BATM Advanced Communications Ld Annual Financial Report (8834V)

TIDMBVC

RNS Number : 8834V

BATM Advanced Communications Ld

19 April 2021

LEI: 213800FLQUB9J289RU66

   19   April 2021 

BATM Advanced Communications Limited

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

ANNUAL FINANCIAL REPORT - DTR 6.3.5 Disclosure

Following the release on 22 February 2021 of the Group's Preliminary Results Announcement for the financial year ended 31 December 2020 (the "Preliminary Announcement"), BATM announces that the 2020 Annual Report and Accounts has been published today. This document has been made publicly available on the BATM website (www.batm.com). The annual report can be found in the Investor Relations section under Financial Reports. The direct link is http://www.batm.com/investor-relations/financial-statements/ .

In compliance with 9.6.1 of the Listing Rules, a copy of the 2020 Annual Report and Accounts will shortly be available for inspection at the FCA's National Storage Mechanism website: https://data.fca.org.uk/#/nsm/nationalstoragemechanism .

The primary purpose of this announcement is to inform the market about the publication of the Company's Annual Report and Accounts for the year ended 31 December 2020 (the "2020 Annual Report and Accounts").

The information below, which is extracted from the 2020 Annual Report and Accounts, is included solely for the purpose of complying with DTR 6.3.5 and the requirements it imposes on issuers as to how to make public annual financial reports. It should be read in conjunction with the Group's Preliminary Announcement. Together these constitute the material required by DTR 6.3.4 to be communicated to the media in unedited full text through a Regulatory Information Service. This material is not a substitute for reading the full 2020 Annual Report and Accounts. References to page numbers and notes to the accounts set out in the Appendices below refer to page numbers and notes to the accounts in the Group's 2020 Annual Report and Accounts.

The Preliminary Announcement includes an indication of the important events that occurred during the year and a condensed set of the financial statements.

The Group's auditor has reported on the accounts and its reports are unqualified. The Independent Auditor's Report on the Group financial statements is set out in full on pages 53-56 of the 2020 Annual Report and Accounts.

APPIX A - DIRECTORS' RESPONSIBILITY STATEMENT

The 2020 Annual Report and Accounts contain a responsibility statement in compliance with paragraph 4.1.12 of the DTR. The directors' responsibility statement is set out on pages 50-51 of the 2020 Annual Report and Accounts for the Group. This statement is set out below in full and unedited text:

The Directors are responsible for preparing the Annual Report, the Directors' Remuneration Report and the financial statements in accordance with applicable laws and regulations. The Directors are required to prepare financial statements for the Group in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). Israeli company law requires the Directors to prepare and approve such financial statements.

International Accounting Standard 1 requires that financial statements present fairly for each financial year the Company's financial position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting Standards Board's 'Framework for the Preparation and Presentation of Financial Statements'. In virtually all circumstances, a true and fair presentation will be achieved by compliance with all applicable International Financial Reporting Standards.

Directors are also required to:

   --      properly select and apply accounting policies; 

-- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

-- make an assessment of the Company's ability to continue as a going concern and disclose where they consider it appropriate; and

-- provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance.

The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company, for safeguarding the assets, for taking reasonable steps for the prevention and detection of fraud and other irregularities and for the preparation of a Directors' Report and Directors' Remuneration Report that comply with the Listing Rules and the Disclosure and Transparency rules.

Legislation in Israel governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each of the Directors confirms to the best of his or her knowledge:

1. the financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole;

2. the strategic report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties they face; and

3. the annual report and financial statements, taken as a whole, are fair, balanced, and understandable, and provide the information necessary for shareholders to assess the Company's position, performance, business model and strategy.

APPIX B - RISKS AND UNCERTAINTIES

The principal risks and uncertainties are set out on pages 22-23 of the 2020 Annual Report and Accounts. The full and unedited text relating to these disclosures are set out below:

The risks outlined below are those that the Board considers to be material to the Group. The Board routinely monitors risks that could materially adversely affect the ability of the Group to achieve its strategic goals and to maintain financial stability, assisted by the senior management team.

