- Starlink satellite constellations help people access the internet in remote areas
AIM-listed satellite communications specialist Filtronic has expanded its strategic partnership with Elon Musk’s rocket company, SpaceX.
Under the agreement, Filtronic will boost its supply of advanced E-band Solid State Power Amplifier [SSPA] modules to support the ongoing deployment of SpaceX’s Starlink constellation.
It will also issue 11 million equity warrants at an exercise price of 92.8 pence per share, enabling SpaceX to potentially buy 5 per cent of Filtronic’s share capital.
Starlink satellites, which have often been deployed in disaster zones, send broadband signals down to Earth to help people access the internet in remote areas.
In the UK, where the technology has been available since 2021, it has around 87,000 subscribers and allows passengers travelling through the Scottish Highlands on ScotRail trains to use wi-fi.
SpaceX and Filtronic initially entered into a tie-up in April last year with an initial order for £15.8million of SSPA modules, which are used for low-earth orbit satellites.
Going high: Technology firm Filtronic has expanded its strategic partnership with Elon Musk’s rocket company, SpaceX
Filtronic issued over 21.7 million equity warrants as part of that deal, allowing SpaceX to purchase up to 10 per cent of its shares.
Since then, Filtronic has won a further £16.8million contract from the Texas-based business to deliver radio frequency solutions in 2025 and 2026.
After gaining that contract, the Country Durham-based group said it was confident of exceeding current market forecasts for turnover and profits over both years.
Nat Edington, chief executive of Filtronic, said the deal ‘gives us greater visibility and confidence’ that the group is trading ‘marginally ahead of market expectations’ for its financial year to 31 May next year.
He added: ‘This continues to be an exciting time for the business, and we look forward to continuing our relationship with SpaceX.’
Filtronic shares were 5.2 per cent higher at 109.4p on mid-Wednesday afternoon, meaning they have more than tripled their value in the past 12 months.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .