Batm Advanced Communicat... Share Discussion Threads

[zipstuck] 24/8/2022 08:09

The most concerning comments were on currency headwinds and dependence on bio medical division orders

[kooba] 24/8/2022 07:59

Having said that no privatisation moves and nothing hugely negative in trading ..but difficult to see from here what might spark a change of direction..market is always right and i guess briefing away from the public releases might have focussed more on the currency impact which has been substantial.

[echoridge] 24/8/2022 07:57

The Company's enterprise value is less than 100m, which is just crazy

[kooba] 24/8/2022 07:56

Disappointing in terms of margins and cash position. Explains their reluctance to use cash in buybacks i guess. I hardly think there is a reiteration in commitment to the buy back ,it gets a mention in passing as something they might consider. The cash position has fallen far more than a 10% share buyback would have cost..so maybe they see less scope to execute in terms of balance sheet?There is forward looking on revenues being in line with forecast but it looks like the company will be far less profitable and the cash positions will be far short of previous forecast. Previously they said growth in line with forecast which would encapsulate earnings as well as revenues ..now just revenues.Quick look is that the share price has been reflecting currency impacts on profits and the cash position and that the company was barely profitable in the first half. This doesn't fit the strong growth tag. Pe for current year is still well into the 20's even at this level and on the back of these results it strikes me that the derating has not been as out of line with operational performance as many considered.The company has much to deliver in the second half!

[oakville] 24/8/2022 07:35

How many you hold WIZZ?

[echoridge] 24/8/2022 07:33

easy on the exclamation points, wizz. The rev and margin reduction are due to the very expected reduction from the covid-mania period diagnostic sales. the cash fall is partly due to translational impact from the huge currency moves in Q1. meantime, the company is clearly (very) confident of the coffers re-filling and then some in H2 as they reiterated commitment to the buyback, never mind maintaining guidance overall. More after the call

[wizzkid211] 24/8/2022 07:32

Investor & Analyst Presentation

Dr Zvi Marom, CEO, Moti Nagar, CFO, and Ariel Efrati, COO of BATM and CEO of Telco Systems, will be holding a webinar for analysts and investors today at 1.00pm BST. To register to participate, please contact Henry Gamble at Gracechurch Group at [e-mail] .

[wizzkid211] 24/8/2022 07:19

MORE OF JAM TOMORROW!

[wizzkid211] 24/8/2022 07:17

At 30 June 2022, the Group had cash and cash equivalents and financial assets of $47.4m (31 December 2021: $ 67.8m; 30 June 2021: $64.9m). Financial assets represent cash deposits of more than three months' duration, held for trading bonds and marketable securities. The change in cash and cash equivalents and financial assets compared with the prior periods primarily reflects dividend and buy-back payments of $5.1m; an additional investment in ADOR of $4m; and the impact of the weakening of the currencies in which the Group's subsidiaries operate compared with the US dollar .

[wizzkid211] 24/8/2022 07:13

GROSS MARGIN AND REVENUE ARE ALL DOWN...!

[james dean] 23/8/2022 21:27

FSE

Hear hear.

[kooba] 23/8/2022 21:25

The secondary has indeed caused more trouble than it is worth from a U.K. perspective. A few have commented here on dropping the TASE listing...another possible idea along with some others. Many of which have very different repercussions ..just be glad when we have some facts to discuss!My guess would be Thursday but could stretch to Tuesday.

[fse] 23/8/2022 20:05

Just had another possibility creep in after echo spotted the T125 departure. Maybe BATM intend on dropping their TASE listing altogether and Israeli investors are/will be forced sellers. It appears as if there is more to it than just the T125 which was known about for a while and should have cleared the books by now.
The selling starts in Israel and then LSE has to rebalance.

This dual listing is turning out to be the worst of both worlds. Given the relative size of TASE and LSE it would appear most prudent to drop TASE listing. It seems the most straightforward immediate fix. Next one is to move Telco and cyber to NASDAQ.

