Mti Wireless Edge Share Discussion Threads

[049balt] 11/12/2024 14:46

Likely a bid to take company private. Value will not be realised with stock market listing.

[igoe104] 11/12/2024 11:17

Yes Rivaldo, that's a Big Green flag...

[rivaldo] 11/12/2024 09:40

Extremely heavy director buying just before the year end...perhaps a bit of a clue to the year end results :o))

The CEO and Chairman's family company have bought £150,000 of shares and now own 33.11% between them.

Plus the Beer family have bought £193,000 of shares and now own a further 11.19%.

And MWE themselves bought in another 100,000 shares:

[rivaldo] 25/11/2024 08:55

Solid Q3 results, helping the nine months' EPS up 11% to 3.6c.

There's also almost $5m in the bank after $1.1m of buybacks.

Most importantly the outlook remains positive short and long-term, with 5G, defence and irrigation/water conservation all key global sectors for investment for the foreseeable future:

- "Q4 has begun well"
- new antenna solution now moving into pre-production
- MWE's own wireless irrigation controller being introduced
- Indian 5G sales rising on "new orders from a leading cellular service provider"
- "Increased demand for military antennas globally"
- Summit expected to have an improved Q4 for a number of reasons



Incidentally, Shares Magazine states that the Miton UK Microcap trust may well simply be "rolled into another of Premier Miton’s open-ended funds, so this may not be the end of the road for investors."

[cerrito] 19/11/2024 20:21

Note that MINI the Miton micro cap Investment Trust is going through a corporate reorganizatuon which may entail them aelling all or some of their MWE shares which at April 30 this year were valued at £1.26m.
You may want to follow how the MINI situation evolves.

[alex_mc] 19/11/2024 18:56

Do we know when Q3 results are due? Around now last year I believe….

[rivaldo] 26/9/2024 09:12

Yep, another $750k in the bank for the next 12 months, this time for military antennas.

Most importantly, this is for an entirely new customer and "this is the start of a long term relationship, which has the potential to be extended to other types of antennas."

MWE's sectors of 5G, antennas, defence and water-efficiency/saving products are all looking good now given the range of recent contract wins.

[igoe104] 26/9/2024 06:25

Another contract win.

[rivaldo] 24/9/2024 08:59

Shore Capital this morning retain their 80p target and conclude thus:

"Outlook and valuation:

We make no changes to any of our group forecasts on the back of today’s win but, obviously, if further significant orders are secured then there is upside potential, particularly, in the outer years. We noted at the time of the interims that MTI had confidence that Antennas and Summit continued to be well-placed to deliver improved profitability as FY24F progresses, which today’s news should help to demonstrate.

We continue to believe that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast. as its software improves the efficiency of irrigation systems, while reducing the cost of operating them. We also expect to see good demand for the defencerelated products and services of Summit/PSK. Finally, the Antenna division is also likely to benefit from increased defence spending as well as the rollout of 5G across the world.

We maintain our 80p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY24F EV/EBITDA multiple of 12.8x (the average of our peer group)."

[049balt] 24/9/2024 08:04

What a resilient company mwe is, just a pity it is based in Isreal at the present time.

[igoe104] 24/9/2024 07:05

Most important thing about today's RNS, is the statement of more orders incoming...

[rivaldo] 24/9/2024 06:27

Big news - the first 5G contract win in India. The initial win is for $700,000 and is with "one of India's leading cellular service providers". Above all:

"if the initial order is delivered on schedule, further orders will be forthcoming. The Group estimates that these further orders will be considerably larger multi-million US Dollar orders."

Note also the headline to the RNS - "Indian Contract Win Adds to Strong Orderbook for 5G" - confirming that 5G demand elsewhere continues to grow:

[rivaldo] 20/9/2024 08:42

200,000 shares bought back at 46.5p is unusually large - hopefully a sign of how confident MWE are at this point.

[rivaldo] 17/9/2024 08:11

Techinvest's recent September issue reviewed the interims as follows and concluded (noting too that MWE had a 4.7p per share cash pile):

"A strong performance from the Antenna division was driven by a high level of demand for both military antennas and the group’s 5G backhaul antenna solution. This trend looks set to continue, with significant order backlog and an increased number of opportunities in the pipeline. Despite lower sales for Mottech,
profitability in the first half was substantially higher, reflecting a higher margin business mix and successful price increases.

