REG - MTI Wireless Edge - Trading Update

MTI Wireless EdgeAnnouncement

14/02/2022 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:20220214:nRSN5080Ba&default-theme=true

RNS Number : 5080B  MTI Wireless Edge Limited  14 February 2022

This announcement contains Inside Information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).  Upon the publication of this
announcement this Inside Information is now considered to be within the public
domain.

14 February 2022

MTI Wireless Edge Ltd

("MTI" or the "Group")

 

Trading update

 

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on
comprehensive communication and radio frequency solutions across multiple
sectors, announces a positive trading performance for the financial year ended
31 December 2021, with increased sales and strong cash generation. As a
consequence of the strength of the Israeli Shekel versus the US Dollar in
2021, the MTI board expects to report marginally lower than anticipated net
profit for the year, but expects to pay a dividend in line with market
expectations.  In addition, the Group is not changing its guidance for the
current financial year.

Unaudited 2021 Group revenues are expected to be in line with current market
expectations at approximately US$43.2 million, an increase of 6% compared to
the 2020 financial year. Unaudited Group gross profit is also expected to be
in line with current market expectations at approximately US$13.5 million,
which represents a 3% increase when compared to 2020.

Unaudited Group cash flow from operations for the 2021 financial year is
expected to be significantly ahead of current market expectations at
approximately US$6.5 million, representing an increase of 64% when compared to
2020. This results in an excellent unaudited 2021 year-end net cash balance of
approximately US$12.5 million.

Significant foreign currency fluctuations during 2021, in particular, the
strength of the Israeli Shekel versus the US Dollar led to higher staff costs
across all of the Group's Israeli-based operational activities.
Consequently, unaudited Group operating profit is expected to increase by
approximately 9% compared to 2020, and fall marginally below current market
expectations.

Unaudited Group profit before tax for 2021 is expected to be below current
market expectations, although broadly in line with 2020 levels, which has
primarily been caused by higher finance costs, mostly non-cash expenses. The
increase is a result of foreign currency fluctuations affecting translation
into US Dollars (the Company's reporting currency). Unaudited Group net profit
for 2021 is expected to increase by approximately 6% compared to 2020 as a
result of a lower Group tax rate in 2021.

The Board anticipates that the Company will pay a final dividend for the year
in line with current market expectations. The Board's expectations regarding
trading for the financial year ending 31 December 2022 remain unaltered.

Moni Borovitz, CEO of MTI, said, "Our profitability has been skewed mainly by
currency changes, but in cash terms we have performed well. Our orderbook and
pipeline of opportunities are currently meeting our internal plans for 2022
and since the start of 2022 the US Dollar has strengthened against the Shekel
and is currently above our internal budget rate. We consider that we are well
placed to continue to grow in 2022."

MTI expects to announce its financial results for the year ended 31 December
2021 on Monday, 7 March 2022.

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)

 Peterhouse Capital Limited (Joint Broker)                     +44 20 7469 0930
 Lucy Williams/ Eran Zucker

 Novella (Financial PR)
 Tim Robertson/Fergus Young                                    +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.

 

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  TSTUOUWRUSUUAAR