TIDMBVC
RNS Number : 9895W
BATM Advanced Communications Ld
24 August 2022
LEI: 213800FLQUB9J289RU66
24 August 2022
BATM Advanced Communications Limited
("BATM" or the "Group")
Interim Results
BATM (LSE: BVC; TASE: BVC), a leading provider of real-time
technologies for networking solutions and medical laboratory
systems, announces its interim results for the six months ended 30
June 202 2 .
Financial Summary
$m H1 2022 H1 2021
Results from ongoing operations (adjusted)*
Revenue 57.5 64.2
Revenue on a constant currency
basis** 61.1 64.2
Gross profit 18.2 24.7
Gross margin 31.6% 38.4%
---------------------------------- -------- --------
Operating profit 1.5 6.7
EBITDA 3.7 8.7
---------------------------------- -------- --------
Reported results
------------------------------------------------------
Revenue 57.5 71.4
-------- --------
Gross profit 18.0 25.7
-------- --------
Gross margin 3 1.2% 36.0%
---------------------------------- -------- --------
Operating profit 1.3 20.0
---------------------------------- -------- --------
EBITDA 3.7 22.7
---------------------------------- -------- --------
Basic earnings per share (cents) 0.03c 2.72c
---------------------------------- -------- --------
Cash and financial assets 47.4 64.9
---------------------------------- -------- --------
* Adjusted to present the results on an ongoing operations basis
by excluding (1) the contribution to H1 2021 from NGSoft, a
subsidiary that the Group sold in March 2021, and (2) the
amortisation of intangible assets for both periods. The term
'ongoing operations' in this announcement is used for comparative
purposes only and is not used in the same context as in accounting
standards. For further information see Note 3 - Other Alternative
Measures.
** Revenue from ongoing operations for H1 2022 based on the
currency rates prevailing in H1 2021. Revenue during the period was
impacted by the strengthening of the US dollar against the local
currencies of subsidiaries in the Bio-Medical division.
Operational Summary
Networking & Cyber Division (23% of total revenue)
-- Revenue from ongoing operations (which excludes the
contribution from NGSoft to H1 2021) increased by 43.8% to $13.1m
(H1 2021: $9.1m), which primarily reflects growth in the Cyber
unit
-- Networking Unit
o Edgility edge computing and network function virtualisation
("NFV") platform:
-- Generated first initial revenue from Edgility
-- Established two new partnerships to boost Edgility's sales
and marketing presence through the offering of joint solutions
-- Sustained engagement with several potential customers
worldwide
-- Post period, CityFibre, the UK's largest independent
carrier-neutral Full Fibre platform, selected Edgility for piloting
ahead of an expected national deployment
o Network Edge (carrier ethernet and mobile backhaul):
-- Revenue maintained despite ongoing impact of supply chain
challenges
-- New orders received primarily from repeat customers in the
Americas and Europe
-- Cyber Unit
o Substantial growth in revenue from delivering on the
high-value contracts won in the previous year
o Significant backlog remaining for delivery in H2 and 2023
Bio-Medical Division (77% of total revenue)
-- Revenue was $44.4m (H1 2021: $ 55.1m ); o n a constant currency basis, revenue was $48.0m
-- Diagnostics Unit
o Sales increased of molecular diagnostic products not related
to COVID-19, which was offset by market-wide reduction in prices,
as well as lower demand, for COVID-19 products as the global
pandemic subsided
o New multi-respiratory test was CE registered with initial
sales expected to commence in Q4 2022
o Progressed development of new tuberculosis test kit, which was
CE approved, alongside Stop TB Partnership, an international
alliance
o Opened new state-of-the-art diagnostics laboratories and
facilities in Italy and Israel to support the activity of ADOR
Diagnostics ("ADOR"), which is developing its proprietary
isothermal diagnostic solution
o ADOR received an additional $10m of investment, of which the
Group contributed $4m (giving the Group an increased shareholding
of 37.2%)
-- Eco-Med Unit
o Accelerated progress, with the finalisation of two projects
for delivery of the Group's ISS AGRI solution and construction
advanced on two further installations
-- Distribution Unit
o Increased sales from greater volume of regular business
Commenting on the results, Dr Zvi Marom, Chief Executive Officer
of BATM, said: " During the first half of the year, the Group saw
solid performance in both its divisions. In the Networking &
Cyber division, there was increased growth primarily from the Cyber
unit. As expected, the Bio-Medical division saw a reduction in
revenue compared with the exceptional performance in the first half
of last year due to the pandemic.
