Batm Advanced Communicat... Share Discussion Threads

[mrnumpty] 04/3/2020 10:08

Whatever you think of him , Simon Thompson , the small-cap share tipster of the Investors’ Chronicle , has been tipping BATM as a “ buy “ for some time . His tips reach subscribers on Thursday ( tomorrow ) evening , and the printed magazine reaches subscribers on Friday . Hopefully he will have something positive to say which again , whether or not we agree , would help the share price . Good luck

[gerihatrick] 04/3/2020 10:05

car1pet..the company you invested in 15 years ago is a totally different one now. Over the last few years they have moved to modern technology across all 3 divisions and had you bought in 3 years ago you would have seen that evolution take place. Along with that the share price has moved from under 20p to nearly 50 p in recognition of that. I have invested over the last 3 years and am very happy with the progress made as well as the potential for the future.

[mr hangman] 04/3/2020 10:04

Let's wait until Simon Thompson has spoken

[tole] 04/3/2020 09:50

Gap filled on the charts down to 42p

[reeltime] 04/3/2020 09:13

car1pet....I agree with your comments, I'm also underwhelmed by these results. At best it's just steady progress and declining profit margins, can't really see much to get excited about.

[car1pet] 04/3/2020 08:51

The market has reacted as do I underwhelmed. After all the talk of of the corona testing kit and the price hitting 50p. This company has always been good at saying the future is bright but the future never materialises. I think the time has come for me after 15 years to sell up. I'll wait a few days and see if the price gets lifted by any newspaper tips but all I see is more of the same until the management is replaced with commercially minded people.
Good luck to those who decide to continue.

[james dean] 04/3/2020 08:38

Total Group revenue for 2019 increased to $123.4m (2018: $119.6m), reflecting growth in both divisions. On a constant currency basis, revenue for 2019 would have been $126.5m, with an immaterial impact on operating profit. The primary currency fluctuation that impacted the reported revenue was the weakening of the Moldovan Leu and the Romanian Leu against the US Dollar. The Bio-Medical division accounted for 52.2% of total revenue (2018: 51.9%) and 47.8% was contributed by the Networking and Cyber division (2018: 48.1%). Both divisions had a significantly stronger second half of the year, with revenue in H2 2019 being higher than H1 2019 - by 13.2% in the Bio-Medical division and by 26.9% in the Networking and Cyber division.

The blended gross profit margin for the year was 26.9% (2018: 28.8%). This decrease is due to the increased contribution to revenue from the Bio-Medical division, which carries a lower margin than the Networking and Cyber division, as well as a slight softening in gross margin in both divisions respectively. The Group anticipates an improvement in gross margin for 2020.

Sales and marketing expenses were $16.3m (2018: $15.6m), representing 13.2% of revenue compared with 13.1% in 2018. The increase is due to the expansion of marketing in the Networking unit to support the launch of the NFV products and in the Diagnostics unit for the launch of the molecular biology products. There was also an increase in sales activity in the Distribution unit.

General and administrative expenses were $11.8m (2018: $11.2m), representing 9.5% of revenue compared with 9.4% in 2018.

Investment in R&D was lower in 2019 than the previous year at $6.8m (2018: $7.1m), primarily due to the allocation of certain R&D expenses to cost of revenues.

Adjusted operating profit increased significantly to $5.3 m compared with an operating profit of $2.6 m in 2018 . This includes a capital gain of $3.2m from the part realisation of the Group's ownership of Ador as part of the investment in that business. The fair value of the Group's remaining holdings in Ador, based on the transaction agreement, is $17m. Implementation of IFRS accounting standards requires the investment to be measured according to the equity method, which excludes fair value measurement, therefore only a $3.2m profit was recorded. In addition, there was a capital gain of $3. 4m from the sale of the Group's rights in IBC Holdings ( compared with a capital gain in 2018 of $1.6m from the selling of intangible assets to a joint venture).

The Group achieved a strong increase in EBITDA, which doubled to $9.8m (2018: $4.9m).

Net finance income was $0.3m (2018: $0.3m expenses), which includes $0.3m in expenses relating to interest on lease liabilities following the implementation of IFRS 16 on 1 January 2019.

Net profit after tax attributable to equity holders of the parent increased to $3.9m (2018: $0.4m profit) resulting in a significant increase in basic earnings per share to 0.93c (2018: 0.09c).

