Batm Advanced Communicat... Share Discussion Threads

[kooba] 09/3/2023 14:12

I know i was being a bit cheeky..its really just the same noise as has been coming out of the company for years..i can't get excited that the new ceo just puts out the same schpeel verbatim as used previously and it makes me convinced there is no new strategy or plan to implement if they haven't got the smarts to at least up date previous mission statements. Same old talk I'm afraid. But there again if you expect nothing you might get a surprise on the upside, expecting an upside surprise you tend to get nothing with this one.

[car1pet] 09/3/2023 14:05

Kooba It tells you nothing. It needs to be backed up with a clear plan with milestones for specific achievements which can be tracked and measured and closely monitored so we can see if the company is on track with its plan. And when milestones are missed there needs to be corrective action to get back on track. Named senior managers need to be responsible for achieving milestones and can be incentivised to meet the milestones. Its not difficult

[echoridge] 09/3/2023 13:42

It's simple: I believe this is central to Moti's vision to simplify and focus the Company and release significant shareholder value, rather than a secondary goal, as it obviously was for Zvi (having said that of course, how many shareholders at the time even knew much about NGSoft, let alone that it would fetch c.$33m?? But I digress...). We shall see, but first I hope we'll get more meat on the bones of this evolving strategy from the Company

[kooba] 09/3/2023 13:05

Or perhaps look at page 5 of the 2020 report and accountshttps://www.batm.com/media/1448/batm-annual-report-2020.pdfRinse and repeat..Focus on value creationCapital allocationValue creationValue realisationSound familiar ??

[kooba] 09/3/2023 13:00

Is this not what all boards of directors should be doing anyway it just seems a general mission statement..and most of it we have heard over and over in previous years.Chair 2022 report and accounts.STRATEGYOur strategy is to deliver growth by focusing on developing high-technology solutions that solve complex challenges in mission-critical largescale applications. In doing so, we seek to differentiate through our intellectual property,including our proprietary algorithms, and the world-leading expertise of our employees.In particular, we are focused on being one step ahead at the leading edge of innovation – primarily in the fields of networking, molecular diagnostics and cyber. All of our solutions – which we take from idea, to scale up, to mass-market success – and our business practices are designed with sustainability and longevity in mind: addressing the challenges of today and what we believe will be the demands of the future.We amplify our resources through establishing strategic partnerships and are focused on creating shareholder value through business success as well as value realisation opportunities, such as the sale of non-core assets to reinvest in activities that will drive our growth.

[echoridge] 09/3/2023 12:09

Slide 3:

Focus on Value Creation
Bringing focus across our business

Looking at where capital is to be allocated effectively to have highest long- term returns, based on size of market and our ability to differentiate and commercialise
Capital allocation

Exploring how shared Group resources, IP, expertise, channels and systems/processes can be used to maximise total returns through buy, build, partner decisions etc.
Value creation

As portfolio companies mature, we will consider options for value realisation, including disposals and joint ventures

[echoridge] 09/3/2023 12:02

I think I have a pretty good preliminary view, and you could too if you started by reading the deck that Resistance posted here yesterday

[car1pet] 09/3/2023 11:51

On your point Resistance it needs the major shareholder LO to exert some pressure on the management team and insist that an independent team go in and identify a strategy and business plan. The new CEO has been in post since 1st January (i think) and was the FD was several years before. Over 2 months since he took over and all we have had is the statement on results day. Does anyone understand the strategy and business plan?

[kooba] 09/3/2023 11:07

Many UK premium listed companies now have a requirement that executives build a meaningful long term shareholding in the companies they are employed by to better align with their shareholders and also that they hold the vast majority of that holding for years past any exit."Typically, companies will set out the minimum shareholding requirement as a percentage of salary, with a range of 100–300% being common in the market, depending on the size and complexity of the company."Ideally this is not built through just incentivised arrangements but by the director funding share purchases out of their own resources."Executive directors' shareholding requirementsAligning executive directors' pay with a company's long-term strategy and the interests of its shareholders remains a hot topic for UK listed companies. Having a minimum shareholding requirement further strengthened by a post-employment shareholding policy has now become best practice among listed companies.The principles governing a UK listed company's shareholding requirements are set out in the FRC's Corporate Governance Code (the Code) and in supporting institutional investor guidelines. The primary institutional investor guidelines for these purposes are the Principles of Remuneration published by the Investment Association (IA) (typically on an annual basis, ahead of each AGM season) (the IA Principles).Neither the Code nor the IA Principles are legally binding, nor do they have the force of law, but they are influential on remuneration design and reflect best practice in corporate governance. The main sanction for non-compliance is that institutional investors may vote against the company's Directors' Remuneration Policy (DRP) or Directors' Remuneration Report (DRR). "Batm considers it adheres to the code..nothing mentioned in report and accounts on director shareholdings requirements."The Company, as a company with a Premium Listing and therefore subject to Listing Rule 9.8.7R, is subject to the provisions of the UK Corporate Governance Code (the "Code") published by the Financial Reporting Council ("FRC"), a copy of which is available from the FRC's website at https://www.frc.org.uk. The Board considers that, during 2021, the Company complied with the provisions set out in the Code with the exception of the matters referred to below."

