REG - BATM Advanced Comm - Annual Financial Report
14/04/2022 09:30
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RNS Number : 4035I BATM Advanced Communications Ld 14 April 2022
LEI: 213800FLQUB9J289RU66
14 April 2021
BATM Advanced Communications Limited
("BATM", the "Group" or the "Company")
ANNUAL FINANCIAL REPORT - DTR 6.3.5 Disclosure
Following the release on 28 February 2022 of the Group's preliminary results
announcement for the financial year ended 31 December 2021 (the "Preliminary
Announcement"), BATM announces that the 2021 Annual Report and Accounts has
been published today. This document has been made publicly available on the
BATM website (www.batm.com). The annual report can be found in the Investor
Relations section under Financial Reports. The direct link is
http://www.batm.com/investor-relations/financial-statements/
(http://www.batm.com/investor-relations/financial-statements/) .
In compliance with 9.6.1 of the Listing Rules, a copy of the 2021 Annual
Report and Accounts will shortly be available for inspection at the FCA's
National Storage Mechanism website:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
The primary purpose of this announcement is to inform the market about the
publication of the Company's Annual Report and Accounts for the year ended 31
December 2021 (the "2021 Annual Report and Accounts").
The information below, which is extracted from the 2021 Annual Report and
Accounts, is included solely for the purpose of complying with DTR 6.3.5 and
the requirements it imposes on issuers as to how to make public annual
financial reports. It should be read in conjunction with the Group's
Preliminary Announcement. Together these constitute the material required by
DTR 6.3.4 to be communicated to the media in unedited full text through a
Regulatory Information Service. This material is not a substitute for reading
the full 2021 Annual Report and Accounts. References to page numbers and notes
to the accounts set out in the Appendices below refer to page numbers and
notes to the accounts in the Group's 2021 Annual Report and Accounts.
The Preliminary Announcement includes an indication of the important events
that occurred during the year and a condensed set of the financial statements.
The Group's auditor has reported on the accounts and its report is
unqualified. The Independent Auditor's Report on the Group financial
statements is set out in full on pages 61-64 of the 2021 Annual Report and
Accounts.
APPENDIX A - DIRECTORS' RESPONSIBILITY STATEMENT
The 2021 Annual Report and Accounts contain a responsibility statement in
compliance with paragraph 4.1.12 of the DTR. The directors' responsibility
statement is set out on pages 58-59 of the 2021 Annual Report and Accounts for
the Group. This statement is set out below in full and unedited text:
The Directors are responsible for preparing the Annual Report, the Directors'
Remuneration Report and the financial statements in accordance with applicable
laws and regulations. The Directors are required to prepare financial
statements for the Group in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board. Israeli
company law holds the Directors responsible for preparing such financial
statements and requires the Directors to approve them.
International Accounting Standard 1 requires that financial statements present
fairly for each financial year the Company's financial position, financial
performance and cash flows. This requires the faithful representation of the
effects of transactions, other events and conditions in accordance with the
definitions and recognition criteria for assets, liabilities, income and
expenses set out in the International Accounting Standards Board's 'Framework
for the Preparation and Presentation of Financial Statements'. In virtually
all circumstances, a true and fair presentation will be achieved by compliance
with all applicable International Financial Reporting Standards.
Directors are also required to:
· properly select and apply accounting policies;
· present information, including accounting policies, in a manner that
provides relevant, reliable, comparable and understandable information;
· make an assessment of the Company's ability to continue as a going
concern and disclose where they consider it appropriate; and
· provide additional disclosures when compliance with the specific
requirements in IFRS is insufficient to enable users to understand the impact
of particular transactions, other events and conditions on the entity's
financial position and financial performance.
The Directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
Company, for safeguarding the assets, for taking reasonable steps for the
prevention and detection of fraud and other irregularities and for the
preparation of a Directors' Report and Directors' Remuneration Report that
comply with the Listing Rules and the Disclosure and Transparency rules.
Legislation in Israel governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Each of the Directors confirms to the best of his or her knowledge:
1. the financial statements, prepared in accordance with International
Financial Reporting Standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole;
2. the strategic report includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties they face;
3. and the annual report and financial statements, taken as a whole, are
fair, balanced, and understandable, and provide the information necessary for
shareholders to assess the Company's position, performance, business model and
strategy.
