REG - MTI Wireless Edge - Interim Results
21/08/2024 07:00
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RNS Number : 1562B MTI Wireless Edge Limited 21 August 2024
21 August 2024
MTI Wireless Edge Ltd
("MTI", the "Company" or the "Group")
Interim results
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on
comprehensive communication and radio frequency solutions across multiple
sectors, is pleased to today announce its financial results for the six month
period ended 30 June 2024.
'Solid H1 - well placed for continued growth'
Financial highlights
· Revenues level at US$22.3m (H1 2023: US$22.3m)
· 18% increase in EBITDA* to US$3.3m (H1 2023: US$2.8m)
· Profit before tax increased 10% to US$2.3m (H1 2023: US$2.1m)
· Earnings per share increased 8% to 2.14 US cents (H1 2023: 1.99 US
cents)
· Strong financial position maintained with net cash standing at
US$5.5m on 30 June 2024 (31 December 2023: $8.1m) after payment of dividend
(US$2.7m) and purchase of shares (US$0.6m) via the buyback facility during H1
2024
· Expansion of buyback programme effective from 22 August 2024 with
increased funding from £0.7m to a maximum of £1.0m
*Earnings before interest, tax, depreciation and amortisation.
Operational highlights
· The Antenna division delivered a 16% increase in sales, driven by
strong demand from the defence sector and for the Group's 5G backhaul antenna
solution. There is a significant order backlog for both military antennas and
5G, plus an increased number of opportunities in the pipeline which provides
reasonable visibility of future revenues.
· Domestic sales for Mottech were slower during this period as a result
of the conflict, combined with some weakening in North America and Western
Europe, leading to an 11% decrease in revenues. Nevertheless, profitability
for the period was substantially higher, reflecting a higher margin business
mix, some currency benefits and successful price increases. Q3 trading has
started well and prospects in Europe for Q4 onwards, in particular, look
positive.
· MTI Summit increased sales by 1%, held back by lower than expected
revenues from PSK. Profitability was below the same period in last year after
absorbing losses from PSK. The core business continues to perform well,
tendering a good range of new designs and is well placed to pick up more
contract wins in the future. PSK has had a challenging period, and to address
this PSK reduced staff numbers in August 2024 to help offset current losses,
whilst continuing to pursue an attractive new business pipeline.
· Outlook: Demand for products is high and enquiry levels for potential
future projects is at an all time high, largely relating to the global defence
sector.
Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:
"Demand for good communication utilising radio frequency solutions across the
water, defence and 5G industries remains high. Our range of products are well
positioned in each of these industries and we are experiencing strong enquiry
levels, most notably in the defence sector. Our trading performance in H1
shows a good increase in profitability and strong cash generation, combined
with maintaining our firm financial base. We are therefore well placed for
the current year. Not surprisingly, the conflict in Israel is having some
impact on local market revenues although we did experience better deal flow in
July and hopefully we will see the end to this conflict soon."
For further information please contact:
MTI Wireless Edge Ltd +972 3 900 8900
Moni Borovitz, CEO http://www.mtiwirelessedge.com (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) +44 20 7408 4090
Toby Gibbs/Rachel Goldstein (Corporate Advisory)
Fiona Conroy (Corporate Broking)
Novella (Financial PR)
Tim Robertson/Safia Colebrook +44 20 3151 7008
Chief Executive's statement
We have delivered a solid trading performance for the first six months of the
year. A key change has been the increase in new business prospects. Enquiry
levels have risen substantially over the past 10 months particularly from the
defence sector. These enquiries have now turned into new and potential new
projects and as a result our new business pipeline is substantially higher
than in 2023. We are therefore in a good overall position and remain focused
on developing the opportunities in all three of our diversified but
complementary divisions.
Antenna division
This division is 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, with a growing
focus on providing 5G backhaul antenna solutions to support mobile phone
operators as they roll-out their 5G networks.
H1 was a strong trading period and the trend has continued into Q3, driven by
the combination of demand for both military antenna and the Group's 5G
backhaul antenna solution. Not surprisingly, defence spending has risen across
the world following the outbreak of multiple conflicts. Orders for military
antennas, while critical to all defence operations, tend to lag behind orders
for other types of military equipment. We have experienced a strong flow of
orders and opportunities, which have resulted in a healthy order backlog and
pipeline of opportunities for military antennas, which underpins our
confidence in trading for the full year for this division.
