BATM Advanced Communications Limited (LON:BVC) shares jumped in early deals Wednesday on the back of bullish 2019 forecasts that predicted earnings (EBITDA) and revenue growth would be “ahead of market expectations”.
The group, which operates both bio-medical and cyber divisions, said it had entered the new year with a “substantially higher order book” compared to the year before as well as increased visibility on earnings from longer-term contracts and projects that were expected to be completed during 2019.
For the year just gone, the group reported adjusted earnings (EBITDA) of US$4.9mln, up from US$2.2mln in 2017, while revenues increased to US$119.6mln from US$107.1mln.
Revenues from the bio-medical division rose 8.2% to US$62.1mln while the networking and cyber arm jumped 16.4% to US$57.5mln.
BATM’s chief executive, Dr Zvi Marom, said that the diagnostic and eco-med units within the bio-med segment had taken “large steps” forward in 2018 and growth was also expected in the current year.
The segment has already started on the front foot in the new year, having inked its first international contract with a Philippine firm on Tuesday.
For the cyber division, Marom added that the segment had won around US$13.5mln in contracts last year and further wins were anticipated in 2019.
"These full-year results are very significant in the history of BATM. They not only reflect the excellent operational results achieved this year but also provide a guide to what we are capable of in the next few years.”
In a note to clients, BATM’s broker Shore Capital said the 2018 results had come in ahead of their own forecasts and upped their 2019 expectations in response to the company’s bullish outlook.
Analysts added that the company retained “substantial financial resources” in the form of US$31.7mln in net cash and investments which they expected to be used to fund organic development across its intellectual property base.
Shares were up 2.8% at 47.8p.