Shares in Filtronic remained firm yesterday after brokers Cazenove upgraded the information technology group to ' outperform' from 'in-line' following pleasing full-year numbers.
Earlier, the group said pretax profit grew to £5.55 million, up from £954,000 previously, on sales of £262.9 million, an increase from £245.1 million.
It also revealed it has amended its bank facilities with Barclays and ABN AMRO and repayment has been rescheduled over five years.
Czenove said the new banking facilities mean there are no imminent liquidity problems.
It added slightly higher- than- expected profits at its mobile handset division, coupled with improving demand in recent months, should also help disposal prospects.
Following the figures, the broker said its EPS estimates for 2005 and 2006 are likely to rise to around 15p from 13p.
Meanwhile, Dresdner reiterated its 'buy' advice and said that Filtronic's numbers painted a picture of a solid performance at an operational level combined with improving financial security which was thanks to amended bank facilities and progress on efforts towards a sale of the handset antenna division.
It added that it continues to believe that as new management proves itself and the financial risks fall, more investors may buy into the growth story.