In H1 there was a good uplift in orders for the 5G backhaul antenna solution.
However, it remains hard to predict the timing of future revenue levels for
this product. That being said, the substantial prospects for it remain
unchanged, as all cellular operators continue to be committed to establishing
5G networks. The pace of installation is the main variable, but at some point
in the nearer-term future there will be a step change in order levels
consistent with the widespread roll-out of 5G by multiple operators.
The ABS® antenna solution, which ensures the antenna adapts to any small
movements caused by different climate conditions, is a relatively new solution
responsible for bringing MTI to the attention of multiple new Tier 1 and Tier
2 potential customers. All of whom are conducting tests to prove the
solution's viability. It has been an important door opener to a valuable new
customer base and increases the likelihood of MTI being able to sell its other
5G backhaul solutions to them as well.
Water Control & Management division
This division provides wireless control systems to manage irrigation and water
distribution for agriculture, municipal authorities and commercial entities.
It operates under the Mottech brand and utilises part of the hardware
technology from Motorola, integrated with the Company's own proprietary
management software. Our solutions reduce water and power usage, whilst
providing higher revenue from accurate irrigation, leading to an increased
number and improved quality of crops cultivated.
Revenues for this division reduced by 11%, primarily due to lower activity
levels in Israel and some weakening in the North American and Western European
markets. Conversely, profitability from this division rose substantially. This
was due to a significantly better gross margin, driven by high margin
products, lower marketing costs and a positive impact from currency exchange
and the implementation of successful price increases.
The domestic Israeli market has been impacted by the current conflict, with
local municipalities understandably prioritizing other areas over water
management. The revenue shortfall mainly involved lower margin work and since
the half-year we have seen the situation resolve itself, with normal demand
levels resuming.
Similarly, while Europe and North America had a slow start, orders for the
second half of the year have improved and new opportunities for both markets
are positive. This, together with early indications from a new technical
solution we are offering, provides us with confidence in this part of the
business.
The long-term driver for this division is the continuing global problem of
water scarcity. 2.2 billion people still live without access to safely managed
drinking water and 3.5 billion lack access to safely managed sanitation*.
Using water efficiently is at the heart of Mottech's solution and the problem
of water scarcity is no longer restricted to underdeveloped countries located
close to the equator, with the issue now being a real threat across parts of
Europe where water levels are dangerously low. Technologies, such as those
deployed by Mottech, are key to the long-term solution.
*UNESCO report published on behalf of UN Water March 2024
https://www.un.org/sustainabledevelopment/blog/2024/03/un-world-water-development-report/
Distribution & Professional Consulting Services division
Operating under the MTI Summit Electronics brand, this division exclusively
represents approximately 40 international suppliers of radio
frequency/microwave components and sells these products to Israeli customers.
Expert knowledge of both the international suppliers and customers further
enables MTI to act as a consultant to all parties and assist with devising
complete radio frequency/microwave solutions.
MTI Summit performed well, delivering a 1% increase in revenues
notwithstanding lower revenue levels at PSK, which also negatively contributed
to a reduction in its profitability. PSK experienced a challenging trading
period and was loss making in H1. In response, we have reduced its cost base
even though PSK's pipeline of opportunities does contain some significant
possibilities, which could accelerate its recovery. Requests to MTI Summit for
design solutions have increased, which is creating a good pipeline of
potential design wins, some of which are quite material and likely to drive
its growth in 2025.
Share buyback programme
The board decided to increase the Company's share buyback programme effective
from 22 August 2024 and hold the shares purchased for a longer period of time.
The board agreed to increase the funds that can be used under the share
buyback programme from £0.7m to £1.0m as it believes strongly in the
prospects of the business.
Outlook
Demand for our products is high and enquiry levels for potential future
projects is at an all time high, largely relating to the global defence
sector. Trading in Q3 has been positive so far and we are hopeful of securing
some material contracts in the second half of the year. Overall, the business
is well placed with good visibility on potential future contracts which will
support the prospects for the business into 2025 and beyond.
