%)
| Revenue by destination | Total | |
| 2025 | 2024 | |
| £000 | £000 | |
| United Kingdom | 3,946 | 2,239 |
| Europe | 1,205 | 2,154 |
| Americas | 51,163 | 17,121 |
| Rest of the World | 4 | 3,918 |
| ---------- | ---------- | |
| 56,318 | 25,432 | |
| \====== | \====== |
| Split of non-current assets by location | Total | ||
| Restated | |||
| 2025 | 2024 | ||
| £000 | £000 | ||
| United Kingdom | 15,004 | 9,274 | |
| Americas | 613 | 255 | |
| ---------- | ---------- | ||
| 15,617 | 9,529 | ||
| \====== | \====== | ||
Non-current assets relate to property, plant and equipment, right of use assets, goodwill and other intangible assets and deferred tax.
Notes to the Preliminary Financial Information
for the year ended 31 May 2025
3 Finance costs
| Year | Year | |||
| Ended | Ended | |||
| 31 May | 31 May | |||
| 2025 | 2024 | |||
| £000 | £000 | |||
| Interest expense for lease agreements | 268 | 236 | ||
| Minimum service costs and interest charges on invoice discounting facilities | - | 96 | ||
| ---------- | ---------- | |||
| 268 | 332 | |||
| \====== | \====== | |||
4 Finance income
| Year | Year | |||
| Ended | Ended | |||
| 31 May | 31 May | |||
| 2025 | 2024 | |||
| £000 | £000 | |||
| Revaluation of foreign currency denominated intercompany balance | 50 | 1 | ||
| Interest receipt on treasury deposits | 163 | 82 | ||
| ---------- | ---------- | |||
| 213 | 83 | |||
| \====== | \====== | |||
5 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the equity holders of the Company by the weighted average number of ordinary shares issued during the year.
Diluted earnings per share is calculated by adjusting basic earnings per share for the potential dilution from share options and share warrants. For the purposes of the diluted earnings per share calculation, it is assumed that all performance conditions attached to the share option schemes have been met as of the reporting date.
The weighted average number of shares in issue during the year and the resulting earnings per share calculations are as follows:
| 2025 | 2024 | |
| £000 | £000 | |
| Profit for the year | 14,049 | 3,141 |
| \====== | \====== | |
| '000 | '000 | |
| Basic weighted average number of shares | 218,854 | 216,340 |
| Dilution effect of share options and share warrants | 13,389 | 6,555 |
| ---------- | ---------- | |
| Diluted weighted average number of shares | 232,243 | 222,895 |
| ---------- | ---------- | |
| Basic earnings per share | 6.42p | 1.45p |
| Diluted earnings per share | 6.05p | 1.41p |
| \====== | \====== |
The SpaceX Warrants increase the number of diluted shares reported, which has an effect on our fully diluted earnings per share. If SpaceX exercises its right to acquire shares pursuant to the SpaceX warrant strategic partnership agreement, it will dilute the ownership interests of existing shareholders and reduce earnings per share.
Notes to the Preliminary Financial Information
for the year ended 31 May 2025
6 Taxation
The reconciliation of the effective tax rate is as follows:
| 2025 | 2024 | |||
| £000 | £000 | |||
| Profit before taxation | 13,387 | 3,361 | ||
| \====== | \====== | |||
| 2025 | 2024 | |||
| £000 | £000 | |||
| Profit before taxation multiplied by the average standard rate of corporation tax in the UK - 25% (2024: 25%) | 3,347 | 840 | ||
| Disallowable items | 838 | 209 | ||
| Deferred tax asset not recognised | - | 237 | ||
| Enhanced R&D tax credit | (360) | (589) | ||
| Foreign tax not at UK rate | 13 | 27 | ||
| Group relief from previously unrecognised deferred tax assets | (144) | - | ||
| Recognition of deferred tax asset | (707) | (504) | ||
| Recognition of previously unrecognised deferred tax assets | (3,649) | - | ||
| ---------- | ---------- | |||
| Taxation (credit)/charge | (662) | 220 | ||
| \====== | \====== |
The main rate of UK corporation tax was 25% for companies with profit above £250,000. The US federal corporate rate is 21%.
The deferred tax assets recognised in the year have been calculated at the rates expected to be in existence in the period of reversal.