"Looking ahead, the Group entered the second half with sustained
momentum and a significant backlog to be delivered against. The
Cyber unit expects to deliver solid growth and the Networking unit
expects sales to continue to grow in the second half of the year.
The Bio-Medical division is expected to return to growth in the
second half as diagnostic products remain in demand across the
globe. Whilst mindful of the potential impact of global supply
chain challenges, and the need to secure further contracts,
particularly in the Bio-Medical division, the Group remains on
track to deliver revenues for full year 2022 in line with market
expectations.
"BATM has established solid foundations in core technologies
that it believes will be market disrupters. Accordingly, the Board
of BATM remains confident in the prospects of the business and
looks forward to delivering 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)
Henry Willcocks (Corporate Broking) +44 20 7408 4050
-----------------
Gracechurch Group
-----------------
Harry Chathli, Claire Norbury +44 20 3488 7510
-----------------
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Investor & Analyst Presentation
Dr Zvi Marom, CEO, Moti Nagar, CFO, and Ariel Efrati, COO of
BATM and CEO of Telco Systems, will be holding a webinar for
analysts and investors today at 1.00pm BST. To register to
participate, please contact Henry Gamble at Gracechurch Group at
henrygamble@gracechurchpr.com .
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.
Operational Review
The Group performed well during the six months to 30 June 2022.
There was strong growth from ongoing operations in the Networking
& Cyber division. In the Bio-Medical division, there was a
reduction in revenue in the Diagnostics unit, as expected, compared
with the exceptional performance in the first half of last year due
to the pandemic while there was growth in the Distribution unit and
the Eco-Med unit was broadly in line with H1 2021. The Bio-Medical
division was also impacted by currency fluctuations.
Networking & Cyber Division
Adjusted* R eported
------------------ ------------------
$m H1 2022 H1 2021 H1 2022 H1 2021
-------- --------
Revenue 13.1 9.1 13.1 16.4
Gross margin 40.1% 42.7% 39.2% 30.6%
------------------------- -------- -------- -------- --------
(1. 4
Operating profit/(loss) ) (2.7) (1.5) 10.9
* Adjusted to present the results an ongoing operations basis by
excluding (1) the contribution to H1 2021 from NGSoft, a subsidiary
that the Group sold in March 2021, and (2) the amortisation of
intangible assets for both periods.
Revenue for the first half of the year from ongoing operations
in the Networking & Cyber division (excluding the contribution
to H1 2021 from NGSoft) increased by 43.8%, primarily reflecting
growth in the Cyber unit. The reduction in revenue on a reported
basis is due to the contribution of NGSoft to the Networking unit
in H1 2021, a subsidiary that the Group sold in March 2021.
There was improvement in gross margin for both the Networking
unit and the Cyber unit respectively, and a significant increase in
the division's gross profit from ongoing operations primarily as a
result of the strong performance by the Cyber unit. The aggregate
gross margin from ongoing operations decreased due to the relative
weight of both units.
On reported basis, gross margin increased significantly by
860bps. The increase in mainly due to the lower margin nature of
the NGSoft business included in the previous period.
Operating loss from ongoing operations was reduced to $1.4m (H1
2021: $2.7m) thanks to the higher revenue. On a reported basis, the
operating loss was $1.5m compared with an operating profit of
$10.9m for H1 2021 as a result of the exceptional capital gain of
$13.0m from the sale of NGSoft.
Networking
In the Networking unit, revenue from ongoing operations
(excluding the contribution to H1 2021 from NGSoft) remained flat
at $8.6m.
Edgility - Edge Computing and NFV solutions
During the period, the Group achieved a significant milestone
for its virtualised edge compute business as it commenced
executing, and received its first revenue, on two contracts for
Edgility, which are expected to have an aggregate value of $2.7m
over a five-year period, that were awarded at the end of 2021. This
includes the first enterprise customer for Edgility, CEMEX, S.A.B,
(NYSE: CX), which is a global construction materials company, and
e-Qual, a global Managed Services Provider based in France that
operates in 55 countries.
Edgility continued to undergo evaluation with leading network
operators, multi-service providers and systems integrators
worldwide, which the Group expects will result in proof-of-concepts
and licence agreements in the second half. This included extensive
lab testing with CityFibre , the UK's largest independent
carrier-neutral Full Fibre platform, which resulted, post period,
in CityFibre piloting Edgility with selected partners ahead of an
expected national deployment to provide virtualised network
services for businesses. Edgility will enable CityFibre to begin
its edge compute journey at scale, with virtualisation of routing
and other network services over tens of thousands of disaggregated
physical edge devices.
