20 May 2024
MTI Wireless Edge Ltd
("MTI", the "Company" or the "Group")
Q1 2024 financial results
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce its financial results for the three-month period ended 31 March 2024.
Financial highlights
· Generated revenues of $11.24m (Q1 2023: $11.28m), a solid start to the year with new business wins expected to drive revenue growth in Q2 and later in the year.
· 20% increase in EBITDA* to $1.68m (Q1 2023: $1.39m).
· Earnings per share increased by 5% to 1.06 US cents (Q1 2023: 1.01 US cents).
· 133% increase in net cash provided by operating activities to $1.25m (Q1 2023: $0.54m), contributing to a continued strong financial position with net cash as at 31 March 2024 of $8.34m (31 December 2023: $8.08m).
Operational highlights
Antennas
· The Antenna division provides a one stop shop for the sale of 'off the shelf' flat and parabolic antennas, combined with the provision of custom-developed antenna solutions to a range of commercial and military customers.
· The division also has a growing focus on providing 5G backhaul antenna solutions to support mobile phone operators as they roll-out their 5G networks.
· The division had a good first quarter with strong revenue growth up 13% versus the same period in the prior year, although the product mix held back profitability which is expected to reverse in Q2 with more profitable product combinations.
· Commercial antenna deliveries drove revenue growth in Q1 with military deliveries below last year. Significant recent orders for military antennas, together with the current order backlog make it likely this segment of the market will be strong for the Group during the remainder of the year.
· 5G remains a key market with the automatic beam steering ("ABS") antenna solution now moving into trial stages with two Tier 1 mobile phone operators.
· Sales of the division's 5G backhaul solutions are coming through from multiple markets, with India still expected to be the largest opportunity in the nearer term.
Water Control & Management
· This division operates under the Mottech brand and provides wireless control systems to manage irrigation and water distribution for agriculture, municipal authorities and commercial entities.
· Mottech's solutions reduce water and power usage for its customers and allows these customers to generate higher revenues from the higher yields that result from both an increased number and improved quality of crops cultivated.
· Revenues in Q1 2024 softened 16% compared to the same period in 2023, following the scheduled municipal elections in Israel last year, nevertheless, profitability increased strongly reflecting increased revenues in higher margin markets and improved service contract terms.
· Entering Q2, this division is performing well with a lengthy pipeline of new business opportunities combined with a healthy backlog of orders.
Distribution & Professional Consulting Services
· Operates under the MTI Summit Electronics brand and represents approximately 40 international suppliers of radio frequency/microwave components, selling these products to Israeli customers.
· Expert knowledge of both the international suppliers and customers enables MTI to also act as a consultant to all parties and assist with devising complete radio frequency/microwave solutions.
· Delivered 10% growth in revenues for Q1 2024. Whilst sales from PSK were 1% lower, sales from the other parts of this division were up 16% with good growth in profitability.
· PSK projects were slower to complete due to key personnel being called up for military service. This impacted margins in the period resulting in a loss, however, this is expected to reverse and for PSK to move back into profitability in the year.
Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:
"We expect 2024 to be a successful year for the business. In Q1, we delivered a positive trading performance, but we have not, as yet, felt the full benefit of the backlog of business that we have contracted or indeed the healthy pipeline of opportunities we have ahead of us. MTI is therefore well placed for 2024 and in a strong financial position to respond as opportunities arise.
"The conflict with Hamas is deeply saddening for all concerned. The impact on our business continues to be relatively limited, however, PSK was impacted by some staff shortages in Q1, but overall, the Group's team has been able to address any challenges.
"Our three divisions all sell their expertise in delivering radio frequency solutions, each addressing large and growing markets boosted by positive macro trends. These are the growing global problem of water scarcity, the roll-out of 5G mobile networks across the world and the increase in defence spending by governments worldwide.
"MTI entered Q2 in a good position and has since announced sizeable contract wins which have further enhanced the Board's confidence in our ability to deliver a good performance for the year."
*Earnings before interest, tax, depreciation and amortisation.
