BATM Advanced Communications Ld Trading Update (9906I)
December 08 2022 - 2:00AM
UK Regulatory
TIDMBVC
RNS Number : 9906I
BATM Advanced Communications Ld
08 December 2022
LEI: 213800FLQUB9J289RU66
8 December 2022
BATM Advanced Communications Limited
("BATM" or "the Group")
Trading Update
BATM (LSE: BVC; TASE: BVC), a leading provider of real-time
technologies for networking solutions and medical laboratory
systems, provides the following update on its trading for FY
2022.
As stated in its interim results announcement of 24 August 2022,
the Group entered the second half with sustained momentum and a
significant backlog to be delivered against. BATM made solid
progress in both of its divisions as business returns to normality
post-pandemic, notwithstanding supply chain issues.
Networking and Cyber Division
In the second half of the year, BATM was delighted to announce a
multi-year contract for its Edgility solution with UK-based
CityFibre in the Networking unit. Work to date reinforces the
Group's expectation that deployment and recurring revenues will
scale meaningfully in the short term. The Group is also pleased
that Edgility is fast being recognised internationally as a
breakthrough solution and is winning several awards. Consequently,
the interest in Edgility has seen a significant increase and the
Group is in advanced discussions with several customers.
BATM's Cyber business also made good progress in the second half
of the year as the need for cyber security increases daily due to
the geo-political situation as well as increased organised criminal
activity. As such, the Group's confidence in this unit remains high
and it is optimistic of winning a substantial multi-year,
multi-million dollar government contract, which would increase the
revenues of this division in 2023 and beyond.
Bio-Medical Division
In the Diagnostics unit of the Bio-Medical division, the
COVID-19 pandemic has demonstrated the capability and value of
BATM's diagnostic IP and products. Whilst the transition from the
peak pandemic revenues of 2021 introduced an element of volatility
to the unit's trading, its performance in 2022 nonetheless
indicates its brighter prospects for 2023. In particular, in 2022,
the unit's sale of non-COVID diagnostics product saw a dramatic
volume increase. From being practically non-existent in 2021, the
Group expects to report low double-digit million dollar revenues
for sales of its non-COVID diagnostic products this year.
Pandemics remain a genuine global concern and COVID remains a
very live issue in Asia. The Diagnostic unit was informed that it
is due to be awarded a major tender, with a value of $25m, from a
customer in Southeast Asia primarily for the delivery of COVID-19
testing kits, and the Group has been awaiting a signed contract.
Whilst the Group has had good visibility on this project, given
that it is now December, should the contract be received and
signed, the revenue would be recognised in 2023 thereby impacting
current year expectations for revenue by the corresponding amount
and, accordingly, reducing FY 2022 EBITDA.
The Eco-Med and Distribution units of the Bio-Medical division
have continued to perform in line with management's
expectations.
BATM is profitable with a very strong balance sheet comprising
both cash and investments in financial assets of approximately $40m
as well as property and valuable IP. Accordingly, the Board of BATM
remains confident in the prospects for the business and continues
to explore all options to deliver shareholder value.
Enquiries:
BATM Advanced Communications
Dr. Zvi Marom, Chief Executive Officer +972 9866 2525
Moti Nagar, Chief Financial Officer
Shore Capital
Mark Percy, Anita Ghanekar, James Thomas (Corporate Advisory) +44 20 7408 4050
Gracechurch Group
Harry Chathli, Claire Norbury +44 20 4 582 3500
Forward-looking statements
This document contains forward-looking statements. Those
statements reflect the current opinions, evaluations and
estimations of the Group's management, and are based on the current
data regarding the Group's business as is detailed in this document
and in the Group's periodical, interim and immediate reports. The
Group does not undertake any obligation or make any representation
that actual results and events will be in line with those
statements, and stresses that they may differ materially from those
statements, due to changes in the Group's business, market,
competition, demand for the Group's products or services, general
economic factors or other factors that can influence the Group's
business and results, and due to information and factors that are
currently unknown to the Group's management and that, if known,
would affect the management's opinions, evaluations or estimations.
The Group will report the actual results and events according to
its legal, accounting and regulatory obligations, and does not
undertake any other obligation to report them or their deviations
from the forward-looking statements, or to update any of the
forward-looking statements in this document or to report that it is
not valid anymore.
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END
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