BATM Advanced Communications Ltd (LSE:BVC) said the full-year outcome is expected to be significantly ahead of market expectations, driven by demand for its high-margin diagnostic solutions.
The provider of real-time technologies for networking solutions and medical laboratory systems managed to grow underlying earnings (EBITDA) by 325% in the first half of 2021 despite a dip in revenue.
EBITDA jumped to US$22.7mln from US$5.3mln in the first half of 2020 even after a 7.7% slide in revenue to US$71.4mln from US$77.4mln the year before. Profit before tax soared to US$19.8mln from US$1.9mln the previous year.
The Bio-Medical division accounted for 77.1% of total revenue, up from 64.6% the year before, as its turnover increased by 10.2% to US$55.1mln from US$50.0mln, driven by sales of COVID-19 diagnostic kits, which more than offset the contribution to revenues in the first half of last year from the exceptional critical care ventilators contract; stripping out the ventilator contract, revenues surged 36.4% year-on-year.
In the Networking and Cyber division, revenues tumbled to US$16.4mln from US$27.4mln the year before, largely reflecting the sale of the group's non-core NG Soft Ltd subsidiary in March 2021. Excluding NG Soft, revenue dipped to US$9.1mln from the previous year’s US$9.4mln.
“Looking ahead, we entered the second half with a strong order book and receiving sustained demand for our diagnostic solutions. We also continue to expect to generate revenue this year from the roll-out of Edgility OS by PCCW Global,” said Zvi Marom, the chief executive officer of BATM.
“As a result, we anticipate achieving better-than-expected revenue for the full year and EBITDA to be substantially ahead of market expectations with growth of over 40% year-on-year. Consequently, and supported by a robust balance sheet, the board of BATM continues to look to the future with great confidence,” he added.
Thanks to our innovative diagnostic platform, including newly-developed tests for COVID-19 and other respiratory diseases, we offer a high-quality comprehensive solution to help protect public health in the current pandemic and beyond. pic.twitter.com/5lz4E9AKyG
— BATM Advanced Communications Ltd (LSE:BVC) (@BATMLtd) August 20, 2021