For further information please contact:
| MTI Wireless Edge Ltd | +972 3 900 8900 |
| Moni Borovitz, CEO | |
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| Allenby Capital Limited (Nomad and Joint Broker) | +44 20 3328 5656 |
| Nick Naylor/Alex Brearley/Piers Shimwell (Corporate Finance) |
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| Guy McDougall/Amrit Nahal (Sales and Corporate Broking) |
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| Shore Capital (Joint Broker) Toby Gibbs/Rachel Goldstein (Corporate Advisory) | +44 20 7408 4090 |
| Fiona Conroy (Corporate Broking) |
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| Novella (Financial PR) |
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| Tim Robertson/Safia Colebrook | +44 20 3151 7008 |
About MTI Wireless Edge Ltd. ("MTI")
Headquartered in Israel, MTI is a technology group focused on comprehensive communication and radio frequency solutions across multiple sectors through three core divisions:
Antenna division
MTI is a world leader in the design, development and production of high quality, state-of-the-art, and cost-effective antenna solutions including Smart Antennas, MIMO Antennas and Dual Polarity Antennas for wireless applications. MTI supplies antennas for both military and commercial markets from 100 KHz to 174 GHz.
Internationally recognized as a producer of commercial off-the-Shelf and custom-developed antenna solutions in a broad frequency range, MTI addresses both commercial and military applications.
MTI supplies directional and omnidirectional antennas for outdoor and indoor deployments, including smart antennas for 5G backhaul, Broadband access, public safety, RFID, base station and terminals for the utility market.
Military applications include a wide range of broadband, tactical and specialized communication antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide.
Water Control & Management division
Via its subsidiary, Mottech Water Solutions Ltd ("Mottech"), MTI provides high-end remote control and monitoring solutions for water and irrigation applications based on Motorola's IRRInet state-of-the-art control, monitoring and communication technologies.
As Motorola's global prime-distributor Mottech serves its customers worldwide through its international subsidiaries and a global network of local distributors and representatives. With over 25 years of experience in providing customers with irrigation remote control and management, Mottech's solutions ensure constant, reliable and accurate water usage, increase crops quality and yield while reducing operational and maintenance costs providing fast ROI while helping sustain the environment. Mottech's activities are focused in the market segments of agriculture, water distribution, municipal and commercial landscape as well as wastewater and storm-water reuse.
Distribution & Professional Consulting Services division
Via its subsidiary, MTI Summit Electronics Ltd., MTI offers consulting, representation and marketing services to foreign companies in the field of RF and Microwave solutions and applications including engineering services (including design and integration) in the field of aerostat systems and the ongoing operation of Platform subsystems, SIGINT, RADAR, communication and observation systems which is performed by the Company. It also specializes in the development, manufacture and integration of communication systems and advanced monitoring and control systems for the Government and defence industry market.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
|
| Three month period ended March 31, |
| Year ended December 31, | ||
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| 2024 |
| 2023 |
| 2022 |
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| U.S. $ in thousands (Except per share data) | ||||
|
| Unaudited |
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| | | | | | |
| Revenues | 11,240 | | 11,285 | | 45,634 |
| Cost of sales | 7,770 | | 7,666 | | 30,963 |
| | | | | | |
| Gross profit | 3,470 | | 3,619 | | 14,671 |
| Research and development expenses | 229 | | 293 | | 1,047 |
| Distribution expenses | 893 | | 947 | | 3,709 |
| General and administrative expenses | 1,231 | | 1,324 | | 5,278 |
| Loss (profit) from sale of property, plant and equipment | (67) | | (10) | | 13 |
| | | | | | |
| Profit from operations | 1,184 | | 1,065 | | 4,650 |
| Finance expenses | 238 | | 105 |
| 342 |
| Finance income | (198) | | (155) | | (527) |
| | | | | | |
| Profit before income tax | 1,144 | | 1,115 | | 4,835 |
| Tax expenses | 209 | | 233 | | 759 |
