Q3 2024 Financial Results and Directorate Change

MTI Wireless Edge Limited

25 November 2024

 

25 November 2024

MTI Wireless Edge Ltd

("MTI", the "Company" or the "Group")

Q3 2024 Financial Results

and

Directorate Change

Well-positioned for the full-year and beyond, with a valuable and growing pipeline of opportunities across the business divisions particularly driven by defence and 5G

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 nine-month period ended 30 September 2024 (the "Period").

Financial highlights

·    Revenues for the Period were stable at $33.7m (nine months to 30 September 2023: $33.7m)

·    10% improvement in net profit to $3.1m (nine months to 30 September 2023: $2.8m), helped by increases in financial income and lower tax rates

·    11% increase in earnings per share to 3.60 US cents (nine months to 30 September 2023: 3.25 US cents)

·    Strong balance sheet with net cash of $4.9m as at 30 September 2024 (30 September 2023: $6.4m) after using $1.1m to repurchase shares of the Company under its buyback programme

·    Final dividend anticipated to be declared alongside MTI's full year results which will be announced during the first quarter of 2025

Operational highlights

·    The Group continues to operate successfully and deliver a stable level of sales combined with growing profitability

·    Antenna division performed well, driven by 5G and defence led sales

o  Significant pick-up in sales of the Company's 5G backhaul solution in India during the second half of 2024, driven by new orders from a leading cellular service provider

o  Increased demand for military antennas globally expected to continue to be strong into 2025

o  Overall, the division is well placed for both the remainder of 2024 and beyond, with a healthy backlog of orders and a number of submitted tenders awaiting responses

·    Mottech delivered a good third quarter

o  Positive performance in North America, South Africa and Israel, which has remained stable despite the unrest in the Middle East

o  Sales into Europe were behind last year, however, a valuable and growing pipeline of opportunities is in place

o  Growing awareness amongst European countries of the need to manage and conserve water as an important resource

o  China office closed as market demand remains unstable - all related costs were incurred in Q3 2024

o  Sales in the quarter were 6% ahead of Q3 2023 but for the nine months they were slightly behind the prior year, but with good prospects for growth in 2025

·    MTI Summit experienced a relatively slow third quarter

o  Sales were held back due to shipping delays from vendors 

o  With shipments now expected to be back on track, sales in Q4 2024 are expected to benefit, together with a significant backlog in orders

o  Strategic agreement for the distribution business is operating well and has been extended until mid-2026

o  PSK's performance continued to be slow, but is expected to improve following the cost saving initiatives taken over the Summer combined with new business prospects

Directorate change

The Company today also announces that Dov Feiner, Executive Board Director and General Manager of the Antenna Division will become a Non-Executive Director of the Company and step down from his role as General Manager at the end of April 2025. Dov, who is aged 68 has worked in the Company for over 35 years, will be retiring from full-time employment. Eran Shmulinson, currently Vice President of Sales and Marketing for the Antenna Division will succeed Dov as General Manager of the Antenna Division, in a non-Board role. 

Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:

"We have completed a successful third quarter and we are well placed for the full-year and beyond. This was a good achievement, especially given the current regional conflicts and the associated uncertainty this creates. As shown in these results, the business has not been significantly affected, our partners and customers are focused on continuing as normal and I am proud to report that our internal teams have remained positive, determined and highly adaptable to managing any necessary changes. This has allowed us to move our ABS antenna solution, which has been granted a patent, into pre-production stage and introduce our own Elite Pro wireless irrigation controller to offer to Mottech's customers. Both products have superior technology and are key for our future growth.

"Defence is one of our three key sectors and global demand has been high, reflecting the concerns of many Governments regarding the more unstable world we now live in, a trend which is expected to continue. 5G is another key sector where we have received significant demand for our products from India and elsewhere, and there is substantial further potential from this market and others.  Due to climate change, managing water as a key resource is becoming a higher priority for European countries who previously have taken water for granted. We believe this will open up new opportunities for Mottech.

"This, together with our strong net cash position, means the Company is well placed. Q4 has begun well and we anticipate continuing to grow the business and delivering an attractive return to our shareholders.