The board reported that third quarter trading in the division has started well and prospects in Europe for the fourth quarter onwards in particular look positive.

The long-term driver for Mottech is the continuing global problem of water scarcity. According to figures from UNESCO, 2.2 billion people still live without access to safely managed drinking water and 3.5 billion lack access to safely managed sanitation. Moreover, the problem of water scarcity is no longer restricted to underdeveloped countries located close to the equator, with the issue now affecting significant parts of Europe where water levels are dangerously low.

Mottech has established a strong position in this market segment through its remote control and monitoring solutions for water and irrigation applications.

Trading on a prospective P/E of 11.5 for the current year, and offering a useful dividend yield of 6.2% for investors who like to have some income, the shares remain an attractive proposition. Buy."

[rivaldo] 11/9/2024 14:29

Great to see the continuing rise here, and to see the break above the late May high.

Johnthespacer, the buybacks do indeed benefit EPS. Take a look at the results if you want to be sure. The number of weighted average shares in issue for calculating EPS etc has been declining every six months - that's because of the buybacks (unless you can advise otherwise).

If/when the shares in treasury are reissued, because they've been resold to institutional investors for example, or indeed if they're cancelled, then the number of shares actually in issue will change once more and the number of shares upon which EPS is calculated will change once again.

[johnthespacer] 10/9/2024 16:32

They are bought back but not cancelled but held in treasurey to aid liquidity... so not affecting eps etc

[049balt] 10/9/2024 12:43

Something stirring here...

[rivaldo] 09/9/2024 11:08

Nice start to the week, and on higher than usual early volumes too.

[rivaldo] 04/9/2024 06:18

Another 50k of shares bought back yesterday means that MWE have now bought back a sizeable 1.813m shares in total.

This year's H2 and full year EPS will of course benefit nicely, plus MWE will also save on the cost of the forecast 3.4c dividend (unless MWE re-sell the shares at a profit as they've often done previously).

This unusually large level of buybacks reflects the similar amount of confidence shown in their recent outlook statement:

[rivaldo] 02/9/2024 09:28

Shore Capital retain their 80p target (almost 100% upside), plus their forecasts of 4.5c EPS and $9.3m net cash. Apart from noting the detail of today's contract win they summarise:

"Most importantly, in our view, new business wins are expected to drive revenue growth in the remainder of FY24F and future years giving us confidence that our forecasts will be achieved. Moni Borovitz, CEO, said: "This order is the result of the success of our design wins in recent years. It includes several components that were designed by our team as part of a customer’s solution and we are now seeing the benefit from this customer’s success in the international market.” We would therefore expect to see further contract wins across the group in due course.

Outlook and valuation:

We made no changes to any of our group forecasts on the back of the H1 results. We were encouraged by the improved EBIT margin for Mottech in H1 and the confidence that Antennas and Summit continue to be well-placed to deliver improved profitability as FY24F progresses, which today’s news helps to demonstrate.

We continue to believe that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast. as its software improves the efficiency of irrigation systems, while reducing the cost of operating them. We also expect to see good demand for the defencerelated products and services of Summit/PSK. Finally, the Antenna division is also likely to benefit from increased defence spending as well as the rollout of 5G across the world. We maintain our 80p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY24F EV/EBITDA multiple of 12.8x (the average of our peer group)."

[rivaldo] 02/9/2024 06:15

Nice - a large €2.6m contract win for radio frequency components to the defence sector:

[rivaldo] 22/8/2024 08:26

Allenby have also issued an update, with a 75p fair value. They estimate 4.56c EPS and $8.7m net cash this year and summarise:

"Solid H1; encouraging signs in Q3

Solid H1 from the technology group focused on comprehensive communications and radio frequency solutions, with each division (Antennas, Mottech and MTI Summit/PSK) remaining profitable. Group revenue was flat at $22.3m but there was good growth in EBITDA (+18% to $3.3m), reflecting a more favourable business mix and cost control, and cash remains strong at $5.5m (FY23: $8.8m), following the FY23 dividend ($2.7m) and share purchases ($0.6m). This latter facility has been increased by £0.3m.

