07:00 Wed 04 Mar 2020
BATM Advanced Comm - Full Year Results
LEI: 213800FLQUB9J289RU66
("BATM" or the "Group")
Full Year Results 2019
BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, announces its preliminary results for the year ended
Financial Summary
· Group revenue of
· Gross margin of 26.9% (2018: 28.8%)
· Cash from operating activities of
· Adj.* operating profit of
· EBITDA of
· Basic earnings per share of 0.93¢ (2018: 0.09¢)
· As at
* Adjusted to exclude the amortisation of intangible assets (see note 3)
Operational Summary
Bio-Medical Division (52% of total revenue)
· Revenue increased to
· Blended gross margin of 23.8% (2018: 25.0%)
· Diagnostics Unit
o Signed conditional investment agreement for up to
o Increased sales of new highly-compact metabolism testing analyser, Hemo One
o Sustained growth in sales of new molecular biology diagnostics Adaltis product line, and introduced new reagents
o Post period, developed new diagnostics kit for COVID-19 and received verification from central laboratories and hospitals and interest from customers in several countries
· Eco-Med Unit
o Commenced delivery on first agri-waste treatment contract outside of Israel with a major food manufacturing group in the Philippines, which is expected to be completed by the end of H1 2020
o Awarded
o Post period, awarded agri-waste contract from a major poultry processor in the Middle East - representing further geographic expansion of the customer base
· Distribution Unit
o Doubled the number of NIPT (pre-natal diagnostics) tests provided by the Group's genetic laboratory in Eastern Europe
o Strong growth in provision of cancer diagnostics tests in Israel, and received regulatory approval to offer further molecular genetics tests with sales commencing during the year
Networking and Cyber Division (48% of total revenue)
· Revenue increased to
· Blended gross margin of 30.9% (2018: 33.6%)
· Networking Unit
o Completed delivery under partnership with Arm to expand the Group's NFVTime ecosystem optimised for Arm infrastructure and entered proof-of-concept with Tier 1 network operator - with negotiations underway with several others
o Commenced revenue generation from sales of the Group's NFV products
o Developed new technology to enable significant increase in network traffic when licensing NFVTime on Arm-based NXP Semiconductors ("NXP") processors
o Introduced TM-8104 - a new ultra-high capacity networking platform ready for hyper-cloud connectivity, 5G and Multi-access Edge Computing (MEC)
o Commenced sales of the T-Marc R3305 series - BATM's first solution for multiservice business routing
· Cyber Unit
o Revenue in 2019 doubled over 2018 with delivery on previously-awarded contracts and new orders received during the year
o Received orders totalling
o Post period, awarded a
Commenting on the results, Dr Zvi Marom, Chief Executive Officer of BATM, said: "I am pleased to report another good year for BATM as we delivered increased sales and profit in both of our divisions along with strong cash generation. This reflects a great performance in the second half, with revenues 20% higher than H1 2019, and a particularly robust fourth quarter. As a result, we entered 2020 with a substantially higher backlog than at the same point of the previous year.
"We achieved important operational milestones in 2019 that significantly advanced the execution on our strategy in NFV and molecular diagnostics - our key future growth markets. We are also very pleased with the solid commercial traction that we have established in our Eco-Med and Cyber businesses.
"We believe that the strategy we adopted in both of our divisions is proving to be correct. In particular, the COVID-19 pandemic has demonstrated the value of solutions that help with the containment of infectious disease outbreaks. Consequently, we believe that combination of our NATlab system, which can identify human pathogens with unparalleled speed and accuracy, with our Eco-Med products for pathogenic waste treatment, stand to be of great benefit to society. At the same time, our Networking business is accelerating the NFV activity and we expect good commercial traction in 2020. As a result, we continue to look to the future with confidence."
Enquiries:
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Dr Zvi Marom, Chief Executive Officer |
+972 9866 2525 |
Moti Nagar, Chief Financial Officer |
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Mark Percy, Anita Ghanekar, James Thomas (Corporate Advisory) |
+44 20 7408 4050 |
Henry Willcocks (Corporate Broking) |
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Luther Pendragon |
|
Harry Chathli, Claire Norbury, Rachel So |
+44 20 7618 9100 |
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Overview
BATM delivered growth in revenue in 2019 to
The Group achieved a number of operational milestones in 2019 that significantly advanced the execution on its strategy in areas that the Group has identified as growth markets. In particular, in Network Function Virtualisation ("NFV"), the Group completed delivery under its agreement with Arm and in molecular biology diagnostics, BATM made strong progress in the development of its NATlab solution under Ador - both of which are now positioned for commercialisation.
