REG - BATM Advanced Comm - Annual Financial Report
03/04/2024 07:00
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RNS Number : 0619J BATM Advanced Communications Ld 03 April 2024
LEI: 213800FLQUB9J289RU66
3 April 2024
BATM Advanced Communications Limited
("BATM", the "Group" or the "Company")
ANNUAL FINANCIAL REPORT - DTR 6.3.5 Disclosure
Following the release on 12 March 2024 of the Group's preliminary results
announcement for the financial year ended 31 December 2023 (the "Preliminary
Announcement"), BATM announces that the Company's annual report and accounts
for the year ended 31 December 2023 (the "2023 Annual Report and Accounts")
have been published today and is publicly available in the Investor Relations
section under Financial Reports on the BATM website (www.batm.com). The direct
link is http://www.batm.com/investor-relations/financial-statements/
(https://url.avanan.click/v2/___http:/www.batm.com/investor-relations/financial-statements/___.YXAxZTpzaG9yZWNhcDphOm86ZTM3MmM3ZDAzMWQ1ZTJiNTc2YTYxMTRkYjRkZjE2Njk6NjozNTA1OjQ4NzMyMTQ0YzVlMTZjOWZjN2JjNmRhMjQ3ZWM3OWU2Y2Y1YWU5ZTYyN2IyNjgyZDExMGNjNzQxYTYwMGNiM2I6cDpG)
.
In compliance with 9.6.1 of the Listing Rules, a copy of the 2023 Annual
Report and Accounts will shortly be available for inspection on the FCA's
National Storage Mechanism website:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://url.avanan.click/v2/___https:/data.fca.org.uk/___.YXAxZTpzaG9yZWNhcDphOm86ZTM3MmM3ZDAzMWQ1ZTJiNTc2YTYxMTRkYjRkZjE2Njk6Njo3ZjcxOjFiYmUzNTRkMDE4NThjZTg0YTUyYjFmNTNiMmJiMmRjYTFlOGIyYjEyOGUyYzM1YzczY2ZkODcwODlhMWMzYzk6cDpG#/nsm/nationalstoragemechanism)
.
The primary purpose of this announcement is to inform the market of the
publication of the 2023 Annual Report and Accounts.
The information below, which is extracted from the 2023 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 2023 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 2023 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 63-66 of the 2023 Annual Report and
Accounts.
APPENDIX A - DIRECTORS' RESPONSIBILITY STATEMENT
The 2023 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 61-62 of the 2023 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 Company 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; and
3. 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 28-29 of the 2023
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 economic 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 Up
particularly in emerging markets, and from a deterioration of economic a material adverse political or economic event arise in one location, the
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 experienced high calibre legal advisers for the Company and Down
to the loss of licence to operate, reputational damage or financial loss. main subsidiaries in the Group who provide ongoing advice and updates on
relevant legal compliance requirements. The Group monitors the regulations
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 No change
disasters and pandemics. also located in multiple locations, which would help to mitigate the impact of
a business disaster. 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 No change
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 maintain competitive The Group operates in large markets, but with a focus on areas where it can No change
advantage in its focus markets. In particular, there is a risk that establish a leadership position through technological expertise and
competitors with greater financial resources may develop technology that is innovation. The diversification of its end markets reduces its exposure to a
superior to that of the Group and they may also adopt more aggressive pricing large competitor in any one sector. The Group ensures that its products remain
models or undertake more extensive advertising and marketing campaigns. world-leading through investment in R&D. It maximises its resources and
enhances its routes-to-market by establishing partnerships, collaborations and
joint ventures.
Customers 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 Up
business relationships with material customers or partners and sales agents. in order to identify ahead of time any potential problems arising on the part
This risk is increased by the challenging global macroeconomic conditions and of the customer and in order to maintain a close relationship with its
the impact that this could have on the business and viability of customers and customers. The Group also does not have a significant reliance on one or few
partners. 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 No change
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 proactive measures, such as IT evaluations, to Up
physical damage to IT infrastructure. ensure that its IT systems have the latest cyber security tools and security
procedures in place. These procedures include implementing security controls
and staff training.
Market risk There is a risk that changes in market prices, such as foreign exchange, The Group's finance department at the corporate level manages and monitors No change
inflation and interest rates, will lead to financial loss. market conditions and exposure. Most of the cash, income and expenses in each
company or subsidiary is held in a way to reduce the Group's exposure to
currency fluctuations. When this is not possible, the Group uses hedging
transactions when needed to protect itself against potential currency risk.
However, this is only done to a certain extent as the Board believes it is
very difficult to hedge against currency fluctuations arising from translation
in consolidation in a cost-effective manner.
The Group also monitors the impact of the inflation and adjusts sales prices
to maintain its margins. The Group's exposure to interest rate risk is low as
it has relatively low bank debt. However, due to the impact of changes in
interest rates on the financial markets, the Group closely monitors possible
indirect impacts.
All of the risk categories have elements related to climate change. For
further information on the Group's climate-related risk management, please see
the 'Strategy' and 'Risk Management' sections of the TCFD Report on pages 21
to 26.
Enquiries
BATM Advanced Communications
Moti Nagar, Chief Executive Officer +972 9866 2525
Ran Noy, 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 4582 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, due to the risk
factors that are detailed in the Group's Annual Report, 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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