To expand the sales and marketing reach, and provide further
routes to market, the Group continued to establish strategic
partnerships, which primarily involve Edgility being pre-integrated
with, or pre-installed on, the partner's network appliances (with
customers that use the Edgility solution contracting with the Group
directly). During the period, this includes establishing
partnerships with:
-- Advantech (TWSE: 2395), a global leader in industrial IoT,
which will provide Edgility pre-installed on a variety of its
universal edge network appliances.
-- NEXCOM International Co Ltd (TPEX: 8234), a leading supplier
of network appliances, which will provide Edgility pre-installed on
its 5G-ready device designed for the small-office-home-office and
mid-range enterprise market.
Network Edge solutions and services
Revenue from network edge solutions and services, where the
Group provides carrier ethernet and mobile backhaul platforms, was
maintained despite the ongoing impact of global electronic
components shortages causing delays to the delivery of some orders.
The Group also continued to receive new orders, which were
primarily repeat orders from customers in the Americas and Europe.
In addition, the Group launched a new multipurpose, ultra-high
capacity demarcation platform, the TM-8106. The Group has received
strong interest in this new platform, with a number of customers
having ordered units and delivery due to commence this quarter.
Cyber
The Cyber unit performed strongly with revenue increasing
substantially reflecting the execution of contracts awarded in
2021, with a significant backlog remaining to be delivered in the
second half of the year and 2023.
The Cyber unit also continued its development efforts. In
particular, it is in the process of developing a version of its
cyber security solution aimed beyond the defence industry,
including for the corporate market, which will significantly expand
the addressable market.
Bio-Medical Division
Adjusted* Reported
------------------ ------------------
$m H1 2022 H1 2021 H1 2022 H1 2021
-------- --------
Revenue 44.4 55.1 44.4 55.1
Revenue on a constant currency
basis** 48.0 55.1 - -
-------------------------------- -------- -------- -------- --------
Gross margin 29.0% 37.7% 28.8% 37.6%
-------------------------------- -------- -------- -------- --------
Operating profit 2. 9 9. 4 2. 7 9. 1
* Adjusted to exclude the amortisation of intangible assets.
** Revenue from ongoing operations for H1 2022 based on the
currency rates prevailing in H1 2021.
Revenue for the Bio-Medical division was $44.4m (H1 2021:
$55.1m). On a constant currency basis, excluding the impact of the
strengthening of the US dollar against local currencies, revenue
was $48.0m (H1 2021: $55.1m). The reduced revenue in the division
also reflects lower sales in the Diagnostics unit.
Adjusted gross margin for the division was 29.0% (H1 2021:
37.7%), primarily reflecting the contribution to revenue in H1 2021
of the higher priced COVID-19 products. The Bio-Medical division
generated an adjusted operating profit of $2. 9m for H1 2022
compared with $9. 4m for the first six months of the previous
year.
Diagnostics
Revenue in the Diagnostics unit accounted for 15.5% of the
Bio-Medical division compared with 32.3% in H1 2021. There was an
increase in revenue from the Group's range of molecular diagnostic
products that are not related to COVID-19, which were sold to
customers in Europe and the Middle East. However, this increase was
more than offset by lower demand, as well as a market-wide
reduction in prices, for COVID-19 products as the global pandemic
subsided, alongside a negative impact of the strengthening of the
US dollar against local currencies.
During the period, the Group continued with its programme to
enhance its diagnostic operations. At its Adaltis subsidiary, this
included steps to optimise the production process and expand the
molecular biology team. The Group's ADOR associate company, which
is developing the NATlab molecular biology solution, opened a new
state-of-the-art laboratory in Israel, which is focused on research
& development, and new product assembly rooms in Rome, Italy
.
The Group also continued to progress its development work. This
includes i ts new molecular diagnostics test for multiple
respiratory pathogens receiving CE certification. The Group is now
finalising the diagnostic protocols (clinical guidelines) for the
multi-respiratory kit and it expects initial sales to commence in
Q4 2022.
The Group is developing a new test for the diagnosis of
tuberculosis (TB) as part of its work with the Stop TB Partnership,
an international alliance comprising governmental and
non-governmental organisations. The new TB kit has received CE
certification.
