REG - MTI Wireless Edge - Q1 2022 Financial Results
23/05/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220523:nRSW3401Ma&default-theme=true
RNS Number : 3401M MTI Wireless Edge Limited 23 May 2022
23 May 2022
MTI Wireless Edge Ltd
("MTI", the "Company" or the "Group")
Q1 2022 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 2022.
Financial highlights
· Good revenue growth, up by 12% to $11.2m (Q1 2021: $9.95m) reflecting
the strength of the Group's long term customer base with over 60% of revenue
being generated from clients for 10 years or more
· Profit before tax up 8% to $0.97m (Q1 2021: $0.9m) after costs
associated with the acquisition of P.S.K. WIND Technologies Ltd ("PSK")
· EBITDA* increased by 15% to $1.35m (Q1 2021: $1.18m)
· Earnings per share increased by 12% to 0.89 US cents (Q1 2021: 0.80
US cents)
· Continued strong operating cash generation with net cash standing at
$6.5m on 31 March 2022 (31 March 2021: $9.5m), with the majority of the change
reflecting: i) the initial net consideration paid and loan provided in respect
of PSK; ii) the Group's exit from its Russian operations (as described in note
six to the financial statements); and iii) the dividend paid in March 2022 -
together totaling approximately $7m.
Operational highlights by division
Antennas
· 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.
· In Q1 2022, there was further interest from Tier 1 corporations for
our 5G automatic beam steering ("ABS") antenna solution, which ensures the
antenna adapts to any small movements caused by different climate conditions,
including wind or temperature changes.
· Orders for our 5G backhaul solution remain strong, but fulfilment is
slower due to external issues relating to supply chains at customers (mainly
microchip shortages and the impact of lockdowns in China). RFID revenues
significantly improved whilst military antenna orders were slower as the sales
cycle takes longer, but the opportunities remain significant.
· Taken together this resulted in slightly lower antenna revenue levels
in Q1 2022 (compared to Q1 2021), but the underlying future potential across
both military and 5G markets remains strong.
Water Control & Management
· Operates under the Mottech brand and provides wireless control
systems to manage irrigation and water distribution for agriculture, municipal
authorities and commercial entities.
· Solutions reduce water and power usage, whilst providing customers
with higher revenue from accurate irrigation, leading to more and better
quality crops and plants being grown.
· Q1 2022 was a steady period with revenues increasing slightly against
Q1 2021 and underlying sales orders bode well for the year with a growing
pipeline of opportunities and the successful introduction of new prices being
accepted in service contracts across the division's customer base.
· Sales are expected to commence in Q2 2022 under a strategic
partnership agreed in January with Viridix, offering Mottech customers the
RooTense® sensor that measures the water available to the roots of crops.
Distribution & Professional Consulting Services
· Operates under the MTI Summit Electronics brand and 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.
· In Q1 2022, MTI Summit enjoyed an excellent period delivering strong
revenue growth, boosted by the addition of new revenues from the acquisition
of PSK. Most importantly, this division has also grown its pipeline of future
orders and opportunities and is well placed for a successful year.
· In March 2022, the Company confirmed the sale of the Group's business
unit in Russia to the General Manager of the Russian operations.
Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:
"We are pleased with the trading performance for the first quarter, which
represents a good start to the year and, once again, demonstrates the critical
value of being a diversified business enabling us to continue to grow the
business in challenging times.
"Delivering double digit sales, EBITDA and EPS growth is a creditable
performance in the current market, coming out of the pandemic and managing
increased costs relating to inflation and the supply chain. Cash generation
from operations was again positive, with net cash at $6.5m after paying circa
$4.5m in relation to the acquisition of PSK and last year's dividend. The
business therefore remains in a strong financial position and well placed for
the year.
