Full Year Results 2022
BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, announces its preliminary results for the year ended 31 December 2022.
Financial Summary
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$m
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2022
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2021
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Results from ongoing operations (adjusted)*
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Revenue
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116.1
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132.8
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Revenue on a constant currency basis**
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125.6
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-
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Gross profit
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38.4
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50.2
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Gross margin
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33.0%
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37.8%
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Operating profit
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3.7
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11.3
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EBITDA
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8.0
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15.7
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Reported results
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Revenue
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116.1
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140.0
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Gross profit
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38.0
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51.1
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Gross margin
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32.7%
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36.5%
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Operating profit
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3.1
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24.4
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EBITDA
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8.0
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29.6
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Basic earnings per share (cents)
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0.06¢
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3.26¢
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Cash and short-term investment in deposits and other securities
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44.2
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67.8
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* Adjusted to present the results on an ongoing operations basis by excluding (1) the contribution to 2021 from NGSoft, a subsidiary that BATM sold in March 2021, and (2) the amortisation of intangible assets for both periods. The term ‘ongoing operations’ in this announcement is used for comparative purposes only and is not used in the same context as in accounting standards. For further information see Note 3 – Other Alternative Measures.
** Revenue from ongoing operations for 2022 based on the currency rates prevailing in 2021. Revenue during the period was impacted by the strengthening of the US dollar against the local currencies primarily of subsidiaries in the Bio-Medical division.
Operational Summary
Networking & Cyber Division (24% of total revenue)
- Revenue from ongoing operations increased by 34.4% to $27.9m (2021: $20.7m), reflecting strong growth in both the Networking and Cyber units
- Networking Unit
- Edgility edge computing and network function virtualisation (“NFV”) platform:
- Generated first revenue from Edgility, contributing to the Networking unit’s growth; total backlog for Edgility was $5.2m at year end
- Awarded multi-year contract from CityFibre, the UK’s largest independent carrier-neutral Full Fibre platform, for Edgility licences plus certain hardware
- Established two new partnerships to boost Edgility’s sales and marketing presence through the offering of joint solutions
- Sustained engagement with several potential customers worldwide
- Network Edge (carrier ethernet and mobile backhaul):
- Strong increase in revenue despite ongoing impact of supply chain challenges
- New orders received primarily from existing customers for BATM’s latest high-capacity solutions
- Cyber Unit
- Substantial growth in revenue from delivering on the high-value contracts won in the previous year
- Post period, in January 2023, won a $26m multi-year government defence order for latest high-performance cyber security solution
Bio-Medical Division (76% of total revenue)
- Revenue was $88.3m (2021: $112.0m); on a constant currency basis, revenue was $97.5m; excluding the contribution to both years from sales of COVID-19 related products, revenue increased to $79.9m (2021: $74.9m)
- Diagnostics Unit
- Sales increased of molecular diagnostic products not related to COVID-19, which was offset by market-wide reduction in prices, as well as lower demand, for COVID-19 products as the global pandemic subsided
- Commercially launched new multi-respiratory diagnostics test
- Progressed development of new diagnostics tests, including in collaboration with organisations such as Stop TB Partnership and BIOASTER
- Opened new state-of-the-art diagnostics laboratories and facilities in Italy and Israel to support the activity of ADOR Diagnostics (“ADOR”), which is developing its proprietary isothermal diagnostic solution
- ADOR received an additional $10m of investment, of which BATM contributed $4m (giving BATM a shareholding of 37.2%)
- Eco-Med Unit
- Completed delivery of two contracts for BATM’s ISS AGRI solution and significantly advanced two further installations
- Received €3.6m order for ISS-based bio-waste treatment solutions for medical settings, with delivery commencing in Q4 2022 and due to complete during 2023
- Distribution Unit
- Delivered greater volume of regular business and increased sales prices, which, on a constant currency basis, enabled 6.8% revenue growth
Commenting on the results, Moti Nagar, Chief Executive Officer of BATM, said: “In 2022, there was robust underlying performance across our business as the effects of the pandemic increasingly subsided and we returned our focus to our regular activities. In particular, we achieved a key milestone with Edgility being awarded a contract by a major network provider in the UK, CityFibre. We believe Edgility will be instrumental in driving our future growth and so we are greatly encouraged by the increased interest and visibility over sales. Accordingly, while our revenues were negatively impacted by currency and lower demand for COVID-19 products, we exited the year as a stronger business than we were prior to the outbreak of the pandemic.
“Looking ahead, the momentum of the second half of the year has been sustained into 2023 and we expect increased revenue in all our units. Having become the CEO at the start of this year, I have been visiting and meeting our business units, reviewing our strategy and building our plans for delivering sustainable growth. With the solid foundations that we have in place in core technologies that we believe will be market disrupters, the Board remains confident in the prospects of the business and is working hard to demonstrate the substantial value that exists within BATM.”
Enquiries:
BATM Advanced Communications
Moti Nagar, Chief Executive Officer
Ran Noy, Chief Financial Officer
+972 9866 2525
Shore Capital
Mark Percy, Anita Ghanekar, James Thomas (Corporate Advisory)
+44 20 7408 4050
Gracechurch Group
Harry Chathli, Claire Norbury
+44 20 4582 3500
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Forward-looking statements
This document contains forward-looking statements. Those statements reflect the current opinions, evaluations and estimations of the Group's management, and are based on the current data regarding the Group's business as is detailed in this document and in the Group's periodical, interim and immediate reports. The Group does not undertake any obligation or make any representation that actual results and events will be in line with those statements, and stresses that they may differ materially from those statements, due to changes in the Group's business, market, competition, demand for the Group's products or services, general economic factors or other factors that can influence the Group's business and results, due to the risk factors that are detailed in the Group's Annual Report, and due to information and factors that are currently unknown to the Group's management and that, if known, would affect the management's opinions, evaluations or estimations. The Group will report the actual results and events according to its legal, accounting and regulatory obligations, and does not undertake any other obligation to report them or their deviations from the forward-looking statements, or to update any of the forward-looking statements in this document or to report that it is not valid anymore.
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