20 May
2024
MTI Wireless Edge Ltd
("MTI", the
"Company" or the "Group")
Q1 2024 financial
results
MTI Wireless Edge Ltd (AIM: MWE), the technology
group focused on comprehensive communication and radio frequency
solutions across multiple sectors, is pleased to announce its
financial results for the three-month period ended 31 March
2024.
Financial
highlights
· Generated revenues of
$11.24m (Q1 2023: $11.28m), a
solid start to the year with new business wins expected to drive
revenue growth in Q2 and later in the year.
· 20%
increase in EBITDA* to $1.68m (Q1 2023: $1.39m).
· Earnings per share increased by 5%
to 1.06 US cents (Q1 2023: 1.01 US cents).
· 133% increase in net cash
provided by operating activities to $1.25m (Q1 2023: $0.54m),
contributing to a continued strong financial position with net cash
as at 31 March 2024 of $8.34m (31 December 2023:
$8.08m).
Operational
highlights
Antennas
· The Antenna division
provides a one stop shop for the sale of 'off the shelf' flat and
parabolic antennas, combined with the provision of custom-developed
antenna solutions to a range of commercial and military
customers.
· The division also has a
growing focus on providing 5G backhaul antenna solutions to support
mobile phone operators as they roll-out their 5G
networks.
· The division had a good
first quarter with strong revenue growth up 13% versus the same
period in the prior year, although the product mix held back
profitability which is expected to reverse in Q2 with more
profitable product combinations.
· Commercial antenna
deliveries drove revenue growth in Q1 with military deliveries
below last year. Significant recent orders for military antennas,
together with the current order backlog make it likely this segment
of the market will be strong for the Group during the remainder of
the year.
· 5G remains a key market with
the automatic beam steering ("ABS") antenna solution now moving
into trial stages with two Tier 1 mobile phone
operators.
· Sales of the division's 5G
backhaul solutions are coming through from multiple markets, with
India still expected to be the largest opportunity in the nearer
term.
Water Control &
Management
· This division operates under
the Mottech brand and provides wireless control systems to manage
irrigation and water distribution for agriculture, municipal
authorities and commercial entities.
· Mottech's solutions reduce
water and power usage for its customers and allows these customers
to generate higher revenues from the higher yields that result from
both an increased number and improved quality of crops
cultivated.
· Revenues in Q1 2024 softened
16% compared to the same period in 2023, following the scheduled
municipal elections in Israel last year, nevertheless,
profitability increased strongly reflecting increased revenues in
higher margin markets and improved service contract
terms.
· Entering Q2, this division
is performing well with a lengthy pipeline of new business
opportunities combined with a healthy backlog of orders.
Distribution &
Professional Consulting Services
· Operates under the MTI Summit
Electronics brand and represents approximately 40 international
suppliers of radio frequency/microwave components, selling these
products to Israeli customers.
· Expert knowledge of both the
international suppliers and customers enables MTI to also act as a
consultant to all parties and assist with devising complete radio
frequency/microwave solutions.
· Delivered 10% growth in revenues
for Q1 2024. Whilst sales from PSK were 1% lower, sales from the
other parts of this division were up 16% with good growth in
profitability.
· PSK projects were slower to
complete due to key personnel being called up for military service.
This impacted margins in the period resulting in a loss, however,
this is expected to reverse and for PSK to move back into
profitability in the year.
Moni Borovitz,
Chief Executive Officer of MTI Wireless Edge,
said:
"We expect 2024 to be a successful year for the
business. In Q1, we delivered a positive trading performance, but
we have not, as yet, felt the full benefit of the backlog of
business that we have contracted or indeed the healthy pipeline of
opportunities we have ahead of us. MTI is therefore well placed for
2024 and in a strong financial position to respond as opportunities
arise.
"The conflict with Hamas is deeply saddening for
all concerned. The impact on our business continues to be
relatively limited, however, PSK was impacted by some staff
shortages in Q1, but overall, the Group's team has been able to
address any challenges.
"Our three divisions all sell their expertise in
delivering radio frequency solutions, each addressing large and
growing markets boosted by positive macro trends. These are the
growing global problem of water scarcity, the roll-out of 5G mobile
networks across the world and the increase in defence spending by
governments worldwide.