"The impact on our business from the pandemic has receded but there are still
pockets of disruption, most notably in China, where recent lockdowns have
added to the delays in the production of components and increased pressure
around transportation of goods from China. Inflationary led costs are coming
through the business albeit we have been successful to mitigate these to some
extent by implementing price increases. Overall, we expect these factors to
continue to some degree for the remainder of the year.
"Notwithstanding this, demand across all three divisions for their respective
products and services has increased. The market for defence, in particular, is
growing, with a visible increase in potential orders over the coming 18
months. Our ABS solution for the 5G market has opened up new conversations
with several key Tier 1 & 2 mobile radio manufacturers, strengthening our
relationship with existing customers and potential new ones. This has further
under pinned the potential of the 5G market for us. Mottech remains a leader
in its field and continues to see good demand in many markets, supported by a
strong pipeline of potential future orders. MTI Summit was again the leading
performer in Q1 with a very encouraging contribution from the recently
acquired PSK.
"Looking ahead, we believe the Company's clear focus on providing radio
frequency solutions coupled to being diversified across several markets
positions us well to continue to grow and expand through a mix of acquisition
led and organic growth."
Moni Borovitz, Chief Executive Officer, will provide a live investor
presentation relating to the financial results for the three-month period
ended 31 March 2022, via the Investor Meet Company ("IMC") platform today at
10.00 am UK time.
Investors can sign up for free via:
https://www.investormeetcompany.com/mti-wireless-edge-ltd/register-investor
(https://www.investormeetcompany.com/mti-wireless-edge-ltd/register-investor)
*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 (http://www.mtiwirelessedge.com)
Allenby Capital Limited (Nomad and Joint Broker) +44 20 3328 5656
Nick Naylor/Alex Brearley/Piers Shimwell (Corporate Finance)
Amrit Nahal/David Johnson (Sales and Corporate Broking)
Shore Capital (Joint Broker) +44 20 7408 4090
Toby Gibbs/John More (Corporate Advisory)
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 Year ended December 31,
March 31,
2022 2021 2021
U.S. $ in thousands
(Except per share data)
Unaudited
Revenues 11,176 9,949 43,184
Cost of sales 7,685 6,783 29,685
Gross profit 3,491 3,166 13,499
Research and development expenses 272 283 965
Distribution expenses 884 889 3,686
General and administrative expenses 1,297 1,039 4,448
Loss (profit) from sale of property, plant and equipment 9 (4) 25
Profit from operations 1,029 959 4,425
Finance expenses 78 75 454
Finance income (23) (15) (67)
Profit before income tax 974 899 4,038
Tax expenses 164 157 329
Profit 810 742 3,709
Other comprehensive income (loss) net of tax:
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit plans - - 22
Items that may be reclassified to profit or loss:
Adjustment arising from translation of financial statements of foreign 24 (113) (19)
operations
Total other comprehensive income (loss) 24 (113) 3
Total comprehensive income 834 629 3,712
Profit attributable to:
Owners of the parent 786 705 3,598
Non-controlling interests 24 37 111
810 742 3,709
Total comprehensive income attributable to:
Owners of the parent 810 592 3,601
Non-controlling interests 24 37 111
834 962 3,712
Earnings per share (dollars)
Basic and Diluted (dollars per share) 0.0089 0.0080 0.0407
Weighted average number of shares outstanding
Basic and Diluted (dollars per share) 88,501,084 88,538,724 88,509,740
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
For the three month period ended March 31, 2022 (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, 2022 209 23,126 172 2,406 25,913 1,098 27,011
Changes during the three month period
ended March 31, 2021:
Comprehensive income
Profit for the period - - - 786 786 24 810
Other comprehensive income
Translation differences - - 24 - 24 - 24
Total comprehensive income for the period - - 24 786 810 24 834
Acquisition and disposal of treasury shares - 41 - - 41 - 41
Dividend - - - (2,479) (2,479) - (2,479)
Balance at March 31, 2022 209 23,167 196 713 24,285 1,122 25,407
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (CONT.)
