BATM Advanced Communications Ltd (LSE:BVC), a provider of real-time technologies for networking solutions and medical laboratory systems, has met market expectations with today’s interim earnings call.
Total group revenues in the six months ended 30 June 2023 rose to US$60.2 million, up from US$57.5 million in 2022, while adjusted gross margins improved to 35.3% from 31.6% last year.
Underlying earnings, excluding share-based payments, increased to US$4.4 million in the first half of 2023, compared to US$3.8 million in the first half of 2022.
Adjusted profit before tax came to US$2.3 million (US$700,000 on a reported basis), marking a 130% year-on-year increase, with basic earnings per share surging from 0.12 cents to 0.39 cents.
In strategic highlights, BATM completed an in-depth internal review of all business operations to focus on its core business lines within the networking, cyber and diagnostics units.
Diagnostics sales were consistent with the previous year when excluding COVID-19 contributions, while the bio-medical division reported a revenue increase of 5.6% to US$46.9 million, up from US$44.4 million in the 2022 interim period.
Though revenues in the networking and cyber business stayed relatively flat, the division swung into operating profits after posting US$1.3 million in losses in the 2022 interim period.
Cash and short-term investments including deposits and other securities amounted to US$41.9 million as of 30 June, down from US$44.2 million on 31 December.
Moti Nagar, chief executive of BATM, said: "We are pleased to announce a strong set of results for the first half of 2023. We achieved growth in all key financial parameters and operational progress in each business unit.
"We have also undertaken a comprehensive review of each business unit and their market opportunity, and now have a clear focus on which entities are core to the future success of the group and that can drive a step change in our financial performance."
Nagar stated that BATM entered the second half of the year in a better position than in 2022, with sustained revenue momentum and a higher backlog.
He expects to deliver year-on-year growth in networking, with increased revenues from both carrier ethernet and the Edgility edge computing platform.
“Our cyber business revenues are expected to be higher in the second half than in the first half as we ramp up delivery of our large contract won earlier this year,” noted Nagar. “Our bio-medical division is also expected to continue to increase sales. As a result, we expect to report year-on-year growth for 2023, in line with market expectations."