A COUNTY Durham technology firm has backed up a pledge to expand its order book with a near £5m contract.

Filtronic says its North-East broadband division will supply high-frequency modules for a defence operator’s aerospace project.

The three-year agreement is expected to generate revenues of around £4.8m, with work due to start at Filtronic’s Sedgefield base next year.

The contract comes after the company, which is already working on a similar deal, told The Northern Echo it was committed to diversifying its sector standing after a turnaround year reversed losses.

The company, which operates from a site on NetPark, is known for developing the Orpheus e-band transceiver, which increases the amount and quality of data that networks, including the telecoms sector, can carry.

Forced to undergo a period of rebuilding after the “lumpy” nature of the telecoms market compounded the impact of a quicker-than-expected TV anti-interference filter deal culmination, the business has stabilised in recent months, with a focus on further industries, including defence, to maintain its progress.

Reacting to its latest success, Rob Smith, chief executive, said: “We are delighted to have been selected to work on this project.

“This is broadband’s second major business win in the defence and aerospace sector.

“Along with other smaller contracts, it demonstrates our commitment to diversify the customer base and markets we serve, to become a major supplier of advanced communications components and sub-systems to this and other adjacent markets.”

Speaking to the Echo earlier this month, Mr Smith said that while Filtronic “isn’t out of the woods” just yet in its turnaround endeavours, the company is confident of moving forward.

Responding to latest financial results, for the year to May 31, which showed sales revenue was up 160 per cent year-on-year to £35.4m and pre-tax profit had rebounded to £2.2m from a previous £7m loss, he said: “It’s all about being more engaged with more customers and broadening our customer base.

“A truism about Filtronic is that it has had good years in the past, it has had some wonderful years too, but it has not been able to sustain that and has had lumpy periods.

“We are not out of the woods yet, by any means, but we are working to move away from the lumpiness.

“The (first) aerospace deal adds some certainty for a period of time and all in all, it has been a positive year with lots of good things happening.”

Last month, the Echo revealed Filtronic was working alongside a US customer on a product aimed at improving broadband provision by providing fast and reliable data connections without the disruption and cost of laying swathes of cabling underneath roads and footpaths.

The company, which employs more than 60 staff in the region, is also hopeful of creating a number of jobs over the coming 12 months.