ADOR finalised the development of its novel isothermal rolling
circle amplification ("RCA") method and incorporated it into a
multi-respiratory disease panel. The panel, which will be for
laboratory use, will be the first commercial application of this
technology. In parallel, work continued on incorporating it into
the NATlab system, which is primarily designed for use at
point-of-care.
During the period, the Group and its partners invested an
additional $10m into ADOR, of which the Group contributed $4m
(giving the Group an increased shareholding of 37.2%). The
additional investment contributed to the opening of the new
laboratory and will be used to prepare ADOR for the pre-production
stage, register additional patents (mainly in the US), progress
development of more disease panels and certifications and increase
the cooperation with international bodies, including the World
Health Organisation.
Eco-Med
The Eco-Med unit accounted for 7.5% of the Bio-Medical
division's revenues in H1 2022 compared with 7.3 % in H1 202 1
.
There was significant progress in deliveries of the Group's
solution, the ISS AGRI, for the treatment of pathogenic waste in
agricultural and pharmaceutical settings. This was primarily under
contracts that had previously been secured, but where completion
had been delayed due to the restrictions as a result of the
pandemic. The Group completed the delivery of two of its ISS AGRI
contracts and advanced the delivery of two further installations ,
which are due to complete by the end of the year.
Distribution
Revenue in the Distribution unit increased by 2.7% in H1 2022
over the same period of the prior year and accounted for
approximately 77.0% of the Bio-Medical division's revenue (H1 2021:
60.4%). There was an increase in sales from a greater volume of
regular business
Financial Review
Adjusted* Reported
------------------ --------------------
$m H1 2022 H1 2021 H1 2022 H1 2021
-------- --------
Revenue 57.5 64.2 57.5 71.4
Revenue on a constant currency
basis** 61.1 64.2 - -
-------------------------------- -------- -------- ------------------- --------
Gross margin 31.6% 38.4% 31.2% 36.0%
-------------------------------- -------- -------- ------------------- --------
Operating profit 1.5 6.7 1.3 20.0
* Adjusted to present the results an ongoing operations basis by
excluding (1) the contribution to H1 2021 from NGSoft, a subsidiary
that the Group sold in March 2021, and (2) the amortisation of
intangible assets for both periods.
** Revenue from ongoing operations for H1 2022 based on the
currency rates prevailing in H1 2021.
Total Group revenue for ongoing operations for the first half of
2022 was $57.5m (2021: $64.2m), with growth in the Networking &
Cyber division being offset by a reduction in the Bio-Medical
division, primarily reflecting lower sales in the Diagnostic unit
as well as the impact of the strengthening of the US dollar. On a
constant currency basis, revenue for ongoing operations for the
first half was $61.1m. The reduction in revenue on a reported basis
reflects the aforementioned as well as the contribution to H1 2021
revenue from NGSoft before it was sold in March 2021.
The gross margin for ongoing operations for the first half of
2022 was 31.6% compared with 38.4% for the same period of the
previous year. This reflects the contribution to H1 2021 revenue of
the high-margin COVID-19 products as well as the increased
contribution to H1 2022 profit from lower-margin units.
Sales and marketing expenses were $8.0m (H1 2021: $9.2m),
representing 13.9% of revenue compared with 12.9% in H1 2021.
General and administrative expenses were $5.4m ( H1 2021: $5.7m),
representing 9.5% of revenue (H1 2021: 8.0%). The reduction was due
to H1 2021 including three months of expenses from NGSoft. R&D
expenses were $3.4m (H1 2021: $3.7m).
Adjusted operating profit for ongoing operations was $1.5m (H1
2021: $6.7m), with the reduction primarily due to the lower revenue
from COVID-19 products. On a reported basis, operating profit
(which includes amortisation) was $1.3m compared with $20.0m for H1
2021, with the prior six-month period including a capital gain of
$13.0m from the sale of NGSoft.
As a result of the above, EBITDA was $3.7m for H1 2022 compared
with $8.7m on an ongoing operations basis and $22.7m on a reported
basis for H1 2021.
Net finance expense was $0.6m (H1 2021: $0.2m). The higher
financial expenses were mainly due to the impact on balance sheet
positions of the strengthening of the US dollar compared with H1
2021.
The Group recorded a $0.3m tax income (H1 2021: $7.5m tax
expense). The tax income is a result of an approximately $1m
non-cash tax incentive while H1 2021 included a non-recurring tax
expense related to the NGSoft transaction.