| | | | | | |
| Profit | 935 | | 882 | | 4,076 |
| Other comprehensive income (loss) net of tax: | | | | | |
| Items that will not be reclassified to profit or loss: | | | | | |
| Re-measurement of defined benefit plans | - | | - | | 62 |
| | | | | | |
| Items that may be reclassified to profit or loss: | | | | | |
| Adjustment arising from translation of financial statements of foreign operations | (112) | | (98) | | (216) |
| | | | | | |
| Total other comprehensive income (loss) | (112) | | (98) | | (154) |
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| Total comprehensive income | 823 | | 784 | | 3,922 |
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| Profit attributable to: | | | |
| |
| Owners of the parent | 932 | | 894 |
| 4,045 |
| Non-controlling interests | 3 | | (12) | | 31 |
| | | | | |
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| 935 | | 882 | | 4,076 |
| Total comprehensive income attributable to: | | | |
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| Owners of the parent | 820 | | 796 | | 3,891 |
| Non-controlling interests | 3 | | (12) | | 31 |
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| 823 | | 784 | | 3,922 |
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| Earnings per share (dollars) | | | |
| |
| Basic and Diluted (dollars per share) | 0.0106 | | 0.0101 | | 0.0458 |
| | | | | | |
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| Weighted average number of shares outstanding | | | |
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| Basic and Diluted (dollars per share) | 88,123,635 | | 88,510,072 |
| 88,283,490 |
| | | | | | |
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
For the three month period ended March 31, 2024 (Unaudited):
|
| Attributable to owners of the parent |
| ||||||
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| Share capital | Additional paid-in capital | Translation differences | Retained earnings | Total attributable to owners of the parent | Non-controlling interest | Total equity | |
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| U.S. $ in thousands |
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| Balance at January 1, 2024 | 209 | 23,061 | (466) | 5,226 | 28,030 | 1,222 | 29,252 | |
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| Changes during the three month period ended March 31, 2023: | | | | | | | | |
| Comprehensive income | | | | | | | | |
| Profit for the period | - | - | - | 932 | 932 | 3 | 935 | |
| Other comprehensive income |
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| Translation differences | - | - | (112) | - | (112) | - | (112) | |
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| | |
| Total comprehensive income for the period | - | - | (112) | 932 | 820 | 3 | 823 | |
| Acquisition and disposal of treasury shares | - | (300) | - | - | (300) | - | 80 | |
| Dividend | - | - | - | - | - | - | - | |
| | | | | | | | | |
| Balance at March 31, 2024 | 209 | 22,761 | (578) | 6,158 | 28,550 | 1,225 | 29,775 | |
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The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (CONT.)
For the three month period ended March 31, 2023 (Unaudited):
|
| Attributable to owners of the parent |
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| Share capital | Additional paid-in capital | Translation differences | Retained earnings | Total attributable to owners of the parent | Non-controlling interest | Total equity | |
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| U.S. $ in thousands |
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| Balance at January 1, 2023 | 209 | 23,078 | (250) | 3,775 | 26,812 | 1,226 | 28,038 | |
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| Changes during the three month period ended March 31, 2023: | | | | | | | | |
| Comprehensive income | | | | | | | | |
| Profit for the period | - | - | - | 894 | 894 | (12) | 882 | |
| Other comprehensive income |
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| Translation differences | - | - | (98) | - | (98) | - | (98) | |
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| Total comprehensive income for the period | - | - | (98) | 894 | 796 | (12) | 784 | |
| Acquisition and disposal of treasury shares | - | 80 | - | - | 80 | - | 80 | |
| Dividend | - | - | - | - | - | - | - | |
| | | | | | | | | |
| Balance at March 31, 2023 | 209 | 23,158 | (348) | 4,669 | 27,688 | 1,214 | 28,902 | |
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The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONT.)
