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RNS Number : 0777K MTI Wireless Edge Limited 27 May 2025
27 May 2025
MTI Wireless Edge Ltd
("MTI", the "Company" or the "Group")
Q1 2025 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 2025.
Financial highlights
· 7% increase in revenues to $12m (Q1 2024: $11.24m).
· 6% increase in operating profit to $1.25m (Q1 2024: $1.18m).
· 9% increase in net profit for shareholders in the Company to $1.02m
(Q1 2024: $0.93m).
· Earnings per share increased by 12% to 1.18 US cents (Q1 2024: 1.06
US cents).
· 85% increase in net cash provided by operating activities to $2.31m
(Q1 2024: $1.25m), contributing to a continued strong financial position with
net cash as at 31 March 2025 of $8.05m (31 December 2024: $5.96m).
Operational highlights
Antennas
· The Antenna division serves as a one-stop shop for 'off-the-shelf'
flat and parabolic antennas, as well as custom-developed antenna solutions for
commercial and military customers, and specialises in providing 5G backhaul
antennas to support mobile network rollouts.
· The division had a good first quarter with strong revenue growth up
22% versus the same period in the prior year leading to a three-fold increase
in the division's profitability.
· 5G backhaul antenna and military antennas represented over 70% of the
division's revenue in Q1 2025 (about 50% in the same period last year), which
bodes well for the future as these are the growth engines of this division.
Water Control & Management
· This division operates under the Mottech brand and provides wireless
control systems to manage irrigation and water distribution for agriculture,
municipal authorities and commercial entities.
· Mottech's solutions reduce water and power usage for its customers
and allows these customers to generate higher revenues from the higher yields
that result from both an increased number and improved quality of crops
cultivated.
· Revenues in Q1 2025 increased 11% versus the same period last year,
but profits were 23% softer than Q1 2024, as revenue came from projects with
lower gross margins. However, recent wins have higher gross margins which will
feed through into the trading performance during the course of the year.
Distribution & Professional Consulting Services
· Operates under the MTI Summit Electronics brand and represents
approximately 40 international suppliers of radio frequency/microwave
components, selling these products to Israeli customers.
· Expert knowledge of both the international suppliers and customers
enables MTI to also act as a consultant to all parties and assist with
devising complete radio frequency/microwave solutions.
· Revenues decreased by 7% in Q1 2025, due to lower revenue from PSK
with sales from the other parts of this division up marginally, leading to the
division's profitability being $27K below last year.
· Overall backlog and pipeline of opportunities in both the traditional
representation business and PSK is very strong which bodes well for the
remainder of 2025.
Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:
"We have started 2025 positively, delivering a good performance at all levels
despite headwinds from adverse currency translation. Looking ahead, with the
current backlog and pipeline of opportunities we expect to see growth in all
three business divisions during the year.
"We believe that the underlying demand for our products is strengthening in
all three of our principal markets. Demand across the globe for defence
products has seen the most obvious increase. Water scarcity is a problem that
increases each year and while slower, awareness is growing, which is leading
to meaningful action. The roll-out of 5G networks is expanding each year and
we have made strong in-roads into the substantial Indian market. Overall MTI
is in a good position, Q2 is progressing well with three material contracts
wins announced so far and as a Board we are confident about the outlook for
the year."
