Chairman’s Statement

I am pleased to present my first statement as Chairman of BATM – and to have joined the Board at such a pivotal moment. During 2025, significant progress was made towards transforming BATM into a business focused on providing highly-secure managed network connectivity and cybersecurity. We streamlined our operations through targeted disposals, strengthened our core activities and laid firmer foundations for sustainable value creation, notwithstanding the impact of non cash write offs associated with reshaping the business.

Strategy

In 2025, we made decisive progress in reshaping BATM around our core strengths of networking and cybersecurity.

We completed the disposals of Celitron in Hungary, Zer Laboratories and Progenetics in Israel, and A.M.S 2000 Trading Impex SRL (“AMS”) and, post year end, Laborator A.M.S 2000 SRL in Romania. Together, these transactions generated total consideration of $24.4m and significantly reduced the complexity of the Group.

Following a review of capital allocation priorities, the Board determined that further material investment in our ADOR Diagnostics (“ADOR”) associate company is not aligned with our risk appetite or strategic focus and therefore decided to significantly curtail funding into ADOR and wrote-off our $18.7m investment and related balances accumulated over the last nine years. ADOR continues to seek a strategic investor or other route to monetise its intellectual property and, if successful, BATM would expect to recognise a corresponding gain in the future.

With the successful turnaround of the proprietary diagnostics business in 2025, combined with the sale of AMS and decision to step back from ADOR, we have decided that, going forward, our diagnostics activities will be classified as Non-core, alongside our pharmaceutical distribution and environmental monitoring activities. Our strategic focus is therefore firmly on BATM Networks and BATM Cyber, where we believe the combination of advanced networking and cybersecurity capabilities offers the greatest opportunity to create long term shareholder value through the provision of highly-secure network connectivity.

In an ever-more digitised society, demand for secure network infrastructure through which sensitive data can travel safely is on the rise. At the same time, organisations are increasingly preparing themselves for the post-quantum era that is rapidly approaching. At BATM, we have decades of experience of providing cutting-edge, next-generation networking and cybersecurity technologies to enable entities, from enterprises to government, to operate securely and efficiently. Our best-in-class encryption platform is quantum-era ready and is differentiated by its significant computer processing power and advanced, high-speed encryption that is suitable for critical organisations such as defence and financial institutions for which information security is of vital importance to their businesses. We are now fully focused on leveraging this experience and expertise to deliver highly secure, software-defined managed connectivity with built-in protection against emerging threats, including those posed by quantum computing, to provide customers with solutions to their challenges of today as well as tomorrow.

Group performance

Revenue rose to $123.2m for 2025 – representing year-on-year growth of 5% on a reported basis (2024: $117.3m) and 9% on a comparable basis (to exclude the contribution to H2 2024 of the businesses sold during H1 2025).

Across our core activities, we saw encouraging operational and commercial progress in 2025, with BATM Networks returning to growth and exiting the year with a significantly larger pipeline following the refocusing of its go to market strategy. BATM Cyber delivered results in line with expectations after an exceptionally strong 2024, improved gross margin and achieved a key milestone with the first commercial deployment of a customised version of our advanced encryption platform under a strategic partner’s brand. BATM Diagnostics, which was classified as core for the period under review, delivered strong revenue and margin growth and crystallised substantial value through the AMS disposal while achieving breakeven at the level of the underlying proprietary business following the successful transition to a reagent-led model.

Governance, people and culture

The Board, led by my predecessor, Dr. Gideon Chitayat, played an instrumental role throughout this period of significant change, overseeing the execution of our strategy, the reshaping of the business and the associated capital allocation decisions. We are very grateful to Dr. Chitayat for his ten years as Chairman, and a further five before that as a Non-executive Director, and wish him all the best in his retirement. We would also like to extend our thanks to Dr. Zvi Marom, Ran Noy and Harel Locker who stepped down during the year and to welcome Lior Miles and Ayala Hakim who joined the Board in 2025.

In my tenure as the Chairman, we will remain committed to maintaining high standards of governance, risk management and financial discipline as the Group transitions towards a more focused business model. We also continue to invest in our people and organisational capabilities, including strengthening teams in our core businesses.

On behalf of the Board, I would like to thank Moti Nagar, our Chief Executive Officer, the rest of the executive team as well as all our employees for their dedication and resilience during a year of intense activity and transition. Their expertise, adaptability and commitment to our customers have been central to the progress we have made and to the opportunities that now lie ahead, and I would also like to thank our shareholders, partners and other stakeholders for their continued support.

Gil Sharon
Chairman
20 April 2026