During the year, the Group also established good momentum with its Cyber and Eco-Med activities. In 2019, both of these units received several high-value contracts and expanded their customer base, with the Group's agri-waste treatment solution now being supplied in four countries in the Middle East and Asia. In addition, the Group continued to realise value from its investments with capital gains from
Due to a change in sales mix, as described below, gross margin was reduced compared with 2018. However, with a substantial backlog and a number of its higher-margin activities positioned to ramp up in 2020, the Board remains confident of achieving growth in line with market expectations for full year 2020.
Bio-Medical Division
|
FY 2019 |
FY 2018 |
Revenue |
|
|
Adj. blended gross margin |
23.8% |
25.0% |
Adj. operating profit (loss) |
|
|
Revenue for the Bio-Medical division increased by 3.7% to
Distribution
Revenues for the Distribution unit increased by 4.5% and accounted for 81.3% (2018: 80.7%) of the Bio-Medical division's revenue in 2019.
In Israel, the Group's
Following the introduction of Non-Invasive Prenatal Testing (NIPT) diagnostics tests at its genetics laboratory in Eastern Europe last year, the Group doubled the sales of such tests in 2019 compared with 2018.
Eco-Med
The Eco-Med unit accounted for approximately 10.1% of the Bio-Medical division's revenues in 2019 compared with 8.7% in 2018, which reflects an increase in revenue of 21.1%. The majority of the growth was due to the completion of the installation of the Group's agri-waste treatment solution, which is based on its Integrated Sterilizer and Shredder patented technology ("ISS"), at a bovine slaughterhouse under a previously-won contract.
The Group also made significant progress in winning new customers for its agri-waste treatment solution, including introducing the product to new geographies. The first international contract, worth approximately
An important customer win was achieved with the award of a
Post period, the Group received its third international contract for its agri-waste treatment solution, which is worth approximately
Diagnostics
The Diagnostics unit represented approximately 8.6% of Bio-Medical division revenues in 2019 (2018: 10.6%). As stated previously, the Diagnostics unit has been undergoing a re-organisation, which is now almost complete, as it transitions from ELISA to focus on molecular biology solutions and products. This has resulted in a temporary reduction in sales, with 2019 being slightly lower than 2018. However, there was a return to growth in sales of the Diagnostics unit in the second half of the year, with H2 2019 revenues increasing over both H1 2019 and H2 2018 based on diagnostic instrument sales, with this momentum expected to continue in 2020. In addition, the Group continued to invest in its manufacturing facilities in Italy to increase the efficiency of the production process for systems and reagents, which is expected to generate substantial efficiencies in 2020.
During the year, the Group's new highly compact metabolism testing analyser, the Hemo One, performed well with sales in multiple countries across Europe, Asia and South America. The Group also continued development work to be able to offer further panels and cartridge-based testing for this instrument, which has been based on demand from medical offices as well as major clients.
Sales increased of the Group's molecular biology diagnostics Adaltis product line that was launched at the end of 2018, including commencing selling in Mexico in addition to Europe. The Group also extended the range of reagents tests and entered into new collaboration agreements with significant distributors in the molecular biology field in Italy and Mexico, which translated to initial sales in H2 2019 and is expected to ramp up from 2020.