For the year ended December 31, 2023 :
|
| Attributable to owners of the parent |
| |||||
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| Share capital | Additional paid-in capital | Translation differences | Retained earnings | Total attributable to owners of the parent | Non-controlling interests | Total equity |
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| U.S. $ in thousands | ||||||
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| Balance as at January 1, 2023 | 209 | 23,078 | (250) | 3,775 | 26,812 | 1,226 | 28,038 |
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| Changes during 2023: |
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| Comprehensive income |
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| Profit for the year | - | - | - | 4,045 | 4,045 | 31 | 4,076 |
| Other comprehensive income (loss) |
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| Re measurements on defined benefit plans | - | - | - | 62 | 62 | - | 62 |
| Translation differences | - | - | (216) | - | (216) | - | (216) |
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| Total comprehensive income (loss) for the year | - | - | (216) | 4,107 | 3,891 | 31 | 3,922 |
| Dividend | - | - | - | (2,656) | (2,656) | - | (2,656) |
| Acquisition of minority holdings in subsidiary | - | - | - | - | - | (35) | (35) |
| Acquisition and disposal, net of treasury shares | * | (17) | - | - | (17) | - | (17) |
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| Balance as at December 31, 2023 | 209 | 23,061 | (466) | 5,226 | 28,030 | 1,222 | 29,252 |
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(*) Less than US$ 1 thousand
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
|
| 31.03.2024 |
| 31.03.2023 |
| 31.12.2023 |
|
| U.S. $ in thousands | ||||
|
| Unaudited |
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| ASSETS | | | | | |
| CURRENT ASSETS: | | | | | |
| Cash and cash equivalents | 8,832 | | 8,640 | | 8,454 |
| Trade and other receivables | 12,782 | | 10,384 | | 14,284 |
| Unbilled revenue | 4,672 | | 3,597 | | 4,190 |
| Current tax receivables | 378 | | 467 | | 381 |
| Inventories | 7,674 |
| 7,502 | | 7,484 |
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| 34,338 |
| 30,590 |
| 34,793 |
| | | | | | |
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| NON-CURRENT ASSETS: | | | | | |
| Long term prepaid expenses | 28 | | 32 | | 37 |
| Property, plant and equipment | 5,479 | | 5,415 | | 5,398 |
| Deferred tax assets | 969 | | 1,140 | | 968 |
| Intangible assets | 3,467 |
| 3,819 | | 3,507 |
| | | | | | |
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| 9,943 |
| 10,406 |
| 9,910 |
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| | | | | | |
| Total assets | 44,281 |
| 40,996 | | 44,703 |
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The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
|
| 31.03.2024 |
| 31.03.2023 |
| 31.12.2023 | |
|
| U.S. $ In thousands | |||||
|
| Unaudited |
|
| |||
| LIABILITIES AND EQUITY | | | | | | |
| CURRENT LIABILITIES: | | | | | | |
| Current maturities and short term bank credit and loans | 436 | | 76 | | 314 | |
| Trade payables | 6,941 | | 5,465 | | 7,882 | |
| Other accounts payable | 4,347 | | 3,638 | | 4,558 | |
| Current tax payables | 352 | | 433 | | 283 | |
| | | | | | | |
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| 12,076 | | 9,612 | | 13,037 | |
| | | | | | | |
| NON- CURRENT LIABILITIES: | | | | | | |
| Contingent consideration | 1,117 | | 1,432 | | 1,117 | |
| Lease liabilities | 518 | | 206 | | 514 | |
| Loans from banks, net of current maturities | 55 | | 91 | | 64 | |
| Employee benefits, net | 740 | | 753 | | 719 | |
| | | | | | | |
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| 2,430 | | 2,482 | | 2,414 | |
| | | | | | | |
| Total liabilities | 14,506 | | 12,094 | | 15,451 | |
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| EQUITY | | | | | | |
| Equity attributable to owners of the parent |
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| Share capital | 209 | | 209 | | 209 | |
| Additional paid-in capital | 22,761 | | 23,158 | | 23,061 | |
| Translation differences | (578) | | (348) | | (466) | |
| Retained earnings | 6,158 | | 4,669 | | 5,226 | |
| | | | | | | |
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| 28,550 | | 27,688 | | 28,030 | |
| | | | | | | |
| Non-controlling interest | 1,225 | | 1,214 | | 1,222 | |
| | | | | | | |
| Total equity | 29,775 | | 28,902 | | 29,252 | |
| | | | | | | |
| Total equity and liabilities | 44,281 | | 40,996 | | 44,703 | |
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| May 19, 2024 |
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| Date of approval of financial statements | Moshe Borovitz Chief Executive Officer | Elhanan Zeira Controller | Zvi Borovitz Non-executive Chairman of the Board |
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
| Three month period ended March 31, |
| Year ended December 31, | ||||
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|
| 2024 |
| 2023 |
| 2023 | |
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|
| U.S. $ in thousands | |||||
|
|
| Unaudited |
