MTI Wireless Edge Ltd on Monday reported higher annual profit despite mostly flat revenue, lifting its dividend and expanding its share buyback programme in response.
MTI is a communication and radio frequency technology firm based in Israel. It has Antennas, Water Control & Management, and Distribution & Professional Consulting Services divisions.
Shares were up 11% at 40.70 pence in London early Monday. They are remain down 22% over the past year, suffering the largest drop in October after the Hamas attack on Israel.
MTI said pretax profit rose 12% to £4.8 million in 2023 from £4.3 million in 2022. Revenue was down 1.4% to $45.6 million from $46.3 million, though MTI said revenue was up 2% at constant currency. Cost of sales fell in line with revenue, and other expenses were mostly flat, but an increase in finance income contributed to the higher profit.
MTI raised its final dividend by 3.3% to 3.1 US cents from 3.0 cents. MTI pays no interim dividend.
The company also said it will extend its share buyback programme, while enlarging it to £700,000 from £200,000. The buyback, launched back in January 2019, will continue to be run by Shore Capital Stockbrokers Ltd and now will run until March 31, 2025.
MTI said the repurchased shares will be held in the treasury of subsidiary MTI Engineering Ltd and will be resold in the market at the board’s discretion. MTI currently holds 470,000 shares in treasury, and £700,000 would buy about 1.8 million shares at the current market price.
‘We made good progress this year growing revenue on a constant currency basis, and growing overall profits despite the challenges in Israel in the last quarter of the year,’ said Chief Executive Officer Moni Borovitz, referring to the continued conflict in Gaza.
The CEO added: ‘We have continued to operate relatively normally and judging from the pipeline of potential opportunities, the group is well placed, to continue to expand through a mix of acquisition-led and organic growth.’
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