The Group successfully developed a new diagnostics kit to detect the COVID-19 virus. This kit, which is part of the MOLgen molecular diagnostics line that was launched at the end of 2018, has undergone testing by several central laboratories and hospitals that have now verified its ability to diagnose COVID-19. The MOLgen COVID-19 kit is designed to be used with the Group's diagnostic instruments, which offers benefits of speed and accuracy, but it can also be used with some competing diagnostic instruments. Post period, the Group commenced initial production of the kit at its Adaltis facility, and is working with academic and research institutions, mainly in Europe, to progress the kit to make it at a price point suitable for large scale production. The kit, which supports all the
The Group made strong progress in advancing its NATlab molecular biology solution that is being developed through Ador, which has undergone extensive lab testing and partnerships have been established with several leading research institutions. NATlab provides rapid sample-to-answer diagnosis of bacterial, viral or fungal infections, within approximately 15-90 minutes, using DNA sampling. The unique system is modular, compact and mobile, and is designed to be used at the point-of-care as well as in hospital labs. The Group believes that NATlab - which has been awarded over 40 global patents, including in Europe and the US, with more pending - will allow medical practitioners to provide far quicker and more efficient treatment.
During the year, the Group entered a conditional agreement for an investment of up to
Post period, Ador received its first commercial order for NATlab, which was from the leading Italian distributor of molecular biology and genomics products. Under the agreement, Ador will deliver the new NATlab reader and cartridges for the identification of meningitis in the second half of 2020.
In addition, COVID-19 will be included within the Ador suite of testing kits as part of its travel panels. Laboratory bench tests are expected to commence imminently.
Networking and Cyber Division
|
FY 2019 |
FY 2018 |
Revenue |
|
|
Adj. blended gross margin |
30.9% |
33.6% |
Adj. operating profit |
|
|
There was a slight increase in revenue for the full year compared with 2018, which reflects a softening in the first half being mitigated by a strong second half, with revenue in H2 2019 being 26.9% higher than H1 2019 and 14.2% above H2 2018. The growth in the second half was due to increased sales of the Group's ICT networking products and services and its cyber solutions. There was an immaterial impact on revenue in the Networking and Cyber division by currency fluctuations. The reduction in gross margin in the Networking and Cyber division reflects a slight decrease in year-on-year sales of carrier Ethernet products, resulting in an increased contribution to revenue from ICT services, which carry a lower gross margin.
NFV solutions
BATM completed delivery under its joint development agreement with Arm to develop the Group's NFVTime operating system, which is integrated with Arm technology to be used on Arm-based uCPE related SoCs (system-on-a-chip), to enable an ecosystem of Virtual Network Function ("VNF") services optimised to run on Arm's architecture. NFVTime enables a significant increase in throughput compared with competing solutions. The parties have been conducting joint marketing of the solution that enables carriers to deploy their own virtualised networks, which can also be a key element in allowing operators to leverage the benefits offered by 5G.
The parties entered into a proof-of-concept for the joint NFV solution with a Tier 1 network operator in 2019, which is expected to progress to field trials this year. Negotiations are also underway with several other network operators in the US and Europe to undertake proof-of-concept. The Group commenced receiving initial revenue from NFVTime sales during the year, which it expects to ramp as the projects with network operators progress.
Key Arm-optimised VNF services that the Group added to the ecosystem, through integration with the Group's NFVTime uCPE solution, include Clavister's virtualised cyber security platform and Fortinet's VMware SD-WAN solution.
A key milestone under the agreement with Arm was the Group's development of a new technology under its long-standing partnership with NXP that enables a significant increase in network traffic, without requiring an increase in computing power. The new technology applies when licensing the Group's NFVTime on NXP's Layerscape® LS2088A and LS1088A multicore processors, which are built on Arm core technology. The solution will enable more efficient and cost-effective customer premise networking, and support next-generation 5G/MEC use cases.
ICT and Carrier Ethernet solutions and services
The growth in revenue from ICT solutions and services was based on increased sales with both existing and new customers.
The Group advanced its 5G strategy with the launch of a new ultra-high capacity networking platform for network edge. The T-Metro 8104, which is NFV ready, is the industry's first CE2.0 compliant service aggregation and cloud gateway platform available at 1.2Tb capacity and it is designed to allow network operators to leverage the transformation enabled by hyper-cloud connectivity, 5G and MEC. It has a modular design that, along with having a small form factor and the ability to be installed outside a telecom cabinet, allows customers to expand and add capacity and interfaces as required.
Also during the year, BATM introduced the T-Marc R3305 series, with sales commencing in the fourth quarter. The routers and integrated access devices support a variety of enterprise-grade features that can form the foundation of a business' entire network. This new product represents an expansion of the Group's offering into routing as part of its strategy to target the enterprise market.
