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It's a beat! (Versus Shore's forecasts)
Revenue (-9.3%) $60.2m vs $65.8m forecast
EBITDA (-13%) $4.4m vs $5m forecast
PBT (+35%) $2.3m vs $1.7m forecast
EPS (+10%) $0.22 vs $0.20 forecast
The de-emphasis of non-core appears to be succeeding. The drop in revenue presumably due to a focus on higher margin activities - per Moti's presentation a few months back.
What stands out for me is the positive outlook for H2:
"Looking ahead, we have entered the second half of the year in a better position than at the same point last year, with sustained revenue momentum and a higher backlog. We expect to deliver year-on-year growth in Networking, with increased revenues from both carrier ethernet and Edgility. Our cyber business revenues are expected to be higher in the second half than in H1 as we ramp up delivery of our large contract won earlier this year. Our Bio-Medical division is also expected to continue to increase sales. As a result, we expect to report year-on-year growth for 2023, in line with market expectations."
Shore's full year forecast EBITDA $10m and PBT $3.4m for 2023 appears undercooked to me. Extrapolating the forecast revenue (aka market expectations) but at the revised margins achieved in H1 suggests a PBT closer to the 2024 forecast number ($6.9m)
Very good news indeed!
RNS Good Interim Results, promising looking growth... what will the market think? ... I still think it will not move the share! but should keep the holders happy!
Thank you for sharing your insight Resistance, very useful information for all investors. I look forward to keeping a close eye on Ador Natlab over the coming months/years
In April this year Oxford Nanopore Technologies plc (LSE: ONT) announced that they have teamed up with bioMérieux to bring nanopore sequencing to the infectious disease diagnostics market. They say their solution will be commercially available in approx. 24-months (April 2025.) The molecular diagnostics market will reach £24.9bn by this time. This is roughly the same timeline for full commercial availability for Ador Natlab molecular diagnostics platform for infectious diseases. Interesting Oxford Nanopore is currently valued at £2bn on (stripping out covid testing) sales of around £160m and is yet to break even. It was worth at the end of 2021 nearly £6bn and will probably get back to those heady heights when true stock valuations return. Ador Natlab will be the market leader in terms of processing speed, diagnosis cost and the number of different diseases it detects. In June’s CMD presentation it was flagged a JV partner would be brought on board to rapidly commercialise it. Down the line, Ador Natlab would also be further developed to test the gut microbiome for traces of other diseases and for oncology diagnosis. Overall, I had no idea of the scale of opportunity that awaits us here. I appreciate for some posters, this wont be good enough.
Resistance I think this goes without saying. I can't think of anyone who would bother posting on a forum if they didn't have any skin in the game. Very obvious attempts at drowning out positive information with his constant negativity and bashing of the business. Although i must say i am impressed with his tenacity in the face of 'clued up' investors.
Either the 'wronged ex-investors' that negatively post here are driven by being wholly publicly spirited with an abundance of time on their hands or (more likely) they have placed small shorts on the stock.
BATM given the fact that it is more than holding its own through some extremely difficult times is experiencing growth in all divisions. The company has developed IP to the point where it is now a saleable product. BATM has adequate resources to continue its plans and to take part in any M&A that may come its way which would be further strengthened by any disposals .
Under normal conditions, which we are sadly not experiencing, BATM would be trading at a premium not a discount.
>Dartron... If someone invites you to a party and you decide not to attend, do you then say what a horrible party it was. What is the purpose of your posts on here seeing as you consider the company not worth your time.
Oh, I don't know, maybe if you asked something approximating a relevant question related to a relevant issue from say, this decade, that's relevant for the company's future success? Like say, instead of trying to re-litigate relatively minor issues like the 'lack' of insider buying in the Company over time, maybe you could ask for help understanding what the margins look like in Edgility's massive contract with CityFibre as BATM rollout their 'last mile' boxes to CF's 800k business and 2m private customers over the next 5 years, or perhaps ask about the future market potential of the Company's recent breakthrough order in emergency services in the US (or maybe just stop for a moment and acknowledge the increasingly rare event of an even-1/2 British tech company penetrating the US market altogether). Maybe you could ask a question about the Company's Carrier Ethernet business which remains significantly profitable after 2 decades, with gross margins 2x its nearest competitor like, Could anyone here who actually follows this business help me understand it better and do they think it may be one of the targeted businesses for sale or will Moti decide instead to double-down on it? How about, In this past year's year-end review and the CMA deck (again: read it and join the rest of us in 2023), the Company talks seriously for the first time about JVs. Where do people who actually follow and understand this Company think that, among its major growth areas, will a JV partner most likely emerge, Cyber, Edgility or Adore? See how easy it is when you drop the bogus attempts to impugn the integrity of BATM's executives and traffic in innuendo and conspiracy theories (no, Moti not buying shares as CFO was NOT a 'red flag', you fugazi, but more on that in a future post) and actually engage with the Company's operations and the multitude of potential value-creating events triggered by the new CEO's strategic plan - as they exist TODAY, and not 2018 - and then lean into your ignorance and ask the right questions, and you may actually learn something because THEN I might have some answers for you.