"Finally, on behalf of the Board I would like to express our heartfelt thanks to Dov Feiner who has successfully led the Antenna Division for many years, been a significant presence across the whole business and provided valuable counsel at Board level. We are grateful for the work he has done and are delighted that he has agreed to continue to work with us in a Non-Executive role when he steps down as the General manager of the Antenna Division in April next year."

For further information please contact:

MTI Wireless Edge Ltd	[phone]
Moni Borovitz, CEO	http://www.mtiwirelessedge.com
Allenby Capital Limited (Nomad and Joint Broker)	[phone]
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) Fiona Conroy (Corporate Broking)	[phone]
Novella (Financial PR)
Tim Robertson/Safia Colebrook	[phone]

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 internationally recognised as a producer of commercial off-the-Shelf and custom-developed antenna solutions in a broad frequency range of HF to 170 GHz for commercial, RFID and military applications. MTI continuously invests in ground breaking technologies, explores new frequencies, and devises innovative solutions which empower our wireless communication customers with cutting-edge off-the-shelf and custom-made antennas.

We are at the forefront of technology and innovation, being the first to introduce Dual Band parabolic antennas, E Band Automatic Beam Steering antennas, E Band FCC compliant flat antennas, and more.

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

	Nine month period ended  September 30,				Year ended December 31,
	2024		2023		2023
	U.S. $ in thousands (Except per share data)
	Unaudited
Revenues	33,743		33,724		45,634
Cost of sales	23,122		22,815		30,963
Gross profit	10,621		10,909		14,671
Research and development expenses	731		794		1,047
Distribution expenses	2,518		2,814		3,709
General and administrative expenses	3,954		3,757		5,278
Loss (profit) from sale of property, plant and equipment	(58)		(8)		13
Profit from operations	3,476		3,552		4,650
Finance expenses	210		245		342
Finance income	(305)		(116)		(527)
Profit before income tax	3,571		3,423		4,835
Income tax expenses	500		569		759
Profit	3,071		2,854		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	(26)		(288)		(216)
Total other comprehensive loss	(26)		(288)		(154)
Total comprehensive income	3,045		2,566		3,922
Profit (loss) attributable to:
Owners of the parent	3,151		2,868		4,045
Non-controlling interests	(80)		(14)		31
	3,071		2,854		4,076
Total comprehensive income (loss) attributable to:
Owners of the parent	3,125		2,580		3,891
Non-controlling interests	(80)		(14)		31
	3,045		2,566		3,922
Earnings per share (dollars)
Basic and Diluted (dollars per share)	0.0360		0. 0325		0.0458
Weighted average number of shares outstanding
Basic (dollars per share)	87,472,764		88,332,198		88,283,490
Diluted (dollars per share)	87,511,080		88,332,198		88,283,490

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY

For the nine month period ended September 30, 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 nine month period     ended September 30, 2024:
Comprehensive income
Profit (loss) for the period	-	-	-	3,151	3,151	(80)	3,071
Other comprehensive loss
Translation differences	-	-	(26)	-	(26)	-	(26)
Total comprehensive income (loss) for the period	-	-	(26)	3,151	3,125	(80)	3,045
Acquisition and disposal of treasury shares	*	(1,024)	-	-	(1,024)	-	(1,024)
Share based payment	-	79	-	-	79	-	79
Dividend	-	-	-	(2,745)	(2,745)	-	(2,745)
Balance at September 30, 2024	209	22,116	(492)	5,632	27,465	1,142	28,607

(*) Less than US$ 1 thousand

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY (CONT.)

For the nine month period ended September 30, 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 nine month period     ended September 30, 2023:
Comprehensive income
Profit for the period	-	-	-	2,868	2,868	(14)	2,854
Other comprehensive income
Translation differences	-	-	(288)	-	(288)	-	(288)
Total comprehensive income for the period	-	-	(288)	2,868	2,580	(14)	2,566
Acquisition and disposal of treasury shares	*	(27)	-	-	(27)	-	(27)
Dividend	-	-	-	(2,656)	(2,656)	-	(2,656)
Acquisition of a non-controlling interest in subsidiary	-	-	-	-	-	(45)	(45)
Balance at September 30, 2023	209	23,051	(538)	3,987	26,709	1,167	27,876

(*) Less than US$ 1 thousand

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

The accompanying notes form an integral part of the financial statements.

