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Telecoms

BATM Advanced Communications Ltd moves back into black

Laboratory technology group's biomedical arm became profitable for the first time

Laboratory and telecom network technology group BATM Advanced Communications Ltd (LON:BVC) said a maiden profit in its biomedical arm had driven it back into the black.

BATM said the biomedical division, which makes up 54% of BATM's sales, had become profitable for the first time in the group's history.

The division's gross margin improved to 25% versus 23% in 2014, its distribution business expanded in absolute terms in all markets and its diagnostics unit reached break-even.

The group made a US$700,000 adjusted operating profit in the year to December 31 against a US$1mln loss a year ago.

BATM's telecom division started showing recovery as it reported a US$300,000 operating profit in the second half against a US$900,000 loss last time.

New products and technologies also continued to increase sales and replace legacy products, positioning the group to further improve revenues and gross margins.

Group pre-tax earnings before interest, depreciation and amortisation were US$2.5mln against US900,000mln a year ago.

Constant currency revenue rose to US$111.7mln from US$109.2mln beforehand.

Chief executive Zvi Marom said: "We believe we have turned a corner and transformed the group in both our divisions.

"Looking ahead, we entered 2016 in a stronger position, with a higher backlog, than at the same time in the prior year. We expect to maintain the momentum of last year."

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