Q3 has started well with demand for products remaining high and enquiry levels for future projects at an all-time high, largely relating to the global defence sector. There are also encouraging signs for Mottech, particularly in Europe, and there is good interest in MTI’s 5G backhaul antenna solution, although the timing of contracts here remains unpredictable. The domestic situation remains challenging but our unchanged forecasts assume a return to revenue growth in H2 and we retain a 75p/share fair value."

"Outlook: Product demand is high and enquiry levels at record levels. Q3 trading has been positive, and MTI remains hopeful of securing material contracts in H2."

[rivaldo] 21/8/2024 11:06

Shore Capital have an 80p valuation, and forecast 4.5c EPS and $9.3m net cash (against a £32m m/cap) this year. They summarise today's results as follows:

"MTI Wireless Edge (MTI), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, has announced H1 results for FY24F.

The group delivered an 18% increase in adj. EBITDA to US$3.3m (vs US$2.8m in H1 FY23A) on flat revenues of $22.3m. Adj. PBT was up 9.8% at $2.3m ($2.1m) and adj. EPS increased by 8% to 2.14c (1.99c). Net cash at end-June 2024 was $5.5m vs $8.3m at the end of March 2024, reflecting the $2.7m payment of the 2023 dividend and the share buyback of $0.6m in the period. We view the expansion of, the buyback programme to £1.0m vs £0.7m from this week as a sign of management’s confidence.

Most importantly, in our view, new business wins are expected to drive revenue growth in the remainder of FY24F and future years giving us confidence that our forecasts will be achieved."

"Outlook and valuation: We make no changes to any of our group forecasts on the back of the H1 results. We are encouraged by the improved EBIT margin for Mottech in H1 and the confidence that Antennas and Summit continue to be well-placed to deliver improved profitability as FY24F progresses.

We continue to believe that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast. as its software improves the efficiency of irrigation systems, while reducing the cost of operating them. We also expect to see good demand for the defence-related products and services of Summit/PSK. Finally, the Antenna division is also likely to benefit from increased defence spending as well as the rollout of 5G across the world.

We maintain our 80p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY24F EV/EBITDA multiple of 12.8x (the average of our peer group)."

[rivaldo] 21/8/2024 08:06

Agreed - good H1 results which make MWE look extremely good value at these levels.

Most importantly the outlook for the year is extremely optimistic. With 2.14c EPS achieved in the usually seasonally weaker H1, MWE are on course to certainly meet and potentially beat the forecast of 4.5c EPS this year:

"Outlook

Demand for our products is high and enquiry levels for potential future projects is at an all time high, largely relating to the global defence sector. Trading in Q3 has been positive so far and we are hopeful of securing some material contracts in the second half of the year. Overall, the business is well placed with good visibility on potential future contracts which will support the prospects for the business into 2025 and beyond."

With the three core drivers for the company being defence spending, water efficiency/scarcity and 5G, prospects will remain bright for many years to come.

And MWE are well funded for such growth - they currently have $5.5m of net cash which is forecast to rise to $9.3m at the year end - over 20% of the m/cap by itself.

It's also good to see the share buyback programme being expanded to £1m as an additional sign of confidence going forward.

[igoe104] 21/8/2024 06:08

Decent results, especially considering what's going on in the middle East.

Financial highlights

·    Revenues level at US$22.3m (H1 2023: US$22.3m)

·    18% increase in EBITDA* to US$3.3m (H1 2023: US$2.8m)

·    Profit before tax increased 10% to US$2.3m (H1 2023: US$2.1m)

·    Earnings per share increased 8% to 2.14 US cents (H1 2023: 1.99 US cents)

·    Strong financial position maintained with net cash standing at US$5.5m on 30 June 2024 (31 December 2023: $8.1m) after payment of dividend (US$2.7m) and purchase of shares (US$0.6m) via the buyback facility during H1 2024

·    Expansion of buyback programme effective from 22 August 2024 with increased funding from £0.7m to a maximum of £1.0m