Net profit after tax attributable to equity holders of the
parent was $0.1m (H1 2021: $12.0m ) resulting in basic profit per
share of 0.03c (H1 2021: 2.72c).
As at 30 June 2022, inventory wa s in line with the position at
year end at $31.0m (31 December 2021: $31.0m; 30 June 2021:
$33.8m). Trade and other receivables were $ 34.7 m (31 December
2021: $34.9m; 30 June 2021: $38.9m) .
Intangible assets and goodwill at 30 June 2022 were $ 16.4 m (31
December 2021: $16.0m; 30 June 2021: $17.6m).
Property, plant and equipment and investment property was $18.6m
(31 December 2021: $19.8m; 30 June 2021: $16.2m), with the
reduction primarily due to the currency impact on balance sheet
positions.
The balance of trade and other payables was $ 36.6 m (31
December 2021: $47.5m; 30 June 2021: $43.6m). This includes a
dividend payment of $4.3m and a significant currency impact on
balance sheet positions.
Cash used in operating activities was $5.2m (H1 2021: $4.4m ),
with the change primarily due to the timing of payments and
collections.
At 30 June 2022, the Group had cash and cash equivalents and
financial assets of $47.4m (31 December 2021: $ 67.8m; 30 June
2021: $64.9m). Financial assets represent cash deposits of more
than three months' duration, held for trading bonds and marketable
securities. The change in cash and cash equivalents and financial
assets compared with the prior periods primarily reflects dividend
and buy-back payments of $5.1m; an additional investment in ADOR of
$4m; and the impact of the weakening of the currencies in which the
Group's subsidiaries operate compared with the US dollar .
Outlook
The Group has entered the second half with sustained momentum
across the business and a significant backlog to be delivered
against.
In particular, in the Networking & Cyber division, the Cyber
unit is expected to deliver solid growth as government agencies
continue to increase licensing of its encryption products. In the
Networking unit, the first half saw initial contributions from the
unit's Edgility platform for edge computing and virtual networking
following its launch last year. The Group expects the division's
revenue to continue to grow in the second half of the year as it
delivers against a significant backlog in both units.
The Bio-Medical division is expected to return to growth, with a
significant increase in revenue in the second half compared with
the first half, as diagnostic products remain in demand across the
globe. The division is expected to be the largest contributor to
Group's revenues for the full year.
Whilst mindful of the potential impact of global supply chain
challenges, and the need to secure further contracts, particularly
in the Bio-Medical division, the Group remains on track to deliver
revenues for full year 2022 in line with market expectations.
As stated above, the Group experienced exchange rate headwinds
in the first half of the year. BATM expects to continue to
experience significant headwinds in the second half of the year if
the exchange rates remain the same.
BATM has established solid foundations in core technologies that
it believes will be market disrupters. The Board of BATM remains
confident in the prospects of the business and is working hard to
demonstrate the substantial value that exists within BATM. As part
of this process, the Board has committed to constantly examine the
use of Group resources, including share buy-backs, and looks
forward to delivering shareholder value.
