SHARES in electronics company Filtronic jumped yesterday on the back of an improved performance in all aspects of the business after a series of loss-making years.

The headquarters of the company's main compound semiconductor division is in Newton Aycliffe, County Durham. Filtronic announced that while it still expects to make a loss for the year to May 31, it had seen strong progress across its three divisions.

The announcement from Filtronic was welcomed by the City, with the firm's share price rising from 125¼p at the start of the day to 139p by the close of trading.

Filtronic's compound semiconductors division has recorded a series of losses in recent times, and the planned £45m upgrade of its Newton Aycliffe plant, which makes mobile phone transmitters and the chips in the handsets that receive the signal, was reduced to £10m late last year as a result of poor trading.

Yesterday, in an upbeat half-year trading update, the company said margins and overheads in the division had been brought under control, and was set to be close to breaking even - a remarkable turnaround given last year's losses of £6.7m.

Filtronic reported growth in its point to point division, and a sound performance in its defence business.

The company has also been buoyed financially by the sale of its wireless infrastructure division to US company Powerwave, which generated a total of £150.3m.

Filtronic said its operating performance in the second half of the year was expected to be above expectations, and that revenues would be as expected.

While the company still expects to make a full-year loss when it releases its results on July 23, it said that some progress had been made.