#VELA investee co. #MTI Wireless Edge LTD – Interim Results August 15, 2023 – Posted in: Blog, Vela Technologies Plc (VELA) – Tags: , , , , , , , , , ,

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 2023.

 

‘Significant improvement in Operating Cashflow – a steady performance and on track for the year’

Financial highlights

·    Revenues broadly level at US$22.4m (H1 2022: US$22.7m), held back by adverse currency translation.  On a constant currency basis revenues increased by 2%

·    Gross margin improved 1% to 32% (H1 2022: 31%)

·    Profit from operations level at US$2.19m (H1 2022: US$2.19m)

·    Profit before tax increased 3% to US$2.1m (H1 2022: US$2.04m)

·    Earnings per share increased 9% to 1.99 US cents (H1 2022: 1.83 US cents)

·    Net cash provided by operating activities improved significantly to US$1.23m (H1 2022: US$0.037m)

·    Strong financial position maintained, with an increase of 20% in net cash at 30 June 2023 to $6.25m (30 June 2022: $5.18m)

Operational highlights

·    The Antenna division benefitted from increased defence sales and this is expected to continue into the second half of the year and beyond. This helped offset a softer commercial market and, overall, the division grew revenues by 3% and this segment’s profit from operations increased significantly.

·    The 5G market opportunity for MTI remains substantial, albeit progress is slow.  Relationships with the leading OEMs in the sector are deepening alongside growing interest in the Company’s ABS® antenna solution to counter small mast movements

·    Mottech experienced a relatively quiet first half resulting in a 2% decrease in revenue, mainly due to adverse currency translation, but the segment’s profit from operations increased reflecting the updated pricing in its renewed agreements and foreign exchange benefits on export. In Q3 2023 trading has started well and Mottech’s pipeline looks positive with Italy and France, in particular, performing well

·    MTI Summit delivered a solid performance, although sales were 5% behind the same period last year.  This was due to delays on two key projects being undertaken by the Group’s subsidiary in the defence sector, PSK, which have now moved into the second half of the year. One of these projects is now completed and the second is underway. The segments profit from operations decreased  reflecting the shift in revenues, due to these two projects

Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:

 

“Our strategy of diversification continues to support the overall positive performance of the business. We are a technology company providing radio frequency solutions but we do so across multiple sectors where we see significant long-term demand such as defence spending, modern water irrigation and the global rollout of the next generation 5G mobile network.

 

“Being a diverse technology company enables us to adapt to changing market conditions. To date in 2023, defence related orders are currently the fastest growing segment of our business and this trend is expected to continue for some time.

 

“The results for the first half were held back at the revenue level by the strength of the dollar against the shekel but we also benefitted from this movement, together with successful price increases, at the cost level improving gross margin and ultimately helping earnings per share to increase by 9% in the period. While the commercial market is still challenging, the supply issues experienced last year have dissipated and, with a strong pipeline of opportunities, we remain confident in the growth prospects for the business and the outcome for the 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 Tuesday, 15 August 2023 at 10.00am BST.

 

Investors can sign up for free via: https://www.investormeetcompany.com/mti-wireless-edge-ltd/register-investor

For further information please contact:

 

MTI Wireless Edge Ltd

+972 3 900 8900

Moni Borovitz, CEO

http://www.mtiwirelessedge.com

Allenby Capital Limited (Nomad and Joint Broker)

+44 20 3328 5656

Nick Naylor/Alex Brearley/Piers Shimwell (Corporate Finance)

Amrit Nahal/Jos Pinnington (Sales and Corporate Broking)

Shore Capital (Joint Broker)

Toby Gibbs/Rachel Goldstein (Corporate Advisory)

Fiona Conroy (Corporate Broking)

+44 20 7408 4090

Novella (Financial PR)

Tim Robertson/Safia Colebrook

+44 20 3151 7008