For further information please contact:
MTI Wireless Edge Ltd +972 3 900 8900
Moni Borovitz, CEO http://www.mtiwirelessedge.com
(https://url.avanan.click/v2/___http:/www.mtiwirelessedge.com___.YXAxZTpzaG9yZWNhcDphOm86MDYxMmMwMTJjNWFhM2ZhMGQ5M2VmNTcxMjNhNTc2NzU6NjplZGQ1OmNkY2U2NjEzNzYwZjE4ZTg3NWZiZjk1Mzc2YzIxNzYwNzk1NDE5M2VmNTM4NzFmZDY3OGNhMTJiY2Q2M2I3YWI6cDpU)
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/George Payne (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,
2025 2024 2024
U.S. $ in thousands
(Except per share data)
Unaudited
Revenues 12,011 11,240 45,573
Cost of sales 8,260 7,770 31,370
Gross profit 3,751 3,470 14,203
Research and development expenses 266 229 1,016
Distribution expenses 862 893 3,413
General and administrative expenses 1,374 1,231 5,321
Loss (profit) from sale of property, plant and equipment - (67) 59
Profit from operations 1,249 1,184 4,512
Finance expenses 215 238 282
Finance income (36) (198) (582)
Profit before income tax 1,070 1,144 4,812
Tax expenses 143 209 619
Profit 927 935 4,193
Other comprehensive income (loss) net of tax:
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit plans - - 16
Items that may be reclassified to profit or loss:
Adjustment arising from translation of financial statements of foreign (26) (112) (149)
operations
Total other comprehensive income (loss) (26) (112) (133)
Total comprehensive income 901 823 4,060
Profit attributable to:
Owners of the parent 1,019 932 4,364
Non-controlling interests (92) 3 (171)
927 935 4,193
Total comprehensive income attributable to:
Owners of the parent 993 820 4,231
Non-controlling interests (92) 3 (171)
901 823 4,060
Earnings per share (dollars)
Basic and Diluted (dollars per share) 0.0118 0.0106 0.0499
Weighted average number of shares outstanding
Basic (dollars per share) 86,195,724 88,123,635 87,371,990
Diluted (dollars per shares) 86,704,578 88,123,635 87,460,876
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
For the three month period ended March 31, 2025 (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, 2025 209 22,002 (615) 6,861 28,457 1,051 29,508
Changes during the three month period
ended March 31, 2025:
Comprehensive income
Profit for the period - - - 1,019 1,019 (92) 927
Other comprehensive income
Translation differences - - (26) - (26) - (26)
Total comprehensive income for the period - - (26) 1,019 993 (92) 901
Share based payment - 27 - - 27 - 27
Dividend - - - - - - -
Balance at March 31, 2025 209 22,029 (641) 7,880 29,477 959 30,436
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (CONT.)
For the three month period ended March 31, 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 three month period
ended March 31, 2024:
Comprehensive income
Profit for the period - - - 932 932 3 935
Other comprehensive income
Translation differences - - (112) - (112) - (112)
Total comprehensive income for the period - - (112) 932 820 3 823
Acquisition and disposal of treasury shares - (300) - - (300) - 80
Dividend - - - - - - -
Balance at March 31, 2024 209 22,761 (578) 6,158 28,550 1,225 29,775
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, 2024 :
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, 2024 209 23,061 (466) 5,226 28,030 1,222 29,252
Changes during 2024:
Comprehensive income
Profit for the year - - - 4,364 4,364 (171) 4,193
Other comprehensive income (loss)
Re measurements on defined benefit plans - - - 16 16 - 16
Translation differences - - (149) - (149) - (149)
Total comprehensive income (loss) for the year - - (149) 4,380 4,231 (171) 4,060
Dividend - - - (2,745) (2,745) - (2,745)
Share based payment - 106 - - 106 - 106
Acquisition and disposal, net of treasury shares (note 23) - (1,165) - - (1,165) - (1,165)
Balance as at December 31, 2024 209 22,002 (615) 6,861 28,457 1,051 29,508
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
31.03.2025 31.03.2024 31.12.2024
U.S. $ in thousands
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 8,467 8,832 6,269
Trade and other receivables 13,733 12,782 16,726
Unbilled revenue 3,748 4,672 3,200
Current tax receivables 341 378 297
Inventories 8,963 7,674 8,168
35,252 34,338 34,660
NON-CURRENT ASSETS:
Long term prepaid expenses 34 28 34
