TIDMMWE
RNS Number : 2773J
MTI Wireless Edge Limited
15 August 2023
15 August 2023
MTI Wireless Edge Ltd
("MTI", the "Company" or the "Group")
Interim results
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused
on comprehensive communication and radio frequency solutions across
multiple sectors, is pleased to today announce its financial
results for the six month period ended 30 June 2023.
'Significant improvement in Operating Cashflow - a steady
performance and on track for the year'
Financial highlights
-- Revenues broadly level at US$22.4m (H1 2022: US$22.7m), held
back by adverse currency translation. On a constant currency basis
revenues increased by 2%
-- Gross margin improved 1% to 32% (H1 2022: 31%)
-- Profit from operations level at US$2.19m (H1 2022: US$2.19m)
-- Profit before tax increased 3% to US$2.1m (H1 2022: US$2.04m)
-- Earnings per share increased 9% to 1.99 US cents (H1 2022: 1.83 US cents)
-- Net cash provided by operating activities improved
significantly to US$1.23m (H1 2022: US$0.037m)
-- Strong financial position maintained, with an increase of 20%
in net cash at 30 June 2023 to $6.25m (30 June 2022: $5.18m)
Operational highlights
-- The Antenna division benefitted from increased defence sales
and this is expected to continue into the second half of the year
and beyond. This helped offset a softer commercial market and,
overall, the division grew revenues by 3% and this segment's profit
from operations increased significantly.
-- The 5G market opportunity for MTI remains substantial, albeit
progress is slow. Relationships with the leading OEMs in the sector
are deepening alongside growing interest in the Company's ABS(R)
antenna solution to counter small mast movements
-- Mottech experienced a relatively quiet first half resulting
in a 2% decrease in revenue, mainly due to adverse currency
translation, but the segment's profit from operations increased
reflecting the updated pricing in its renewed agreements and
foreign exchange benefits on export. In Q3 2023 trading has started
well and Mottech's pipeline looks positive with Italy and France,
in particular, performing well
-- MTI Summit delivered a solid performance, although sales were
5% behind the same period last year. This was due to delays on two
key projects being undertaken by the Group's subsidiary in the
defence sector, PSK, which have now moved into the second half of
the year. One of these projects is now completed and the second is
underway. The segments profit from operations decreased reflecting
the shift in revenues, due to these two projects
Moni Borovitz, Chief Executive Officer of MTI Wireless Edge,
said:
"Our strategy of diversification continues to support the
overall positive performance of the business. We are a technology
company providing radio frequency solutions but we do so across
multiple sectors where we see significant long-term demand such as
defence spending, modern water irrigation and the global rollout of
the next generation 5G mobile network.
"Being a diverse technology company enables us to adapt to
changing market conditions. To date in 2023, defence related orders
are currently the fastest growing segment of our business and this
trend is expected to continue for some time.
"The results for the first half were held back at the revenue
level by the strength of the dollar against the shekel but we also
benefitted from this movement, together with successful price
increases, at the cost level improving gross margin and ultimately
helping earnings per share to increase by 9% in the period. While
the commercial market is still challenging, the supply issues
experienced last year have dissipated and, with a strong pipeline
of opportunities, we remain confident in the growth prospects for
the business and the outcome for the year".
Moni Borovitz, Chief Executive Officer, will provide a live
investor presentation relating to the financial results via the
Investor Meet Company (IMC) platform on Tuesday, 15 August 2023 at
10.00am BST.
Investors can sign up for free via:
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
Allenby Capital Limited (Nomad and Joint
Broker) +44 20 3328 5656
Nick Naylor/Alex Brearley/Piers Shimwell
(Corporate Finance)
Amrit Nahal/Jos Pinnington (Sales and
Corporate Broking)
Shore Capital (Joint Broker)
Toby Gibbs/Rachel Goldstein (Corporate
Advisory)
Fiona Conroy (Corporate Broking) +44 20 7408 4090
Novella (Financial PR)
Tim Robertson/Safia Colebrook +44 20 3151 7008
Chief Executive's statement
The half year performance is particularly pleasing given the
rapid upward interest rate movements during the period which has
increased macro-economic volatility and brought some caution into
the Group's market. That said, the conflict in Ukraine has meant
defence budgets around the world are increasing and this started to
be reflected in the Company's first half trading results and will
be a key growth driver in the second half of the year and beyond.