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
Six month period ended Year ended December 31,
June 30,
2024 2023 2023
U.S. $ in thousands
(Except per share data)
Unaudited
Revenues 22,327 22,354 45,634
Cost of sales 15,405 15,156 30,963
Gross profit 6,922 7,198 14,671
Research and development expenses 440 546 1,047
Distribution expenses 1,746 1,930 3,709
General and administrative expenses 2,547 2,537 5,278
Loss (profit) from sale of property, plant and equipment (56) (9) 13
Profit from operations 2,245 2,194 4,650
Finance expenses 137 182 342
Finance income (195) (85) (527)
Profit before income tax 2,303 2,097 4,835
Income tax expenses 444 392 759
Profit 1,859 1,705 4,076
Other comprehensive income (loss) net of tax:
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit plans - - 62
Items that may be reclassified to profit or loss:
Adjustment arising from translation of financial statements of foreign (139) (165) (216)
operations
Total other comprehensive loss (139) (165) (154)
Total comprehensive income 1,720 1,540 3,922
Profit (loss) attributable to:
Owners of the parent 1,880 1,761 4,045
Non-controlling interests (21) (56) 31
1,859 1,705 4,076
Total comprehensive income (loss) attributable to:
Owners of the parent 1,741 1,596 3,891
Non-controlling interests (21) (56) 31
1,720 1,540 3,922
Earnings per share (dollars)
Basic and Diluted (dollars per share) 0.0214 0.0199 0.0458
Weighted average number of shares outstanding
Basic (dollars per share) 87,787,614 88,398,585 88,283,490
Diluted (dollars per share) 87,812,145 88,398,585 88,283,490
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
For the six month period ended June 30, 2024 (Unaudited):
Attributable to owners of the parent
Share capital Additional paid-in capital Translation differences Retained earnings Total attributable to owners of the parent Non-controlling interest Total equity
U.S. $ in thousands
Balance at January 1, 2024 209 23,061 (466) 5,226 28,030 1,222 29,252
Changes during the six month period
ended June 30, 2024:
Comprehensive income
Profit (loss) for the period - - - 1,880 1,880 (21) 1,859
Other comprehensive loss
Translation differences - - (139) - (139) - (139)
Total comprehensive income (loss) for the period - - (139) 1,880 1,741 (21) 1,720
Acquisition and disposal of treasury shares - (551) - - (551) - (551)
Dividend - - - (2,745) (2,745) - (2,745)
Balance at June 30, 2024 209 22,510 (605) 4,361 26,475 1,201 27,676
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (CONT.)
For the six month period ended June 30, 2023 (Unaudited):
Attributable to owners of the parent
Share capital Additional paid-in capital Translation differences Retained earnings Total attributable to owners of the parent Non-controlling interest Total equity
U.S. $ in thousands
Balance at January 1, 2023 209 23,078 (250) 3,775 26,812 1,226 28,038
Changes during the six month period
ended June 30, 2023:
Comprehensive income
Profit (loss) for the period - - - 1,761 1,761 (56) 1,705
Other comprehensive loss
Translation differences - - (165) - (165) - (165)
Total comprehensive income (loss) for the period - - (165) 1,761 1,596 (56) 1,540
Acquisition and disposal of treasury shares - (47) - - (47) - (47)
Dividend - - - (2,656) (2,656) - (2,656)
Balance at June 30, 2023 209 23,031 (415) 2,880 25,705 1,170 26,875
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONT.)