Property, plant and equipment 5,463 5,479 5,584
Deferred tax assets 1,303 969 1,187
Intangible assets 3,321 3,467 3,348
10,121 9,943 10,153
Total assets 45,373 44,281 44,813
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
31.03.2025 31.03.2024 31.12.2024
U.S. $ In thousands
Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank credit and loans 340 436 274
Trade payables 7,497 6,941 8,433
Other accounts payable 4,464 4,347 4,098
Current tax payables 349 352 255
12,650 12,076 13,060
NON- CURRENT LIABILITIES:
Contingent consideration 837 1,117 837
Lease liabilities 605 518 601
Loans from banks, net of current maturities 73 55 37
Employee benefits, net 772 740 770
2,287 2,430 2,245
Total liabilities 14,937 14,506 15,305
EQUITY
Equity attributable to owners of the parent
Share capital 209 209 209
Additional paid-in capital 22,029 22,761 22,002
Translation differences (641) (578) (615)
Retained earnings 7,880 6,158 6,861
29,477 28,550 28,457
Non-controlling interest 959 1,225 1,051
Total equity 30,436 29,775 29,508
Total equity and liabilities 45,373 44,281 44,813
May 25, 2025
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
Three month period ended Year ended December 31,
March 31,
2025 2024 2024
U.S. $ in thousands
Unaudited
Cash Flows from Operating Activities:
Profit for the period 927 935 4,193
Adjustments for:
Depreciation and amortization 352 465 1,370
Equity settled share-based payment expense 27 27 106
Loss (Gain) from sale of property, plant and equipment 114 (63) (26)
Finance (income) expenses, net (22) (14) (180)
Changes in Contingent consideration and Put option liability - - (280)
Tax expenses 143 209 619
Changes in operating assets and liabilities:
Decrease (increase) in inventories (796) (234) (749)
Decrease (increase) in trade receivables 2,987 1,343 (2,171)
Decrease (increase) in other accounts receivables (56) 92 (319)
Decrease (increase) in unbilled revenues (548) (482) 990
Increase (decrease) in trade and other accounts payables (584) (1,070) 192
Increase (decrease) in employee benefits, net 2 21 67
Cash from operations 2,546 1,229 3,812
Interest received - 174 109
Interest paid (21) (9) (79)
Income tax paid (211) (140) (780)
Net cash provided by operating activities 2,314 1,254 3,062
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,
2025 2024 2024
U.S. $ in thousands
Unaudited
Cash Flows from Investing Activities:
Proceeds from sale of property, plant and equipment - 62 56
Purchase of property, plant and equipment (137) (282) (891)
Net cash used in investing activities (137) (220) (835)
Cash Flows from Financing Activities:
Dividend - - (2,745)
Payments of lease liabilities (85) (485) (364)
Treasury shares acquired - (300) (1,165)
Treasury shares sold - - -
Receipt of loans from banks 111 169 14
Repayment of long-term loans from banks (8) (9) (101)
Net cash provided by /(used in) financing activities 18 (625) (4,361)
(Decrease)/Increase in cash and 2,195 409 (2,134)
cash equivalents during the period
Cash and cash equivalents 6,269 8,454 8,454
at the beginning of the period
Exchange differences on balances of cash and cash equivalents 3 (31) (51)
Cash and cash equivalents at the end of the period 8,467 8,832 6,269
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, 2024 was approved by the board on March 16, 2025. The report of
the auditors on those financial statements was unqualified.
The interim consolidated financial statements as of March 31, 2025 have not
been audited.
The interim consolidated financial information should be read in conjunction
with the annual financial statements as of December 31, 2024 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,
2024 are applied consistently in these interim consolidated financial
statements.
Note 3 - REVENUES:
Three month period ended Year ended December 31,
March 31,
2025 2024 2024
U.S. $ in thousands
Unaudited
Revenues arise from:
Sale of goods* 8,419 8,169 32,827
Rendering of services** 1,708 1,981 8,075
Projects** 1,885 1,090 4,671
12,012 11,240 45,573
(*) 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 three month period ended March 31, 2025 and
2024 respectively and for the year ended December 31, 2024.
