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BATM steams ahead with progress in medical and networking businesses

Snapshot

  • Divisional spread across telecoms, cybersecurity, and bio-medical sectors
  • Exposure to “growth trends” in virtual network management and medical equipment
  • Recently launched three coronavirus diagnostic kits
Network cables

Quick facts: BATM Advanced Communications Ltd

Price: 112.5 GBX

LSE:BVC
Market: LSE
Market Cap: £495.31 m
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What it does

BATM Advanced Communications Ltd (LON:BVC) provides solutions for networking and cybersecurity 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.

 

How is it doing 

In its results for the six months ended June 30, 2020, the networking solutions and medical laboratory provider reported earnings (EBITDA) of US$5.3mln, up 36.2% year-on-year, while revenues surged 37.7% to US$77.4mln.

The stronger performance appeared to be mainly attributed to the firm’s Bio-Medical division, its largest business segment, which saw revenues climb 65% in the year to US$50mln, helped by strong demand for the company’s coronavirus diagnostic tests. Meanwhile, the company’s networking and cyber arm saw revenues increase by 5.3% to US$27.4mln.

Looking ahead, BATM said it has entered the second half with a “substantially higher backlog” than at the same time last year, with revenues now expected to increase 32% for the full year alongside a 48% rise in EBITDA, significantly ahead of market expectations.

The group also said its “strong cash position” of US$44.3mln at the end of the first half combined with expected cash generation for the second half gave it the confidence to reinstate its dividend for the full year 2020.

BATM also recently launched three coronavirus testing kits which it said will “significantly advance” the diagnosis of coronavirus and other respiratory illnesses. 

In early August, the company also said its subsidiary, Telco Systems, has worked with computer chip maker Arm to complete a proof of concept for a uCPE, which includes the company’s NFVTime operating system, that has been tested by Vodafone Group PLC (LON:VOD).

 

What the boss says: Zvi Marom, chief executive

 

In the company's half-year results, Marom said the company’s “strong balance sheet” will support a “ramp-up in activities that will ensure our growth for years to come as well as enable us to pursue potential acquisition opportunities to accelerate growth in our key strategic areas”.

 

“As a result, the board continues to look to the future with great confidence", the CEO added.

 

Video

 

 

Inflexion points

 

  • Growth in testing kits production and sales
  • More coronavirus-related orders
  • NFVTime momentum builds strongly

 

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BATM Advanced Communications lands €4m order for Coronavirus diagnostic kits

BATM Advanced Communications (LON:BVC) Zvi Marom speaks to Proactive London's Katie Pilbeam after announcing a €4m order for its coronavirus real-time diagnostic kits. Marom says this is the first order and is expecting 'many more orders very soon' and as a consequence is 'ramping up...

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