For the three month period ended March 31, 2021 (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, 2021 209 23,167 191 999 24,566 987 25,553
Changes during the three month period
ended March 31, 2021:
Comprehensive income
Profit for the period - - - 705 705 37 742
Other comprehensive income
Translation differences - - (113) - (113) - (113)
Total comprehensive income (loss) for the period - - (113) 705 592 37 622
Dividend - - - (2,213) (2,213) - (2,213)
Balance at March 31, 2021 209 23,167 78 (509) 22,945 1,024 23,969
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONT.)
For the year ended December 31, 2021 :
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, 2021 209 23,167 191 999 24,566 987 25,553
Changes during 2021:
Comprehensive income
Profit for the year - - - 3,598 3,598 111 3,709
Other comprehensive income
Re measurements on defined benefit plans - - - 22 22 - 22
Translation differences - - (19) - (19) - (19)
Total comprehensive income (loss) for the year - - (19) 3,620 3,601 111 3,712
Dividend - - - (2,213) (2,213) - (2,213)
Acquisition and disposal of treasury shares - (41) - - (41) - (41)
Balance as at December 31, 2021 209 23,126 172 2,406 25,913 1,098 27,011
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
31.03.2022 31.03.2021 31.12.2021
U.S. $ in thousands
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 6,517 9,585 12,567
Trade and other receivables 11,201 9,244 10,628
Unbilled revenue 3,542 2,389 2,794
Current tax receivables 281 489 518
Inventories 6,622 5,631 6,849
28,163 27,338 33,356
NON-CURRENT ASSETS:
Long term prepaid expenses 43 27 26
Property, plant and equipment 5,710 5,312 5,548
Deferred tax assets 1,123 689 994
Intangible assets 4,057 1,053 1,014
10,933 7,081 7,582
Total assets 39,096 34,419 40,938
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
31.03.2022 31.03.2021 31.12.2021
U.S. $ In thousands
Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank credit and loans 11 36 23
Trade payables 6,167 4,157 5,346
Other accounts payable 4,367 4,762 6,895
Current tax payables 374 142 322
10,919 9,097 12,586
NON- CURRENT LIABILITIES:
Contingent consideration 1,432 49 -
Lease liabilities 360 464 465
Loans from banks, net of current maturities 15 30 8
Employee benefits, net 963 810 868
2,770 1,353 1,341
Total liabilities 13,689 10,450 13,927
EQUITY
Equity attributable to owners of the parent
Share capital 209 209 209
Additional paid-in capital 23,167 23,167 23,126
Translation differences 196 78 172
Retained earnings 713 (509) 2,406
24,285 22,945 25,913
Non-controlling interest 1,122 1,024 1,098
Total equity 25,407 23,969 27,011
Total equity and liabilities 39,096 34,419 40,938
May 22, 2022
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.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Three month period ended Year ended December 31,
March 31,
2022 2021 2021
U.S. $ in thousands
Unaudited
Cash Flows from Operating Activities:
Profit for the period 810 742 3,709
Adjustments for:
Depreciation and amortization 327 221 976
Loss (Gain) from sale of property, plant and equipment 4 13 (25)
Finance (income) expenses, net (9) (24) 53
Tax expenses 164 157 329
Changes in operating assets and liabilities:
Decrease (increase) in inventories 291 729 (479)
Decrease in trade receivables 262 1,457 604
Increase in other accounts receivables (355) (112) (448)
Increase in unbilled revenues (748) (71) (476)
Increase (decrease) in trade and other accounts payables 593 (369) 2,803
Increase (decrease) in employee benefits, net (9) (16) 64
Cash from operations 1,330 2,727 7,110
Interest received - 5 52
Interest paid (11) (10) (88)
Income tax paid (407) (155) (481)
Net cash provided by operating activities 912 2,567 6,593
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS (cont.)