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| Cash Flows from Operating Activities: | | | | | | | |
| Profit for the period | | 935 | | 882 | | 4,076 | |
| Adjustments for: | | | | | | | |
| Depreciation and amortization | | 492 | | 326 | | 1,511 | |
| Loss (Gain) from sale of property, plant and equipment | | (63) | | (10) | | (13) | |
| Finance (income) expenses, net | | (14) | | (33) | | (5) | |
| Changes in Contingent consideration and Put option liability | | - | | - | | (315) | |
| Tax expenses | | 209 | | 233 | | 759 | |
| Changes in operating assets and liabilities: | | | | | | | |
| Decrease (increase) in inventories | | (234) | | 247 | | 158 | |
| Decrease (increase) in trade receivables | | 1,343 | | (181) | | (2,477) | |
| Decrease (increase) in other accounts receivables | | 92 | | 719 | | (897) | |
| Increase in unbilled revenues | | (482) | | (1,393) | | (1,986) | |
| Increase (decrease) in trade and other accounts payables | 4 | (1,070) | | (140) | | 3,228 | |
| Increase (decrease) in employee benefits, net |
| 21 |
| 1 |
| 29 | |
| | | | | | | | |
| Cash from operations |
| 1,229 | | 651 | | 4,068 | |
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| | | | | | | | |
| Interest received |
| 174 |
| 19 |
| 69 | |
| Interest paid |
| (9) |
| (10) |
| (59) | |
| Income tax paid |
| (140) |
| (122) |
| (540) | |
| | | | | | | | |
| Net cash provided by operating activities | | 1,254 | | 538 | | 3,538 | |
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The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS (cont.)
|
|
| Three month period ended March 31, |
| Year ended December 31, |
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| 2024 |
| 2023 |
| 2023 |
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| U.S. $ in thousands |
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| Unaudited |
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| Cash Flows From Investing Activities: | | | | | | |
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| Proceeds from sale of property, plant and equipment | | 62 | | 11 | | 62 |
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| Purchase of property, plant and equipment |
| (282) |
| (145) |
| (426) |
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| Net cash used in investing activities |
| (220) |
| (134) |
| (364) |
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| Cash Flows From Financing Activities: | | | | | | |
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| Dividend | | - | | - | | (2,656) |
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| Payments of lease liabilities | | (485) | | (116) | | (485) |
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| Treasury shares acquired | | (300) | | - | | (516) |
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| Treasury shares sold | | - | | 80 | | 499 |
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| Acquisition of non-controlling interest in subsidiary | | - | | - | | (35) |
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| Receipt of loans from banks | | 169 | | - | | 460 |
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| Repayment of long-term loans from banks |
| (9) |
| 27 |
| (247) |
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| Net cash used in financing activities |
| (625) |
| (9) |
| (2,980) |
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| (Decrease)/Increase in cash and cash equivalents during the period |
| 409 | | 395 | | 194 |
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| Cash and cash equivalents at the beginning of the period |
| 8,454 |
| 8,279 |
| 8,279 |
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| Exchange differences on balances of cash and cash equivalents |
| (31) |
| (34) |
| (19) |
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| Cash and cash equivalents at the end of the period |
| 8,832 |
| 8,640 |
| 8,454 |
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The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General:
Corporate information:
M.T.I Wireless Edge Ltd. (hereafter - the "Company", or collectively with its subsidiaries, the "Group") is an Israeli corporation. The Company was incorporated under the Companies Act in Israel on December 30, 1998 and commenced operations on July 1, 2000. Since March 2006, the Company's shares have been traded on the AIM market of the London Stock Exchange.
The formal address of the Company is 11 Hamelacha Street, Afek industrial Park, Rosh-Ha'Ayin, Israel.
The Company and its subsidiaries are engaged in the following areas:
- Development, design, manufacture and marketing of antennas for the military and civilian sectors.
- A leading provider of remote control solutions for water and irrigation applications based on Motorola's IRRInet state of the art control, monitoring and communication technologies.
- Providing consulting, representation and marketing services to foreign companies in the field of RF (radio frequency) and Microwave, including engineering services in the field of aerostat systems and system engineering services.
- Development, manufacture and integration of communication systems and advanced monitoring and control systems for the Government and defence industry market.
