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Full Year Results
BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for networks and cyber solutions and medical laboratory systems, announces its full year results for the year ended 31 December 2024.
Financial Summary*
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$m
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2024
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2023
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Revenue
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117.3
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116.7
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Gross profit
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36.8
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38.3
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Gross margin
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31.4%
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32.8%
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Adj. operating profit**
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3.8
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5.9
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Adj. EBITDA**
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8.1
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9.9
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Adj. profit before tax**
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3.0
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5.9
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- Cash and short-term investments at 31 December 2024 were $31.6m (30 June 2024: $32.6m)
* Results for the Group’s continuing operations. See note 4 to the financial statements for details on the discontinued operations
**Adjusted to exclude amortisation and impairments of intangible assets and non-cash share-based payments
Operational Summary
- Increase in total revenue achieved against a backdrop of challenging macroeconomic conditions, with strong growth in the Cyber and Diagnostics divisions offsetting lower revenues in the Networking division
- Implemented substantial operational changes – at a Group level and within the divisions – to align the business with the Group’s strategic vision
- Continued exploring potential opportunities to add capability to core activities through M&A and to divest non-core businesses resulting, post period, in an agreement to dispose of the Group’s entire shareholding in Progenetics Ltd for c. $2m in cash
- During the year, the Group acted to ready its eco-med activities, which are non-core, for sale, with operations streamlined, including halving the workforce, to significantly reduce costs. The Group continues to seek to sell this business, but if a sale does not occur in 2025, it will be closed. Accordingly, the eco-med activities, which are loss making and a drain on the Group’s cash resources, have been classified as discontinued operations for the purpose of the Group’s financial reporting
Cyber
- Revenue and EBITDA increased year-on-year as the Group fulfilled its long-term contracts and won new orders for its advanced network encryption solutions, designed for the post-quantum era, from its long-standing government defence department customer
- Major milestone achieved by entering a strategic partnership with a significant global technology, engineering and defence group (the “Partner”) to globally distribute the Group’s cybersecurity solution to a variety of commercial markets and for critical national infrastructure
- A customised version of the Group’s advanced encryption platform was developed during the year, and the Group is on track to deliver the first units to the Partner in the first half of the current year
Networking
- Towards the end of the year, the Group began to recover from the impact of the global telecommunications market challenges thanks to the actions it had taken to position the division for growth
- This included a management reorganisation, expansion of the sales & marketing team and refocused go-to-market strategy, which resulted in increased customer engagement and an uptick in orders from the fourth quarter
- While the recovery was later than anticipated, resulting in revenue for 2024 being lower than the prior year, the Group is pleased to note that the positive momentum has been sustained into the current year
Diagnostics
- Growth was driven by the expansion of the Group’s customer base for its distributed diagnostic products
- The Group also delivered its first orders for its new MDXlab molecular diagnostics instrument, which is designed to overcome the challenges faced by small- to medium-sized laboratories or point-of-care by offering an integrated, compact, cost-effective solution
Commenting on the results, Moti Nagar, Chief Executive Officer of BATM, said: “In 2024, we made significant progress in advancing our strategic vision, taking decisive measures to streamline our non-core businesses as we prepare them for sale. This strategic realignment has enabled us to focus our resources on our key activities that will drive our growth and value creation. Despite facing challenging market conditions, we achieved several important milestones. Most notably, we entered a partnership to deliver our cutting-edge encryption platform to commercial markets, which has long been a key objective for BATM. In our Networking division, we refocused our management and strengthened our sales & marketing efforts, which resulted in us securing several new Tier 1 customers and positions the business for a return to growth. Accordingly, we are already witnessing the positive effects of the initiatives we undertook in 2024, which, supported by a significant cash position, gives us every confidence that we will see strong positive momentum continuing in the current year.”
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 20 582 3500
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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