7 Contract Assets
Contract assets relate to the share warrants issued to Space X. Full details of the share warrants can be found in note 10.
| Year | Restated Year |
||||
| Ended | Ended | ||||
| 31 May | 31 May | ||||
| 2025 | 2024 | ||||
| £000 | £000 | ||||
| Opening contract assets | 2,605 | - | |||
| New contract assets generated | 3,504 | 2,605 | |||
| Amortised to revenue | (1,303) | - | |||
| ---------- | ---------- | ||||
| 4,806 | 2,605 | ||||
| \====== | \====== | ||||
Notes to the Preliminary Financial Information
for the year ended 31 May 2025
8 Share Capital
| Deferred shares of 10p each | Ordinary shares of 0.1p each issued and fully paid | ||
| Number '000 | Number '000 | £000 | |
| At 31 May 2023 | 106,877 | 215,121 | 10,796 |
| Exercise of share options | - | 2,000 | 2 |
| ------------- | ------------ | ----------- | |
| At 31 May 2024 | 106,877 | 217,121 | 10,798 |
| Exercise of share options | - | 1,881 | 2 |
| ------------- | ------------ | ----------- | |
| At 31 May 2025 | 106,877 | 219,002 | 10,800 |
| \======== | \======== | \======= |
All shares are allotted, called up and fully paid. Holders of the ordinary shares are entitled to receive dividends when declared and are entitled to one vote per share at meetings of the Company.
The deferred shares have no rights to vote or receive dividends.
9 Share Premium
| £000 | |||
| At 31 May 2023 | 11,077 | ||
| Exercise of share options | 136 | ||
| ----------- | |||
| At 31 May 2024 | 11,213 | ||
| Exercise of share options | 141 | ||
| ----------- | |||
| At 31 May 2025 | 11,354 | ||
| \======= | |||
10 Share Warrant Reserve
Tranche 1 and 2
On 24 April 2024, the Group entered into a share warrant arrangement with SpaceX in conjunction with a
commercial agreement and strategic partnership. This related to the supply of E-band Solid State Power Amplifiers ("SSPAs") and new technology being developed for SpaceX for use in their Starlink constellation.
The warrant agreement grants SpaceX the right to acquire up to 21,712,109 shares of the Company (equivalent to 10% of the Company's total share capital at the inception of the warrant agreement). The exercise price of vested warrants is 33.0p per share, based on the closing mid-market price at 23 April 2024, which is the date prior to signing the warrant agreement. The directors have assessed the warrants and made a judgement that the warrants should be treated as equity instruments as defined by IAS 32. This is because the warrants have a fixed consideration at 33.0p per share for a fixed number of units to exercise.
Notes to the Preliminary Financial Information
for the year ended 31 May 2025
10 Share Warrant Reserve (continued)
The warrants have been recognised in the financial statements based on the value at the date of signing of
the agreement. An initial entry has been made in contract assets measured at fair value, but not subsequently remeasured, with the corresponding entry to equity.
The initial fair value of the warrants at inception was £2,605,453, based on a fair value per warrant of £0.11 and the total number of warrants expected to vest over the 5-year vesting period. The directors have judged all of the warrants will vest, otherwise SpaceX and Filtronic would not have entered into the agreement. The warrants represent non-cash consideration payable to a customer under IFRS 15. Therefore, the contract asset, which effectively represents a deferred volume rebate, is amortised to revenue based on when the units are supplied to SpaceX. In the year, this represented a charge to revenue of £1,303,000.
The fair value of the warrants was determined using the Black-Scholes Model valuation method using a number of variables that require judgement including share price volatility, discount to the bid price, the risk-free rate and the expected life of the warrants. There are a number of variables that require judgement within this model including the risk-free rate, share price volatility, the vesting period and a bid price
discount.
Tranche 3
On 19 March 2025, the Company entered into a second warrant arrangement with SpaceX expanding the
Original strategic partnership entered into on 23 April 2024 to secure an increased allocation of business for the Group. The vesting of these warrants is dependent on certain performance conditions relating to the procurement of E-band SSPAs to support the Starlink constellation.
The warrant agreement grants SpaceX the right to acquire up to 10,949,079 at 92.8p per share. The accounting treatment of the warrants has been judged by management and has been determined to be treated the same as tranche 1 and 2. An initial entry has been made in contract assets measured at fair value, but not subsequently remeasured, with the corresponding entry to equity.
Fair value of share warrants - Tranche 3
The initial fair value of the warrants at inception was £3,504,000, based on a fair value per warrant of £0.93 and the total number of warrants expected to vest over the 5-year vesting period. The directors have judged all of the warrants will vest, otherwise SpaceX and Filtronic would not have entered into the agreement. The warrants represent non-cash consideration payable to a customer under IFRS 15. Therefore, the contract asset, which effectively represents a deferred volume rebate, is amortised to revenue based on when the units are supplied to SpaceX. There was no charge to revenue for tranche 3 in the year.