Note 2 - Significant Accounting Policies:
The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in International Accounting Standard No. 34 ("Interim Financial Reporting").
The interim consolidated financial information set out above does not constitute full year-end accounts within the meaning of Israeli Companies Law. It has been prepared on the going concern basis in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS). Statutory financial information for the financial year ended December 31, 2023 was approved by the board on March 10, 2024. The report of the auditors on those financial statements was unqualified.
The interim consolidated financial statements as of March 31, 2024 have not been audited.
The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2023 and for the year then ended and with the notes thereto. The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2023 are applied consistently in these interim consolidated financial statements.
Note 3 - REVENUES:
| |
| Three month period ended March 31, |
| Year ended December 31, |
| |||
| |
| 2024 |
| 2023 |
| 2023 | ||
| |
| U.S. $ in thousands | ||||||
| |
| Unaudited |
|
| ||||
| Revenues arise from: | |
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| Sale of goods* | | 8,169 |
| 8,284 |
| 32,525 | ||
| Rendering of services** | | 1,981 |
| 1,465 |
| 7,178 | ||
| Projects** | | 1,090 | | 1,536 | | 5,931 | ||
|
| | 11,240 |
| 11,285 |
| 45,634 | ||
|
|
|
|
|
|
|
| ||
(*) at the point in time
(**) over time
Note 4 - operating SEGMENTS:
The following tables present revenue and profit information regarding the Group's operating segments for the three month period ended March 31, 2024 and 2023 respectively and for the year ended December 31, 2023.
Three month period ended March 31, 2024 (Unaudited):
| | Antennas | Water Solutions | Distribution & Consultation Services | Adjustment & Elimination | Total |
|
| U.S. $ in thousands | ||||
| Revenues | | | | | |
| External | 3,316 | 3,805 | 4,119 | - | 11,240 |
| Internal | - | - | 189 | (189) | - |
|
|
|
|
|
|
|
| Total | 3,316 | 3,805 | 4,308 | (189) | 11,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment profit (loss) | 112 | 580 | 311 | 181 | 1,184 |
|
|
|
|
|
|
|
| Finance expense (income), net | | | | | 40 |
| Tax expenses | | | | | 209 |
|
|
|
|
|
|
|
| Profit |
|
|
|
| 935 |
|
|
|
|
|
|
|
March 31, 2024:
|
| Antennas | Water Solutions | Distribution & Consultation Services | Adjustment & Elimination | Total |
| | U.S. $ in thousands | ||||
|
|
|
|
|
|
|
| Segment assets | 17,187 | 12,550 | 12,165 | - | 4,902 |
|
|
|
|
|
|
|
| Unallocated assets |
|
|
|
| 2,379 |
|
|
|
|
|
|
|
| Segment liabilities | 5,133 | 3,961 | 4,559 | - | 13,653 |
|
|
|
|
|
|
|
| Unallocated liabilities |
|
|
|
| 853 |
Note 4 - operating SEGMENTS (CONT.):
Three month period ended March 31, 2023 (Unaudited):
| | Antennas | Water Solutions | Distribution & Consultation Services | Adjustment & Elimination | Total |
|
| U.S. $ in thousands | ||||
| Revenues | | | | | |
| External | 2,945 | 4,509 | 3,831 | - | 11,285 |
| Internal | - | - | 88 | (88) | - |
|
|
|
|
|
|
|
| Total | 2,945 | 4,509 | 3,919 | (88) | 11,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment profit (loss) | 117 | 493 | 336 | 119 | 1,065 |
|
|
|
|
|
|
|
| Finance expense (income), net | | | | | (50) |
| Tax expenses | | | | | 233 |
|
|
|
|
|
|
|
| Profit |
|
|
|
| 882 |
|
|
|
|
|
|
|
March 31, 2023:
|
| Antennas | Water Solutions | Distribution & Consultation Services | Adjustment & Elimination | Total |
| | U.S. $ in thousands | ||||
|
|
|
|
|
|
|
| Segment assets | 16,746 | 10,685 | 11,090 | - | 38,521 |
|
|
|
|
|
|
|
| Unallocated assets |
|
|
|
| 2,475 |
|
|
|
|
|
|
|
| Segment liabilities | 4,417 | 2,415 | 4,649 | - | 11,481 |
|
|
|
|
|
|
|
| Unallocated liabilities |
|
|
|
| 613 |
Year ended December 31, 2023
| | Antennas | Water Solutions | Distribution & Consultation | Eliminations | Total |
|
| U.S. $ in thousands | ||||