[kooba] 09/3/2023 10:31

Why free of charge ..Moti will be on more than the company made PT last year! And all those options he got granted..at least they weren't nil cost !! Its a great gig relative to the performance.Still every single shareholder owns more shares than our Moti does! He has never purchased a share in the market having been the CFO for 8 years.

[resistance1] 09/3/2023 10:21

Article on Master Investor

BATM Advanced Communications – Technology Firm Looks To Maintain Speed

Ready for a big recovery in sales and profits in 2023 – that is the forecast for this leading provider of real-time technologies for networking solutions and medical laboratory systems.

This group, which in January announced a major $26m cyber security order to add to its fast-growing backlog, on Monday of this week reported group revenues for the year to end December 2022 slightly lower at $116.1m ($132.8m), while its EBITDA fell from $29.6m to $8.0m, reducing its basic earnings from 3.26c to 0.06c per share.

My View – Appealing Cyber Backlog
This group is profitable, it has a very strong balance sheet and its cash and assets of over $40m. It also has a very valuable portfolio of property and intellectual property.

The recent $26m cyber contract was really quite significant, giving the group additional visibility over the next five years.

The group’s cyber backlog is growing at quite a pace, while it must not be forgotten that the Covid Pandemic is still prevalent in Asia, giving the group even more business.

The group’s shares have been on a downward drift since July 2020, when they were trading at just under 140p.

They have since more than halved from this time last year, and now trade at 24.5p.

[resistance1] 09/3/2023 09:35

Car1pet considering your considerable experience, why don't you offer your turnaround services FOC to the Company as a 'concerned shareholder'?

[car1pet] 08/3/2023 16:38

Just to follow up on my earlier point. 9 times out of 10 the experiences I had were all based on the same issue. The failed management team did not get into enough detail and so plans were based on poor preparation. On the surface the plans looked credible but when the rubber hit the road and the plans were executed they failed because they had not been thought through in enough detail.
Also the Pareto distribution (the 80/20 rule) always applied. By focusing on the key 20% of the issues it will resolve 80% of the problems.

[wizzkid211] 08/3/2023 16:13

Someone is in hurry to buy...

[wizzkid211] 08/3/2023 16:13

Someone is in hurry to buy...

[wizzkid211] 08/3/2023 16:13

Someone is in hurry to buy...

[kooba] 08/3/2023 15:48

Lots of money can be invested in new products and then the product is not best in class or is surpassed by others..there are many players developing edge platforms i do not know whether Edgility is best in class. The proof of the products attraction to the market is sales..we have one customer of any note whilst an interesting one of scale the order so far is very modest..the company said that the size of the order would expand in the short term etc etc then no further update. I thought cityfibre would open the doors to other contracts but so far it seems an isolated order. The company talks of momentum all the time but considering we have products now developed and looking for sales is there really any momentum ? If not why not?Paulisi...point taken on your breakdown which i understand and have done similar calculations over the past year so i get where you are going and yes on that basis you would think there would be buyers..unfortunately the propensity of the company to disappoint ( $25m order, 3 profit warnings) means that sentiment is rather damaged at the moment and the fact the company didn't make any money last year with all those assets and cash in the bank ( dwindled) means that for all the value calculations that folks have done over the years the company doesn't tend to deliver the significant value in the business they claim is there. Hopefully others are correct and the new CEO will deliver a far more focussed approach rather than the hobby fiefdom of Dr Marom. He made shareholders no money over 25 years but every year next year was going to be the big one! Company needs to get a reputation of clarity and delivery then the share price might better reflect the potential.

[resistance1] 08/3/2023 15:28

Paulisi

Speaking of IP there is also Edgility of course. I seem to remember their R&D investment being £40m in this alone -- I maybe wrong. The market for Edge computing is forecast by data analysts IDC (and others) to grow 7-fold between this year and 2030. They also have military grade Cyber IP, with the possibility to spin this out into a commercial market version. Then also there is the waste disposal business which we haven't heard much about recently -- don't think there's IP there!

Car1pet: They may well be working on such a turnaround strategy in that time-frame.