As a result, while Mottech and some commercial business lines were
softer during Q2 2023, demand from defence related orders and the
pipeline of opportunities mean we remain in a good position to
complete a successful year, underlining the benefit of being a
diverse business targeting multiple growth sectors.
Antenna division
This division is a one stop shop for the sale of 'off the shelf'
flat and parabolic antennas, combined with the provision of
custom-developed antenna solutions to a range of commercial and
military customers, with a growing focus on providing 5G backhaul
antenna solutions to support mobile phone operators as they
roll-out their 5G networks.
The Antenna division had a positive first half of the year with
revenue and profit growth. Increasing defence spending was behind
the growth in this division, with orders coming from around the
globe and we expect further orders to come through in the second
half of the year. The conflict in Ukraine has meant Governments are
increasing defence budgets and MTI is now seeing increased spending
from its customers in the military sector. The Group's expertise in
military antennas is well-established and new orders are a mix of
existing product lines and requests for new solutions, across both
existing and new customers.
5G also remains a substantial driver of future growth. In the
first half of the year the market was relatively soft as some
cellular operators were more cautious, in some cases slowing the
pace of installation, reflecting the macroeconomic environment.
However, 5G is being installed worldwide and MTI is well placed to
benefit. The ABS(R) antenna solution which ensures the antenna
adapts to any small movements caused by different climate
conditions, has brought MTI to the attention of three tier one
radio manufacturers and two tier two customers, all of whom are
working with MTI to prove-out the Company's system. This
interaction further positions the division positively and
significantly increases the sales prospects for the 5G backhaul
solution.
Last year saw the opening of the Indian market for E-Band 5G
backhaul. As anticipated, activity in India remains high and,
although orders are sporadic, the size of the market and MTI's
position within it bodes well. To that end, in July 2023, the
Company established a new subsidiary in India, 'MTI Wireless
Communication India Private Limited', to cater to the demand for
cutting-edge antennas in India's evolving 5G cellular market.
Water Control & Management division
This division provides wireless control systems to manage
irrigation and water distribution for agriculture, municipal
authorities and commercial entities. It operates under the Mottech
brand and utilises hardware technology from Motorola, integrated
with the Company's own proprietary management software. Our
solutions reduce water and power usage, whilst providing higher
revenues from accurate efficient irrigation, leading to more and
higher quality crops and plants being grown.
Mottech experienced a slightly softer market in Q2 2023,
partially due to the sharp strengthening of the dollar against the
shekel, which reduced the reported USD revenue but, due to costs
being in shekels gross margin increased and operating profits were
correspondingly higher in the first half of the year. Part of this
was due to the division's successful introduction of price
increases that have been implemented in 2022 and in 2023. As
announced on 19 April 2023, Mottech secured two long-term contract
wins with a large Israeli municipality. The municipality is an
existing customer and has agreed longer than previous contracts.
The two contracts are together worth $2.2million over the
contracted periods with one covering installations and the other
provision of services.
During the first half, Mottech generated good demand from Italy
and started the third quarter with good demand from France, with
the pipeline for both these markets looking encouraging and
building on the positive performances in 2022.
Importantly, the fundamentals for this division remain strong,
with the problem of water scarcity remaining a key global issue;
one which Governments are increasingly recognising. Earlier this
year, for the first time in almost 50 years, the United Nations
held its first water conference in New York, with a plea for
countries to work together to tackle overconsumption, inefficient
industrial usage and the climate crisis - or else face more hunger,
conflicts and forced migration due to worsening water scarcity.
Water scarcity is a very real crisis involving both developed and
underdeveloped countries. There are multiple solutions, but a key
response is to incorporate modern technology, such as that deployed
by Mottech, to dramatically reduce water usage and the associated
costs.
Overall, Mottech is well placed to deliver another positive
result for the year.
Distribution & Professional Consulting Services division
Operating under the MTI Summit Electronics brand, this division
exclusively represents approximately 40 international suppliers of
radio frequency/microwave components and sells their products to
Israeli customers. Expert knowledge of both the international
suppliers and customers further enables MTI to act as a consultant
to all parties and assist with devising complete radio
frequency/microwave solutions.