For the year ended December 31, 2023 :
Attributable to owners of the parent
Share capital Additional paid-in capital Translation differences Retained earnings Total attributable to owners of the parent Non-controlling interests Total equity
U.S. $ in thousands
Balance as at January 1, 2023 209 23,078 (250) 3,775 26,812 1,226 28,038
Changes during 2023:
Comprehensive income
Profit for the year - - - 4,045 4,045 31 4,076
Other comprehensive income (loss)
Re measurements on defined benefit plans - - - 62 62 - 62
Translation differences - - (216) - (216) - (216)
Total comprehensive income (loss) for the year - - (216) 4,107 3,891 31 3,922
Dividend - - - (2,656) (2,656) - (2,656)
Acquisition of minority holdings in subsidiary - - - - - (35) (35)
Acquisition and disposal, net of treasury shares - (17) - - (17) - (17)
Balance as at December 31, 2023 209 23,061 (466) 5,226 28,030 1,222 29,252
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
30.06.2024 30.06.2023 31.12.2023
U.S. $ in thousands
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 6,006 6,384 8,454
Trade and other receivables 13,461 9,603 14,284
Unbilled revenue 4,529 4,518 4,190
Current tax receivables 109 466 381
Inventories 8,186 7,439 7,484
32,291 28,410 34,793
NON-CURRENT ASSETS:
Long term prepaid expenses 29 42 37
Property, plant and equipment 5,357 5,133 5,398
Deferred tax assets 864 1,172 968
Intangible assets 3,427 3,779 3,507
9,677 10,126 9,910
Total assets 41,968 38,536 44,703
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
30.06.2024 30.06.2023 31.12.2023
U.S. $ In thousands
Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank credit and loans 447 56 314
Trade payables 7,454 5,222 7,882
Other accounts payable 3,551 3,503 4,558
Current tax payables 417 499 283
11,869 9,280 13,037
NON- CURRENT LIABILITIES:
Contingent consideration 1,117 1,432 1,117
Lease liabilities 498 129 514
Loans from banks, net of current maturities 54 76 64
Employee benefits, net 754 744 719
2,423 2,381 2,414
Total liabilities 14,292 11,661 15,451
EQUITY
Equity attributable to owners of the parent
Share capital 209 209 209
Additional paid-in capital 22,510 23,031 23,061
Translation differences (605) (415) (466)
Retained earnings 4,361 2,880 5,226
26,475 25,705 28,030
Non-controlling interest 1,201 1,170 1,222
Total equity 27,676 26,875 29,252
Total equity and liabilities 41,968 38,536 44,703
August 20, 2024
Date of approval of financial statements Moshe Borovitz Elhanan Zeira Zvi Borovitz
Chief Executive Officer Controller Non-executive Chairman of the Board
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Six month period ended Year ended December 31,
June 30,
2024 2023 2023
U.S. $ in thousands
Unaudited
Cash Flows from Operating Activities:
Profit for the period 1,859 1,705 4,076
Adjustments for:
Depreciation and amortization 1,099 651 1,511
(Gain) from sale of property, plant and equipment (56) (2) (13)
Finance (income), net (312) (50) (5)
Changes in Contingent consideration - - (315)
Tax expenses 444 392 759
Changes in operating assets and liabilities:
Decrease (increase) in inventories (751) 225 158
Decrease (increase) in trade receivables 963 519 (2,477)
Decrease (increase) in other accounts receivables (257) 748 (897)
Increase in unbilled revenues (339) (2,314) (1,986)
Increase (decrease) in trade and other accounts payables (1,256) (389) 3,228
Increase (decrease) in employee benefits, net 35 (8) 29
Cash from operations 1,429 1,477 4,068
Interest received 69 20 69
Interest paid (39) (17) (59)
Income tax paid (received) 65 (249) (540)
Net cash provided by operating activities 1,524 1,231 3,538
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS (cont.)
Six month period ended Year ended December 31,
June 30,
2024 2023 2023
U.S. $ in thousands
Unaudited
Cash Flows From Investing Activities:
Proceeds from sale of property, plant and equipment 56 39 62
Purchase of property, plant and equipment (370) (183) (426)
Net cash used in investing activities (314) (144) (364)
Cash Flows From Financing Activities:
Dividend (2,745) (2,656) (2,656)
Payments of lease liabilities (485) (224) (485)
Treasury shares acquired (551) (200) (516)
Treasury shares sold - 153 499
Acquisition of non-controlling interest in subsidiary - - (35)
Receipt of loans from banks 168 - 460
Repayment of long-term loans from banks (9) (3) (247)
Net cash used in financing activities (3,622) (2,930) (2,980)
(Decrease)/Increase in cash and (2,412) (1,843) 194
cash equivalents during the period
Cash and cash equivalents 8,454 8,279 8,279
at the beginning of the period
Exchange differences on balances of cash and (36) (52) (19)
cash equivalents
Cash and cash equivalents 6,006 6,384 8,454
at the end of the period
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 June 30, 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.
