BATM Advanced Communications Limited (LON:BVC) said it now expects its full-year results to be “significantly ahead of market expectations” following a jump in earnings in its first half.
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.
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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’s chief executive Zvi Marom also 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 in the results statement.