#VELA Vela Technologies investee company #MWE MTI Wireless Edge – Interim Results August 15, 2022 – Posted in: Blog, Vela Technologies Plc (VELA) – Tags: finance, investor, operations, results, revenue, technology
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to today announce its financial results for the six month period ended 30 June 2022.
Financial highlights
· Good revenue growth, up by 6% to US$22.7m (H1 2021: US$21.3m)
· Profit from operations, up by 1% to US$2.19m (H1 2021: US$2.175m). In H1 2022 the Company incurred:
o one off acquisition costs totalling US$0.1m; and
o depreciation of intangible assets charges relating to the acquisition totaling US$0.1m (note – from 2023 the depreciation charge will be 50% lower)
· EBITDA* up 11% to $2.9m (H1 2021: $2.6m), with all three divisions contributing positively
· Earnings per share, down by 3% to 0.183 US cents (H1 2021: 1.89 US cents) due to increased finance costs relating to weakness of the Euro and Pound against the US Doller (as some of the Group’s net cash is held in these currencies)
· Balance sheet remains strong with net cash at $5.2m as of 30 June 2022 (30 June 2021: $9.7m) after:
o Payment of 20 2 1 dividend of $0.028 per share (2020 dividend: $0.0 25 per share) on 31 March 2022
o divesting the Group’s Russian business in March 2022;
o acquiring 51% of PSK; and
o providing working capital loans to PSK
Cash Flow from operation was flat reflecting the use of strong balance sheet with some vendors and PSK’s longer debtor terms.
Operational highlights
· Group has delivered another good operational performance across all three divisions, despite the challenges facing all businesses, in particular scarcity in supply of microchips and increasing costs. The operation highlights include:
o MTI Summit having another strong 6 months, with high demand from the defence sector and a satisfying start from the newly acquired PSK business
o Mottech seeing high demand in many geographical areas and softer in others but overall, the order book is strong, including a significant backlog, positioning the division well going forward
o The Antenna division continuing to perform and the 5G market continues to hold significant potential with new relationships being established with most of the market leading OEMs in the sector. Military orders are increasing from both new and existing customers
Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:
“This has been a good trading period for the Group, with all divisions making operational profits. In the context of the challenging trading conditions we have faced, including the rising inflation and the difficulties in supply chain (shortage in supply of microchips and shipping costs, which are delaying the delivery of certain orders), the board is very pleased with the results.
“There are some signs of the supply chain issues easing and, as importantly, we have a healthy order book going into the second half of the year and beyond. We have been able to successfully put through a number of price increases which will ensure we can maintain our target profit margins. As a result, we feel confident about the outcome for the full year.”
Moni Borovitz, Chief Executive Officer, will provide a live investor presentation relating to the financial results via the Investor Meet Company (IMC) platform on Monday, 15 August 2022 at 10.00am UK time.
Investors can sign up for free via: https://www.investormeetcompany.com/mti-wireless-edge-ltd/register-investor
*Earnings before interest, tax, depreciation and amortization
For further information please contact:
|
MTI Wireless Edge Ltd |
+972 3 900 8900 |
|
Moni Borovitz, CEO |
|
|
Allenby Capital Limited (Nomad and Joint Broker) |
+44 20 3328 5656 |
|
Nick Naylor/Alex Brearley/Piers Shimwell (Corporate Finance) |
|
|
Amrit Nahal/David Johnson (Sales and Corporate Broking) |
|
|
Shore Capital (Joint Broker) Toby Gibbs/John More (Corporate Advisory)
|
+44 20 7408 4090 |
|
Novella (Financial PR) |
|
|
Tim Robertson/Safia Colebrook |
+44 20 3151 7008 |