Three month period ended Year ended December 31,
March 31,
2022 2021 2021
U.S. $ in thousands
Unaudited
Cash Flows From Investing Activities:
Proceeds from sale of property, plant and equipment - 23 153
Acquisition of subsidiary, net of cash acquired (1,427) - -
Net cash from sale of previously consolidated subsidiaries (2,785)
Payment of contingent consideration regarding business acquisition - - (54)
Purchase of property, plant and equipment (181) (151) (835)
Net cash used in investing activities (4,393) (128) (736)
Cash Flows From Financing Activities:
Dividend (2,479) (2,213) (2,213)
Payments of lease liabilities (123) (103) (449)
Treasury shares acquired - - (41)
Treasury shares sold 41 - -
Repayment of long-term loans from banks (4) (82) (117)
Net cash used in financing activities (2,565) (2,398) (2,820)
(Decrease)/Increase in cash and (6,046) 41 3,037
cash equivalents during the period
Cash and cash equivalents 12,567 9,577 9,577
at the beginning of the period
Exchange differences on balances of cash and cash equivalents (4) (33) (47)
Cash and cash equivalents 6,517 9,585 12,567
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 and Microwave, including engineering
services in the field of aerostat systems and system engineering services.
In these financial statements, the Company included the results of its
aerostat system division in its representation and consulting services
division, as it deems this appropriate given the nature of the consulting
services provided in both segments and the respective size of these segments.
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, 2021 was approved by the board on March 6, 2022. The report of
the auditors on those financial statements was unqualified.
The interim consolidated financial statements as of March 31, 2022 have not
been audited.
The interim consolidated financial information should be read in conjunction
with the annual financial statements as of December 31, 2021 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,
2021 are applied consistently in these interim consolidated financial
statements.
Note 3 - Acquisition of subsidiary:
On 3 January 2022 the Company, via its wholly-owned subsidiary, MTI Summit
Electronics Ltd. ("MTI Summit"), entered into a share purchase agreement,
which includes both a purchase of existing shares in and the making of a new
equity investment into P.S.K. WIND Technologies Ltd. ("PSK"), after which MTI
Summit will own 51% of PSK (the "Acquisition"). The initial consideration for
the Acquisition is approximately US$1.2 million, with an earn out payment,
subject to performance, of up to approximately US$2.56 million. In addition,
MTI Summit has made a loan to PSK of US$0.8 million and is party to an option
agreement in relation to the acquisition of the remaining 49% of PSK.
The initial consideration paid by MTI, to acquire 51% of the equity in PSK,
comprises: a) the purchase of existing shares in PSK for NIS 700,000
(approximately US$225,000); and b) a subscription of NIS 3,000,000
(approximately US$0.95m) for new shares in PSK. In addition, there is an
earn out mechanism under which further consideration may be payable, as
described in the contingent consideration section below (the "Earn Out").
MTI Summit's loan to PSK of NIS 2,500,000 (approximately US$800,000) is a term
loan which is to be repaid on 1 January 2024. The loan is not convertible and
bears interest of 3.26% per annum.
In addition to the Acquisition, MTI Summit has an option to purchase and the
vendors of PSK have an option to sell to MTI Summit the remaining 49% of PSK
(the "Option") starting from 2027, subject to the terms described below.
Cash outflow/inflow on the Acquisition:
$'000
Unaudited
Cash and cash equivalents acquired 1,037
at the acquisition date
Bank credit (1,267)
Cash paid (1,197)
Net cash (1,427)
Acquisition cost of PSK at the date of Acquisition:
Fair value
$'000
Unaudited
Cash paid 1,197
Contingent consideration liability 56
Put options liability 1,376
Total acquisition cost 2,629
Note 3 - Acquisition of subsidiary (cont'):
Set forth below are the assets and liabilities of PSK at the date of
Acquisition:
Fair value
$'000
Unaudited
Cash and cash equivalents 1,037
Trade receivables 671
Other receivables 213
Inventories 65
Property, plant and equipment 256
Intangible assets 1,710
Bank loans (1,267)
Trade payables (522)
Deferred tax liability (394)
Other liabilities (436)
Employee benefits, net (104)
Net identifiable assets 1,229
Goodwill arising on acquisition 1,400
Total purchase cost 2,629
The results of PSK were consolidated into the financial statement of the Group
from the beginning of the year.