Cyber
BATM made excellent progress in its cyber security business, with a strong increase in revenue from previously awarded contracts and receiving new orders totalling
The government defence department customer that the Group has been supplying with cyber security products and services since 2017, awarded the Group two further contracts worth an aggregate of
The Group was also awarded an initial
In addition, the Group expanded its cyber security offering by enhancing its T-Sense cyber product, which is a software-based smart network sensor that is able to discover and classify network devices, applications, services and activities over the network, so that it is compatible with Arm architecture as well as Intel-based platforms. As a result, T-Sense is now able to leverage the advantages of all major infrastructures, which expands its addressable market. This enhanced product is expected to be available to customers this year.
Financial Review
|
H1 2019 |
H2 2019 |
FY 2019 |
FY 2018 |
Revenue |
|
|
|
|
Adj. blended gross margin |
27.7% |
26.8% |
27.2% |
29.2% |
Adj. operating profit |
|
|
|
|
The blended gross profit margin for the year was 26.9% (2018: 28.8%). This decrease is due to the increased contribution to revenue from the Bio-Medical division, which carries a lower margin than the Networking and Cyber division, as well as a slight softening in gross margin in both divisions respectively. The Group anticipates an improvement in gross margin for 2020.
Sales and marketing expenses were
General and administrative expenses were
Investment in R&D was lower in 2019 than the previous year at
Adjusted operating profit increased significantly to
The Group achieved a strong increase in EBITDA, which doubled to
Net finance income was
Net profit after tax attributable to equity holders of the parent increased to
As at
Intangible assets and goodwill at
Property, plant and equipment and investment property was
The balance of trade and other payables was
Cash generated from operating activities was
The Group's balance sheet remained strong with effective liquidity of
Listing on TASE
On
Outlook
The Group entered 2020 with a substantially higher backlog than at the same point of the prior year, having had a particularly strong fourth quarter of 2019 for winning new contracts for delivery this year, and this momentum has continued in 2020. Both the Bio-Medical division as well as the Networking and Cyber division are expected to report growth for 2020, with the Bio-Medical division remaining the largest contributor to Group revenue.
Specifically, in the Bio-Medical division, BATM expects a ramp up in sales this year through the Group's new collaboration agreements in the Diagnostics unit with significant distributors in the molecular biology field in Italy and Mexico. The Eco-Med unit has a solid backlog of orders for its agri-waste treatment solution to deliver in 2020 and the Group expects it to continue to win new customers and expand its activities. The Distribution unit is expected to continue to perform well.
In the Networking and Cyber division, the Group anticipates progressing its engagement with network operators under its partnership with Arm, which will enable a ramp up of NFV-related revenue. The Group expects good growth in the Cyber unit as it continues to win orders from existing and new customers.
With the contribution to revenue from diagnostics and NFV-related activities expected to increase in 2020, the Group anticipates an improvement in gross margin.
The
As a result, BATM expects to report results for full year 2020 in line with market expectations and the Board continues to look to the future with confidence.