MTI Summit delivered a resilient performance despite revenues
being 5% lower than the comparable period last year, mainly due to
delays with two projects. Both projects were being undertaken by
PSK. One of the projects has now been completed and the second is
now underway with good prospects to be expanded further. Defence
represents the majority of the revenue base for MTI Summit and it
is benefitting from the current significant increase in military
spend by Governments around the globe. The conflict in Ukraine has
been the catalyst behind this increase and judging from the future
pipeline of orders and design wins, the outlook for MTI Summit is
positive.
Outlook
The first six months ended successfully which has positioned the
business well for the remainder of the year. We have a significant
order book and pipeline of opportunities across all three divisions
and the business remains in a strong financial position, with net
cash of USD $6.25million. We expect defence related sales to
continue to be a growth driver, alongside improved commercial sales
as interest rate levels normalise. Finally, we firmly believe that
there will be a step increase in our revenues from 5G in the coming
years. Therefore MTI is well placed to grow and deliver attractive
returns to shareholders.
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
Year ended
Six month period ended December
June 30, 31,
-------------------------- ----------
2023 2022 2022
------------ ------------ ----------
U.S. $ in thousands
(Except per share data)
--------------------------------------
Unaudited
--------------------------
Revenues 22,354 22,693 46,270
Cost of sales 15,156 15,651 31,680
------------ ------------ ----------
Gross profit 7,198 7,042 14,590
Research and development expenses 546 528 1,077
Distribution expenses 1,930 1,815 3,924
General and administrative expenses 2,537 2,501 4,998
Loss (profit) from sale of property,
plant and equipment (9) 8 1
------------ ------------ ----------
Profit from operations 2,194 2,190 4,592
Finance expenses 182 221 385
Finance income (85) (72) (110)
------------ ------------ ----------
Profit before income tax 2,097 2,041 4,317
Tax expenses 392 364 468
------------ ------------ ----------
Profit 1,705 1,677 3,849
------------ ------------ ----------
Other comprehensive income (loss)
net of tax:
Items that will not be reclassified
to profit or loss:
Re-measurement of defined benefit
plans - - 127
------------ ------------ ----------
Items that may be reclassified to
profit or loss:
Adjustment arising from translation
of financial statements of foreign
operations (165) (345) (422)
------------ ------------ ----------
Total other comprehensive income
(loss) (165) (345) (295)
------------ ------------ ----------
Total comprehensive income 1,540 1,272 3,554
============ ============ ==========
Profit attributable to:
Owners of the parent 1,761 1,617 3,721
Non-controlling interests (56) 60 128
------------ ------------ ----------
1,705 1,677 3,849
============ ============ ==========
Total comprehensive income attributable
to:
Owners of the parent 1,596 1,212 3,426
Non-controlling interests (56) 60 128
------------ ------------ ----------
1,540 1,272 3,554
============ ============ ==========
Earnings per share (dollars)
Basic and Diluted (dollars per share) 0.0199 0.0183 0.0421
============ ============ ==========
Weighted average number of shares
outstanding
Basic and Diluted 88,398,585 88,520,113 88,444,356
============ ============ ==========
The accompanying notes form an integral part of the financial
statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
For the six month period ended June 30, 2023 (Unaudited):
Attributable to owners of the parent
----------------------------------------------------------
Total
attributable
Additional to owners
Share paid-in Translation Retained of the Non-controlling
capital capital differences earnings parent interest Total equity
------- ---------- ----------- ---------- ------------ --------------- ------------
U.S. $ in thousands
Balance at January 1, 2023 209 23,078 (250) 3,775 26,812 1,226 28,038
Changes during the six month period
ended June 30, 2023:
Comprehensive income
Profit for the period - - - 1,761 1,761 (56) 1,705
Other comprehensive income
Translation differences - - (165) - (165) - (165)
------- ---------- ----------- ---------- ------------ --------------- ------------
Total comprehensive income for
the
period - - (165) 1,761 1,596 (56) 1,540
Acquisition and disposal of
treasury
shares * (47) - - (47) - (47)
Dividend - - - (2,656) (2,656) - (2,656)
------- ---------- ----------- ---------- ------------ --------------- ------------
Balance at June 30, 2023 209 23,031 (415) 2,880 25,705 1,170 26,875
======= ========== =========== ========== ============ =============== ============
(*) Less than US$ 1 thousand
The accompanying notes form an integral part of the financial
statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (CONT.)
