BATM Advanced Communications Ltd (LSE:BVC) has reported progress for its Networking, Cyber and Bio-Medical businesses in 2022, but said a large diagnostic contract may arrive too late to be included in this year's accounts.
In a trading statement covering all but the last three weeks of the year, the company said its Edgility networking product was seeing a “significant increase” in interest after winning a major contract with CityFibre (AIM:CFHL) in October, its Cyber business is optimistic about winning a “substantial multi-year, multi-million dollar government contract” and the Bio-Medical arm expected to report a big leap in revenue from diagnostic products.
The Edgility contract win has reinforced management’s expectation that deployment and recurring revenues will “scale meaningfully in the short term”, which the company said has sparked interest internationally and led to “advanced talks" with several customers.
In Bio-Medical, the Diagnostics unit has been transformed by the technology being proven during the pandemic and sales volumes of non-Covid diagnostics products increased a “dramatic” amount to a “low double-digit million dollar” in 2022.
Covid testing kits remain in strong demand in Asia, BATM said, with an anticipated US$25mln contract still awaited for the Diagnostic unit, which if it arrives is now likely to be recognised in next year’s accounts, which would reduce this year’s earnings (EBITDA).
Both units of the Bio-Medical division have performed in line with management's expectations, it added.
The balance sheet was reported to have roughly US$40mln of cash and investments in financial assets.
With property and IP also bolstering the balance sheet, the company said its board remain “confident in the prospects for the business and continues to explore all options to deliver shareholder value”.