SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of February 2004
Filtronic PLC
(Translation of registrant's name into English)
The Waterfront, Salts Mill Road, Saltaire, Shipley, BD18 3TT, UK
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
For Immediate Release 2nd February 2004
Filtronic plc
Interim Results For Six Months Ended 30 November 2003
Results Ahead of Expectations at all Levels;
Market Leading Positions Maintained; Strengthened Financial Position; Positive
Outlook
Filtronic plc ("Filtronic"), a world leader in the design and manufacture of
customised microwave electronic products for the wireless telecommunications and
defence industries, announces its Interim Results for the six months ended 30
November 2003. Sites are in the UK (North of England, Yorkshire, Midlands,
Scotland), the US, Finland, China and Australia.
Financial Highlights
- - Group sales of GBP121.5m (2002: GBP123.9m).
- - Operating Profit of GBP4.7m (2002: GBP1.4m).
- - Pre-tax profits of GBP2.2m (2002: GBP0.0m).
- - Earnings per share of 0.97p (2002: 1.99p loss).
- - Interim dividend maintained at 0.90p (2002: 0.90p), payable 1 April 2004.
- - Successful debt refinancing - estimated annual saving of GBP1.5m.
- - Net gearing down to 51% (2002: 73%).
Operational Highlights
- - Wireless Infrastructure
- Sales similar to those of second half of previous year.
- Maintained leading market position.
- - Handset Products
- Mobile handsets demand increased substantially.
- Increased sales of antennas - up 37%.
- Increased market share, strong margins.
- - Integrated Products
- Defence sales better, expected to increase second half.
Trading Outlook
- - Wireless Infrastructure
- Forecast demand recently increased for base station products.
- Manufacturing capacity to be increased in China.
- Additional OEMs being aggressively pursued to strengthen market position.
- Initial quantities of power amplifiers delivered to new OEM customer.
- Other power amplifier products being developed for this customer and 3
other OEMs.
- - Handset Products
- Expects to maintain market leading position
- Record number of antennas under development for mobile phone programmes.
- - Integrated Products
- Selected by new customer as preferred supplier for RF switch products.
- Volumes to exceed one million units per month.
In his summary to shareholders, Professor J. David Rhodes said: "Filtronic is a
world leader in the design and manufacture of customised microwave electronic
products. We have maintained our market leading position in our two main
businesses. The facility at Newton Aycliffe provides the company with the
compound semiconductor technology necessary in future microwave electronic
products. The company's financial position has been strengthened with the return
to profitability and the refinancing of our borrowings."
Enquiries:
Professor J. David Rhodes,
Executive Chairman,
Filtronic plc
Tel: 020 7786 9600 (Monday)
John Samuel,
Finance Director,
Filtronic plc
Professor Christopher Snowden,
Director,
Filtronic plc
Tel: 01274 530 622
Peter Binns, Nathalie Ells,
Binns & Co PR Ltd
Tel: 020 7 786 9600
Executive Chairman's Statement
Interim financial results
Sales for the six months ended 30 November 2003 were GBP121.5m (2002 GBP123.9m)
and operating profit was GBP4.7m (2002 GBP1.4m). The prior year figure is stated
after charging GBP2.7m of exceptional closure costs relating to the Santa Clara
compound semiconductor facility.
Financing costs totalled GBP2.5m (2002 GBP1.4m), comprising net interest payable
of GBP2.8m (2002 GBP4.4m), a net currency exchange gain of GBP0.8m (2002
GBP2.0m) and an exceptional loss on the repayment of debt of GBP0.5m (2002
GBP1.0m gain).
The profit before taxation was GBP2.2m (2002 GBP0.0m). After taxation charges of
GBP1.5m (2002 GBP1.5m), the profit was GBP0.7m (2002 GBP1.5m loss). Basic
earnings per share is 0.98p (2002 1.99p loss). Diluted earnings per share is
0.97p (2002 1.99p loss).
Dividend
The Board is maintaining an interim dividend of 0.90p (2002 0.90p) per share
payable on 1 April 2004 to shareholders on the register at 27 February 2004.
