MTI Wireless Edge Limited – Final results for 2019

MTI Wireless Edge Limited – Final results for 2019

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, today announces its audited results for the year ended 31 December 2019.

 

Strong Financial Performance

·    Delivered solid revenue growth, up by 13% to $40.0m (2018: $35.5m)

·    Performance reflects the benefits of increasing scale and improved profit margins, leading to a 29% increase in profit before tax to $3.4m (2018: $2.65m)

·    Earnings per share increased by 21% to 3.27 US cents (2018: 2.70 US cents)

·    Generated $5.6m of cash from operations (2018: $2.3m), increasing net cash to $7.7m on 31 December 2019 (31 December 2018: $4.4m)

·    Shareholder’s equity grew to $22.3m on 31 December 2019 (31 December 2018: $20.6m) representing 19.7p per share (Calculated at £/$ rate of 1.29)

·    Dividend of $0.02 per share (2018: $0.015 per share) declared

·    Ongoing successful share repurchase programme contributed to tripled average daily share trading in 2019

Operational Growth Drivers

·    Good demand for MTI’s comprehensive solutions across multiple geographies and sectors

·    No single customer generated more than 7% of revenues and income is spread across three divisions

·    Macro trends underpinned growth in 2019 and are expected to continue into 2020 and beyond, namely:

o Climate change and water shortages are driving demand for Mottech’s water management solutions;

o Increases in defence spending globally and MTI’s Indian offset solution led to growth in military antenna sales and solutions;

o The move by mobile operators to next generation 5G networks is driving requests for tests / early deployments of MTI’s 5G backhaul antennas from large OEM suppliers.

·    Successful acquisition of a 50% shareholding in Parkland, Australia. The Group continues to assess other similar value enhancing acquisition opportunities

Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said “This is an excellent result for 2019 and we are well placed for 2020. Our business is diversified across several markets with a core focus on providing radio frequency solutions. We will continue to seek to expand through a mix of acquisition led and organic growth.”

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