[kooba] 23/8/2022 17:31

Post finals shop comment.BATM+ (BVC, House Stock, 52.3p) - FY Results, Strong Performance & OutlookThe Networking & Cyber and Bio-medical solutions technology specialist has published an excellent set of results for FY21, in our opinion, demonstrating strong progress across the Group. Momentum shown in FY20 visibly continued in FY21 in all business units, noting particular strength in its Bio-Medical division driven by diagnostics. Underlying Group revenues grew by 18% and EBITDA by 139% (pre the gain on the sale of the NGSoft business and sale of ventilators). BATM confirms that the strong momentum in evidence through FY21 continues into FY22F, with a strong order backlog noted.FY results performanceAt a reported level, the Group delivered FY21A revenues of $140.0m (our forecast $138.0m), with EBITDA at $29.7m (our estimate of $28.4m). On an underlying continuing basis (pre the significant 'ventilator' contract in FY20A and NGSoft) revenues grew by18% to $132.8m and EBITDA by 139% to 15.7m. At the earnings level, BATM delivered adj. EPS of 3.3p against our expectation of 3.0p. Cash resources benefited from the sale of NGSoft for a net $18.7m, with cash flow from operations at $8.7m, and with investment continuing to flow into growth, the net cash and investments balance (ex-leases) ended the year up 70% at $63.7m. No dividend is currently recommended for FY21A, noting BATM has proposed a share repurchase programme.Bio-medical dominates...The division generated 84% of Group revenues from ongoing operations in FY21A and we expect this dominance to continue through the current year with the Networking & Cyber division now beginning to build momentum leading to accelerating growth in future years. Diagnostics activities appear to be gaining strong traction in particular, driven in part by COVID related solutions, but these proving the concepts around BATM's technologies.Outlook - forecasts held, for the momentAt this juncture, still early in the new year, and noting industry challenges in supply chains, cost inflation and now uncertainties over the impact of events in Ukraine, we leave our current year forecasts unchanged. However, we note momentum across the Group and a 'substantially higher backlog from ongoing operations'. Our retained forecasts allow for 13% revenue growth in FY22F to $158m. We do not allow for any business or technology sales (such developments are a part of BATM's business model) in our FY22F estimates with underlying EBITDA from operations forecast to grow from $15.7m last year to $18.1m (+15%).Valuation thoughtsWe observe that BATM is delivering strong progress across the development of its technologies and the Group. A strong performance for FY21A has been delivered and we see material growth potential for the future. BATM presents a profitable high growth opportunity to investors across a span of technologies, these moving towards potential market inflection points. We look forward to another year of strong operational performance in the coming year. HOUSE STOCK.

[kooba] 23/8/2022 17:26

They have an obligation to announce any material change in trading without delay..if they were at any point since finals aware that the company would not meet full year expectation ..and lets face it they commented on a strong order book with the finals , then they would need to inform the market. I can see from the share price why poor trading might be interpreted as the reason for such a move but i can't think its that simple...if it is then it has leaked into the market ( Israel) from the company and serious questions will need to be asked.

[fse] 23/8/2022 17:16

Edited as I add some figures

Not sure if this is accurate but apparently Shore expect BATM to record

H1 2022 revenue at $79M and EBITDA of $9M

H1 2020 revenue 77M EBITDA 5.3M
H1 2021 revenue 71M EBITDA. 22.7M* (ex NGSoft 6.5M)

* This figure included one off sale of NGSoft. This was noted on results and when this was stripped out the EBITDA reportedly still rose by @18%.
BATM did spell this out with their results.

[rob1ng] 23/8/2022 17:11

I'll sit and wait till it hits 20p before I buy some more

[fse] 23/8/2022 16:42

We still have the buy back situation that did not happen and is not a situation of them being unable to do so due to constraints that time has long since passed.
The buy back was a childish response to an error they and their advisors made and should never have been announced. It was BS then and its BS now.
Marom saying he was upset about getting dropped from the Russel Index was one of the few really unimpressive comments. They knew about the scenario and they were given a years grace to sort it out. Very generous from Russel in my view.

As I have commented before I am not certain if they have an obligation to announce that they will miss market expectation over H1 results.
Their silence though pretty well indicates this.

[fse] 23/8/2022 16:09

They are getting savaged on TASE

Ordinary ShareSymbol : BVCDL
Dual-Listed Company
Last Rate (0.01 NIS)
116.7C
Closing Price
Change
2.42% Down
Turnover
694,868 NIS
Base:
119.6
Open:
119.6
High:
121.8
Low:
116 As of 23/08/2022 17:46 15 min delay

No announcement when H1 results will be given out or any indicator as to what has caused this precipitous fall. This is not the company I have known for many years or thought I knew.

[kooba] 23/8/2022 15:46

Posted the year end comments mostly because it will be rather difficult putting forward any scorched earth update to justify anything not in shareholder interests. I have not given up and will be fascinated to see what the company comes out with likely before the end of this week.The buyback could re Israeli regulatory and being worked on..possible capital reorganisation?The company could be looking at an acquisition that has dragged on but could be very value enhancing and they have retained the cash for that.Anything is possible including manoeuvres to privatise one way or another.There is a feeling that senior management has given up on shareholders and maybe listings but it could just be they are sticking to their knitting and driving things on...some clarity either way is now very important.

[kemche] 23/8/2022 15:30

echoridge - 25 Jul 2022 - 13:00:14 - 20880 of 21125 Batm Advanced - A New Beginning - BVC

I was referring to the bounce in world stock markets, not BATM. As long as that doesn't completely reverse, I'm confident we've seen the lows in our share price There are at least 2 decent sized buyers around today who agree with me, fwiw

echoridge - 25 Jul 2022 - 09:47:37 - 20877 of 21125 Batm Advanced - A New Beginning - BVC

I think by this time next week, we will have seen the bottom in this sp, if we haven't already. If markets remain reasonably well underpinned (ie., we don't completely reverse this recent bounce), I think BVC can recover to mid-40s on fundamentals and continued reduced selling pressure (particularly noticeable for the past 2 1/2 sessions in Tel Aviv where much of the recent selling seems to have originated) alone.

[shareholder7] 23/8/2022 15:23

I would tend to agree with you and they will have to publish at some time but expecting bad news as something seriously wrong