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

	30.09.2024		30.09.2023		31.12.2023
	U.S. $ in thousands
	Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	5,144		6,655		8,454
Trade and other receivables	13,850		11,697		14,284
Unbilled revenue	4,874		4,407		4,190
Current tax receivables	291		409		381
Inventories	8,122		7,365		7,484
	32,281		30,533		34,793
NON-CURRENT ASSETS:
Long term prepaid expenses	31		39		37
Property, plant and equipment	5,339		4,987		5,398
Deferred tax assets	1,020		1,072		968
Intangible assets	3,388		3,739		3,507
	9,778		9,837		9,910
Total assets	42,059		40,370		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

	30.09.2024		30.09.2023			31.12.2023
	U.S. $ In thousands
	Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank credit and loans	250		198		314
Trade payables	6,163		5,684		7,882
Other accounts payable	4,261		3,817		4,558
Current tax payables	289		422		283
	10,963		10,121		13,037
NON- CURRENT LIABILITIES:
Contingent consideration	1,117		1,432		1,117
Lease liabilities	509		150		514
Loans from banks, net of current maturities	75		52		64
Employee benefits, net	788		739		719
	2,489		2,373		2,414
Total liabilities	13,452		12,494		15,451
EQUITY
Equity attributable to owners of the parent
Share capital	209		209		209
Additional paid-in capital	22,116		23,051		23,061
Translation differences	(492)		(538)		(466)
Retained earnings	5,632		3,987		5,226
	27,465		26,709		28,030
Non-controlling interest	1,142		1,167		1,222
Total equity	28,607		27,876		29,252
Total equity and liabilities	42,059		40,370		44,703

November 24, 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.

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

		Nine month period ended  September 30,					Year ended December 31,
		2024		2023		2023
		U.S. $ in thousands
		Unaudited
Cash Flows from Operating Activities:
Profit for the period		3,071		2,854		4,076
Adjustments for:
Depreciation and amortization		1,291		956		1,511
(Gain) from sale of property, plant and equipment		(56)		(6)		(13)
Finance (income), net		(469)		(86)		(5)
Changes in Contingent consideration		-		-		(315)
Tax expenses		500		569		759
Changes in operating assets and liabilities:
Decrease (increase) in inventories		(626)		258		158
Decrease (increase) in trade receivables		(7)		(830)		(2,477)
Decrease (increase) in other accounts receivables		361		(191)		(897)
Increase in unbilled revenues		(684)		(2,129)		(1,986)
Increase (decrease) in trade and other accounts payables		(1,870)		517		3,228
Increase (decrease) in employee benefits, net		69		(13)		29
Cash from operations		1,580		1,899		4,068
Interest received		69		46		69
Interest paid		(61)		(23)		(59)
Income tax paid (received)		(453)		(344)		(540)
Net cash provided by operating activities		1,135		1,578		3,538

The accompanying notes form an integral part of the financial statements.

 INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS (cont.)

					Nine month period ended  September 30,				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					56		39		62
Purchase of property, plant and equipment					(486)		(229)		(426)
Net cash used in investing activities					(430)		(190)		(364)
Cash Flows From Financing Activities:
Dividend					(2,745)		(2,656)		(2,656)
Payments of lease liabilities					(485)		(328)		(485)
Treasury shares acquired					(1,024)		(362)		(516)
Treasury shares sold					-		335		499
Employee options issuance					79		-		-
Acquisition of non-controlling interest in subsidiary					-		(45)		(35)
Short-term loans and credit line received from banks					168		136		460
Repayment of long-term loans from banks					(9)		(10)		(247)
Net cash used in financing activities					(4,016)		(2,930)		(2,980)
(Decrease) Increase in cash and cash equivalents during the period					(3,311)		(1,542)		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					1		(82)		(19)
Cash and cash equivalents  at the end of the period					5,144		6,655		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 September 30, 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.