[paulisi] 08/3/2023 15:06

If you look at the fundamentals.Market value is 107mCash 44.2mProperty & investments 15.9mThe company has turnover of 116.1m and double digit growth and expected profitability in all divisions.So if you take cash and property/investments out. The remainder of the business is valued at 56mIs this a true valuation? Given that the company also owns a significant stake in ADOR which is generating next to nothing in revenue yet and has IP for ventilators that is generating no revenue.

[car1pet] 08/3/2023 14:15

Resistance in my earlier life I was a turnaround king. When people screwed up I went in and fixed it. It is surprisingly easy to do as most failures are easy to identify and the kudos you get is great and personally very enjoyable. In the first week you can spot where the problems are and then fixing them is down to putting the right people on it. This small company could have a clear strategy and resolution plan in 3 months. All they need to do is employ a troubleshooter with a successful track record and pay him/her a heavily incented remuneration based on tangible success.

[kooba] 08/3/2023 12:16

Just a reminder of last years CEO statement."Looking ahead, we entered the new year with sustained momentum across the business and we remain on track to deliver significant growth for full year 2022, in line with market expectations. We have established solid foundations in core technologies that are now at an inflexion point of becoming market disrupters. We will continue to cultivate growth and development across our business as well as pursue opportunities to accelerate the realisation of the value of the IP within our different units through strategic transactions. We have an exciting future ahead of us and we look forward to reporting on our progress and delivering value for our shareholders. "This years is all to familiar.

[kooba] 08/3/2023 12:03

I agree much on the unwieldy structure and the lack of focus ..this makes the business more difficult to comprehend when as you say the different parts are not mutually beneficial. I can see telco and cyber making sense together and the balance of the business in bio better focused , non core interests in distribution..such as Moldavian chemist chains disposed of as certainly don’t see these things as having any core purpose. Its a ramshackle mix of Zvi’s brainstorms that might have made some sense at the time and now just leaves the business messy.
So I’m not selling but to be frank wish I’d never returned to this value trap and can only hope that others blind faith in Moti delivering share holder value is rewarded.

[resistance1] 08/3/2023 11:35

Carpet
You say 'Lets be honest its not a big company and a half decent business manager could turn it around quickly' I'm not so sure; it is a relatively small company yes, but is operating in 4 business areas largely unrelated. A conglomerate set up for a small cap. This needs to be rationalised as makes management unwieldy and tricky, so not a straightforward job by any means. Moti is best placed here to address this more quickly than any outsider new CEO. Kooba share price will be driven up well before 2024 if it is indicated to the market that changes are afoot. Lets give him a chance.

[kemche] 08/3/2023 11:18

What a screeding mic drop.

[kooba] 08/3/2023 10:56

Well gents i might agree its too late to sell but i do think there is no real sign of any change in direction from new ceo , someone who has been a senior executive for many years. Have they bottomed out expectation after 3 warnings and lowered guidance , maybe. Is there scope to now beat the much lower guidance ..sure if they can land anything in bio or telco.Has being optimistic over and above their recent guidance been a good place to be..nope.Until there is real evidence that the company can deliver on its promises on its new technology platforms there seems little to go for here at all. The multiple is in fact extremely generous if you look at the ongoing earning streams and is already factoring significant growth from new streams..yet to be really shown to have traction."ShoreValuation thoughts: Based on our provisional forecast change, BATM trades on a FY23F PER of 47.5x and an EV/EBITDA of 9.4x but would expect multiples to fall significantly in FY24F. "Maybe 2024 ..hey?Moti has taken the reigns ( though must have been a major influence as CFO and was the man guiding the market on financials) at hopefully a low point and i admit the results are a reflection slightly more on the previous ceo than the executive team as a whole..but he is no new broom and has Zvi still on the board with great influence and a large shareholding..so not expecting much new myself.They need something to land soon...and the $25m tender won in around August i reckon they have removed totally from forecast having thought it was nailed on previously i guess..they included it in current year expectation in December and have now removed it altogether..does this demonstrate confidence? I think its the last we hear on it. it seems it was never as good as 50/50 and now is a non starter imo ..who wants $25m of covid tests giving $10m profit to the seller now..its a saturated market and no one is buying anymore...certainly not on though kind of terms..things have changed.Anyway ..as always will be interesting to see if directors buy any shares...or the company recommences the buyback as they have done very little against the shareholder approved authority. This might show confidence that they will indeed deliver..on their mission.Moti.."With the solid foundations that we have in place in core technologies that we believe will be market disrupters, the board remains confident in the prospects of the business and is working hard to demonstrate the substantial value that exists within BATM."