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED INCOME STATEMENTS
|
Year ended 31 December |
|
|
2019 |
2018 |
|
US$ in thousands |
|
|
|
|
Revenues |
123,396 |
119,561 |
|
|
|
Cost of revenues |
90,251 |
85,097 |
|
|
|
Gross profit |
33,145 |
34,464 |
|
--------- |
--------- |
Operating expenses |
|
|
|
|
|
Sales and marketing expenses |
16,307 |
15,635 |
|
|
|
General and administrative expenses |
11,753 |
11,226 |
|
|
|
Research and development expenses |
6,772 |
7,116 |
|
|
|
Other operating income |
(6,169) |
(1,003) |
|
|
|
Total operating expenses |
28,663 |
32,974 |
|
--------- |
--------- |
Operating profit |
4,482 |
1,490 |
|
|
|
Finance income |
1,612 |
653 |
|
|
|
Finance expenses |
(1,316) |
(935) |
|
|
|
Profit before tax |
4,778 |
1,208 |
|
|
|
Income tax expenses |
(475) |
(623) |
|
|
|
Profit for the year before share of loss of a joint venture |
4,303 |
585 |
|
|
|
Share of loss of a joint venture and associated companies |
(1,033) |
(908) |
|
|
|
Profit (loss) for the year |
3,270 |
(323) |
|
|
|
Attributable to: |
|
|
Owners of the Company |
3,917 |
358 |
Non-controlling interests |
(647) |
(681) |
|
|
|
Profit (loss) for the year |
3,270 |
(323) |
Profit per share (in cents): |
|
|
Basic |
0.93 |
0.09 |
|
|
|
Diluted |
0.92 |
0.09 |
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
|
Year ended 31 December |
|
|
2019 |
2018 |
|
US$ in thousands |
|
Profit (loss) for the year |
3,270 |
(323) |
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
Exchange differences on translating foreign operations |
398 |
(2,546) |
|
3,668 |
(2,869) |
Items that will not be reclassified subsequently to profit or loss: |
|
|
Re-measurement of defined benefit obligation |
(44) |
(51) |
|
|
|
Total comprehensive income (loss) for the year |
3,624 |
(2,920) |
Attributable to: |
|
|
Owners of the Company |
3,664 |
(2,509) |
Non-controlling interests |
(40) |
(411) |
|
3,624 |
(2,920) |
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
31 December |
|
|
2019 |
2018 |
|
US$ in thousands |
|
Current assets |
|
|
Cash and cash equivalents |
40,584 |
20,811 |
Trade and other receivables |
42,784 |
35,010 |
Financial assets |
4,254 |
3,577 |
Inventories |
22,672 |
22,860 |
|
110,294 |
82,258 |
Non-current assets |
|
|
Property, plant and equipment |
14,203 |
14,076 |
Investment property |
1,899 |
2,004 |
Right of-use assets |
9,945 |
- |
Goodwill |
16,804 |
16,343 |
Other intangible assets |
6,941 |
6,278 |
Investment in joint venture and associate |
9,497 |
4,210 |
Investments carried at fair value |
1,013 |
1,060 |
Deferred tax assets |
3,234 |
2,655 |
|
63,536 |
46,626 |
|
|
|
Total assets |
173,830 |
128,884 |
Current liabilities |
|
|
Short-term bank credit |
5,915 |
5,369 |
Trade and other payables |
44,459 |
33,413 |
Current maturities of lease liabilities |
2,070 |
- |
Tax liabilities |
313 |
173 |
|
52,757 |
38,955 |
Non-current liabilities |
|
|
Long-term bank credit |
762 |
486 |
Long-term liabilities |
6,215 |
5,631 |
Long-term lease liabilities |
8,339 |
- |
Deferred tax liabilities |
626 |
228 |
Retirement benefit obligation |
715 |
576 |
|
16,657 |
6,921 |
|
|
|
Total liabilities |
69,414 |
45,876 |
Equity |
|
|
Share capital |
1,320 |
1,217 |
Share premium account |
425,477 |
407,796 |
Reserves |
(18,582) |
(18,373) |
Accumulated deficit |
(299,391) |
(303,264) |
Equity attributable to equity holders of the: |
|
|
Owners of the Company |
108,824 |
87,376 |
Non-controlling interest |
(4,408) |
(4,368) |
Total equity |
104,416 |
83,008 |
Total equity and liabilities |
173,830 |
128,884 |
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Year ended 31 December 2019
|
|
Share Premium Account |
Translation Reserve |