On April 9, 2024, the IASB published IFRS 18 'Presentation and Disclosure in Financial Statements' which replaces IAS 1 Presentation of Financial Statements and is mandatorily effective for annual reporting periods beginning on or after January 1st, 2027. The main changes are as follows:

Note 2 - Significant Accounting Policies - (CONT.):

1.   Mandatory sub totals to be presented in the profit and loss account.

2.   Aggregation and disaggregation of information including the introduction of overall principles for how information should be aggregated and disaggregated in financial statements.

3.   Disclosures related to management defined performance measures (MPMs).

The Company is currently assessing the impact of this new accounting standard and amendment.

Note 3 - REVENUES:

		Nine month period ended      September 30,				Year ended December 31,
		2024		2023			2023
		U.S. $ in thousands
		Unaudited
Revenues arise from:
Sale of goods*		23,774		23,630			32,525
Rendering of services**		6,027		5,189			7,178
Projects**		3,942		4,905			5,931
		33,743		33,724			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 nine month period ended September 30, 2024 and 2023 respectively and for the year ended December 31, 2023.

Nine month period ended September 30, 2024 (Unaudited):

	Antennas	Water Solutions	Distribution & Consultation Services	Adjustment & Elimination	Total
	U.S. $ in thousands
Revenues
External	10,225	12,345	11,173	-	33,743
Internal	-	-	227	(227)	-
Total	10,225	12,345	11,400	(227)	33,743
Segment profit	1,010	1,804	285	377	3,476
Finance (income), net					(94)
Tax expenses					500
Profit					3,070

Note 4 - operating SEGMENTS (CONT.):

September 30, 2024 (Unaudited):

	Antennas	Water Solutions	Distribution & Consultation Services	Adjustment & Elimination	Total
	U.S. $ in thousands
Segment assets	15,719	12,695	11,325		39,739
Unallocated assets					2,320
Segment liabilities	4,562	4,184	4,248		12,994
Unallocated liabilities					778

Nine month period ended September 30, 2023 (Unaudited):

	Antennas	Water Solutions	Distribution & Consultation Services	Adjustment & Elimination	Total
	U.S. $ in thousands
Revenues
External	8,917	13,006	11,801	-	33,274
Internal	-	-	201	(201)	-
Total	8,917	13,006	12,002	(201)	33,724
Segment profit	560	1,457	1,230	305	3,552
Finance expense, net					129
Tax expenses					569
Profit					2,854

September 30, 2023 (Unaudited):

	Antennas	Water Solutions	Distribution & Consultation Services	Adjustment & Elimination	Total
	U.S. $ in thousands
Segment assets	15,136	11,263	11,532	-	37,931
Unallocated assets					2,439
Segment liabilities	3,834	3,707	4,460	-	12,001
Unallocated liabilities					493

Note 4 - operating SEGMENTS (CONT.):

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)
Tax expenses					759
Profit					4,076

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 January 5, 2024, following approval at an extraordinary shareholders' meeting, the Company granted 600,000 share options to Mr. Moshe (Moni) Borovitz, the Chief Executive Officer, and 100,000 share options to Mr. Dov Feiner, the General Manager of the Company's Antenna Division. The expense for share-based payments (such as stock options) typically appears on the income statement as part of the Company's operating expenses.

B.   The Board of directors declared 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.   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") and 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

Note 5 - SIGNIFICANT EVENTS (CONT.):

12 March 2024 until 31 March 2025 and to increase the maximum value of the Programme to up to £700,000, with the intention to hold the Ordinary Shares purchased for a longer period of time. On 20 August 2024 the Board of directors of the Company and the board of directors of MTI Engineering decided to increase the maximum value of the Programme to up to £1,000,000, repeating the intention to hold the Ordinary Shares purchased for a longer period of time. As at 30 September 2024, 2,108,000 Ordinary Shares were held in treasury under the Programme. As of the date of this report, 2,243,000 Ordinary Shares were held in treasury under the Programme.

D.  On 20 March 2024 at the Company's extraordinary meeting, Mrs. Hani Lerman was elected as an external non-executive director.

E.   On 7 October 2023 Israel was attacked by the Hamas terror organization leading to war in the Gaza region and Israel followed by Hezbollah attacking Israel leading to war in the area. 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.

 

END