Goodwill:
$'000
Unaudited
Balance at January 1, 2022 (audited) 861
additions 1,400
Balance at 31 March, 2022 2,261
The goodwill arising on Acquisition is attributed to the expected benefits
from the synergies of the combination of the activities of the Company and
PSK.
The goodwill recognized is not expected to be deductible for income tax
purposes.
Contingent consideration:
As part of the purchase agreement with the owners of PSK, it was agreed that
the sellers, who retain a 49% holding in PSK would be entitled to further
consideration to be paid pursuant to an earn out mechanism dependent on PSK's
actual revenues in 2022 and 2024 versus certain agreed targets in each of
those years and is capped at a maximum of NIS 8,000,000 (approximately
US$2.56m), to be paid in cash.
Note 3 - Acquisition of subsidiary (cont'):
Put Option liability:
MTI Summit has an option to purchase and the vendors of PSK have an option to
sell to MTI Summit the remaining 49% of PSK (the "Option") starting from 2027.
The value of PSK under the Option is to be calculated on the basis of eight
times the average EBITDA level of PSK in 2025 and 2026, with MTI being
required to pay 49% of this value upon exercise. If the Option is to be
exercised at any time after the preparation of PSK's financial results for the
first quarter of 2027, the calculation will be based on PSK's average EBITDA
for the last eight quarters. The Option will remain in place until
exercised.
As at the Acquisition date, the fair value of the contingent consideration was
estimated at US$ 56 thousand and the Option at US$ 1.376 million.
The significant non-observable data used in measuring the fair value of the
liability in respect of the contingent consideration and the Put Option
liability are as follows:
Discount rate: 15.5%
A significant increase (or decrease) in the estimated amount of the acquired
company's pre-tax income will result in a significant increase (decrease) in
the fair value of the liability in respect of the contingent consideration
whereas a significant increase (decrease) in the discount rate and default
risk rate will result in a decrease (an increase) in the fair value of the
liability.
Note 4 - REVENUES:
Three month period ended Year ended December 31,
March 31,
2022 2021 2021
U.S. $ in thousands
Unaudited
Revenues arise from:
Sale of goods* 9.135 7,879 35,308
Rendering of services** 1,713 1,444 5,729
Projects** 328 626 2,147
11,176 9,949 43,184
(*) at the point in time
(**) over time
Note 5 - operating SEGMENTS:
The following tables present revenue and profit information regarding the
Group's operating segments for the three month period ended March 31, 2022 and
2021 respectively and for the year ended December 31, 2021.
Three month period ended March 31, 2022 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 2,728 4,258 4,190 - 11,176
Internal - - 49 (49) -
Total 2,728 4,258 4,239 (49) 11,176
Segment profit (loss) (132) 396 742 25 1,031
Finance expense, net 63
Tax expenses 164
Profit 804
31 March 2022:
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 13,770 11,892 12,020 - 37,682
Unallocated assets 3,419
Segment liabilities 3,558 4,804 6,193 - 14,555
Unallocated liabilities 1,145
Three month period ended March 31, 2021 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 2,802 4,161 2,986 - 9,949
Internal - - 23 (23) -
Total 2,802 4,161 3,009 (23) 9,949
Segment profit 63 396 393 107 959
Finance expense, net 60
Tax expenses 157
Profit 742
Note 5 - operating SEGMENTS (CONT.):
31 March, 2021:
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 14,863 9,030 7,861 - 31,754
Unallocated assets 2,665
Segment liabilities 2,936 2,976 3,702 9,614
Unallocated liabilities 836
Year ended December 31, 2021
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 11,294 17,606 14,284 - 43,184
Inter-segment - - 174 (174) -
Total 11,294 17,606 14,458 (174) 43,184
Segment profit 282 2,074 1,845 224 4,425
Finance expense, net 387
Tax expenses 329
Profit 3,709
31 December, 2021:
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 14,399 11,100 11,999 - 37,498
Unallocated assets 3,440
Segment liabilities 3,090 3,626 6,282 - 12,998
Unallocated liabilities 929
Note 6 - sale of previously consolidated subsidiaries:
On 22 March 2022, the Company announced that it had disposed of its Russian
operations and sold its entire holding in M.T.I Summit SPB ltd. ("SPB") for a
de minimis amount, with this sale not having any significant profit/loss
impact on the Company.
