The year to 31 December 2025 was transformational for BATM as we executed on our strategy to become a unified, streamlined business focused on the high-growth, high-margin markets of networking and cybersecurity.

A key element of this was the divestment of non-core businesses, which will enable additional resources to be invested in activities that the Board believes offer the greatest opportunities for delivering sustainable growth and generating shareholder value. At the same time, strategic initiatives implemented in our core activities in 2024 delivered meaningful results in 2025, in turn laying the foundation for a stronger performance in 2026.

Divestment of non-core activities

We sold four non-core businesses during the year and a fifth post year end, for a total consideration of $24.4m, namely:

• Celitron, an eco-med business in Hungary;
• Zer Laboratories, an administrator of third-party pre-natal diagnostic tests in Israel;
• Progenetics, an administrator of third-party oncological diagnostic tests in Israel;  A.M.S 2000 Trading Impex SRL (“AMS”)*, a distributor of diagnostic laboratory equipment in Romania; and
• post year end, Laborator A.M.S 2000 SRL*, which provides analysis for third parties in Romania.

(* For the purposes of the Group’s reporting, these businesses are presented within BATM Diagnostics)

These disposals have already significantly reduced the complexity of BATM and will allow additional resource to be focused on our core activities of BATM Networks and BATM Cyber.

Alongside this, the Board has taken the strategic decision to no longer invest material resources to support ADOR Diagnostics (“ADOR”), a molecular diagnostics IP-company in which BATM has a significant shareholding. To bring the IP to the point of potential commercialisation would require significant further funding. Further investment by BATM in ADOR is not aligned with the Board’s risk appetite and is not considered the best use of our resources. Accordingly, in the absence of ADOR securing other funding and to help solidify the foundations on which we are building the future business, the investment that we have made in ADOR has been written off. However, ADOR continues to seek a strategic investor or other opportunity to monetise its know-how and, if successful, we would recognise a corresponding gain.

As a result of the success of the strategic actions that we implemented in 2024, our business that provides proprietary diagnostic instruments and reagents was significantly strengthened and achieved breakeven for the year. This, combined with the sale of AMS and exit from ADOR, led the Board to take the strategic decision to accelerate plans to focus on BATM Networks and BATM Cyber. Accordingly, for future reporting periods, the diagnostics business will be presented within our Non-core activities, which comprises the following businesses, which the Board would consider selling should there be an appropriate opportunity:

• Diagnostics business in Italy
• Pharmaceutical distribution business in Moldova
• Environmental monitoring business in Hungary Our core activities now comprise networking and cybersecurity which the Board believes offer substantial potential for creating long-term shareholder value.

Return to growth of BATM Networks

The strong performance of BATM Networks during the year reflects the decisive action taken during 2024 to return the division to growth, including a management reorganisation, expansion of the sales & marketing team and refocused go-to-market strategy. This resulted in increased sales of our Carrier Ethernet products as well as our Edgility edge virtualisation and management platform, with BATM Networks revenue of $11.6m compared with $8.5m for the previous year.

A key element of our new go-to-market approach was the establishment of a team to focus on expanding our global channel partners, including value-added resellers, systems integrators and distributors – and we successfully onboarded new channel partners in all our target markets globally. We also made a strategic investment in targeting the Latin American and, later in the year, Asia-Pacific markets, including hiring additional sales resources. These actions
resulted in further orders during the year, as well as the establishment of a strong pipeline, with the weighted pipeline being approximately double the size of recent years and which includes an upscaling in the size of potential orders.

In particular, our X-series portfolio of Carrier Ethernet products – with the first product being launched towards the end of 2024 and the full portfolio being launched by the end of 2025 offering speeds of 1G, 10G and 100G – is proving popular and is expected to be an important driver of new customer acquisition during 2026 as well as being used for cross-selling. By way of example, in December 2024, we signed a multi-million dollar three-year agreement for Edgility with a Tier 1 telecommunications company in Mexico; it is currently finalising a proof-of-concept with the X-series product alongside the rollout of Edgility.

During the year, Edgility was selected by Telecomunicações Brasileiras S.A. (“Telebras”), a leading Brazilian telecommunications company that implements the federal government’s communication network and supports public broadband policies as well as serving the enterprise market.
Telebras has established a strong pipeline of opportunities with proof-of-concepts underway with a number of these.
We also continued to expand our partnership with a leading global provider of emergency connectivity services that is headquartered in the US, with the partner expanding its use of Edgility internationally with active deployments in the Philippines.

