Filtronic’s (FTC) announcement of a strategic agreement with Elon Musk’s SpaceX late last month drove a one-day share price pop of almost 50 per cent. This is understandable. Working with the world’s most advanced space technology company is a coup, but some investors with longer memories will remain unimpressed. Filtronic has been here before, enjoying a stellar rise on the back of the dotcom boom before experiencing an equally rapid descent.
The communications equipment specialist was founded by a former electrical engineering lecturer at the University of Leeds, David Rhodes, in the late 1970s. It initially made components for the RAF’s Tornado aircraft and used an Aim listing in 1994 to grow via acquisitions. By 2000, it had become one of the UK’s most successful university spin-outs, with revenues of over £200mn and a market cap in the billions.