BATM Advanced Communications PLC (LON:BVC) is set for more upgrades after a bullish trading update today, according to house broker Shore Capital.
The technology group’s medical division is going especially well and was behind the company raising its revenue forecasts for 2020 by 32% to US$162mln.
As a result, Shore, the house broker, has increased its full-year forecast for underlying profits [EBITDA] by 11% to US$14.6m from US$13.1m and helped by the delivery of the ventilator contract.
Increasing revenues from Covid-19 tests in diagnostics will be another feature, said the broker.
“Prospects for additional revenue flow from COVID-related testing activities, as well as ventilator orders, suggest strong prospects for further FY2020F upgrades, in our opinion.”
Shore also points to the recent strong share price performance, which reflects the diagnostics solutions for Covid-19 and a successful proof of concept of Telco Systems (BATM’s USA networks subsidiary) NFVTime solutions with ARM.
Earlier, BATM reported first-half earnings (EBITDA) of US$5.3mln, up 36.2% year-on-year, while revenues surged 37.7% to US$77.4mln.
The main market listed company also said that due to the strong cash generation it is seeing it intends to reinstate its dividend for the full year 2020.
Shares rose 3% to 125.5p.