As at 31 December 2019, inventory was $22.7m (30 June 2019: $23.9m; 31 December 2018: $22.9m). The decrease is due to the completion of delivery of certain large projects by the Eco-Med unit during the year, which had been commenced in the prior year, resulting in the unwinding of the inventory position. Trade and other receivables increased to $42.8m (30 June 2019: $36.4m; 31 December 2018: $35.0m), which was mostly due to higher sales in the last quarter of the year.

Intangible assets and goodwill at 31 December 2019 was $ 23.7 m (30 June 2019: $23.1m; 31 December 2018: $22.6m). The slight increase is mostly due to a small acquisition of a software business during the year.

Property, plant and equipment and investment property was $16.1m (30 June 2019: $16.9m; 31 December 2018: $16.1m).

The balance of trade and other payables was $44.5m (30 June 2019: $32.8m; 31 December 2018: $33.4m). The increase is mostly due to achieving of better payment terms.

Cash generated from operating activities was $7.2m for 2019 compared with $2.6m for the prior year, which is mainly due to an improvement in working capital and $2.1m resulting from the implementation of IFRS 16.

The Group's balance sheet remained strong with effective liquidity of $44.8m at 31 December 2019 compared with $ 16.9m at 30 June 2019 and $24.4m at 31 December 2018. The increase in cash and cash equivalents relates to improvement in working capital and successfully raising approximately $17.1m net from new and existing investors.

Listing on TASE

On 11 July 2019, the Group's shares commenced trading on its Secondary Listing on the Tel Aviv Stock Exchange (TASE) under the symbol "BVC". The Group maintains its Primary Listing on the Premium Listing Segment of the Official List of the FCA and its shares continue to trade on the Main Market of the London Stock Exchange. Shares are fully transferrable and fungible between the two markets. BATM has not issued any new shares in connection with the Secondary Listing.

Outlook

The Group entered 2020 with a substantially higher backlog than at the same point of the prior year, having had a particularly strong fourth quarter of 2019 for winning new contracts for delivery this year, and this momentum has continued in 2020. Both the Bio-Medical division as well as the Networking and Cyber division are expected to report growth for 2020, with the Bio-Medical division remaining the largest contributor to Group revenue.

Specifically, in the Bio-Medical division, BATM expects a ramp up in sales this year through the Group's new collaboration agreements in the Diagnostics unit with significant distributors in the molecular biology field in Italy and Mexico. The Eco-Med unit has a solid backlog of orders for its agri-waste treatment solution to deliver in 2020 and the Group expects it to continue to win new customers and expand its activities. The Distribution unit is expected to continue to perform well.

In the Networking and Cyber division, the Group anticipates progressing its engagement with network operators under its partnership with Arm, which will enable a ramp up of NFV-related revenue. The Group expects good growth in the Cyber unit as it continues to win orders from existing and new customers.

With the contribution to revenue from diagnostics and NFV-related activities expected to increase in 2020, the Group anticipates an improvement in gross margin.

The GBP14.1m fundraise and significant cash generation in the second half of 2019 have provided the Group with a strong balance sheet. This will support the Group's ramp up in activities as well as enable it to pursue potential acquisition opportunities to accelerate growth in its key strategic areas.

As a result, BATM expects to report results for full year 2020 in line with market expectations and the Board continues to look to the future with confidence.

[master rsi] 04/3/2020 08:28

44.25p -0.75p

Results much better than expected on the profits and EPS 0.93c
though they are adjusted with note 3 that I can not see
margins were a bit lower, but I would expect that as the medical part takes more % of the full group

[picsous] 04/3/2020 07:24

This company is moving fast, raising cash last years was a smart move.