Other Reserve |
Accumulated Deficit |
Attributable to Owners of the Parent |
Non-Controlling Interests |
Total Equity |
|||||||
|
US$ in thousands |
||||||||||||||
Balance as at |
1,217 |
407,796 |
(17,861) |
(512) |
(303,264) |
87,376 |
(4,368) |
83,008 |
|||||||
Profit (loss) for the year |
|
|
|
|
3,917 |
3,917 |
(647) |
3,270 |
|||||||
Re-measurement of defined benefit obligation |
- |
- |
- |
- |
(44) |
(44) |
- |
(44) |
|||||||
Exchange differences on translating foreign operations |
- |
- |
(209) |
- |
- |
(209) |
607 |
398 |
|||||||
Total comprehensive profit (loss) for the year |
- |
- |
(209) |
- |
3,873 |
3,664 |
(40) |
3,624 |
|||||||
Issue of share capital |
93 |
16,981 |
|
|
|
17,074 |
- |
17,074 |
|||||||
Exercise of share based options by employees |
10 |
595 |
- |
- |
- |
605 |
- |
605 |
|||||||
Recognition of share-based payments |
- |
105 |
- |
- |
- |
105 |
- |
105 |
|||||||
Balance as at |
1,320 |
425,477 |
(18,070) |
(512) |
(299,391) |
108,824 |
(4,408) |
104,416 |
|||||||
Year ended 31 December 2018
|
|
Share Premium Account |
Translation Reserve |
Other Reserve |
Accumulated Deficit |
Attributable to Owners of the Parent |
Non-Controlling Interests |
Total Equity |
|
US$ in thousands |
|||||||
Balance as at |
1,216 |
407,688 |
(15,045) |
(512) |
(303,571) |
89,776 |
(3,957) |
85,819 |
Profit (loss) for the year |
|
|
|
|
358 |
358 |
(681) |
(323) |
Re-measurement of defined benefit obligation |
- |
- |
- |
- |
(51) |
(51) |
- |
(51) |
Exchange differences on translating foreign operations |
- |
- |
(2,816) |
- |
- |
(2,816) |
270 |
(2,546) |
Total comprehensive profit (loss) for the year |
- |
- |
(2,816) |
- |
307 |
(2,509) |
(411) |
(2,920) |
Exercise of share based options by employees |
1 |
50 |
- |
- |
- |
51 |
- |
51 |
Recognition of share-based payments |
- |
58 |
- |
- |
- |
58 |
- |
58 |
Balance as at 31 December 2018 |
1,217 |
407,796 |
(17,861) |
(512) |
(303,264) |
87,376 |
(4,368) |
83,008 |
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
|
Year ended 31 December |
|
|
2019 |
2018 |
|
US$ in thousands |
|
|
|
|
Net cash from operating activities (Appendix A) |
7,166 |
2,607 |
Investing activities |
|
|
Interest received |
205 |
219 |
Proceeds on disposal of property, plant and equipment and other |
113 |
6,507 |
Tax paid on disposal of property, plant and equipment |
(19) |
(1,913) |
Proceeds on disposal of deposits |
3,234 |
4,579 |
Proceeds on disposal of financial assets carried at fair value |
- |
2,391 |
Proceeds on sale of investment |
3,430 |
- |
Loans repay (granted) |
- |
133 |
Purchases of property, plant and equipment |
(686) |
(1,692) |
Increase of other intangible assets |
(1,523) |
(1,894) |
Purchases of financial assets carried at fair value through profit and loss |
(760) |
(840) |
Purchases of deposits |
(3,112) |
(4,004) |
Increase in financial assets carried at fair value |
- |
(321) |
Investment in joint venture |
(1,952) |
(1,616) |
Investment in associated companies |
(575) |
(80) |
Acquisition of subsidiaries (Appendix B) |
(937) |
(633) |
Net cash from (used in) investing activities |
(2,582) |
836 |
Financing activities |
|
|
Lease payment |
(2,361) |
- |
Bank loan repayment |
(9,922) |
(9,956) |
Bank loan received |
10,086 |
9,596 |
Issue of share capital, net |
17,074 |
- |
Proceed on exercise of shares |
605 |
51 |
Net cash from (used in) financing activities |
15,482 |
(309) |
Increase in cash and cash equivalents |
20,066 |
3,134 |
Cash and cash equivalents at the beginning of the year |
20,811 |
18,182 |
Effects of exchange rate changes on the balance |
(293) |
(505) |
Cash and cash equivalents at the end of the year |
40,584 |
20,811 |
BATM ADVANCED COMMUNICATIONS LTD.
