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Full Year Results 2020
Transformational year with significant financial and operational delivery
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 2020.
Financial Summary
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2020
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2019
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Change
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$m
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$m
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Revenue
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183.6
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123.4
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+49%
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Gross profit
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60.7
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33.1
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+83%
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Gross margin
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33.1%
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26.9%
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+620bps
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Operating profit
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14.2
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4.5
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+218%
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Adj.* operating profit
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15.0
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5.3
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+183%
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EBITDA
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19.7
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9.8
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+100%
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Cash from operations
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20.1
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8.4
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+138%
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Earnings per share (cents)
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2.22¢
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0.93¢
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+139%
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Cash and financial assets
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53.4
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44.8
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+19%
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* Adjusted to exclude the amortisation of intangible assets (see note 3 to the financial statements)
Operational Summary
Bio-Medical Division (70% of total revenue)
- Revenue increased by 100% to $7m (2019: $64.4m) driven by sales of COVID-19 diagnostic kits and critical care ventilators
- Gross margin improved by 1270bps to 36.3% (2019: 23.6%) due to product mix, including the introduction of new molecular diagnostics tests
- Diagnostics Unit
- Rapidly launched RT-PCR and serologic test kits for COVID-19
- Received strong global demand for COVID-19 test kits (reagents) and diagnostic instruments throughout the year
- Developed a new rapid results multi pathogen testing kit for diagnosing respiratory viruses
- Signed agreements with several leading European universities for the co-development of new diagnostics solutions expected to be launched in 2021
- Additional investment of $10m, of which the Group contributed $3m, in associate company Ador Diagnostics to expedite the development of RCA-based technology capable of providing sample-to-answer diagnostics within 30 minutes
- Eco-Med Unit
- Delivered €29m order from a European government for 1,000 critical care ventilators
- Entered new market with delivery of first ISS-based insect protein recovery instrument
- Distribution Unit
- Increased revenue through existing activities and the distribution of COVID-19 diagnostic reagents
- Commenced performing COVID-19 tests at the Group’s lab in Romania
- Established infrastructure to expand into new geographies
Networking and Cyber Division (30% of total revenue)
- Revenue was $54.9m (2019: $59.0m), reflecting impact of COVID-19 on ability to travel to customers’ premises and install equipment
- Gross margin of 25.5% (2019: 30.5%) due to COVID-19 impact on product mix
- Networking Unit
- Significant milestones achieved with the Group’s NFVTime operating system for enabling network function virtualisation (“NFV”):
- Secured first tier 1 customer, PCCW Global, with multi-year licensing agreement
- Several successful proofs-of-concept conducted by tier 1 operators in Europe and APAC, including Vodafone
- Received an order from AdcareIT, an outsourced ICT managed services provider in Kenya
- Completed enhancement, post period, to enable NFVTime deployment via public cloud environments
- Introduced new carrier Ethernet solutions for increasing home broadband connectivity and quality, which are undergoing proofs-of-concept worldwide
- Post period, entered into an option agreement to sell the Group’s NG Soft Ltd subsidiary for NIS 105.1m (c. $33m) in cash to Aztek Technologies (1984) Ltd, a provider of ICT cloud services in Israel
- Cyber Unit
- Awarded a $4m cyber security contract from the Group’s long-standing government defence department customer, of which $3.2m was delivered during the year
Commenting on the results, Dr Zvi Marom, Chief Executive Officer of BATM, said: “This was an outstanding year for BATM. We delivered substantial financial growth, which was driven by our Bio-Medical division that was able to respond rapidly to the outbreak of the pandemic to develop COVID-19 diagnostic tests and manufacture critical care ventilators while also continuing its regular activity. In our Networking and Cyber division, we achieved a key milestone in securing our first tier 1 customer for NFVTime, which will soon begin the roll-out of our solution. As a result, we significantly advanced the execution of our strategy in molecular diagnostics and NFV – our key future growth markets.
“Looking ahead, we entered 2021 with sustained momentum in the Bio-Medical division as we continue to receive strong demand for our COVID-19 test kits and instruments. We are also scheduled to launch various new, very advanced diagnostic testing kits this year. In the Networking and Cyber division, we expect sales of NFVTime to make a good contribution to the full year revenue of this division. This will enable us to achieve further improvement in our gross margin, reflecting the strengthened foundations of the Group. As a result, the Board of BATM looks to the future with great confidence.”
Enquiries:
BATM Advanced Communications
Dr Zvi Marom, Chief Executive Officer
+972 9866 2525
Moti Nagar, Chief Financial Officer
Shore Capital
Mark Percy, Anita Ghanekar, James Thomas (Corporate Advisory)
Henry Willcocks (Corporate Broking)
+44 20 7408 4050
Luther Pendragon
Harry Chathli, Claire Norbury
+44 20 7618 9100
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
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