For the six month period ended June 30, 2022 (Unaudited):
Attributable to owners of the parent
----------------------------------------------------------
Total
attributable
Additional to owners
Share paid-in Translation Retained of the Non-controlling
capital capital differences earnings parent 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 six-month period
ended June 30, 2022:
Comprehensive income
Profit for the period - - - 1,617 1,617 60 1,677
Other comprehensive income
Translation differences - - (345) - (345) - (345)
------- ---------- ----------- ---------- ------------ --------------- ------------
Total comprehensive income for
the
period - - (345) 1,617 1,272 1,158 1,332
Acquisition and disposal of
treasury
shares - 41 - - 41 - 41
Dividend - - - (2,479) (2,479) - (2,479)
------- ---------- ----------- ---------- ------------ --------------- ------------
Balance at June 30, 2022 209 23,167 (173) 1,544 24,747 1,158 25,905
======= ========== =========== ========== ============ =============== ============
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, 2022 :
Attributable to owners of the parent
----------------------------------------------------------------
Total
attributable
Additional to owners
paid-in Translation Retained of the Non-controlling
Share capital capital differences earnings parent interests Total equity
------------- ---------- ------------ --------- ------------ --------------- ------------
U.S. $ in thousands
-----------------------------------------------------------------------------------------------
Balance as at January
1, 2022 209 23,126 172 2,406 25,913 1,098 27,011
Changes during 2022:
Comprehensive
income
Profit for the
year - - - 3,721 3,721 128 3,849
Other
comprehensive
income
Re measurements on
defined benefit
plans - - - 127 127 - 127
Translation
differences - - (422) - (422) - (422)
------------- ---------- ------------ --------- ------------ --------------- ------------
Total
comprehensive
income (loss) for
the
year - - (422) 3,848 3,426 128 3,554
Dividend - - - (2,479) (2,479) - (2,479)
Acquisition and
disposal of
treasury shares - (48) - - (48) - (48)
------------- ---------- ------------ --------- ------------ --------------- ------------
Balance as at
December 31,
2022 209 23,078 (250) 3,775 26,812 1,226 28,038
============= ========== ============ ========= ============ =============== ============
The accompanying notes form an integral part of the financial
statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
30.06.2023 30.06.2022 31.12.2022
---------- ---------- ----------
U.S. $ in thousands
----------------------------------
Unaudited
----------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 6,384 5,368 8,279
Trade and other receivables 9,603 11,497 11,035
Unbilled revenue 4,518 3,535 2,204
Current tax receivables 466 462 549
Inventories 7,439 6,457 7,757
---------- ---------- ----------
28,410 27,319 29,824
---------- ---------- ----------
NON-CURRENT ASSETS:
Long term prepaid expenses 42 44 39
Property, plant and equipment 5,133 5,989 5,573
Deferred tax assets 1,172 1,140 1,163
Intangible assets 3,779 3,989 3,858
---------- ---------- ----------
10,126 11,162 10,633
---------- ---------- ----------
Total assets 38,536 38,481 40,457
========== ========== ==========
The accompanying notes form an integral part of the financial
statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
F INANCIAL P OSITION
30.06.2023 30.06.2022 31.12.2022
---------- ---------- ----------
U.S. $ In thousands
-----------------------------------
Unaudited
----------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank
credit and loans 56 179 43
Trade payables 5,222 5,703 5,739
Other accounts payable 3,503 3,443 3,627
Current tax payables 499 440 425
---------- ---------- -----------
9,280 9,765 9,834
---------- ---------- -----------
NON- CURRENT LIABILITIES:
Liability to purchase shares of subsidiary 1,432 1,432 1,432
Lease liabilities 129 512 303
Loans from banks, net of current maturities 76 8 98
Employee benefits, net 744 859 752
---------- ---------- -----------
2,381 2,811 2,585
---------- ---------- -----------
Total liabilities 11,661 12,576 12,419
---------- ---------- -----------
EQUITY
Equity attributable to owners of the parent
Share capital 209 209 209
Additional paid-in capital 23,031 23,167 23,078
Translation differences (415) (173) (250)
Retained earnings 2,880 1,544 3,775
---------- ---------- -----------
25,705 24,747 26,812
Non-controlling interest 1,170 1,158 1,226
---------- ---------- -----------
Total equity 26,875 25,905 28,038
---------- ---------- -----------
