REG - MTI Wireless Edge - Q3 2022 Financial Results
21/11/2022 07:01
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221121:nRSU9720Ga&default-theme=true
RNS Number : 9720G MTI Wireless Edge Limited 21 November 2022
21 November 2022
MTI Wireless Edge Ltd
("MTI", the "Company" or the "Group")
Q3 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 nine-month
period ended 30 September 2022 (the "Period").
Financial highlights
· Strong trading during the Period with revenue growth of 8% to $34.8m
(2021: $32.1m)
· Increased EBITDA, up 14% to $4.58m (2021: $4.03m)
· One-off acquisition and depreciation costs led to net profit of
$2.74m (2021: $2.70m)
· Earnings per share increased to 2.99 US cents (2021: 2.95 US cents)
· Company remains ungeared with net cash of $5.2m as at 30 September
2022
· Final dividend anticipated to be declared in MTI's full year results
announcement
Operational highlights
· A strong trading quarter across all business divisions, all grew and
all were profitable
· MTI Summit had a good quarter and is enjoying another successful year
o The division is benefitting from: i) new contract wins; ii) successful
integration of PSK; and iii) the 3 year strategic agreement signed last year
with a significant defence customer resulting in increased sales
o PSK (51% stake acquired in January 2022) secured the Group's largest ever
contract in July 2022, expected to be worth $10m over the next 7 years,
providing services and maintenance support, to the Israeli Ministry of Defence
· Antenna division continues to expand its presence in the 5G market
o The division is working with 5 out of the 7 leading Original Equipment
Manufacturers and, through the new ABS antenna solution, is now working with
nearly all of the Tier 1 OEMs
o 5G in India shows substantial potential in coming years, with Q4 already
expected to benefit from sales into this market
· Mottech continued to perform well
o Good level of renewals with key municipality customers coupled to
successful price increases, the effect of such is to be seen starting in 2023
o Potential for further growth in fountain management
o Good progress in Italy and successful launch of the ICC Pro Autopilot, the
first AgroGation system
Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:
"Q3 2022 represented an excellent performance compared to Q3 2021, showing
double digit growth in revenue and profits all the way to EPS. We remain very
focused on providing radio frequency solutions across our three divisions,
each targeting specific markets where there is significant need for our
services. Demand, as shown by the increase in sales, remains strong and our
markets are nearly back to normal with shipment costs reduced relatively to
the high cost during COVID-19, and microchip shortages also reducing. Overall,
the Company is in a strong position, with net cash of $5.2m and no borrowings,
to continue to grow both organically and by acquisition.
"Our antenna division is well positioned within the evolving 5G market. The
main growth from 5G is still yet to come so we are positioning ourselves with
most of the major players and demonstrating the strength of our solutions.
India, a key market, where we have a physical presence, recently completed a
5G auction. This is leading to rapidly increasing demand and the forecasts for
the number of new Eband towers is substantial.
"PSK has proven to be a strong addition to the Group. Since the Company
acquired 51% of PSK in January 2022, the company has won significant orders
primarily from within the defence sector.
"The summer just ended was one of the driest on record, accentuating the need
to address the growing problem of water scarcity. There remains substantial
unnecessary wastage of water, however, there is increasing awareness of
solutions like Mottech's, where around 35% of the volume of water previously
used can now be saved.
"Going into the final quarter of this year, the Company is well placed to
deliver a good result for the year."
Moni Borovitz, Chief Executive Officer, will provide a live investor
presentation relating to the financial results for the nine-month period ended
30 September 2022 via the Investor Meet Company ("IMC") platform today at
09.30 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)
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 90 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 WiMAX, Broadband access, public
safety, RFID, base stations 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 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, while reducing
operational and maintenance costs. 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.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
Nine month period ended Year ended December 31,
September 30,
2022 2021 2021
U.S. $ in thousands
(Except per share data)
Unaudited
Revenues 34,783 32,062 43,184
Cost of sales 23,927 22,108 29,685
Gross profit 10,856 9,954 13,499
Research and development expenses 789 725 965
Distribution expenses 2,855 2,647 3,686
General and administrative expenses 3,719 3,270 4,448
Loss (profit) from sale of property, plant and equipment 8 (16) 25
Profit from operations 3,485 3,328 4,425
Finance expenses 350 252 454
Finance income (108) (30) (67)
Profit before income tax 3,243 3,106 4,038
Tax expenses 505 406 329
Profit 2,738 2,700 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 (365) (106) (19)
operations
Total other comprehensive income (loss) (365) (106) 3
Total comprehensive income 2,373 2,594 3,712
Profit attributable to:
Owners of the parent 2,643 2,612 3,598
Non-controlling interests 95 88 111
2,738 2,700 3,709
Total comprehensive income attributable to:
Owners of the parent 2,278 2,506 3,601
Non-controlling interests 95 88 111
2,373 2,594 3,712
Earnings per share (dollars)
Basic and Diluted (dollars per share) 0.0299 0.0295 0.0407
Weighted average number of shares outstanding
Basic and Diluted (dollars per share) 88,494,239 88,516,849 88,509,740
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
For the nine-month period ended September 30, 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 nine-month period
ended September 30, 2022:
Comprehensive income
Profit for the period - - - 2,643 2,643 95 2,738
Other comprehensive income
Translation differences - - (365) - (365) - (365)
Total comprehensive income for the period - - (365) 2,643 2,278 95 2,373
Acquisition and disposal of treasury shares - (87) - - (87) - (87)
Dividend - - - (2,479) (2,479) - (2,479)
Balance at September 30, 2022 209 23,039 (193) 2,570 25,625 1,193 26,818
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (CONT.)
