Saltaire hi-tech giant Filtronic today revealed half-year results showing a rise in pre-tax profits and a fall in debts.

The firm, which makes electronic systems for the defence industry among others, has seen group sales fall from the £146 million it made in 2001 to £123.9 million and operating profit drop from £6.1 million in 2001 to £5.4 million in its interim results for the period ending November 30.

But pre-tax profits at the firm have risen to £50,000, compared to the loss of £4.5 million it made in 2001.

Professor David Rhodes, executive chairman of the firm, said: "Filtronic has increased its market share in its two main businesses whilst maintaining strong levels of profitability in those businesses.

"After continuing to invest in the development of compound semiconductor technology at the Newton Aycliffe facility, Filtronic has generated cash and reduced its level of indebtedness by £34 million in the last year.

"During the second half of this financial year, the board expects that our two main businesses, wireless infrastructure and cellular handset products, will continue to produce a strong financial performance and also expects improvement from both the electronic warfare and compound semiconductors business segments.

"The board expects that the company will continue to generate cash in the second half of this financial year and that net indebtedness will further reduce.

"The development of compound semiconductor-related high-value integrated products will continue to dominate the strategy for growth."

At one stage in 2001 the firm's Newton Aycliffe operation was losing £1 million a month.

Filtronic employs 1,000 people at its head office sites in Saltaire and Baildon, and produces a wide range of mobile phone network and electronic components.