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED INCOME STATEMENTS
Six months ended 30
June
2022 2021
$'000 $'000
Unaudited Unaudited
Revenues 57,515 71,448
Cost of revenues 39,565 45,754
Gross profit 17,950 25,694
--------------- ---------------
Operating expenses
Sales and marketing expenses 7,980 9,215
General and administrative expenses 5,443 5,721
Research and development expenses 3,395 3,652
Other operating income (119) (12,917)
Total operating expenses 16,699 5,671
--------------- ---------------
Operating profit 1,251 20,023
Finance income 389 305
Finance expenses (1,029) (479)
Profit before tax 611 19,849
Income tax (expenses) 347 (7,462)
Profit for the period before share of loss
of a joint venture
and associated companies 958 12,387
Share of loss of a joint venture and associated (288) _ _ (401)
companies
Profit for the period 670 11,986
Attributable to:
Owners of the Company 145 11,979
Non-controlling interests 525 7
Profit for the period 670 11,986
Profit per share (in cents):
Basic 0.03 2.72
Diluted 0.03 2.70
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
Six months ended 30
June
2 0 2 2 2 0 2 1
$'000 $'000
Unaudited Unaudited
Profit for the period 670 11,986
Items that may be reclassified subsequently
to profit or loss:
Disposal of a foreign operation - (522)
Exchange differences on translating foreign ( 6,666
operations ) (2,195)
( 6 ,666
) (2,717)
Items that will not be reclassified subsequently
to profit or loss:
Re-measurement of defined benefit obligation 36 -
36 -
( 6 ,630
Total other comprehensive loss for the period ) (2,717)
Total comprehensive income (loss) for the
period (5,960) 9,269
Attributable to:
Owners of the Company (6,766) 9,190
Non-controlling interests 806 79
(5,960) 9,269
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 30 June 31 December
2 0 2 2 2 0 2 1 2 0 2 1
$'000 $'000 $'000
Unaudited Unaudited Audited
Current assets
Cash and cash
equivalents 40,101 62,151 65,331
Trade and other
receivables 34,678 38, 902 34,932
Financial assets 7,263 2,742 2,432
Inventories 31,015 33,757 30,951
------------------------------ ------------------------------
113,057 137, 55 2 133,646
------------------------------ ------------------------------
Non-current assets
Property, plant and
equipment 16,962 14,379 18,107
Investment property 1,644 1,797 1,739
Right-of-use assets 5,650 6,310 6,570
Goodwill 11,129 11,407 11,385
Other intangible
assets 5,237 6,219 4,648
Investment in joint
venture and
associate 15,616 13,138 12,667
Investments carried
at fair value 1,220 1,027 1,027
Deferred tax assets 3,356 4,107 3,375
------------------------------ ------------------------------
60, 814 58,384 59,518
------------------------------ ------------------------------
Total assets 173,871 195, 93 6 193,164
============================== ============================== =============================
Current liabilities
Short-term bank
credit 4,731 4,968 1,634
Trade and other
payables 36,562 43,641 47,519
Current maturities
of lease
liabilities 1,866 1,727 2, 186
Tax liabilities 5,291 6,449 6,548
48,450 56, 785 57,887
Non-current liabilities
Long-term bank
credit 6 325 1,356
Long-term
liabilities 3,221 4,583 3,888
Long-term lease
liabilities 4,023 5,287 5,108
Deferred tax
liabilities 175 140 170
Retirement benefit
obligation 536 753 621
7,961 11,088 11,143
Total liabilities 56,411 67, 873 69,030
Equity
Share capital 1,320 1,320 1,320
Share premium
account 425, 944 425,717 425,840
Reserves ( 26,933 ) (17,112) (19,849)
Accumulated deficit ( 279,707 ) (278,111) (279,888)
------------------------------ ------------------------------
Equity attributable to
the:
Owners of the
Company 120,624 131,814 127,423
Non-controlling
interest (3, 164 ) (3,751) (3,289
============================== ==============================
Total equity 117,460 128,063 124,134
============================== ==============================
Total equity and
liabilities 173,871 195, 93 6 193,164
============================== ==============================
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Six months ended 30 June 2022
Attributable
Share to owners
Share premium Translation Other Accumulated of the Non-controlling Total
capital account reserve Reserve Deficit Company interests equity
$'000
--------------------------------------------------------------------------------------------------------------------
Balance as
at 1 January
2022 1,320 425,840 (19,337) (512) (279,888) 127,423 (3,289) 124,134
Profit for
the period - - - - 145 145 525 670
Other
comprehensive
income
Re-measurement
of defined
benefit
obligation - - - - 36 36 - 36
Exchange
differences
on translating
foreign
operations - - (6,947) - - (6,947) 281 (6,666)
------------- --------- ------------- --------------- ------------- ------------- ---------------- ----------
Other
comprehensive
income (loss)
for the period - - (6,947) - 36 (6,911) 281 (6,630)