Operations
On 26 January 2004, the company announced that the Board had implemented a
reorganisation of the business segments. This ensures that Filtronic is better
positioned to address the challenges of moving from the development stage into
production with a broad range of new products including power amplifiers.
Accordingly, the segmental analysis of the operating results is as follows:
Six months ended Sales Operating profit
30 November 2003 2002 2003 2002
GBPm GBPm GBPm GBPm
Wireless infrastructure 68.9 81.5 7.1 13.4
Handset products 33.3 24.3 7.7 5.2
Integrated products 18.7 17.4 (8.2) (14.2)
Central services 1.9 1.2 (1.9) (3.0)
Inter segment (1.3) (0.5) - -
--------- --------- --------- ---------
Total 121.5 123.9 4.7 1.4
--------- --------- --------- ---------
Note that the operating loss of Integrated Products for the six months ended 30
November 2002 is stated after charging exceptional closure costs of GBP2.7m.
Wireless Infrastructure
Sales in Wireless Infrastructure were similar to those achieved in the second
half of the previous financial year. Pricing pressure from the major Original
Equipment Manufacturers ("OEMs") has kept margins at the lower end of our
expectations for transmit/receive modules where we have maintained our position
as the world's leading independent supplier.
Handset Products
Handset Products saw demand for mobile handsets increase substantially towards
the end of 2003. We have maintained our leading market position resulting in
increased sales of antennas. High volume flexible manufacturing techniques have
enabled us to take increased market share and to achieve strong margins. These
manufacturing processes are well suited to the increasing complexity of the
products, many of which now include additional components.
Integrated Products
Integrated Products embraces the segments previously disclosed as Electronic
Warfare, Broadband Access and Compound Semiconductors and will rely on
integrated compound semiconductor circuits from our Newton Aycliffe facility in
its future products. The business will provide the high power gallium arsenide
("GaAs") power amplifier modules to the Wireless Infrastructure business for
incorporation into the complete power amplifier and related products for the
base station market. The company has developed a range of radio frequency ("RF")
switches using our high performance proprietary GaAs switch process. Costs of
the Newton Aycliffe compound semiconductor facility remain at approximately
GBP1m per month.
Currently the largest area of Integrated Products sales is in defence, including
products on the European Fighter Aircraft programme. Defence sales were slightly
higher than the comparative period. We are continuing to improve our
manufacturing processes for these products to increase volumes and improve
margins.
Central Services
Central Services incorporates the digital signal processing expertise of
Filtronic Sigtek together with a small research and development team based in
Saltaire and group administrative services. Part of the central development
group which has been involved with the power amplifier products has now been
reallocated, either to the Wireless Infrastructure business or the Integrated
Products business as appropriate, to facilitate the move to production
quantities. These reallocations have increased the cost base of Wireless
Infrastructure by approximately GBP2.5m in this financial year and will add
almost GBP1m to the cost base of Integrated Products.
Finance
Net cash outflow before the repayment of debt in the six months ended 30
November 2003 was GBP1.1m (2002 GBP4.9m inflow).
The company bought in $13.6m (GBP8.5m) of 10% Senior Notes due 1 December 2005
during the period. At 30 November 2003, long term debt totalled GBP51.5m (2002
GBP74.9m), representing GBP52.4m ($90.0m) of 10% Senior Notes due 1 December
2005, net of GBP0.9m of deferred debt issue costs.
At 30 November 2003, Filtronic had a cash balance of GBP4.4m and was using
GBP7.6m of its GBP31m bank overdraft facility. Net gearing was 51% (2002 73%).
On 1 December 2003, the company redeemed a further $16.0m of the Senior Notes by
utilising GBP10m of short term bank financing. On 16 January 2004, Filtronic
announced the refinancing of all of the remaining Senior Notes and the short
term bank financing by a GBP50.0m Term Loan, which is being provided by Barclays
Bank PLC and HSBC Bank PLC. The refinancing will take place on 17 February 2004.
