Filtronic may sell Newton Aycliffe plant

Revenue from continuing operations was £73.5m (2006 £63.0m), with an operating loss before exceptional items of £5.3m (2006 £10.9m). Operating loss after exceptional items was £27.6m (2006 £10.2m). Discontinued operations recorded a profit of £76.7m (2006 £18.9m). Actions taken to reduce costs and widen margins enabled Compound Semiconductors to produce a near-breakeven result in the second half. The total impact of the capital expansion reversal referred to at the half year was £7.1m. Excluding this, and completion of the capital expenditure commitments, the unit delivered a positive cash flow in the half year. Subsequently, the main customer for mobile handset switch products advised us of its intention to in-source all its future requirements, resulting in Filtronic announcing a significant headcount reduction at the Newton Aycliffe facility.