APPENDICES TO CONSOLIDATED STATEMENT OF CASH FLOWS
APPENDIX A
RECONCILIATION OF OPERATING PROFIT FOR THE YEAR TO NET CASH FROM OPERATING ACTIVITIES
|
Year ended 31 December |
|
|
2019 |
2018 |
|
US$ in thousands |
|
Operating profit from operations Adjustments for: |
4,482 |
1,490 |
Amortisation of intangible assets |
794 |
1,143 |
Depreciation of property, plant and equipment and investment property |
4,561 |
2,248 |
Capital gain of property, plant and equipment and other |
31 |
(1,585) |
Revaluation of investment |
- |
(165) |
Gain on sale of investment |
(3,380) |
- |
Capital gain on reduce of holdings in associated company |
(3,161) |
- |
Stock option granted to employees |
105 |
58 |
Increase (decrease) in retirement benefit obligation |
121 |
(153) |
Decrease in provisions |
298 |
(47) |
Operating cash flow before movements in working capital |
3,851 |
2,989 |
Decrease in inventory |
1,387 |
353 |
Decrease (increase) in receivables |
(7,896) |
4,824 |
Increase (decrease) in payables |
11,361 |
(3,579) |
Effects of exchange rate changes on the balance sheet |
(264) |
(990) |
Cash from operations |
8,439 |
3,597 |
Income taxes paid |
(410) |
(419) |
Income taxes received |
10 |
2 |
Interest paid |
(873) |
(573) |
Net cash from operating activities |
7,166 |
2,607 |
APPENDIX B
ACQUISITION OF SUBSIDIARY - Remedium
|
Year ended 31 December |
||
|
|
2019 |
|
|
US$ in thousands |
|
|
Net assets acquired |
|
|
|
Property, plant and equipment |
|
1,257 |
|
Net working capital |
|
607 |
|
Short-term bank credit |
|
(134) |
|
Long term liabilities |
|
(635) |
|
|
|
1,095 |
|
Non- controlling interest |
|
(543) |
|
Gain from bargain purchase |
|
(248) |
|
Total consideration |
|
1,269 |
|
Satisfied by: |
|
|
|
Cash |
|
304 |
|
Consideration recorded as a liability |
|
- |
|
|
|
304 |
|
Net cash outflow arising on acquisition |
|
|
|
Cash consideration |
|
316 |
|
Cash and cash equivalents acquired |
|
(12) |
|
|
|
304 |
|
Acquisition of subsidiaries in the Consolidated Statement of Cash Flows also includes the final payment of $0.6m for Green Lab Hungary Engineering Ltd, which was acquired in 2016.
BATM ADVANCED COMMUNICATIONS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General
The final results for the year ended 31 December 2019 and the comparative 2018 information will be presented in the full Annual Report in accordance with International Financial Reporting Standards ("IFRS").
Note 2 - Profit/(loss) per share
Profit/(loss) per share is based on the weighted average number of shares in issue for the period of 421,141,507 (2018: 403,353,149). The number used for the calculation of the diluted profit per share for the period (which includes the effect of dilutive stock option plans) is 425,096,611 shares (2018: 406,250,024).
Note 3 - Alternative performance measures
|
Year ended 31 December |
|
|
2019 |
2018 |
|
US$ in thousands |
|
Operating profit |
4,482 |
1,490 |
Amortisation of Intangible assets |
794 |
1,143 |
Adjusted operating profit |
5,276 |
2,633 |
Depreciation |
2,101 |
2,248 |
Depreciation of right-of-use assets |
2,460 |
--- |
EBITDA |
9,837 |
4,881 |
BATM ADVANCED COMMUNICATIONS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 4 - Segments
Business Segment
Year ended 31 December 2019
|
Networking and Cyber $'000 |
Bio-Medical $'000 |
Unallocated $'000 |
Total $'000 |
Revenues |
58,960 |
64,436 |
- |
123,396 |
Adjusted operating profit (*) |
5,144 |
132 |
- |
5,276 |
Reconciliation - other operating expenses (*) |
|
|
|
(794) |
Operating profit |
|
|
|
4,482 |
Net finance income |
|
|
|
296 |
Profit before tax |
|
|
|
4,778 |
Year ended 31 December 2018
|
Networking and Cyber $'000 |
Bio-Medical $'000 |
Unallocated $'000 |
Total $'000 |
Revenues |
57,451 |
62,104 |
6 |
119,561 |
Adjusted operating profit (loss)(*) |
3,579 |
(1,114) |
168 |
2,633 |
Reconciliation - other operating expenses (*) |
|
|
|
(1,143) |
Operating profit |
|
|
|
1,490 |
Net finance expense |
|
|
|
(282) |
Profit before tax |
|
|
|
1,208 |
(*) See note 3
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