The effect of the sale on the financial position of the Group is as follows:
$'000
Unaudited
Other receivables (417)
Inventories (6)
Current tax receivables (10)
Cash and cash equivalents (2,785)
Other trade payables 3,218
Net assets and liabilities -
Consideration received, satisfied in cash -
Cash and cash equivalents disposed of (2,785)
Net cash outflows (2,785)
Note 7 - SIGNIFICANT EVENTS:
A. On 6 March 2022, the Board of directors declared a cash dividend of 2.8
US cents per share, representing approximately $2,479,000, in total. This
dividend was paid on 31 March 2022 to shareholders on the register at the
close of trading on 18 March 2022.
B. 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. As at 31 March 2022, no Ordinary Shares were held in treasury under
the Programme.
On 9 March 2022 at an extraordinary shareholders meeting, Mr. Luke Ahern was
elected as an external director for three year term. At the same meeting
approval for the extension of an updated Remuneration Policy for a period of
three years or for a longer period, to the extent prescribed in the provisions
of the Israeli Companies Law, was granted as well as the extension of an
updated management services agreement (the "Management Services Agreement"),
between the Company and Mokirei Aya Management (2003) Ltd. (the "Management
Company") for the provision of the services of the Chairman and CEO of the
Company for a further three years or for a longer period, to the extent
prescribed in the provisions of the Israeli Companies Law with effect from 1
March 2022.
C. Outbreak of COVID-19 and Business Continuity - In December 2019, the
COVID-19 pandemic broke out in China, and the virus has spread to many
countries around the world. In January 2020, the World Health Organization
announced the outbreak of the Coronavirus as a global health emergency, and in
March 2020, the World Health Organization declared the pandemic to be a global
pandemic. In 2021 and until the date of this report the Company was able to
maintain good levels of operation using remote working procedures where
appropriate and a sufficient level of production in its production facilities
while assuring the health of its employees. Since March 2022 most of the
Group's operations have returned to a normal level of activity but aspects of
the Group's supply chain are still working slower, and the Company's industry
has been affected on the operational level, along with the rest of the world
economy as it faces the risk of a global recession where the ability to
predict the timing of a recovery is uncertain. In particular, shipment costs
are higher and availability of shipping is lower, some of the components or
other parts (used by the Company or its vendors or its customers) are still
under shortage and this can effect the ability to supply part of the demand.
This uncertainty of the level of the global economic slowdown, its duration
and its medium to long term effects creates challenges, but the Company
believes that if there is no further deterioration in the situation, its
financial strength and business stability will allow it to navigate through
this.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END QRFBKKBDOBKDPPBRecent news on MTI Wireless Edge
See all newsREG - MTI Wireless Edge - Total Voting Rights
AnnouncementRCS - MTI Wireless Edge - MTI nominated for Dividend Hero of the Year award
AnnouncementREG - MTI Wireless Edge - Transaction in Own Shares
AnnouncementREG - MTI Wireless Edge - Transaction in Own Shares
AnnouncementREG - MTI Wireless Edge - Transaction in Own Shares
Announcement