Q1 2024 Financial Results

MTI Wireless Edge Limited
20 May 2024
 

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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

http://www.mtiwirelessedge.com

 

 

Allenby Capital Limited (Nomad and Joint Broker)

+44 20 3328 5656

Nick Naylor/Alex Brearley/Piers Shimwell (Corporate Finance)

 

Guy McDougall/Amrit Nahal (Sales and Corporate Broking)

 

 

 

Shore Capital (Joint Broker)

Toby Gibbs/Rachel Goldstein (Corporate Advisory)

+44 20 7408 4090

Fiona Conroy (Corporate Broking)

 

 

 

Novella (Financial PR)

 

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,

 

2024

 

2023

 

2022

 

U.S. $ in thousands

              (Except per share data)

 

Unaudited

 

 







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)






 

Total comprehensive income

823


784


3,922







Profit attributable to:




 


Owners of the parent

932


894

 

4,045

Non-controlling interests

3


(12)


31






 

 

935


882


4,076

Total comprehensive income attributable to:




 


Owners of the parent

820


796


3,891

Non-controlling interests

3


(12)


31

 

823


784


3,922







Earnings per share (dollars)




 


Basic and Diluted (dollars per share)

0.0106


0.0101


0.0458







 




 


Weighted average number of shares outstanding




 


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

 

 

Share capital

Additional paid-in capital

Translation differences

Retained earnings

Total attributable to owners of the  parent

Non-controlling interest

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

 

Balance at January 1, 2024

209

23,061

(466)

5,226

28,030

1,222

29,252

 

 

 

 

 

 

 

 

Changes during the three month period

    ended March 31, 2023:








Comprehensive income





 


 

Profit for the period

-

-

-

932

932

3

935

Other comprehensive income

 

 

 

 

 

 

 

Translation differences

-

-

(112)

-

(112)

-

(112)

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Share capital

Additional paid-in capital

Translation differences

Retained earnings

Total attributable to owners of the  parent

Non-controlling interest

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

 

Balance at January 1, 2023

209

23,078

(250)

3,775

26,812

1,226

28,038

 

 

 

 

 

 

 

 

Changes during the three month period

    ended March 31, 2023:








Comprehensive income





 


 

Profit for the period

-

-

-

894

894

(12)

882

Other comprehensive income

 

 

 

 

 

 

 

Translation differences

-

-

(98)

-

(98)

-

(98)

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Share capital

Additional paid-in capital

Translation differences

Retained earnings

Total attributable to owners of the parent

Non-controlling interests

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

Balance as at January 1, 2023

209

23,078

(250)

3,775

26,812

1,226

28,038

 

 

 

 

 

 

 

 

Changes during 2023:                 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

Profit for the year

-

-

-

4,045

4,045

31

4,076

Other comprehensive income (loss)

 

 

 

 

 

 

 

Re measurements on defined benefit plans

-

-

-

62

62

-

62

Translation differences

-

-

(216)

-

(216)

-

(216)

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

Balance as at December 31, 2023

209

23,061

(466)

5,226

28,030

1,222

29,252

 



 

 



 

 

(*) 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

 

 

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







 

34,338

 

30,590

 

34,793







 






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







 

9,943

 

10,406

 

9,910

 

 

 

 

 



 

 

 


 







Total assets

44,281

 

40,996


44,703







 

 

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







 

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







 

2,430


2,482


2,414







Total liabilities

14,506


12,094


15,451







EQUITY






Equity attributable to owners of the parent

 

 

 

 

 

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







 

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







 

 

May 19, 2024

 

 

 

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,

 

 

2024

 

2023

 

2023

 

 

U.S. $ in thousands

 

 

Unaudited

 

 

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

 

 













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








 

 

 

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,

 

 

 

2024

 

2023

 

2023

 

 

 

U.S. $ in thousands

 

 

 

Unaudited

 

 

 

Cash Flows From Investing Activities:







 

Proceeds from sale of property, plant and equipment


62


11


62

 

Purchase of property, plant and equipment

 

(282)

 

(145)

 

(426)

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(220)

 

(134)

 

(364)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:







 

Dividend


-


-


(2,656)

 

Payments of lease liabilities


(485)


(116)


(485)

 

Treasury shares acquired


(300)


-


(516)

 

Treasury shares sold


-


80


499

 

Acquisition of non-controlling interest in subsidiary


-


-


(35)

 

Receipt of loans from banks


169


-


460

 

Repayment of long-term loans from banks

 

(9)

 

27

 

(247)

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

(625)

 

(9)

 

(2,980)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Decrease)/Increase in cash and

cash equivalents during the period 

 

409


395


194

 

Cash and cash equivalents

 at the beginning of the period

 

8,454

 

8,279

 

8,279

 

Exchange differences on balances of cash and  

     cash equivalents

 

(31)

 

(34)

 

(19)

 

 

 

 

 

 

 


 

Cash and cash equivalents

 at the end of the period

 

8,832

 

8,640

 

8,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:


 

 

 

 

 

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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