REG - BATM Advanced Comm - Trading Update

Batm Advanced CommunicationsAnnouncement

08/12/2022 07:00

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RNS Number : 9906I  BATM Advanced Communications Ld  08 December 2022

LEI: 213800FLQUB9J289RU66

8 December 2022

 

BATM Advanced Communications Limited

("BATM" or "the Group")

 

Trading Update

 

BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for
networking solutions and medical laboratory systems, provides the following
update on its trading for FY 2022.

 

As stated in its interim results announcement of 24 August 2022, the Group
entered the second half with sustained momentum and a significant backlog to
be delivered against. BATM made solid progress in both of its divisions as
business returns to normality post-pandemic, notwithstanding supply chain
issues.

 

Networking and Cyber Division

In the second half of the year, BATM was delighted to announce a multi-year
contract for its Edgility solution with UK-based CityFibre in the Networking
unit. Work to date reinforces the Group's expectation that deployment and
recurring revenues will scale meaningfully in the short term. The Group is
also pleased that Edgility is fast being recognised internationally as a
breakthrough solution and is winning several awards. Consequently, the
interest in Edgility has seen a significant increase and the Group is in
advanced discussions with several customers.

 

BATM's Cyber business also made good progress in the second half of the year
as the need for cyber security increases daily due to the geo-political
situation as well as increased organised criminal activity.  As such, the
Group's confidence in this unit remains high and it is optimistic of winning a
substantial multi-year, multi-million dollar government contract, which would
increase the revenues of this division in 2023 and beyond.

 

Bio-Medical Division

In the Diagnostics unit of the Bio-Medical division, the COVID-19 pandemic has
demonstrated the capability and value of BATM's diagnostic IP and products.
Whilst the transition from the peak pandemic revenues of 2021 introduced an
element of volatility to the unit's trading, its performance in 2022
nonetheless indicates its brighter prospects for 2023. In particular, in 2022,
the unit's sale of non-COVID diagnostics product saw a dramatic volume
increase. From being practically non-existent in 2021, the Group expects to
report low double-digit million dollar revenues for sales of its non-COVID
diagnostic products this year.

 

Pandemics remain a genuine global concern and COVID remains a very live issue
in Asia. The Diagnostic unit was informed that it is due to be awarded a major
tender, with a value of $25m, from a customer in Southeast Asia primarily for
the delivery of COVID-19 testing kits, and the Group has been awaiting a
signed contract. Whilst the Group has had good visibility on this project,
given that it is now December, should the contract be received and signed, the
revenue would be recognised in 2023 thereby impacting current year
expectations for revenue by the corresponding amount and, accordingly,
reducing FY 2022 EBITDA.

 

The Eco-Med and Distribution units of the Bio-Medical division have continued
to perform in line with management's expectations.

 

BATM is profitable with a very strong balance sheet comprising both cash and
investments in financial assets of approximately $40m as well as property and
valuable IP. Accordingly, the Board of BATM remains confident in the prospects
for the business and continues to explore all options to deliver shareholder
value.

 

Enquiries:

 

 BATM Advanced Communications
 Dr. Zvi Marom, Chief Executive Officer                         +972 9866 2525
 Moti Nagar, Chief Financial Officer

 Shore Capital
 Mark Percy, Anita Ghanekar, James Thomas (Corporate Advisory)  +44 20 7408 4050

 Gracechurch Group
 Harry Chathli, Claire Norbury                                  +44 20 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, 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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