Foreign exchange risk on the refinancing has been eliminated by taking out a
forward contract at an exchange rate of approximately $1.82 = GBP1. An estimated
total exceptional loss on repurchase of the Senior Notes of GBP2.5m will be
recorded in the results for the year ending 31 May 2004. In a full financial
year, the refinancing is expected to save approximately GBP1.5m at current
interest rates. Following the refinancing, Filtronic will have overdraft and
other short term borrowing facilities of approximately GBP9m available which the
Board considers to be sufficient for the company's foreseeable requirements.
Sale of Filtronic Solid State Electronic Warfare business and assets
On 31 December 2003, the disposal of the Electronic Warfare division of
Filtronic Solid State to Teledyne Wireless, Inc. was completed for $12.0m in
cash. During the six months ended 30 November 2003, this part of the Integrated
Products business segment contributed GBP3.4m of sales and GBP0.2m of operating
profit.
After costs, this transaction is expected to show an exceptional profit on sale
of approximately $8.0m which will be recorded in the results for the year ending
31 May 2004.
Foreign currency exchange rates
The weakening of the US dollar, and consequently the Chinese yuan which is
linked to the US dollar, when compared to sterling, has had an adverse impact on
our trading results. Had rates of exchange remained unchanged since 1 June 2003,
sales for the six months ended 30 November 2003 would have been GBP3.0m higher
and operating profit GBP0.6m higher when recorded in sterling.
Trading outlook
Wireless Infrastructure forecast demand has increased in the last few weeks for
transmit/receive modules and associated products for base stations. Pricing
pressure, however, is likely to continue to restrict growth in sales and
margins. We are continuing to increase our manufacturing capacity in China and
are also aggressively pursuing additional OEM customers for transmit/receive
modules for mobile base stations to strengthen further our market leading
position.
Our new base station power amplifier products provide opportunities for further
expansion and growth to this business segment. In September 2003, we were
selected by a new OEM customer to supply initial quantities of an integrated RF
head unit, incorporating power amplifiers, for 3G WCDMA base stations. We are
currently supplying these initial units. Production quantities are expected to
commence in the second half of this calendar year for this customer.
Negotiations over pricing and volume requirements are not yet completed. Other
power amplifier products are being developed for this customer and for three
other OEMs.
In Handset Products the exceptional market share gained on certain mobile phone
programmes in the first half of this financial year may not be maintained, with
the possibility of a reduction in both sales and margins in the second half.
However, we have a record number of antennas currently in development for mobile
phone programmes. These antennas are based on new techniques with many featuring
a range of additional components and including quad band designs. We expect to
maintain our market leading position in Handset Products.
In Integrated Products, defence sales are expected to increase in the second
half of the financial year with a consequent reduction in operating losses.
Filtronic has been selected by a new customer as a preferred supplier, to
manufacture pHEMT RF switches including a quad band version for cellular handset
and wireless LAN applications. Volume manufacture is expected to commence in the
first half of this calendar year increasing to more than one million units per
month by the end of the year. Power amplifier modules for applications in WIMAX
base stations, satellite ground stations, phased array radars and point to point
transceivers are in development in addition to those for wireless infrastructure
applications. All wireless systems require radiated power to increase in
proportion to the amount of information transmitted, increasing demand for power
amplifiers.
Within Central Services, our digital signal processing expertise at Filtronic
Sigtek will continue to be focussed on developing proprietary real time
predistortion techniques for power amplifier applications and the new standard
base band digital interfaces necessary for the next generation of products.
Summary
Filtronic is a world leader in the design and manufacture of customised
microwave electronic products. We have maintained our market leading position in
our two main businesses. The facility at Newton Aycliffe provides the company
with the compound semiconductor technology necessary in future microwave
electronic products. The company's financial position has been strengthened with
the return to profitability and the refinancing of our borrowings.