A leading internet services provider to homes and businesses across the US that is owned by one of the world’s largest technology conglomerates ordered our 10G carrier ethernet and aggregation solutions as part of their network modernisation programme. Similarly, as service providers globally increasingly upgrade their networks to handle the high-bandwidth demands from artificial intelligence, cloud computing and internet of things, we are receiving growing interest in our 100G solutions. In the Asia-Pacific market, we won a competitive tender with a national electricity company for a phased 100G network upgrade across the country and have secured a number of other potential opportunities in the region, as well as in North America.

Key milestones achieved in BATM Cyber

The performance of BATM Cyber for 2025 was in line with our expectations, with revenue of $8.3m (2024: $13.1m) following the exceptional orders delivered in the prior year to our long-standing customer.

A key milestone was achieved during the year with the delivery of the first units of our cyber solution for the commercial markets. This is a customised version of our advanced encryption platform that our strategic partner is selling under their brand, replacing their current product. A proof-of-concept was conducted with a potential customer in the second half of the year and, post year end, the partner has commercially launched the platform. We have appointed new sales personnel to support this activity.

During 2025, we received orders from our long-standing customer under several projects to develop next-generation cyber capabilities, including encryption for ultra-high-speed networks and tactical encryption. This development work remains ongoing, and we expect that, as with previous projects, once complete, it will transition to a supply agreement with the customer. We will also be able to utilise similar functionality for our encryption solution for commercial markets – which will be a key differentiator.

Post year end, we were selected as a partner in cybersecurity by FPT Israel, which is a company of FPT Corporation (HOSE: FPT), a leading Vietnam-based technology group providing digital transformation services and solutions in over 30 countries. This initiative represents delivery on our strategy to bolster our capabilities and expand our cybersecurity activities through entering partnerships.

Successful turnaround of BATM Diagnostics proprietary business

The key developments in BATM Diagnostics during the year were the sale of the AMS distribution business, which generated a capital gain of $14.1m, and the successful turnaround of our business for our proprietary diagnostic products. Revenue from our proprietary diagnostic products increased by 71% to $7.7m (2024: $4.5m). This growth reflects the benefits from the management reorganisation and refocused go-to-market approach adopted in 2024 to prioritise reagent sales, which are a higher margin and consumable product. We are providing our instruments on a lease basis, or as a lower-margin sale, alongside a reagent agreement to secure long-term, repeatable orders. As a result, gross margin for the proprietary diagnostics business improved significantly which, combined with the increased sales and a relatively stable cost base, resulted in it reaching profitability with an adjusted operating profit of $0.1m (2024: $1.8m loss). As noted above, this has enabled us to accelerate our strategy to focus on networking and cybersecurity, and our diagnostics activities will be classified as Non-core for future reporting periods.

Accelerating focus on highly-secure network provision

Our core activities now comprise networking and cybersecurity. While both markets offer significant opportunities, we believe that the greater value lies in their combination – in the provision of highly secure networks.
During the year, we enhanced collaboration between BATM Networks and BATM Cyber, including commencing joint sales activities and joint development work. Certain sales team members of the BATM Networks division began to promote our cyber solution with their commercial customers and partners. Additionally, we have made significant progress in integrating our networking and cybersecurity capabilities into a unified platform – one that delivers highly secure, software-defined connectivity with built-in protection against emerging threats, including those posed by quantum computing.

On track for strong underlying growth for 2026 

We entered the new financial year with increasing momentum across the business. We are accelerating execution on our strategy to focus on the high-growth, high-margin networking and cybersecurity markets where substantial opportunities exist driven by increasing global demand for secure connectivity. Accordingly, we intend to invest in progressing the work being undertaken to enhance the collaboration and integration between BATM Networks and BATM Cyber and their growth.

BATM Networks and BATM Cyber are expected to deliver significant growth for 2026 based on orders received to date and the current pipeline, which is the largest the pipeline has been for these core activities in recent years and with a more-than doubling of average order size. The performance of the Non-core activities is expected to remain stable.

Accordingly, we are confident of delivering strong underlying growth for 2026 and significant, sustainable growth in the medium-term as we increasingly progress the execution of our strategy to become a business focused on providing highly secure network connectivity. The Board remains highly optimistic about the unique opportunities ahead for BATM and is fully committed to executing our strategy to deliver enhanced value to our shareholders.

Moti Nagar
Chif Executive Officer

20 April 2026