"MTI entered Q2 in a good position and has since
announced sizeable contract wins which have further enhanced the
Board's confidence in our ability to deliver a good performance for
the year."
*Earnings before interest, tax,
depreciation and amortisation.
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)
|
|
|
Guy McDougall/Amrit Nahal (Sales and Corporate
Broking)
|
|
|
|
|
|
Shore
Capital (Joint Broker)
Toby Gibbs/Rachel Goldstein (Corporate Advisory)
|
+44 20 7408 4090
|
|
Fiona Conroy (Corporate Broking)
|
|
|
|
|
|
Novella
(Financial PR)
|
|
|
Tim Robertson/Safia Colebrook
|
+44 20 3151 7008
|
About MTI Wireless Edge Ltd. ("MTI")
Headquartered in Israel, MTI is a technology group
focused on comprehensive communication and radio frequency
solutions across multiple sectors through three core divisions:
Antenna
division
MTI is a world leader in the design, development
and production of high quality, state-of-the-art, and
cost-effective antenna solutions including Smart Antennas, MIMO
Antennas and Dual Polarity Antennas for wireless applications. MTI
supplies antennas for both military and commercial markets from 100
KHz to 174 GHz.
Internationally recognized as a producer of
commercial off-the-Shelf and custom-developed antenna solutions in
a broad frequency range, MTI addresses both commercial and military
applications.
MTI supplies directional and omnidirectional
antennas for outdoor and indoor deployments, including smart
antennas for 5G backhaul, Broadband access, public safety, RFID,
base station and terminals for the utility market.
Military applications include a wide range of
broadband, tactical and specialized communication antennas, antenna
systems and DF arrays installed on numerous airborne, ground and
naval, including submarine, platforms worldwide.
Water Control
& Management division
Via its subsidiary, Mottech Water Solutions Ltd
("Mottech"), MTI provides high-end remote control and monitoring
solutions for water and irrigation applications based on Motorola's
IRRInet state-of-the-art control, monitoring and communication
technologies.
As Motorola's global prime-distributor Mottech
serves its customers worldwide through its international
subsidiaries and a global network of local distributors and
representatives. With over 25 years of experience in providing
customers with irrigation remote control and management, Mottech's
solutions ensure constant, reliable and accurate water usage,
increase crops quality and yield while reducing operational and
maintenance costs providing fast ROI while helping sustain the
environment. Mottech's activities are focused in the market
segments of agriculture, water distribution, municipal and
commercial landscape as well as wastewater and storm-water
reuse.
Distribution
& Professional Consulting Services division
Via its subsidiary, MTI Summit Electronics Ltd.,
MTI offers consulting, representation and marketing services to
foreign companies in the field of RF and Microwave solutions and
applications including engineering services (including design and
integration) in the field of aerostat systems and the ongoing
operation of Platform subsystems, SIGINT, RADAR, communication and
observation systems which is performed by the Company. It also
specializes in the development, manufacture and integration of
communication systems and advanced monitoring and control systems
for the Government and defence industry market.
MTI WIRELESS EDGE LTD.