Professor J D Rhodes CBE FRS FREng
Executive Chairman
2 February 2004
Consolidated Profit and Loss Account
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
note GBP000 GBP000 GBP000
Sales 1, 2 121,520 123,869 241,268
-------------- -------------- --------------
Operating profit 1, 2 4,723 1,448 6,715
-------------- -------------- --------------
Net interest payable (2,808) (4,451) (7,995)
Net financing currency
exchange gain 766 2,027 4,236
Exceptional (loss)/
gain on repayment of
debt (460) 1,026 881
-------------- -------------- --------------
(2,502) (1,398) (2,878)
-------------- -------------- --------------
Profit on ordinary
activities before
taxation 2,221 50 3,837
Taxation (1,494) (1,525) (2,753)
-------------- -------------- --------------
Profit/(loss) on
ordinary activities
after taxation 727 (1,475) 1,084
Dividends (671) (669) (2,006)
-------------- -------------- --------------
Profit retained/
(deficit) for the
period 56 (2,144) (922)
-------------- -------------- --------------
Earnings/(loss) per share
Basic 3 0.98p (1.99)p 1.46p
Diluted 3 0.97p (1.99)p 1.45p
Dividend per share 0.90p 0.90p 2.70p
Consolidated Balance Sheet
Unaudited Unaudited Audited
30 November 30 November 31 May
2003 2002 2003
GBP000 GBP000 GBP000
Fixed assets
Intangible assets 33,529 33,459 35,769
Tangible assets 90,885 101,493 96,272
-------------- -------------- --------------
124,414 134,952 132,041
-------------- -------------- --------------
Current assets
Stocks 34,560 36,443 34,344
Debtors 57,900 58,257 50,908
Cash 4,389 3,026 6,522
-------------- -------------- --------------
96,849 97,726 91,774
-------------- -------------- --------------
Creditors: amounts falling
due within one year
Borrowings 7,558 2,429 -
Other creditors 41,229 40,670 38,821
-------------- -------------- --------------
48,787 43,099 38,821
-------------- -------------- --------------
Net current assets 48,062 54,627 52,953
-------------- -------------- --------------
Total assets less current
liabilities 172,476 189,579 184,994
Creditors: amounts falling
due after one year
Borrowings 51,462 74,874 61,942
Provision for deferred tax 728 409 750
Deferred income 12,583 12,337 13,143
-------------- -------------- --------------
Net assets 107,703 101,959 109,159
-------------- -------------- --------------
Capital and reserves
Called up share capital 7,453 7,430 7,430
Share premium account 137,461 135,851 135,851
Shares to be issued 2,168 4,392 4,321
Revaluation reserve 106 106 106
Other reserve 788 - 828
Profit and loss account (40,273) (45,820) (39,377)
-------------- -------------- --------------
Equity shareholders' funds 107,703 101,959 109,159
-------------- -------------- --------------
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
note GBP000 GBP000 GBP000
Net cash flow from
operating activities A 9,915 16,413 38,528
-------------- -------------- --------------
Returns on investment
and servicing of
finance
Net interest paid (2,880) (4,133) (7,407)
-------------- -------------- --------------
Tax paid (1,961) (2,598) (4,128)
-------------- -------------- --------------
Capital expenditure
Purchase of tangible
fixed assets (4,980) (4,382) (8,198)
Sale of tangible
fixed assets 147 851 1,378
Government grants
received - 37 1,319
-------------- -------------- --------------
Net cash flow from
capital expenditure (4,833) (3,494) (5,501)
-------------- -------------- --------------
Equity dividends paid (1,337) (1,333) (2,002)
-------------- -------------- --------------
Net cash flow before
financing (1,096) 4,855 19,490
-------------- -------------- --------------
Financing
Issue of shares 83 - -
Loans repaid (8,463) (12,473) (22,107)
-------------- -------------- --------------
Net cash flow from
financing (8,380) (12,473) (22,107)
-------------- -------------- --------------
-------------- -------------- --------------
Decrease in cash B (9,476) (7,618) (2,617)
-------------- -------------- --------------
Notes to the Consolidated Cash Flow Statement
A Reconciliation of operating profit to net cash flow from operating
activities
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
GBP000 GBP000 GBP000
Operating profit 4,723 1,448 6,715
Goodwill amortisation 1,138 1,063 2,348
Share compensation 145 218 146
Depreciation 9,244 9,088 19,322
Profit on sale of
tangible fixed assets (111) (246) (518)
Licence fee released (395) - (66)
Government grants
