Bradford hi-tech giant Filtronic today revealed half-year results showing a fall in sales and operating profits.

The company saw its group sales drop from £147.6 million to £146m and its operating profit reduced by £200,000, to £6.1m, during the six months to November 30, 2001.

But Filtronic insists the figures do not reflect its real position, as they ignore two major deals struck at the end of last November for its north east manufacturing base.

The Saltaire-based firm is confident the supply and design deals with M/A-COM Inc and BAE Systems Avionics will dramatically improve cash flow at the Newton Aycliffe operation - which was losing £1 million a month at one stage in 2001.

Pointing to the company's increased market share and its generation of £20m in cash, executive chairman Professor David Rhodes said: "We are pleased with the progress made since last year end.

"We have increased our market share to become the clear world market leader, secured a strong position at the heart of third generation mobile phone infrastructure system supplies, and successfully concluded the two Newton Aycliffe agreements.

"Further, the company has eliminated its short term borrowings, reduced its gearing and begun to build cash reserves."

The firm was also keen to clarify reports which appeared in other newspapers claiming it had 'axed' 150 workers at its factory in Finland. A spokesman said: "These were contract workers who had been taken on for a specific job and whose contract had actually been extended.

"In terms of the UK, far from making any redundancies, the company could well be looking to expand this year."

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.

Despite the gloomy figures, the share price had risen 31.5p to 344p by mid-day today.