Develops antenna for commercial and military market
Subsidiary Mottech provides water management solutions
Provides services for sectors including wireless and mobile internet
What MTI Wireless does
MTI Wireless Edge Ltd (LON:MWE) develops and produces high-quality antennas for the commercial, radio-frequency identification (RFID), and military markets.
The company’s products can be used for wireless and mobile internet applications, while its military hardware encompasses a wide range of broadband, tactical and specialised communications antennas and systems.
The group’s Mottech Water Solutions provides water management systems for agricultural irrigation.
How is it doing
For the six months ended 30 June, MTI reported that revenues had risen 12% to US$19.1mln (H1 18: US$17.1mln), while pre-tax profits shot up to US$1.43mln (H1 18: US$0.86mln).
Cash flow from operations also climbed during the period, up 22% year-on-year to US$2.6mln (H1 18: US$2.1mln), leaving MTI with a cash balance of over US$5mln.
Bosses said the results reflected order book growth across all three business divisions: the Antenna Division, the Water Control & Management Division and the Distribution & Professional Consulting Services Division.
What the boss says: CEO Moni Borovitz
“In the first half of 2019 we continued to perform in accordance with our business plan, delivering significant revenue growth and increased profitability, whilst at the same time converting this growth into operating cash flow.”
“We are very pleased with the results for the first half. These demonstrate the financial benefits of the recent merger, which has delivered double digit year-on-year revenue growth and increased profit margins.”
Borovitz added that MTI had made “solid progress” with the testing of its new 5G antennas, for which it continues to see “substantial demand”.
Management is “very positive outlook” about the outlook for the business and thinks the weakening pound could inflate full-year results even further.
“We also note the weakening of the UK pound against the US Dollar which is the company’s reporting currency. If this trend continues it will likely increase the profitability of the company relative to the UK pound, and in-turn increase earnings per share.”
- 5G antennas are potentially a huge market for MTI
- In mid-September, the company secured a US$1mln order from an Israeli customer for the supply of Hi-Power Microwave Terminations
- With shares at 31p, MTI is valued at £25.9mln as of 16 September