 
                    Risk                       How we manage the risk                Risk change 
                                                                                      in 2020 
 Political          There is a risk            The Group's operations are                 - 
  and                of harm to the             dispersed over a number 
  economic           business from              of locations so that should 
                     political unrest           a material adverse political 
                     or disruption,             or economic event arise 
                     particularly               in one location the Group 
                     in emerging                can continue with little 
                     markets, and               harm to its overall business. 
                     from a deterioration 
                     of economic 
                     conditions. 
                   -------------------------  ------------------------------------  ------------ 
 Legal and          There is a risk            The Group retains very experienced         - 
  compliance         that legal and/or          legal advisers of a high 
                     regulatory requirements    calibre for the Company 
                     are not met,               and main subsidiaries in 
                     leading to the             the Group who provide ongoing 
                     loss of licence            advice and updates on relevant 
                     to operate,                legal compliance requirements. 
                     reputational 
                     damage or financial 
                     loss. 
                   -------------------------  ------------------------------------  ------------ 
 Business           There are risks            The Group operates in numerous 
  continuity         to business                locations and its manufacturing 
  (including         continuity from            contractors are also located 
  impact of          specific events,           in multiple locations so 
  COVID-19)          including natural          that in the case of a business 
                     disasters and              disaster the Group's recovery 
                     the COVID-19               would be very quick and 
                     pandemic.                  continuity is guaranteed. 
                                                In addition, the key employees 
                                                in the workforce have been 
                                                positioned such that they 
                                                are able to work without 
                                                interruption by working 
                                                remotely from their homes. 
                   -------------------------  ------------------------------------  ------------ 
 Competition        There is a risk            The Group is a leading company             - 
                     that BATM is               in those technological areas 
                     unable to build            in which it operates and 
                     and main-tain              aspires to be a dominant 
                     competitive                player in each such niche. 
                     advantage in               The Group periodically evaluates 
                     its focus markets.         how to improve its efficiency 
                                                by developing and producing 
                                                better quality and performance 

                                                products at more attractive 
                                                prices - thus giving it 
                                                an advantage over its competitors. 
                   -------------------------  ------------------------------------  ------------ 
 Customer           There is a risk            The Group maintains ongoing 
  and partners       of harm to the             dialogue with its customers 
                     Group's revenues           and business partners in 
                     as a result                order to identify ahead 
                     of termination             of time any potential problems 
                     of business                arising on the part of the 
                     relationships              customer and in order to 
                     with material              maintain a close relationship 
                     customers or               with its customers. 
                     partners and 
                     sales agents. 
                   -------------------------  ------------------------------------  ------------ 
 Research           There is a risk            With respect to its R&D, 
  & Development      that R&D programs          the Group's strategy has 
  (R&D)              overrun or do              been to diversify its R&D 
                     not deliver                operations among a variety 
                     the expected               of teams, internally and 
                     benefits.                  externally (through universities 
                                                and hospitals that carry 
                                                out clinical tests) and 
                                                by using different R&D funding 
                                                sources - thus reducing 
                                                the R&D risk. In addition, 
                                                any significant new R&D 
                                                projects are brought to 
                                                the Board for consideration. 
                   -------------------------  ------------------------------------  ------------ 
 Information        There is a risk            The Group routinely carries                - 
  security           of information             out IT evaluations to ensure 
  (including         security, data             that its IT systems have 
  cyber security)    loss and corruption,       the latest cyber security 
                     and physical               tools and security procedures 
                     damage to IT               in place. In addition, BATM 
                     infrastructure.            and two of its subsidiaries 
                                                operating in the networking 
                                                and cyber niches are approved 
                                                suppliers to the Israeli 
                                                Ministry of Defense and, 
                                                as such, are continually 
                                                monitored by the MoD and 
                                                must maintain the highest 
                                                level of cyber security. 
                   -------------------------  ------------------------------------  ------------ 
 Foreign            There is a risk            The Group's finance department 
  Exchange           that the Group's           at the corporate level manages 
                     currency exposure          the cash and income in such 
                     leads to financial         a way as to match each company's 
                     loss.                      or subsidiaries' revenues 
                                                to its expenses and keeps 
                                                these in the same currency, 
                                                thereby avoiding any currency 
                                                exposure. When this is not 
                                                possible, the Group uses 
                                                hedging transactions when 
                                                needed to protect itself 
                                                against potential currency 
                                                risk. 
                   -------------------------  ------------------------------------  ------------ 
 

- Ends -

Enquiries

 
 BATM Advanced Communications 
 Dr Zvi Marom, Chief Executive Officer       [phone] 
 Moti Nagar, Chief Financial Officer 
 
 Shore Capital 
 Mark Percy, Anita Ghanekar, James Thomas 
  (Corporate Advisory)                       [phone] 
 Henry Willcocks (Corporate Broking) 
 
 Luther Pendragon 
 Harry Chathli, Claire Norbury               [phone] 
 

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