(An Israeli
Corporation)
INTERIM
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
|
|
Three month period ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
U.S. $ in thousands
(Except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
11,240
|
|
11,285
|
|
45,634
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
3,470
|
|
3,619
|
|
14,671
|
|
Research and development
expenses
|
229
|
|
293
|
|
1,047
|
|
Distribution expenses
|
893
|
|
947
|
|
3,709
|
|
General and administrative expenses
|
1,231
|
|
1,324
|
|
5,278
|
|
Loss (profit) from sale of property, plant and
equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from
operations
|
1,184
|
|
1,065
|
|
4,650
|
|
Finance expenses
|
238
|
|
105
|
|
342
|
|
Finance income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before
income tax
|
1,144
|
|
1,115
|
|
4,835
|
|
Tax expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
|
|
|
|
|
|
|
Other comprehensive income (loss) net of tax:
|
|
|
|
|
|
|
Items that will
not be reclassified to profit or loss:
|
|
|
|
|
|
|
Re-measurement of defined benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to profit or loss:
|
|
|
|
|
|
|
Adjustment arising from translation of financial
statements of foreign operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to:
|
|
|
|
|
|
|
Owners of the parent
|
932
|
|
894
|
|
4,045
|
|
Non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income attributable to:
|
|
|
|
|
|
|
Owners of the parent
|
820
|
|
796
|
|
3,891
|
|
Non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share (dollars)
|
|
|
|
|
|
|
Basic and Diluted (dollars per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
Basic and Diluted (dollars per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli
Corporation)
INTERIM CONSOLIDATED STATEMENTS
OF
FINANCIAL POSITION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
8,832
|
|
8,640
|
|
8,454
|
|
Trade and other
receivables
|
12,782
|
|
10,384
|
|
14,284
|
|
Unbilled revenue
|
4,672
|
|
3,597
|
|
4,190
|
|
Current tax receivables
|
378
|
|
467
|
|
381
|
|
Inventories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS:
|
|
|
|
|
|
|
Long term prepaid
expenses
|
28
|
|
32
|
|
37
|
|
Property, plant and
equipment
|
5,479
|
|
5,415
|
|
5,398
|
|
Deferred tax assets
|
969
|
|
1,140
|
|
968
|
|
Intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes form an integral part
of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli
Corporation)
INTERIM CONSOLIDATED STATEMENTS
OF
FINANCIAL POSITION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Current maturities and short term bank credit and
loans
|
436
|
|
76
|
|
314
|
|
Trade payables
|
6,941
|
|
5,465
|
|
7,882
|
|
Other accounts payable
|
4,347
|
|
3,638
|
|
4,558
|
|
Current tax payables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON- CURRENT LIABILITIES:
|
|
|
|
|
|
|
Contingent consideration
|
1,117
|
|
1,432
|
|
1,117
|
|
Lease liabilities
|
518
|
|
206
|
|
514
|
|
Loans from banks, net of current maturities
|
55
|
|
91
|
|
64
|
|
Employee benefits, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity attributable
to owners of the parent
|
|
|
|
|
|
|
Share capital
|
209
|
|
209
|
|
209
|
|
Additional paid-in
capital
|
22,761
|
|
23,158
|
|
23,061
|
|
Translation differences
|
(578)
|
|
(348)
|
|
(466)
|
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,550
|
|
27,688
|
|
28,030
|
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Date of approval of
financial statements
|
Moshe Borovitz
Chief Executive
Officer
|
Elhanan Zeira
Controller
|
Zvi Borovitz
Non-executive Chairman of
the Board
|
The accompanying
notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli
Corporation)
INTERIM CONSOLIDATED STATEMENTS
OF
CASH FLOWS
|
|
Three month period ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
Profit for the period
|
|
935
|
|
882
|
|
4,076
|
|
Adjustments for:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
492
|
|
326
|
|
1,511
|
|
Loss (Gain) from sale of property,
plant and equipment
|
|
(63)
|
|
(10)
|
|
(13)
|
|
Finance (income) expenses,
net
|
|
(14)
|
|
(33)
|
|
(5)
|
|
Changes in Contingent
consideration and Put option liability
|
|
-
|
|
-
|
|
(315)
|
|
Tax expenses
|
|
209
|
|
233
|
|
759
|
|
Changes in operating assets
and liabilities:
|
|
|
|
|
|
|
|
Decrease (increase) in
inventories
|
|
(234)
|
|
247
|
|
158
|
|
Decrease (increase)
in trade receivables
|
|
1,343
|
|
(181)
|
|
(2,477)
|
|
Decrease (increase) in other
accounts receivables
|
|
92
|
|
719
|
|
(897)
|
|
Increase in unbilled revenues
|
|
(482)
|
|
(1,393)
|
|
(1,986)
|
|
Increase (decrease) in trade and other accounts payables
|
4
|
(1,070)
|
|
(140)
|
|
3,228
|
|
Increase (decrease) in
employee benefits, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from
operations
|
|
1,229
|
|
651
|
|
4,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest received
|
|
174
|
|
19
|
|
69
|
|
Interest paid
|
|
(9)
|
|
(10)
|
|
(59)
|
|
Income tax paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
The accompanying
notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli
Corporation)
INTERIM CONSOLIDATED STATEMENTS
OF
CASH FLOWS (cont.)
