Revenue steady, profits rise for MTI Wireless Edge

21st Aug 2024 12:54

(Sharecast News) - Communications and radio frequency technology specialist MTI Wireless Edge reported steady revenue and notable improvements in profitability in its interim results on Wednesday.

The AIM-traded company reported revenue of $22.3m, consistent with the same period in 2023.

EBITDA increased 18% to $3.3m, while profit before tax rose 10% to $2.3m.

Earnings per share also grew, by 8% to 2.14 US cents.

Despite a decrease in net cash to $5.5m as of 30 June due to dividend payments and share buybacks, MTI said it remained in a strong financial position.

The firm announced an expansion of its buyback programme, increasing the funding from £0.7m to a maximum of £1m, effective from 22 August.

Operationally, the antenna division performed strongly, with a 16% increase in sales driven by demand from the defence sector and 5G backhaul solutions.

The company said the division had a significant order backlog, and promising opportunities ahead.

However, the Mottech division experienced an 11% decline in revenues due to conflicts affecting domestic sales and a slowdown in North America and Western Europe.

Despite that, profitability improved thanks to a higher margin business mix and successful price adjustments.

MTI Summit saw a slight 1% increase in sales, but profitability was affected by underperformance at PSK, leading to staff reductions in August.

However, the core business remained strong, with a solid pipeline of new projects.

Looking ahead, MTI reported strong demand and record levels of inquiries, particularly in the global defence sector, positioning the company for future growth.

"Demand for good communication utilising radio frequency solutions across the water, defence and 5G industries remains high," said chief executive officer Moni Borovitz.

"Our range of products are well positioned in each of these industries and we are experiencing strong enquiry levels, most notably in the defence sector."

Borovitz said the company's trading performance in the first half showed a good increase in profitability and strong cash generation, combined with maintaining its financial base.

"We are therefore well placed for the current year. Not surprisingly, the conflict in Israel is having some impact on local market revenues although we did experience better deal flow in July and hopefully we will see the end to this conflict soon."

At 1210 BST, shares in MTI Wireless Edge were up 7.11% at 39.63p.

Reporting by Josh White for Sharecast.com.