Total
comprehensive
income (loss)
for the period - - (6,947) - 181 (6,766) 806 (5,960)
Dividend paid
to
non-controlling
interest - - - - - - (681) (681)
Share buy-
back - - - (137) - (137) - (137)
Recognition
of share-based
payments - 104 - - - 104 - 104
------------- --------- ------------- --------------- ------------- ------------- ---------------- ----------
Balance as
at 30 June
2022
(unaudited) 1,320 425,944 (26,284) (649) (279,707) 120,624 (3,164) 117,460
------------- --------- ------------- --------------- ------------- ------------- ---------------- ----------
Six months ended 30 June 2021
Attributable
Share to owners
Share premium Translation Other Accumulated of the Non-controlling Total
capital account reserve Reserve Deficit Company interests equity
$'000
------------------------------------------------------------------------------------------------------------------------
Balance as
at 1 January
2021 1,320 425,686 (13,811) (512) (290,090) 122,593 (3,830) 118,763
Profit for
the period - - - - 11,979 11,979 7 11,986
Other
comprehensive
income
Disposal of
a foreign
operation - - (522) - - (522) - (522)
Exchange
differences
of
translating
foreign
operations - - (2,267) - - (2,267) 72 (2,195)
------------- --------- ------------- --------------- ------------- ------------- ---------------- --------------
Other
comprehensive
income (loss)
for the
period - - (2,789) - - (2,789) 72 (2,717)
Total
comprehensive
income for
the period - - (2,789) - 11,979 9,190 79 9,269
Recognition
of
share-based
payments - 31 - - - 31 - 31
------------- --------- ------------- --------------- ------------- ------------- ---------------- --------------
Balance as
at 30 June
2021
(unaudited) 1,320 425,717 (16,600) (512) (278,111) 131,814 (3,751) 128,063
------------- --------- ------------- --------------- ------------- ------------- ---------------- --------------
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 June
2 0 2 2 2 0 2 1
$'000 $'000
Unaudited Unaudited
Net cash from (used in) operating activities
(Appendix A) (5,198) (4,364)
Investing activities
Interest received 35 13
Proceeds on disposal of property, plant
and equipment 38 52
Proceeds on disposal of deposits 158 157
Proceeds on disposal of financial assets
carried
at fair value through profit and loss 1,021 100
Purchases of property, plant and equipment ( 1,481 ) (607)
Increase of other intangible assets ( 1,071 ) (400)
Purchases of financial assets carried
at fair value (1,529) -
through profit and loss
Purchases of deposits ( 4,659 ) (157)
Net cash outflow on acquisition of business
combinations - (309)
Investment in joint venture, associated
companies and other ( 4,180 ) (160)
Proceeds from sale of subsidiary (Appendix
B) - 18,662
Net cash from (used in) investing activities (11,668) 17,351
Financing activities
Lease payment (1, 088 ) (1,147)
Bank loan repayment ( 3,666 ) (6,774)
Bank loan received 5,678 6,573
Dividend paid (4,300) -
Dividend paid to NCI (681) -
Share buy-back (137) -
Net cash used in financing activities (4,194) (1,348)
Net increase (decrease) in cash and
cash equivalents (21,060) 11,639
Cash and cash equivalents at the beginning
of the period 65,331 50,575
Effects of exchange rate changes on
the balance
of cash held in foreign currencies ( 4,170 ) (63)
Cash and cash equivalents at the end
of the period 40,101 62,151
BATM ADVANCED COMMUNICATIONS LTD.
APPICES TO CONSOLIDATED STATEMENT OF CASH FLOWS
APPIX A
RECONCILIATION OF OPERATING PROFIT FOR THE PERIOD TO NET CASH
USED IN OPERATING ACTIVITIES
Six months ended 30
June
2022 2021
$'000 $'000
Unaudited Unaudited
Operating profit from operations 1,251 20,023
Adjustments for:
Amortisation of intangible assets 280 433
Depreciation of property, plant and equipment
and investment property 2, 127 2,226
Capital loss (gain) of property, plant and equipment 22 (22)
Profit from sale of a subsidiary - (13,035)
Gain from revaluation of investment carried (192) -
at fair value
Stock options granted to employees 104 31
Decrease in retirement benefit obligation ( 43 ) (52)
Increase (decrease) in provisions 19 (2)
Operating cash flow before movements in working
capital 3,568 9,602
Decrease (increase) in inventory (135) 136
Decrease (increase) in receivables 50 ( 5,009 )
( 5,988
Decrease in payables ) ( 4,725 )
Effects of exchange rate changes on the balance ( 1,488
sheet ) (2,259)
( 3,993
Cash used in operations ) (2,255)
Income taxes paid ( 733 ) (1,660)
Interest paid ( 472 ) (449)
( 5,198
Net cash used in operating activities ) (4,364)
APPIX B
DISPOSAL OF SUBSIDIARY - NGSoft
On 19 March 2021, the Group entered into a sale agreement to
dispose of NG Soft Ltd. ("NGSoft ( to Aztek Technologies (1984)
Ltd., a provider of ICT cloud services in Israel and a portfolio
company of SKY Fund. NGSoft is a software and digital services
company that provides creative digital and technology solutions
.