released (165) (115) (525)
Movement in stocks (975) 6,309 8,734
Movement in debtors (7,290) (4,038) 3,876
Movement in creditors 3,601 2,686 (1,504)
-------------- -------------- --------------
Net cash flow from
operating activities 9,915 16,413 38,528
-------------- -------------- --------------
B Reconciliation of net cash flow to movement in net debt
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
GBP000 GBP000 GBP000
Decrease in cash (9,476) (7,618) (2,617)
Cash flow from debt 8,463 12,473 22,107
-------------- -------------- --------------
Change in net debt
resulting from cash
flows (1,013) 4,855 19,490
Non-cash movement (388) 708 293
Currency exchange
movement 2,190 4,846 9,483
-------------- -------------- --------------
Movement in net debt in
the period 789 10,409 29,266
Opening net debt (55,420) (84,686) (84,686)
-------------- -------------- --------------
Closing net debt (54,631) (74,277) (55,420)
-------------- -------------- --------------
Statement of Total Recognised Gains and Losses
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
GBP000 GBP000 GBP000
Profit/(loss) on ordinary
activities after taxation 727 (1,475) 1,084
Currency exchange movement
arising on consolidation (3,255) (4,283) (590)
Currency exchange movement
on loan 1,515 2,972 5,329
-------------- -------------- --------------
Total recognised gains and
losses for the period (1,013) (2,786) 5,823
-------------- -------------- --------------
Consolidated Reconciliation of Shareholders' Funds
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
GBP000 GBP000 GBP000
Profit/(loss) on ordinary
activities after taxation 727 (1,475) 1,084
Dividends (671) (669) (2,006)
-------------- -------------- --------------
Profit retained/(deficit) for
the period 56 (2,144) (922)
Currency exchange movement
arising on consolidation (3,255) (4,283) (590)
Currency exchange movement on
loan 1,515 2,972 5,329
Issue of shares 2,381 2,508 2,507
Shares to be issued
- shares issued (2,298) (2,508) (2,507)
- share compensation 145 218 146
-------------- -------------- --------------
Movement in shareholders'
funds (1,456) (3,237) 3,963
Opening shareholders' funds 109,159 105,196 105,196
-------------- -------------- --------------
Closing shareholders' funds 107,703 101,959 109,159
-------------- -------------- --------------
Notes to the Interim Financial Information
1 Geographical origin segment analysis
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
GBP000 GBP000 GBP000
Sales
United Kingdom 46,924 53,214 102,807
Finland 31,692 32,051 64,954
United States of
America 25,390 30,746 56,967
Australia 2,363 3,632 5,490
China 23,945 10,035 21,791
Inter segment (8,794) (5,809) (10,741)
-------------- -------------- --------------
121,520 123,869 241,268
-------------- -------------- --------------
Operating profit
United Kingdom (5,587) (2,000) (4,768)
Finland 1,020 4,281 5,960
United States of
America 147 (3,144) 716
Australia (650) (734) (2,004)
China 9,793 3,045 6,811
-------------- -------------- --------------
4,723 1,448 6,715
-------------- -------------- --------------
The operating profit/
(loss) in the United
States of America is
after charging
exceptional closure
costs: - 2,719 1,812
-------------- -------------- --------------
Notes to the Interim Financial Information
2 Business segment analysis
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
GBP000 GBP000 GBP000
Sales
Wireless 68,854 81,454 151,715
infrastructure
Handset products 33,341 24,324 51,242
Integrated products 18,690 17,402 37,443
Central services 1,885 1,219 1,771
Inter segment (1,250) (530) (903)
-------------- -------------- --------------
121,520 123,869 241,268
-------------- -------------- --------------
Operating profit
Wireless 7,096 13,443 20,962
infrastructure
Handset products 7,757 5,173 10,834
Integrated products (8,231) (14,203) (19,344)
Central services (1,899) (2,965) (5,737)
-------------- -------------- --------------
4,723 1,448 6,715
-------------- -------------- --------------
The operating loss of
integrated products is
after charging
exceptional closure
costs: - 2,719 1,812
-------------- -------------- --------------
The Board has decided to reorganise the business into four segments. This is to
ensure that the company is best positioned to address the challenges of moving
from the development stage into production with a broad range of new products.