|
|
|
Three month period ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from sale of property,
plant and equipment
|
|
62
|
|
11
|
|
62
|
|
|
Purchase of property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
Dividend
|
|
-
|
|
-
|
|
(2,656)
|
|
|
Payments of lease
liabilities
|
|
(485)
|
|
(116)
|
|
(485)
|
|
|
Treasury shares
acquired
|
|
(300)
|
|
-
|
|
(516)
|
|
|
Treasury shares sold
|
|
-
|
|
80
|
|
499
|
|
|
Acquisition of non-controlling
interest in subsidiary
|
|
-
|
|
-
|
|
(35)
|
|
|
Receipt of loans from
banks
|
|
169
|
|
-
|
|
460
|
|
|
Repayment of long-term loans from banks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)/Increase
in cash and
cash equivalents during the period
|
|
409
|
|
395
|
|
194
|
|
|
Cash and cash
equivalents
at the
beginning of the period
|
|
8,454
|
|
8,279
|
|
8,279
|
|
|
Exchange differences
on balances of cash and
cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
at the end of
the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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The accompanying
notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli
Corporation)
NOTES TO INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
Note 1 - General:
Corporate information:
M.T.I Wireless Edge Ltd. (hereafter - the "Company",
or collectively with its subsidiaries, the "Group") is an Israeli
corporation. The Company was incorporated under the Companies Act
in Israel on December 30, 1998 and commenced operations on July 1,
2000. Since March 2006, the Company's shares have been traded on
the AIM market of the London Stock Exchange.
The formal address of the Company is 11 Hamelacha
Street, Afek industrial Park, Rosh-Ha'Ayin, Israel.
The Company and its subsidiaries are engaged in the
following areas:
- Development, design,
manufacture and marketing of antennas for the military and civilian
sectors.
- A leading provider of
remote control solutions for water and irrigation applications
based on Motorola's IRRInet state of the art control, monitoring
and communication technologies.
- Providing consulting,
representation and marketing services to foreign companies in the
field of RF (radio frequency) and Microwave, including engineering
services in the field of aerostat systems and system engineering
services.
- Development, manufacture
and integration of communication systems and advanced monitoring
and control systems for the Government and defence industry
market.
Note 2 - Significant Accounting Policies:
The interim consolidated financial
statements have been prepared in accordance with generally accepted
accounting principles for the preparation of financial statements
for interim periods, as prescribed in International
Accounting Standard No.
34 ("Interim Financial Reporting").
The interim consolidated financial information
set out above does not constitute full year-end accounts within the
meaning of Israeli Companies Law. It has been
prepared on the going concern basis in accordance with the
recognition and measurement criteria of the International Financial
Reporting Standards (IFRS). Statutory financial information for the
financial year ended December 31, 2023 was approved by the board on
March 10, 2024. The report of the auditors on those financial
statements was unqualified.
The interim consolidated financial statements
as of March 31, 2024 have not been
audited.
The interim consolidated financial information
should be read in conjunction with the annual financial statements
as of December 31, 2023 and for the year then ended and with the
notes thereto. The significant accounting policies applied in the
annual financial statements of the Company as of December 31, 2023
are applied consistently in these interim consolidated financial
statements.
Note 3 - REVENUES:
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Three month period
ended
March 31,
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Revenues arise from:
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Sale of goods*
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8,169
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8,284
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32,525
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Rendering of services**
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1,981
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1,465
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7,178
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Projects**
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(*) at the point in
time
(**) over time
Note 4 - operating SEGMENTS:
The following tables present revenue and profit
information regarding the Group's operating segments for the three
month period ended March 31, 2024 and 2023 respectively and for the
year ended December 31, 2023.