[paulisi] 04/3/2020 07:11

Solid set of results - gross margin is a little concern, but the outlook statement says that will improve and prospects are very goodThe Group entered 2020 with a substantially higher backlog than at the same point of the prior year, having had a particularly strong fourth quarter of 2019 for winning new contracts for delivery this year, and this momentum has continued in 2020. Both the Bio-Medical division as well as the Networking and Cyber division are expected to report growth for 2020, with the Bio-Medical division remaining the largest contributor to Group revenue.Specifically, in the Bio-Medical division, BATM expects a ramp up in sales this year through the Group's new collaboration agreements in the Diagnostics unit with significant distributors in the molecular biology field in Italy and Mexico. The Eco-Med unit has a solid backlog of orders for its agri-waste treatment solution to deliver in 2020 and the Group expects it to continue to win new customers and expand its activities. The Distribution unit is expected to continue to perform well.In the Networking and Cyber division, the Group anticipates progressing its engagement with network operators under its partnership with Arm, which will enable a ramp up of NFV-related revenue. The Group expects good growth in the Cyber unit as it continues to win orders from existing and new customers.With the contribution to revenue from diagnostics and NFV-related activities expected to increase in 2020, the Group anticipates an improvement in gross margin.The GBP14.1m fundraise and significant cash generation in the second half of 2019 have provided the Group with a strong balance sheet. This will support the Group's ramp up in activities as well as enable it to pursue potential acquisition opportunities to accelerate growth in its key strategic areas.As a result, BATM expects to report results for full year 2020 in line with market expectations and the Board continues to look to the future with confidence.

[mrnumpty] 04/3/2020 06:03

Although US markets fell yesterday , Japanese and Chinese markets were about flat last night . Good luck all for imminent results here .

[master rsi] 03/3/2020 23:15

Responding to Coronavirus Testing Problems, US Government Expands Number of Labs That Can Run Tests
MARCH 3, 2020 10:16 AM EST
After a slow and criticized rollout of U.S. government-designed testing kits for the novel coronavirus COVID-19, federal agencies enforced new policies to scale up capacity to conduct tests and produce results more quickly.

On Feb. 29, the US Food and Drug Administration (FDA) expanded its Emergency Use Authorization (EUA) policy to allow more labs to apply for approval to conduct testing for COVID-19. Until the announcement, two labs run by the Centers for Disease Control and Prevention (CDC) and a few state labs were the only ones in the country that could test for the disease.

Expanding the number of labs that can perform COVID-19 testing is critical to getting a more accurate sense of how widespread the virus may be in the country. Some public health experts warn that the current number of cases in the US may be low simply because too few people have been tested; with more testing, the count in the country will likely rise. Already, the number of confirmed cases has increased from 62 on Feb. 28 to 101 on March 2......

[mrnumpty] 03/3/2020 21:58

Supertag . You asked why people would sell their BATM shares now . Maybe it’s because BATM were one of the few shares to rise recently , whereas most shares dropped badly . Maybe therefore it’s because people are taking advantage of the BATM rise in order to buy other shares which are cheap . All in my humble opinion .

[mrnumpty] 03/3/2020 21:58

Supertag . You asked why people would sell their BATM shares now . Maybe it’s because BATM were one of the few shares to rise recently , whereas most shares dropped badly . Maybe therefore it’s because people are taking advantage of the BATM rise in order to buy other shares which are cheap . All in my humble opinion .

[master rsi] 03/3/2020 17:18

A late rally as is custom now after the earlier markdown

Looking forward to tomorrow's Final results and better be a very good update with it. Year results on Wednesday 4 March 2020

[tole] 03/3/2020 16:16

I'm holding mine for tomorrow.

[car1pet] 03/3/2020 15:45

Looks as if investors are waiting to hear tomorrow.

[master rsi] 03/3/2020 15:33

Federal Reserve cuts interest rates amid coronavirus risks

The US Federal Reserve cut interest rates by 50 basis points on Tuesday as it looked to counter the economic impact of the coronavirus outbreak.

In an unscheduled announcement, the US central bank cut its benchmark rate to between 1% and 1.25% from between 1.5% and 1.75%......

[hedgehog 100] 03/3/2020 15:26

In recent days a BVC pattern has emerged of intraday reversals back up after about 3p.m. or so.

Looks like this is continuing today.

[ncockerill] 03/3/2020 14:04

Mind your stop losses! :-/

[zipstuck] 03/3/2020 11:59

probably because they may maybe late to the party with their COVID 19 kit

[supertag] 03/3/2020 11:57

why sell the day before the results?

[emeraldzebra] 03/3/2020 11:55

just a bout of seasonal flu. nothing to worry about.

[mr hangman] 03/3/2020 11:52

Emeraldzebra Please can you not cough round here

[emeraldzebra] 03/3/2020 11:48

read 'seasonal flu'