Disposal of subsidiary - N GSoft
Six months ended
30 June
2021
$'000
Unaudited
Net assets disposed
Property, plant and equipment 1,144
Right of use 3,667
Other intangible assets 968
Net working capital 73
Lease liability (3,764)
Current tax liability (584)
Deferred tax liability (540)
Goodwill 5,185
Net assets disposed of 6,149
Disposal of a foreign operation translation reserve (522)
Gain on disposal 13,035
Total consideration 18,662
Net cash inflow arising on disposal:
Consideration received in cash and cash equivalents,
net 20,903
Cash and cash equivalents disposed (2,241)
18,662
BATM ADVANCED COMMUNICATIONS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of preparation
The interim consolidated financial statements of the Group have
been prepared in conformity with International Accounting Standard
No. 34 "interim financial reporting" (hereafter "IAS 34").
In preparing these interim consolidated financial statements,
the Group implemented accounting policies, presentation principles
and calculation methods identical to those implemented in
preparation of its consolidated financial statements as of 31
December 2021 and for the period ended on that date. The condensed
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2021,
which have been prepared in accordance with IFRSs.
Note 2 - Profit per share
Profit per share is based on the weighted average number of
shares in issue for the period of 440,434,676 (H1 2021:
440,434,124). The number used for the calculation of the diluted
profit per share for the period (which includes the effect of
dilutive stock option plans) is 443,123,900 shares (H1 2021:
444,285,836).
Note 3 - Other alternative measures
1. Income statement adjustments - including (1) the contribution
to 2021 from NGSoft, a subsidiary that the Group sold in March
2021, (2) adjustments related to the amortisation of intangible
assets.
Six months ended 30 June Reported Adjustments Amortisation Adjusted
2022 results to exclude of intangible results
NGSoft assets (ongoing
operations)
(Unaudited)
US$ thousands
Gross profit 17,950 - (207) 18,157
Gross margin (%) 31.2% - - 31.6%
Other operating expenses
(income) (119) - 73 (192)
Operating profit 1,251 - (280) 1,531
Six months ended 30 June Reported Adjustments Amortisation Adjusted
2021 results to exclude of intangible results
NGSoft assets (ongoing
operations)
(Unaudited)
US$ thousands
Revenues 71,448 7,262 - 64,186
Gross profit 25,694 1,235 (207) 24,666
Gross margin (%) 36.0% 17.0% - 38.4%
Sales and marketing expenses 9,215 144 - 9,071
General and administrative
expenses 5,721 358 - 5,363
Research and development
expenses 3,652 - 108 3,544
Other operating expenses
(income) (12,917) (12,994) 77 -
Operating profit 20,023 13,727 (392) 6,688
EBITDA 22,682 13,956 - 8,726
2. EBITDA measurement
Reported Adjusted
Six months ended Six months ended 30
30 June June
US$ in thousands 2022 2021 2022 2021
------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating profit 1,251 20,023 1,531 6,688
Amortisation of Intangible
assets 280 433 - -
Depreciation 2,127 2,226 2,127 2,038
EBITDA 3,658 22,682 3,658 8,726
Note 4 - Segments
Business Segment
Six months ended 30 June 2022
Networking Bio-Medical Unallocated Total
& Cyber
$'000 $'000 $'000 $'000
Revenues 13,104 44,411 - 57,515
Operating profit (1,491) 2,742 - 1,251
Net finance expense (640)
Profit before tax 611
Six months ended 30 June 2021
Networking Bio-Medical Unallocated Total
& Cyber
$'000 $'000 $'000 $'000
Revenues 16,377 55,071 - 71,448
Operating profit 10,889 9,134 - 20,023
Net finance expense (174)
Profit before tax 19,849
Note 5 - Revenue from major products and services
The following is an analysis of the Group's revenue from
operations from its major products and services according to IFRS
15:
Six months ended 30
June
2022 2021
$'000 $'000
Unaudited Unaudited
Telecommunication products 7,355 6,670
Software services 5,750 9,707
Distribution of medical products 34,175 33,289
Diagnostic products 6,894 17,786
Eco-Med products 3, 341 3,996
57,515 71,448
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR SEEFADEESELA
(END) Dow Jones Newswires
August 24, 2022 02:00 ET (06:00 GMT)
Batm Advanced Communicat... (LSE:BVC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Batm Advanced Communicat... (LSE:BVC)
Historical Stock Chart
From Jul 2023 to Jul 2024
