A TECHNOLOGY company expects annual revenues and profits to go beyond market expectations after a strong end to its financial year.

Filtronic says group sales should stand at around £35m for the year.

Bosses upgraded their outlook after healthy demand across its wireless division compensated for short-term weakness in the firm’s broadband operation, which operates from a site at NetPark, in Sedgefield, County Durham.

The update comes after half-year results showed revenues stood at £21.6m, which themselves represented a significant improvement after delays to product introductions delivered losses and forced officials into a turnaround plan.

That blueprint includes focusing upon defence and aerospace contracts to accompany deals in the cyclical telecoms sector, which the firm says is gaining increasing purchase in the market place.

Referring to its latest progress, Rob Smith, chief executive, confirmed the company had manoeuvred itself into a good position.

He said: “Trading during the fourth quarter in the wireless business has been ahead of previous management expectations.

“Despite some marginal, short-term weakness in broadband trading, the board now expects total group revenues of approximately £35m in the year ending May 31, with a commensurate increase to operating profit, both of which are ahead of market expectations.”

The business’ Sedgefield base is known for developing Filtronic’s Orpheus e-band transceivers, which increase the amount of data phone networks can carry, and will play a key role in a £13m national security deal to supply high-frequency modules to a defence equipment maker for aerospace work.

The broadband work is complemented by work on antennas, made elsewhere, which are known for helping increase mobile phone mast performance and the amount of data networks can carry.

Speaking to The Northern Echo at the start of the year, Mr Smith said the business could not rule out expansion at its County Durham base after the reversal of its financial losses left Filtronic “in a healthier position than it has been for several years”.

He also confirmed the company was in talks with potential customers, which if successful, could create jobs at NetPark.

He added: “Sedgefield is steady as she goes and the £13m deal is the first of what we hope will be a few contracts; we’ve got our fingers crossed.

“It provides opportunities with other potential customers in that space and makes us less dependent on what can be a spiky (telecoms) business.

“We have made good progress over the last year.”