Proactive Investors - Run By Investors For Investors
Why invest in BVC?
BATM Advanced Communications Ltd: DEEP DIVE
OVERVIEW

BATM stays bullish on 2019 growth

The group said it had entered 2019 with a “substantially higher order book” compared to the same period in the prior year
Network cables
OVERVIEW: BVC The Big Picture
In its 2018 results, BATM said it expected its 2019 earnings to be ahead of market expectations

• Divisional spread across telecoms, cybersecurity, and bio-medical sectors

• Exposure to “growth trends” in virtual network management and medical equipment

• Expects 2019 earnings to be ahead of market expectations

 

What BATM Advanced Communications does

BATM Advanced Communications Ltd (LON:BVC) provides solutions for networking and cyber security as well as for bio-medical and bio-waste treatment through its two operating divisions.

The networking and cyber division offers telecoms and network solutions, focusing on advanced software and cybersecurity, to tier 1 businesses and governments worldwide.

The bio-medical division focuses on the development and provision of diagnostic lab equipment as well as products to treat biological waste products from the medical, agricultural, and pharmaceutical sectors.

The group is listed on the main board of the London Stock Exchange and is headquartered in Israel with offices in North America, Europe, and the Far East.

What it owns

In the networking and cyber division, BATM owns three entities;

• Telco Systems – focuses on high-performance telecom networks and communications systems

• NGsoft – develops and maintains digital systems such as websites and mobile apps as well as expertise on cloud solutions and other technology areas

• CELARE – The cyber arm of BATM which focuses on digital security and threat detection

Inflection points

• In June, BATM said it had developed a new technology under its long-standing partnership with NXP Semiconductors which will enable a significant increase in computer network traffic without requiring an increase in computing power

• The company entered a strategic technology partnership with Clavister, a cybersecurity specialist, in early June. Under the agreement BATM’s software development and design business Telco Systems will work with Clavister to run a virtualised platform

• In March, BATM predicted that its earnings (EBITDA) and revenue growth for 2019 would be “ahead of market expectations”

CEO Interview – Zvi Marom

Blue Sky

In its outlook statement for 2019, the company said it had entered the year with a “substantially higher order book” compared to the same period in the prior year, providing it with a platform to deliver “substantive growth”.

BATM’s chief executive, Dr Zvi Marom, added that the diagnostic and eco-med units within the firm’s bio-med segment had taken “large steps” forward and growth was also expected in 2019.

Meanwhile, Marom said the group’s cyber division was expected to secure more contract wins in the current year, having won around US$13.5mln worth of deals in 2018.

What the broker says

Commenting on BATM’s 2018 results and outlook for 2019, analysts at ‘house’ broker Shore Capital said the prospect for further upgrades over the year was “high” on the back of continuing strong news flow and a building flow of contract orders.

“BATM retains substantial financial resources with net cash and investments of US$31.7mln currently and we expect this to continue to be used principally to fund organic development into the group’s intellectual property base”, the broker added.

With shares trading around 45.2p as of 21 June, BATM carries a market cap of £182.3mln.

View full BVC profile View Profile

BATM Advanced Communications Ltd Timeline

Video
June 28 2019
Big Picture
June 21 2019

Related Articles

Network cables
June 21 2019
The group said it had entered 2019 with a “substantially higher order book” compared to the same period in the prior year

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use