For the nine month period ended September 30, 2021 (Unaudited):
Attributed to owners of the parent
Share capital Additional paid-in capital Capital reserve Translation differences Retained earnings Total attributable to owners of the parent Non-controlling interest Total equity
for share-based
payment
transactions
U.S. $ in thousands
Balance at January 1, 2021 209 23,167 - 191 999 24,566 987 25,553
Changes during the nine month period
ended September 30, 2021:
Comprehensive income
Profit for the period - - - - 2,612 2,612 88 2,700
Other comprehensive loss
Translation differences - - - (106) - (106) - (106)
Total comprehensive income (loss) for the period - - - (106) 2,612 2,506 88 2,594
Profit from acquisition of treasury shares - 5 - - - 5 - 5
Dividend - - - - (2,213) (2,213) - (2,213)
Balance at September 30, 2021 209 23,172 - 85 1,398 24,864 1,075 25,939
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, 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 statement.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
30.09.2022 30.09.2021 31.12.2021
U.S. $ in thousands
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 5,280 9,323 12,567
Trade and other receivables 13,798 11,168 10,628
Unbilled revenue 2,760 2,700 2,794
Current tax receivables 444 482 518
Inventories 6,745 5,985 6,849
29,027 29,658 33,356
NON-CURRENT ASSETS:
Long term prepaid expenses 40 38 26
Property, plant and equipment 5,801 5,570 5,548
Deferred tax assets 1,113 744 994
Intangible assets 3,928 1,027 1,014
10,882 7,379 7,582
Total assets 39,909 37,037 40,938
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
30.09.2022 30.09.2021 31.12.2021
U.S. $ In thousands
Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank credit and loans 17 20 23
Trade payables 6,080 5,282 5,346
Other accounts payable 3,827 4,425 6,895
Current tax payables 439 82 322
10,363 9,809 12,586
NON- CURRENT LIABILITIES:
Contingent consideration 1,432 - -
Lease liabilities 401 438 465
Loans from banks, net of current maturities 37 17 8
Employee benefits, net 858 834 868
2,728 1,289 1,341
Total liabilities 13,091 11,156 13,927
EQUITY
Equity attributable to owners of the parent
Share capital 209 209 209
Additional paid-in capital 23,039 23,172 23,126
Translation differences (193) 85 172
Retained earnings 2,570 1,398 2,406
25,625 24,864 25,913
Non-controlling interest 1,193 1,075 1,098
Total equity 26,818 25,939 27,011
Total equity and liabilities 39,909 37,037 40,938
November 20, 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.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Nine month period ended Year ended December 31,
September 30,
2022 2021 2021
U.S. $ in thousands
Unaudited
Cash Flows from Operating Activities:
Profit for the period 2,378 2,700 3,709
Adjustments for:
Depreciation and amortization 1,090 702 976
Loss (Gain) from sale of property, plant and equipment - 47 (25)
Finance (income) expenses, net (95) 24 53
Tax expenses 505 406 329
Changes in operating assets and liabilities:
Decrease (increase) in inventories (35) 357 (479)
Decrease (increase) in trade receivables (2,607) (15) 604
Decrease (increase) in other accounts receivables (440) (382) (448)
Decrease (increase) in unbilled revenues 34 (492) (476)
Increase (decrease) in trade and other accounts payables 172 376 2,803
Increase (decrease) in employee benefits, net (114) 8 64
Cash from operations 1,248 3,731 7,110
Interest received - 3 52
Interest paid (41) (30) (88)
Income tax paid (848) (511) (481)
Net cash provided by operating activities 359 3,193 6,593
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS (cont.)
