I am delighted to present our 2019 Annual Report, which shows how we’ve significantly advanced the execution of our strategy. We are proud of being a successful, growing business and of the important contributions we make to wider society. At a time of global uncertainty, we believe an important role of business is to seek solutions and create opportunities. By growing and sustaining a financially strong and responsible business over the long-term, guided by a clear purpose, we can make a positive and significant impact not just to our clients and our people, but to the economy and society.
SUCCESSFUL EXECUTION OF STRATEGY
We believe the strategy we adopted in both of our divisions is proving to be correct. In particular, the COVID-19 pandemic has demonstrated the value of our solutions that help with the containment of infectious disease outbreaks – namely, our NATlab diagnostic system, which can identify human pathogens with unparalleled speed and accuracy, and our Eco-Med products for pathogenic waste treatment. At the same time, the importance of secure, virtual networks has never been more apparent.
In 2019, we achieved the goals that we set for ourselves for the year. We delivered growth in revenue to $123.4m (2018: $119.6m) and adjusted operating profit was $5.3m (2018: $2.6m). We saw meaningful progression in NFV and molecular diagnostics – our key future growth markets. We are also pleased with the solid commercial traction that we have established in our Eco-Med and Cyber businesses. We gained new customers and partners, secured new contracts, expanded into new territories and continued to establish a leading position in our target markets.
CONDUCTING BUSINESS RESPONSIBLY
As noted, providing solutions that benefit society is an important element of BATM’s strategy. The Board is pleased with the progress achieved during 2019. A highlight was the increasing recognition within international markets of our agri-waste treatment solution that provides the poultry industry with significant environmental and safety benefits. We also strengthened our governance of these matters with the establishment of a Corporate Social Responsibility and Environment Committee of the Board.
I am excited by, and proud of, the work that BATM is undertaking to address urgent human medical issues. Clearly, an important example is BATM’s current contribution in two key areas to support the worldwide response to the COVID-19 crisis. Firstly, through the development of molecular diagnostics kit for medical facility and home testing use. Secondly, through the manufacture of critical care ventilators.
I am confident that BATM is well positioned to meet the challenges of 2020 and generating sustainable long-term growth across the Bio-Medical and the Networking & Cyber divisions, which should in turn drive shareholder returns. We will continue to oversee performance of all our businesses closely, ensuring that the Group executes its strategy with financial discipline and with integrity.
Regular engagement, dialogue with and feedback from BATM’s material internal and external stakeholders are important to our success and a core element of our business model. Understanding stakeholders’ views informs and assists our decision-making processes and helps drive progress towards the achievement of our aims, objectives and strategy. In keeping with the requirements of Section 172 (1) of the UK Companies Act 2006, pages 14 to 19(Annual Report 2019) record BATM’s key stakeholder groups, their material issues and how we engage with them. Each stakeholder group requires a tailored engagement approach to foster effective communication and mutually beneficial relationships.
Finally, I would like to thank Dr. Zvi Marom, our CEO; Mr. Moti Nagar, our CFO; and our Executive Team for their efforts. Many thanks to my Board colleagues for their considerable contribution. We all appreciate the dedication, skills and professionalism of our employees all over the globe. Above all, I would like to thank our loyal shareholders for their ongoing support.
I have served on the Board for almost ten years, five of those as Chairman, and BATM has progressively delivered on its strategy in that time. While it hasn’t been without challenges, we are now in the strongest position that I have seen, which is also reflected in the share price having increased over 200% in that time. We all are committed to continuing to create substantial value for our shareholders, and I look forward to reporting on our progress.
Dr. Gideon Chitayat
30 April 2020
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