Total equity and liabilities 38,536 38,481 40,457
========== ========== ===========
August 14, 2023
------------------------- ----------------- -------------- ------------------------
Date of approval Moshe Borovitz Elhanan Zeira Zvi Borovitz
of financial statements Chief Executive Controller Non-executive Chairman
Officer of the Board
The accompanying notes form an integral part of the financial
statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Six month period Year ended
ended December
June 30, 31,
------------------- ----------
2023 2022 2022
--------- -------- -----------
U.S. $ in thousands
--------------------------------
Unaudited
-------------------
Cash Flows from Operating Activities:
Profit for the period 1,705 1,677 3,849
Adjustments for:
Depreciation and amortization 651 734 1,466
Loss (Gain) from sale of property, plant
and equipment (2) 8 (1)
Finance (income) expenses, net (50) (80) (82)
Tax expenses 392 364 468
Changes in operating assets and liabilities:
Decrease (increase) in inventories 225 270 (951)
Decrease (increase) in trade receivables 519 (634) (63)
Decrease (increase) in other accounts receivables 748 (133) 590
Increase in unbilled revenues (2,314) (741) (1,134)
Increase (decrease) in trade and other
accounts payables (389) (659) 572
Increase (decrease) in employee benefits,
net (8) (113) (93)
--------- -------- -----------
Cash from operations 1,477 693 4,621
Interest received 20 - -
Interest paid (17) (29) (52)
Income tax paid (249) (627) (978)
--------- -------- -----------
Net cash provided by operating activities 1,231 37 3,591
--------- -------- -----------
The accompanying notes form an integral part of the financial
statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS (cont.)
Six month period Year ended
ended December
June 30, 31,
---------------------- -----------------
2023 2022 2022
---------- ---------- -----------------
U.S. $ in thousands
-----------------------------------------
Unaudited
----------------------
Cash Flows From Investing Activities:
Proceeds from sale of property, plant
and equipment 39 - 15
Acquisition of subsidiary, net of cash
acquired - (1,427) (1,427)
Net cash from sale of previously consolidated
subsidiaries - (2,785) (2,785)
Purchase of property, plant and equipment (183) (324) (552)
---------- ---------- -----------------
Net cash used in investing activities (144) (4,536) (4,749)
---------- ---------- -----------------
Cash Flows From Financing Activities:
Dividend (2,656) (2,479) (2,479)
Payments of lease liabilities (224) (293) (560)
Treasury shares acquired (200) - (118)
Treasury shares sold 153 41 70
long-term loans from banks (3) 157 118
---------- ---------- -----------------
Net cash used in financing activities (2,930) (2,574) (2,969)
---------- ---------- -----------------
(Decrease)/Increase in cash and
cash equivalents during the period (1,843) (7,073) (4,127)
Cash and cash equivalents
at the beginning of the period 8,279 12,567 12,567
Exchange differences on balances of
cash and
cash equivalents (52) (126) (161)
---------- ---------- -----------------
Cash and cash equivalents
at the end of the period 6,384 5,368 8,279
========== ========== =================
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). The
financial information for the financial year ended December 31,
2022 was approved by the board on March 12, 2023. The report of the
auditors on those financial statements was unqualified.
The interim consolidated financial statements as of June 30,
2023 have not been audited.
The interim consolidated financial information should be read in
conjunction with the annual financial statements as of December 31,
2022 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, 2022 are applied
consistently in these interim consolidated financial
statements.
Note 3 - REVENUES:
Year ended
Six month period ended December
June 30, 31,
------------------------ ------------------
2023 2022 2022
----------- ----------- ------------
U.S. $ in thousands
----------------------------------------------
Unaudited
------------------------
Revenues arise from:
Sale of goods* 15,722 17,486 34,618
Rendering of services** 3 ,126 3,498 8,334
Projects** 3 ,686 1 ,709 3,318
----------- ----------- ------------
22,354 22,693 46,270
=========== =========== ============
(*) at the point in time
(**) over time
Note 4 - operating SEGMENTS:
The following tables present revenue and profit information
regarding the Group's operating segments for the six month period
ended June 30, 2023 and 2022 respectively and for the year ended
December 31, 2022.