Nine month period ended Year ended December 31,
September 30,
2022 2021 2021
U.S. $ in thousands
Unaudited
Cash Flows From Investing Activities:
Proceeds from sale of property, plant and equipment - 77 153
Acquisition of subsidiary, net of cash acquired (1,427) - -
Net cash from sale of previously consolidated subsidiaries (2,785) - -
Change (payment) of contingent consideration regarding business acquisition - (54) (54)
Purchase of property, plant and equipment (421) (766) (835)
Net cash used in investing activities (4,633) (743) (736)
Cash Flows From Financing Activities:
Dividend (2,479) (2,213) (2,213)
Payments of lease liabilities (429) (324) (449)
Short-term loans and credit line received from banks 34 - -
Treasury shares acquired (87) 5 (41)
Treasury shares sold - - -
Repayment of long-term loans from banks (7) (111) (117)
Net cash used in financing activities (2,968) (2,643) (2,820)
(Decrease)/Increase in cash and (7,242) (193) 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 (45) (61) (47)
Cash and cash equivalents 5,280 9,323 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.
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 September 30, 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 included 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 owns 51% of PSK (the "Acquisition"). The initial consideration for the
Acquisition was 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,
comprised: a) the purchase of existing shares in PSK for NIS 700,000
(approximately US$225,000); and b) a subscription of NIS 3,000,000
(approximately US$ 972,000) 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$800,000) is a term
loan which is to be repaid on 1 January 2024. The loan is not convertible and
bears interest of 3.26% per annum.
In addition to the Acquisition, MTI Summit has an option to purchase and the
vendors of PSK have an option to sell to MTI Summit the remaining 49% of PSK
(the "Option") starting from 2027, subject to the terms described below.
Cash outflow on the Acquisition totalled to US$ 1,427,000.
Acquisition cost of PSK at the date of Acquisition:
Fair value
$'000
Unaudited
Cash paid 1,197
Contingent consideration liability 56
Put option 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
$'000
Unaudited
Trade receivables 671
Other receivables 213
Inventories 65
Property, plant and equipment 256
Intangible assets 1,710
Bank loans (230)
Trade payables (522)
Deferred tax liability (394)
Other liabilities (436)
Employee benefits, net (104)
Net identifiable assets 1,229
Goodwill arising on acquisition 1,400
Total purchase cost 2,629
The results of PSK were consolidated into the financial statements of the
Group from the beginning of the year.
The cost of the Acquisition was allocated to tangible assets, intangible
assets and liabilities which were acquired based on their fair value at the
time of the acquisition. The intangible assets recognized include order
backlog and customer relations in the total amount of US$ 111 thousands and
US$ 1,599 thousands respectively, deferred taxes in the total amount of US$
394 thousands and goodwill in the total amount US$ 1,400 thousands. The
intangible assets associated with customer relations are amortized over an
useful life of up to 15 years.
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.
All transaction costs have been recorded in General and administrative
expenses.
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:
Nine month period ended Year ended December 31,
September 30,
2022 2021 2021
U.S. $ in thousands
Unaudited
Revenues arise from:
Sale of goods* 26,573 26,484 35,308
Rendering of services** 5,603 3,900 5,729
Projects** 2,607 1,678 2,147
34,783 32,062 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 nine month period ended September 30, 2022
and 2021 respectively and for the year ended December 31, 2021.
Nine month period ended September 30, 2022 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 8,627 13,743 12,413 - 34,783
Internal - - 252 (252) -
Total 8,627 13,743 12,665 (252) 34,783
Segment profit 254 1,282 1,814 135 3,485
Finance expense, net 242
Tax expenses 505
Profit 2,738
As of 30 September, 2022:
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 14,923 11,805 10,650 - 37,378
Unallocated assets 2,531
Segment liabilities 3,070 4,316 4,762 - 12,147
Unallocated liabilities 944
Nine month period ended September 30, 2021 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 8,591 13,049 10,422 - 32,062
Internal - - 105 (105) -
Total 8,591 13,049 10,527 (105) 32,062
Segment profit 425 1,417 1,297 189 3,328
Finance expense, net 222
Tax expenses 406
Profit 2,700
Note 5 - operating SEGMENTS (CONT.):
As of 30 September, 2021:
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 15,069 10,894 8,307 - 34,270
Unallocated assets 2,825
Segment liabilities 3,169 3,926 3,130 - 10,225
Unallocated liabilities 931
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 30 September 2022, 200,000 Ordinary Shares were held in
treasury under the Programme.
C. 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
Note 7 - SIGNIFICANT EVENTS (CONT.):
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.
D. Business Continuity - 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. Inflation in the countries where the Group operates, as
measured by the consumer price index, is currently increasing which is driving
broad based cost increases, including increases in wages. This together with
rising components prices and shortages, may have an impact on the Group's
underlying cost base and profitability and could effect the Group's ability to
supply part of the demand for its products and services. This uncertainty
regarding 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 QRTBKFBNOBDDDDDRecent news on MTI Wireless Edge
See all newsRCS - 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
AnnouncementREG - MTI Wireless Edge - Transaction in Own Shares
Announcement