The fair value of the warrants was determined using the Black-Scholes Model valuation method using a number of variables that require judgement including share price volatility, discount to the bid price, the risk-free rate and the expected life of the warrants. There are a number of variables that require judgement within this model including the risk-free rate, share price volatility, the vesting period and a bid price discount.
11 Dividends
The directors are not proposing to pay a dividend for the year ended 31 May 2025 (2024: £nil).
Notes to the Preliminary Financial Information
for the year ended 31 May 2025
12 Analysis of net cash
| 31 May 2024 |
Cash Flow | Other movements | 31 May 2025 | |
| £000 | £000 | £000 | £000 | |
| Cash and cash equivalents | 7,215 | 7,318 | (39) | 14,494 |
| Lease liabilities - plant and equipment | (1,990) | 650 | (840) | (2,180) |
| --------- | --------- | --------- | --------- | |
| Net cash when including all debt except property leases | 5,225 | 7,968 | (879) | 12,314 |
| Lease liabilities - property leases | (1,027) | 268 | (746) | (1,505) |
| --------- | --------- | --------- | --------- | |
| Net cash | 4,198 | 8,236 | (1,625) | 10,809 |
| \====== | \====== | \====== | \====== |
Reconciliation of cash flow to movement in net cash
| 2025 | 2024 | ||||||||||
| £000 | £000 | ||||||||||
| Movement in cash and cash equivalents | 7,318 | 4,612 | |||||||||
| Movement in lease liabilities - plant and machinery | (190) | (971) | |||||||||
| Movement in lease liabilities - property lease | (478) | 269 | |||||||||
| Effect of exchange rate fluctuations | (39) | (7) | |||||||||
| ---------- | ---------- | ||||||||||
| Movement in net cash | 6,611 | 3,903 | |||||||||
| Net opening cash | 4,198 | 295 | |||||||||
| ---------- | ---------- | ||||||||||
| Net closing cash | 10,809 | 4,198 | |||||||||
| \====== | \====== | ||||||||||
Cash at bank earns interest at floating rates based on daily bank deposit rates. There are no restrictions on the availability of the cash and cash equivalents at 31 May 2025 (2024: £nil).
IFRS 16 requires the recognition of property leases on the balance sheet which is classified as a debt item.
Notes to the Preliminary Financial Information
for the year ended 31 May 2025
13 Restatement of financial statements
Restatements have been made to some of the financial statements for the period ended 31 May 2024. This impacted the Consolidated Statement of Financial Position and Statement of Changes In Equity but there have been no amendments to the income statement or cash flow statement.
The share warrants have been restated in line with the IAS 32 accounting standard which requires the fair value of share warrants to be accounted for as a contract asset with a corresponding entry to equity or financial liability. The director's judged this to be accounted for as equity. IAS 32 requires for this to be accounted at the time the warrant agreement was signed. Consequently, the contract asset in FY2024 increased by £2.6m, prior to amortisation, and equity in the share warrant reserve increased by £2.6m.
| 31 May | 31 May | ||||
| 2024 | 2024 | ||||
| (Audited) | Correction | (Audited) | |||
| £000 | £000 | £000 | |||
| Non-current assets | |||||
| Contract assets | - | 1,302 | 1,302 | ||
| ---------- | ---------- | ---------- | |||
| 8,227 | 1,302 | 9,529 | |||
| ---------- | ---------- | ---------- | |||
| Current assets | |||||
| Contract assets | - | 1,303 | 1,303 | ||
| ---------- | ---------- | ---------- | |||
| 17,038 | 1,303 | 18,341 | |||
| ---------- | ---------- | ---------- | |||
| ---------- | ---------- | ---------- | |||
| Total assets | 25,265 | 2,605 | 27,870 | ||
| ---------- | ---------- | ---------- | |||
| ---------- | ---------- | ---------- | |||
| Net assets | 14,815 | 2,605 | 17,420 | ||
| \====== | \====== | \====== | |||
| Equity | |||||
| Share warrant reserve | - | 2,605 | 2,605 | ||
| ---------- | ---------- | ---------- | |||
| Total equity | 14,815 | 2,605 | 17,420 | ||
| \====== | \====== | \====== | |||
Owing to the nature of the adjustment, an original and restated statement of financial position has not been shown.
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