Three month period ended March 31, 2025 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 4,042 4,212 3,758 - 12,012
Internal - - 257 (257) -
Total 4,042 4,212 4,015 (257) 12,012
Segment profit (loss) 342 446 284 182 1,254
Finance expense (income), net 184
Tax expenses 142
Profit 928
March 31, 2025:
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 17,000 12,912 13,188 - 43,100
Unallocated assets 2,273
Segment liabilities 4,887 3,793 5,301 - 13,981
Unallocated liabilities 956
Note 4 - operating SEGMENTS (CONT.):
Three month period ended March 31, 2024 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 3,316 3,805 4,119 - 11,240
Internal - - 189 (189) -
Total 3,316 3,805 4,308 (189) 11,240
Segment profit (loss) 112 580 311 181 1,184
Finance expense (income), net 40
Tax expenses 209
Profit 935
March 31, 2024:
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 17,187 12,550 12,165 - 4,902
Unallocated assets 2,379
Segment liabilities 5,133 3,961 4,559 - 13,653
Unallocated liabilities 853
Year ended December 31, 2024
Antennas Water Solutions Distribution & Consultation Eliminations Total
U.S. $ in thousands
Revenues
External 14,136 16,888 14,549 - 45,573
Inter-segment - - 296 (296) -
Total 14,136 16,888 14,845 (296) 45,573
Segment profit 1,311 2,307 471 423 4,512
Finance income, net 300
Profit before tax 4,812
Tax expenses 619
Profit 4,193
Note 4 - operating SEGMENTS (CONT.):
December 31, 2024:
Antennas Water Solutions Distribution & Consultation Eliminations Total
U.S. $ in thousands
Segment assets 17,404 13,406 11,672 - 42,482
Unallocated assets 2,295
Segment liabilities 5,363 4,618 4,394 - 14,375
Unallocated liabilities 894
Note 5 - SIGNIFICANT EVENTS:
A. The Board of directors declared a cash dividend of 3.3 US cents per share
being approximately $2,922,000. This dividend was paid on 11 April 2025 to
shareholders on the register at the close of trading on 28 March 2025.
B. The financial statements for the year ended 31 December 2024 were
authorized for issue by the board as a whole following their approval on 16
March 2025.
C. 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 have decided to continue with the
Programme for several further periods and to increase the maximum value of the
Programme up to £1,000,000, plus any additional funds received from dividends
or profits from selling the shares, although the current intention is to hold
the Ordinary Shares purchased for a longer period of time. The Programme is
currently in place until the end of March 2026 and as at 31 March 2025,
2,343,000 Ordinary Shares were held in treasury under the Programme.
D. On 18 March 2025 at the Company's extraordinary meeting, Mr. Luke Ahern
was reelected as an external non-executive director for his second three year
term.
E. On 7 October 2023 Israel was attacked by the Hamas terror organization
leading to war in the Gaza region. 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
F. On 6 May 2025, MTI announced that MTI Summit had increased its
ownership of its subsidiary P.S.K Wind Technologies Ltd. ("PSK") via a new
equity investment of NIS 600,000 (approximately US$170,000) (the
"Investment"). Following the Investment, the Group owns 60% of PSK.
Previously, on 4 January 2022, MTI announced that MTI Summit had acquired 51%
of PSK (the "Acquisition"). In addition to the Acquisition, an earn out
mechanism was in place under which further consideration could potentially be
payable to the vendors of PSK (the "Earn Out") and that 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 Earn Out has
now lapsed and no further consideration is payable to the vendors of PSK.
Following the Investment, the Option has been modified to reflect that the
vendors' holding in PSK is now 40%. The remaining terms of the Option remain
as set out in MTI's announcement of 4 January 2022.
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