The prior period comparative figures have been re-analysed to be consistent with
the current period.
Notes to the Interim Financial Information
3 Earnings/(loss) per share
Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30 November 30 November 31 May
2003 2002 2003
GBP000 GBP000 GBP000
Profit/(loss) on
ordinary activities
after taxation 727 (1,475) 1,084
-------------- -------------- --------------
000 000 000
Weighted average number
of shares 74,418 74,186 74,245
Dilution effect of share
options 98 - -
Dilution effect of
contingently issuable
shares 283 - 460
-------------- -------------- --------------
Diluted weighted average
number of shares 74,799 74,186 74,705
-------------- -------------- --------------
Basic earnings/(loss)
per share 0.98p (1.99)p 1.46p
-------------- -------------- --------------
Diluted earnings/(loss)
per share 0.97p (1.99)p 1.45p
-------------- -------------- --------------
4 Post balance sheet
events
On 1 December 2003 $16,033,000 of 10% Senior Notes were redeemed at a
redemption price of $1,025 per $1,000 principal amount. After the
redemption there were $74,000,000 of Senior Notes outstanding.
On 31 December 2003 the electronic warfare business of Filtronic Solid
State was sold for a cash consideration of $12,000,000 resulting in an
estimated profit on disposal of $8,000,000.
On 16 January 2004 notice was given to holders of the 10% Senior Notes that
the remaining $74,000,000 of the Senior Notes will be redeemed on 17
February 2004 at a redemption price of $1,025 per $1,000 principal amount.
A medium term bank loan of GBP50,000,000 will be drawn down to pay for the
redemption and repay existing bank borrowings.
Notes to the Interim Financial Information
5 Interim financial information
The accounting policies adopted in preparing this interim financial
information are consistent with those set out on pages 22 and 23 of the
Filtronic plc Annual Report 2003.
The interim financial information contained in this report does not
constitute statutory financial statements within the meaning of Section 240
of the Companies Act 1985.
The figures for the year ended 31 May 2003 are extracted from the Financial
Statements included in the Filtronic plc Annual Report 2003 dated 28 July
2003. Those Financial Statements, upon which the auditors issued an
unqualified opinion, have been delivered to the Registrar of Companies in
England and Wales.
Copes of this Interim Report are available from the registered office of
the company:
Filtronic plc
The Waterfront
Salts Mill Road
Saltaire
Shipley
West Yorkshire
BD18 3TT
Tel: + 44 1274 530 622
Fax: + 44 1274 531 561
www.filtronic.com
Independent Review Report to Filtronic plc
Introduction
We have been engaged by the company to review the financial information
consisting of the profit and loss account, balance sheet, statement of total
recognised gains and losses, reconciliation of shareholders funds, cash flow
statement and notes and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.
The report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the company those matters we are required to state to
it in this report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the
company for our review work, for this report, or for the conclusions we have
reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules which require that the accounting policies and presentation
applied to the interim figures should be consistent with those applied in
preparing the preceding annual accounts except where they are to be changed
in the next annual accounts in which case any changes, and the reasons for
them, are to be disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4: Review of interim financial information issued by the Auditing
Practices Board for use in the United Kingdom. A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially
less in scope than an audit performed in accordance with Auditing Standards
and therefore provides a lower level of assurance than an audit. Accordingly
we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 30 November 2003.
KPMG Audit Plc
Chartered Accountants
Leeds
2 February 2004
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Filtronic PLC
(Registrant)
By: Maura Moynihan
General Counsel
Date 02 February 2004