Three month period ended March 31, 2024
(Unaudited):
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Distribution &
Consultation Services
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U.S. $ in thousands
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Revenues
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External
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3,316
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3,805
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4,119
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-
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11,240
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Internal
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Total
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3,316
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3,805
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4,308
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(189)
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11,240
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Segment profit (loss)
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Finance expense (income),
net
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40
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Tax expenses
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Profit
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March 31,
2024:
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Distribution &
Consultation Services
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U.S. $ in thousands
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Segment
assets
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Unallocated
assets
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Segment
liabilities
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Unallocated
liabilities
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Note 4 - operating SEGMENTS
(CONT.):
Three month period ended March 31, 2023 (Unaudited):
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Distribution &
Consultation Services
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U.S. $ in thousands
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Revenues
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External
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2,945
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4,509
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3,831
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-
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11,285
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Internal
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Total
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2,945
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4,509
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3,919
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(88)
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11,285
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Segment profit (loss)
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Finance expense (income),
net
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(50)
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Tax expenses
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Profit
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March 31,
2023:
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Distribution &
Consultation Services
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U.S. $ in thousands
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Segment
assets
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Unallocated
assets
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Segment
liabilities
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Unallocated
liabilities
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Year ended December 31, 2023
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Distribution &
Consultation
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Revenues
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External
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12,237
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17,164
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16,233
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-
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45,634
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Inter-segment
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Total
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Segment
profit
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Finance income, net
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(185)
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Profit before tax
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Tax expenses
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Profit
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Note 4 - operating SEGMENTS (CONT.):
December 31, 2023:
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Distribution &
Consultation
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Segment
assets
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Unallocated
assets
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Segment
liabilities
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Unallocated
liabilities
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Note 5 - SIGNIFICANT EVENTS:
A. On 5 January 2024 following approval at an
extraordinary shareholders meeting, 600,000 share options were
granted to Mr. Moshe (Moni) Borovitz, the Company's Chief Executive
Officer and 100,000 share options were granted to Mr. Dov Feiner,
the General Manager of the Company's Antenna division as part of
the Company's Option Plan.
B. The Board of directors decided to
declare a cash dividend of 3.1 US cents per share being
approximately $2,745,000. This dividend was paid on 11 April 2024
to shareholders on the register at the close of trading on 22 March
2024.
C. The financial statements for the year
ended 31 December 2023 were authorized for issue by the board as a
whole following their approval on 10 March 2024.
D. On 24 January 2019, the Company announced a
share repurchase program to conduct market purchases of ordinary
shares of par value 0.01 Israeli Shekels each ("Ordinary Shares")
in the Company up to a maximum value of £150,000 (the "Programme").
Thereafter, the board of directors of the Company and the board of
directors of MTI Engineering decided to continue with the Programme
for several further periods. On 13 April 2022, the Company
announced that it would extend the Programme until 31 March 2023,
with the Programme having an increased maximum value of up to
£200,000 and with the Programme being managed by Shore Capital
Stockbrokers Limited pursuant to the terms as announced. On
10 March 2024 the board of directors of
the Company and the board of directors of MTI Engineering decided
to extend the Programme effective from 12 March 2024 until 31 March
2025 and to increase the maximum value of the Programme up to
£700,000, with the intention to hold the Ordinary Shares purchased
for a longer period of time. As at 31 December 2023, 220,000
Ordinary Shares were held in treasury under the Programme, and as
at 10 March 2024, 470,000 Ordinary Shares were held in treasury
under the Programme.
E. On 20 March 2024 at the Company's
extraordinary meeting, Mrs. Hani Lerman was elected as an external
non-executive director.
F. On 7 October 2023 Israel was attacked
by the Hamas terror organization leading to war in the Gaza region.
The war has led to a slowdown in the Israeli economy and if this
war continues for a prolonged period, then it may begin to impact
the Company. The wide usage of military reserve personnel, adverse
foreign currency exchange rates and restrictions on access to
certain areas in Israel are risks which may affect the Company if
there is a prolonged period of war. As of the date of this report,
and to the best of the Company's knowledge, the war has not had a
significant effect on the Company. The Company continues to review
the effects of the war on its trading as it believes that if the
war continues for a long period of time then the overall Israeli
economy will be effected, and factors including the lack of
available manpower, interest rates and foreign currency exchange
rates may have an impact on its trading.