APPENDIX B - RISKS AND UNCERTAINTIES
The principal risks and uncertainties are set out on pages 22-23 of the 2021
Annual Report and Accounts. The full and unedited text relating to these
disclosures are set out below:
The risks outlined below are those that the Board considers to be material to
the Group. The Board routinely monitors risks that could materially adversely
affect the ability of the Group to achieve its strategic goals and to maintain
financial stability, assisted by the senior management team.
Risk How we manage the risk Risk change
Political and There is a risk of harm to the business from political unrest or disruption, The Group's operations are dispersed over a number of locations so that should ↑
particularly in emerging markets, and from a deterioration of economic a material adverse political or economic event arise in one location, the
economic conditions. Group can continue with its operations elsewhere thereby helping to mitigate
the impact on its overall business.
Legal and compliance There is a risk that legal and/or regulatory requirements are not met, leading The Group retains very experienced legal advisers of a high calibre for the ↓
to the loss of licence to operate, reputational damage or financial loss. Company and main subsidiaries in the Group who provide ongoing advice and
updates on relevant legal compliance requirements. The Group monitors the
regulation that is relevant to its activities and, when needed, makes the
necessary adjustments to maintain compliance.
Business continuity There are risks to business continuity from specific events, such as natural The Group operates in numerous locations and its manufacturing contractors are ↓
disasters and pandemics. also located in multiple locations, which would help to mitigate the impact of
a business disaster. In addition, the key employees in the workforce have been
positioned such that they are able to work without interruption by working
remotely from their homes. The Group also keeps a cash cushion to ensure that
unexpected events don't cause unnecessary indirect adverse effects beyond the
direct outcomes.
Supply chain A disruption in the supply of key raw materials or services to a manufacturing The Group has established strong supplier relationships and collaborates with ↑
site could affect the Group's ability to make and deliver products to multiple vendors globally to broaden the geographical coverage of its access
customers, leading to interruption in supply, lost revenue and damage to its to available components. The Group requests that customers provide long-term
reputation as a reliable supply partner. This could be resulting from market committed forecasts and itself provides multi-year forecasts to its contract
shortages, disruption due to global events and physical climate-related manufacturers. In addition, where appropriate, it reengineers products to
disruption of upstream supply chains. enable them to have replaceable component alternatives. At times when
availability of components is constrained, the Group seeks alternative sources
and to increase inventory levels of both components and finished goods.
Competition There is a risk that BATM is unable to build and main-tain competitive The Group is a leading company in those technological areas in which it -
advantage in its focus markets. operates and aspires to be a dominant player in each such niche. The Group
periodically evaluates how to improve its efficiency by developing and
producing better quality and performance products at more attractive prices -
thus giving it an advantage over its competitors.
Customer and partners There is a risk of harm to the Group's revenues as a result of termination of The Group maintains ongoing dialogue with its customers and business partners -
business relationships with material customers or partners and sales agents. in order to identify ahead of time any potential problems arising on the part
of the customer and in order to maintain a close relationship with its
customers. The Group also does not have a significant reliance on one or few
customers or partners.
Research & Development (R&D) There is a risk that R&D programmes overrun or do not deliver the expected With respect to its R&D, the Group's strategy has been to diversify its ↓
benefits. R&D operations among a variety of teams, internally and externally
(through universities and hospitals that carry out clinical tests) and by
using different R&D funding sources - thus reducing the R&D risk. In
addition, any significant new R&D projects are brought to the Board for
consideration. Still, the Group considers certain level of risk as inherent to
R&D activity, and views R&D activity as valuable to the Group despite
that risk.
Information security (including cyber security) There is a risk of information security, data loss and corruption, and The Group routinely carries out IT evaluations to ensure that its IT systems ↓
physical damage to IT infrastructure. have the latest cyber security tools and security procedures in place. In
addition, BATM and two of its subsidiaries operating in the networking and
cyber niches are approved suppliers to the Israeli Ministry of Defense and, as
such, are continually monitored by the MoD and must maintain the highest level
of cyber security.
Foreign Exchange There is a risk that the Group's currency exposure leads to financial loss. The Group's finance department at the corporate level manages the cash and ↑
income in such a way as to match each company's or subsidiaries' revenues to
its expenses and keeps these in the same currency, thereby reducing currency
exposure. When this is not possible, the Group uses hedging transactions when
needed to protect itself against potential currency risk. However, by its
nature, in the Board's opinion, it is very difficult to hedge against currency
fluctuations arising from translation in consolidation in a cost-effective
manner.
- Ends -
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
Henry Willcocks (Corporate Broking)
Luther Pendragon
Harry Chathli, Claire Norbury +44 20 7618 9100
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