Electronics firm Filtronic is hoping its planned acquisition of telecommunications supplier Isotek and a revival in demand next year will renew its fortunes after a loss-making year in 2009.

The company, which transferred manufacturing from Shipley to Darlington as part of cost-cutting measures, saw revenues from continuing operations nearly halve to £15.6m from £28.8m the previous year, It resulted in a pre-tax loss of £1.1m for the year to May 31, 2010, compared with profits of £2.2m in 2008.

The result comes after Filtronic revealed it had agreed to buy Leeds-based Isotek, which will give it a place in the market for mobile telephone base stations that provide the 3G/4G services used by the latest smartphones.

It is hoped that Isotek, which Filtronic previously owned until 1998, will help turn round the wireless communications group’s fortunes.

Chairman Howard Ford said the proposed acquisition was part of a strategy to create a differentiated, high-growth and higher-margin wireless telecoms business.

It is expected to boost earnings significantly in the second year of ownership.

On the 2009 results, Mr Ford said: “Despite a further weakening of demand from a large customer in the second half year, the underlying market drivers for point-to-point backhaul market growth remain intact.

“Consequently, further small operating losses are expected into the first half of the next financial year. While overheads have been trimmed, the group continues to invest in research and development in order to position the company with competitive products to respond to a recovery in market demand. December’s announcement of a major new customer signing is testament to the group’s product offering and service levels, and positions us well to benefit from market expectations of a 2011 demand recovery.”

Chief executive Hemant Mardia said that following disposals, Filtronic’s business had consisted solely of the point-to-point operation during the period. Market activity remained subdued but the demand for mobile broadband infrastructure was expected to increase substantially in 2011.

He said: “Filtronic is well placed to exploit market opportunities in the core business while also furthering its strategy to create a differentiated, high-growth wireless telecoms business by entry to the base station sector.”

Filtronic, which reduced its workforce from 159 to 132 during the year, has maintained a dividend of 1p a share, payable in November.