On April 9, 2024, the IASB published IFRS 18 'Presentation and Disclosure in
Financial Statements' which replaces IAS 1 Presentation of Financial
Statements and is mandatorily effective for annual reporting periods beginning
on or after January 1st, 2027. The main changes are as follows:
Note 2 - Significant Accounting Policies - (CONT.):
1. Mandatory sub totals to be presented in the profit and loss account.
2. Aggregation and disaggregation of information including the
introduction of overall principles for how information should be aggregated
and disaggregated in financial statements.
3. Disclosures related to management defined performance measures (MPMs).
The Company is currently assessing the impact of this new accounting standard
and amendment.
Note 3 - REVENUES:
Six month period ended Year ended December 31,
June 30,
2024 2023 2023
U.S. $ in thousands
Unaudited
Revenues arise from:
Sale of goods* 16,183 15,722 32,525
Rendering of services** 3,854 3,126 7,178
Projects** 2,290 3,686 5,931
22,327 22,354 45,634
(*) 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 six month period ended June 30, 2024 and
2023 respectively and for the year ended December 31, 2023.
Six month period ended June 30, 2024 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 6,734 7,713 7,880 - 22,327
Internal - - 261 (261) -
Total 6,734 7,675 8,141 (261) 22,327
Segment profit 325 1,266 374 280 2,245
Finance (income), net (58)
Tax expenses 444
Profit 1,859
Note 4 - operating SEGMENTS (CONT.):
June 30, 2024 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 16,028 11,966 11,634 - 39,628
Unallocated assets 2,340
Segment liabilities 4,676 4,086 4,855 - 13,617
Unallocated liabilities 675
Six month period ended June 30, 2023 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 5,821 8,656 7,877 - 22,354
Internal - - 134 (134) -
Total 5,821 8,656 8,011 (134) 22,354
Segment profit 281 960 784 169 2,194
Finance expense, net 97
Tax expenses 392
Profit 1,705
June 30, 2023 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 14,317 10,194 11,578 - 36,089
Unallocated assets 2,447
Segment liabilities 3,414 2,946 4,814 - 11,174
Unallocated liabilities 487
Note 4 - operating SEGMENTS (CONT.):
Year ended December 31, 2023
Antennas Water Solutions Distribution & Consultation Eliminations Total
U.S. $ in thousands
Revenues
External 12,237 17,164 16,233 - 45,634
Inter-segment - - 344 (344) -
Total 12,237 17,164 16,577 (344) 45,634
Segment profit 841 1,986 1,552 271 4,650
Finance income, net (185)
Tax expenses 759
Profit 4,076
December 31, 2023:
Antennas Water Solutions Distribution & Consultation Eliminations Total
U.S. $ in thousands
Segment assets 17,124 12,468 12,711 - 42,303
Unallocated assets 2,400
Segment liabilities 4,952 4,326 5,293 - 14,571
Unallocated liabilities 880
Note 5 - SIGNIFICANT EVENTS:
A. On January 5, 2024, following approval at an extraordinary shareholders'
meeting, the Company granted 600,000 share options to Mr. Moshe (Moni)
Borovitz, the Chief Executive Officer, and 100,000 share options to Mr. Dov
Feiner, the General Manager of the Company's Antenna Division. The expense for
share-based payments (such as stock options) typically appears on the income
statement as part of the Company's operating expenses.
B. The Board of directors declared 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 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") and 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
Note 5 - SIGNIFICANT EVENTS (CONT.):
12 March 2024 until 31 March 2025 and to increase the maximum value of the
Programme to up to £700,000, with the intention to hold the Ordinary Shares
purchased for a longer period of time. As at 30 June 2024, 1,298,000 Ordinary
Shares were held in treasury under the Programme. As of the date of this
report, 1,648,000 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 and Israel. 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.
NOTE 6 - SUBSEQUENT EVENTS:
A. On 20 August 2024, the Board of directors of the Company and the board of
directors of MTI Engineering decided to increase the maximum value of the
Programme to up to £1,000,000, with the intention to hold the Ordinary Shares
purchased for a longer period of time.
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