Six month period ended June 30, 2023 (Unaudited):
Distribution
Water & Consultation Adjustment
Antennas Solutions Services & Elimination Total
--------- ----------- ---------------- --------------- -------
U.S. $ in thousands
Revenues
External 5,821 8,656 7,877 - 22,354
Internal - - 134 (134) -
--------- ----------- ---------------- --------------- -------
Total 5,821 8,656 8,011 (134) 22,354
Segment profit (loss) 281 960 784 169 2,194
========= =========== ================ =============== =======
Finance expense (income),
net 97
Tax expenses 392
-------
Profit 1,705
=======
June 30, 2023 (Unaudited):
Distribution
Water & Consultation Adjustment
Antennas Solutions Services & Elimination Total
-------- ---------- --------------- -------------- --------
U.S. $ in thousands
Segment assets 14,317 10,194 11,578 - 36,089
======== ========== =============== ============== ========
Unallocated assets 2,447
========
Segment liabilities 3,414 2,946 4,814 - 11,174
======== ========== =============== ============== ========
Unallocated liabilities 487
========
Note 4 - operating SEGMENTS (CONT.):
Six month period ended June 30, 2022 (Unaudited):
Distribution
Water & Consultation Adjustment
Antennas Solutions Services & Elimination Total
--------- ----------- ---------------- --------------- -------
U.S. $ in thousands
Revenues
External 5,678 8,825 8,190 - 22,693
Internal - - 209 (209) -
--------- ----------- ---------------- --------------- -------
Total 5,678 8,825 8,399 (209) 22,693
Segment profit 95 864 1,144 87 2,190
========= =========== ================ =============== =======
Finance expense, net 149
Tax expenses 364
-------
Profit 1,677
=======
June 30, 2022 (Unaudited):
Distribution
Water & Consultation Adjustment
Antennas Solutions Services & Elimination Total
-------- ---------- --------------- -------------- --------
U.S. $ in thousands
Segment assets 14,414 10,717 10,538 - 35,669
======== ========== =============== ============== ========
Unallocated assets 2,812
========
Segment liabilities 2,241 3,520 6,294 - 12,055
======== ========== =============== ============== ========
Unallocated liabilities 521
========
Year ended December 31, 2022
Water Distribution Adjustment
Antennas Solutions & Consultation & Elimination Total
--------- ----------- ---------------- --------------- -------
U.S. $ in thousands
------------------------------------------------------------------
Revenues
External 11,627 18,196 16,447 - 46,270
Inter-segment - - 215 (215) -
--------- ----------- ---------------- --------------- -------
Total 11,627 18,196 16,662 (215) 46,270
========= =========== ================ =============== =======
Segment profit 337 1,838 2,321 96 4,592
========= =========== ================ =============== =======
Finance expense, net 275
Tax expenses 468
-------
Profit 3,849
=======
Note 4 - operating SEGMENTS (CONT.):
December 31, 2022:
Water Distribution Adjustment
Antennas Solutions & Consultation & Elimination Total
-------- ---------- --------------- -------------- --------
U.S. $ in thousands
---------------------------------------------------------------
Segment assets 14,848 11,834 11,272 - 37,954
======== ========== =============== ============== ========
Unallocated assets 2,503
========
Segment liabilities 2,627 3,881 5,098 - 11,606
======== ========== =============== ============== ========
Unallocated liabilities 813
========
Note 5 - SIGNIFICANT EVENTS:
A. On March 12, 2023, the Board of directors declared a cash
dividend of 3.0 US cents per share, representing approximately
$2,656,000, in total. This dividend was paid on April 6, 2023 to
shareholders on the register at the close of trading on March 24,
2023 (ex-dividend on March 23, 2023).
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 GBP150,000 (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 14 March, 2023, the Company announced that it
would extend the Programme until 31 March, 2024, with the Programme
having an increased maximum value of up to GBP200,000 and with the
Programme being managed by Shore Capital Stockbrokers Limited
pursuant to the terms as announced. As at 30 June 2023 and as at 14
August 2023, 200,000 and 275,000 Ordinary Shares, respectively,
were held in treasury under the Programme.
C. On 14 March, 2023 at the Company's annual general meeting,
Mr. Michael Yehezkel Karo was elected as an independent
non-executive director.
Note 6 - SUBSEQUENT EVENTS:
A. On 11 July, 2023 the Company acquired minority holdings in
Ginat for an insignificant amount and now holds 100% of the
company.
B. On 19 July, 2023 the Company completed the registration of
its fully owned subsidiary, MTI Wireless Communication India
Private Limited, in India in order to support local demand in the
market.
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END
IR NKQBDABKDNFD
(END) Dow Jones Newswires
August 15, 2023 02:00 ET (06:00 GMT)
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