| Revenues |
|
|
|
|
|
| External | 12,237 | 17,164 | 16,233 | - | 45,634 |
| Inter-segment | - | - | 344 | (344) | - |
|
|
|
|
|
|
|
| Total | 12,237 | 17,164 | 16,577 | (344) | 45,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment profit | 841 | 1,986 | 1,552 | 271 | 4,650 |
|
|
|
|
|
|
|
| Finance income, net | | | | | (185) |
| Profit before tax | | | | | 4,835 |
| Tax expenses | | | | | 759 |
| |
|
|
|
|
|
| Profit |
|
|
|
| 4,076 |
Note 4 - operating SEGMENTS (CONT.):
December 31, 2023:
|
| Antennas | Water Solutions | Distribution & Consultation | Eliminations | Total |
| | U.S. $ in thousands | ||||
|
|
|
|
|
|
|
| Segment assets | 17,124 | 12,468 | 12,711 | - | 42,303 |
|
|
|
|
|
|
|
| Unallocated assets |
|
|
|
| 2,400 |
|
|
|
|
|
|
|
| Segment liabilities | 4,952 | 4,326 | 5,293 | - | 14,571 |
|
|
|
|
|
|
|
| Unallocated liabilities |
|
|
|
| 880 |
Note 5 - SIGNIFICANT EVENTS:
A. On 5 January 2024 following approval at an extraordinary shareholders meeting, 600,000 share options were granted to Mr. Moshe (Moni) Borovitz, the Company's Chief Executive Officer and 100,000 share options were granted to Mr. Dov Feiner, the General Manager of the Company's Antenna division as part of the Company's Option Plan.
B. The Board of directors decided to declare a cash dividend of 3.1 US cents per share being approximately $2,745,000. This dividend was paid on 11 April 2024 to shareholders on the register at the close of trading on 22 March 2024.
C. The financial statements for the year ended 31 December 2023 were authorized for issue by the board as a whole following their approval on 10 March 2024.
D. On 24 January 2019, the Company announced a share repurchase program to conduct market purchases of ordinary shares of par value 0.01 Israeli Shekels each ("Ordinary Shares") in the Company up to a maximum value of £150,000 (the "Programme"). Thereafter, the board of directors of the Company and the board of directors of MTI Engineering decided to continue with the Programme for several further periods. On 13 April 2022, the Company announced that it would extend the Programme until 31 March 2023, with the Programme having an increased maximum value of up to £200,000 and with the Programme being managed by Shore Capital Stockbrokers Limited pursuant to the terms as announced. On 10 March 2024 the board of directors of the Company and the board of directors of MTI Engineering decided to extend the Programme effective from 12 March 2024 until 31 March 2025 and to increase the maximum value of the Programme up to £700,000, with the intention to hold the Ordinary Shares purchased for a longer period of time. As at 31 December 2023, 220,000 Ordinary Shares were held in treasury under the Programme, and as at 10 March 2024, 470,000 Ordinary Shares were held in treasury under the Programme.
E. On 20 March 2024 at the Company's extraordinary meeting, Mrs. Hani Lerman was elected as an external non-executive director.
F. On 7 October 2023 Israel was attacked by the Hamas terror organization leading to war in the Gaza region. The war has led to a slowdown in the Israeli economy and if this war continues for a prolonged period, then it may begin to impact the Company. The wide usage of military reserve personnel, adverse foreign currency exchange rates and restrictions on access to certain areas in Israel are risks which may affect the Company if there is a prolonged period of war. As of the date of this report, and to the best of the Company's knowledge, the war has not had a significant effect on the Company. The Company continues to review the effects of the war on its trading as it believes that if the war continues for a long period of time then the overall Israeli economy will be effected, and factors including the lack of available manpower, interest rates and foreign currency exchange rates may have an impact on its trading.
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