OK, Bluerill can not answer my questions, which is good as he is tiresome to converse with. I am happy not to converse with him any more, I agree with Sensei, way too much garbage being written here. Irony is that you usually find the 'haters' usually do the things themselves that they try to pin on to you. Anyhow, he is best ignored as he has demonstrated.
InContext, thankyou for a sensible reply. A few thoughts here, BVC should trade at a discount to the sector, for all the reasons I have mentioned in this thread. Historic average, obviously depends what history you want to use, if it was 2021, when all equities were overvalued it would be 80p no problem (rightly or wrongly). But historically, from 2011 to 2017, this could not break 20p. Im sure there were equally bullish investors just waiting for the market to realise this and that about the company during that period. Why has it taken nearly 30 years to get no where? During that time, I wonder how much shareholder value has been returned? I mean, for comparison, the FTSE350 has risen 158% since 2002. This company should be doing a lot better, look at all the cash they took in Covid, where has it gone? Did you get any? What has any one got to show for it?
TraderWizzard, need to brush up on how options work. They do not vest until 1st, second and third anniversary. I was talking about him buying shares with his own money. His purchase would actually be cheaper than the options which strike at 25.49p. He could have bought after results in non closed period at 22p. Maybe he knows something after all he was the CFO. (huge red flag if your CFO wont purchase - free tip there for any company).
Lets wait and see what the results bring, honestly, I think 'not much', SP might fall a bit, but market just isn't interested either way in this stock.
Here are the bear points for BVC:
- No director buying.
- No trading update in 2023.
- Lack of tangible progress RNS this year. Only 2 contracts, no financial details.
- History of not doing what they say.
- Unfavourable geographic location, with negative tax implications.
- V Long history of under achieving.
- CEO promoted from 8 year tenure as CFO, see above point.
- Most holders underwater (except those getting free shares).
Lets check in when there is some news, I hope all of you have other successful investments.
Yes, but what about how Zvi failed to anticipate a worldwide Covid pandemic and then neglected to foresee how long it would last....or that Donald Trump would try to upend democracy in America or the Maui wildfires or that Australia would retain the Ashes?!? Coincidence? I think not....btw, thank you for the kind remarks, stock sensei. Appreciated.
The problem at the moment with BATM share price is mainly due to valuations particularly with companies in this sector. If BVC was valued on historical norms then todays SP would be in the 70p to 80p range. It does not alter the fact that BATM saw growth in all divisions when you stripped out the Covid Sales. What investors will be looking for with H1/23 figures will be dominated by progress with Edgility, its hardly all they do but its in the news.
Datron, H1's are due on the 29th. Those who have invested in the business are looking to see if the growth targets have been met. Please take time to think what it could be that is stopping Moti exercising his options? (this may prove to be a hard task for someone such as yourself). Maybe it is due to a significant event, disposal/purchase, JV or major contract that is stopping him. Once these are cleared or fulfilled them I am sure he will.
The options were awarded in 2023, so I feel they are a current topic. They were awarded to the new CEO Moti as you know. I was explaining that the buy back bought less stock than was handed out the very next month, but since you cant refute this, you want to move on, because it is all different now and that was in the past! You want to brush this shady topic under the carpet, as that was when old investors got screwed (less than 12 months ago!), and now you want new investors to be ignorant about this.
Why has Moti not bought any stock? Why must it be handed to him, diluting the likes of ordinary shareholders? You said yourself, the stock is under valued, so you would think that he would be keen to buy some? Before you start, the stock was handed to Moti BEFORE he has achieved anything - this is not a reward is it. It is an upfront gift.
stock_sensei, you are free to filter out chat that you do not like. All I have done is pasted information from RNS, and explained what happened in 2022. If you feel that is useless garbage, then good luck to you. I would suggest potential new investors and rational minded people consider both sides of the storey here.
So do you think the interims are coming out soon? I see there has not been a trading update this year. Perhaps we will find out about the $25M Covid tender? Oh, I do hope it happened, and is not just another storey like the buy back. I want to believe in these guys, but they make it soo hard.
"The Diagnostic unit was informed that it is due to be awarded a major tender, with a value of $25m, from a customer in Southeast Asia primarily for the delivery of COVID-19 testing kits, and the Group has been awaiting a signed contract. Whilst the Group has had good visibility on this project, given that it is now December, should the contract be received and signed, the revenue would be recognised in 2023.."
https://www.lse.co.uk/rns/BVC/trading-update-2cqlyfitp2fguvr.html
Datron, please don't post useless garbage on this page. We are trying to keep it informative for investors. Your poorly written blogs scream you are short and trying to get retail to sell to pump your bags. Bluerill, I am sorry you had to deal with this moron! Your responses are clear, concise and accurate. Anyone new to this page should read what he has to say, he knows what he's talking about!
Those are normal options awards, you [fill in the blank. I promised to keep the insults to a minimum]. Otherwise, your entire thesis is so ludicrously removed from the Company's current strategic focus as laid out in the recent capital markets presentation (start by reading the deck. It is on the Company's website and will help you join the rest of us in 2023) - from investments in major growth areas like Edge Computing, Medical Diagnostics, and their Cyber niche to a significant disposal and acquisition program - that responding to absolutely ANTHING you've written would require I join you back in 2019, before Covid and a major management change this year which saw Moti replace founder-CEO Zvi Maron (a fact you somehow didn't know), and I'm not prepared to do that, thank you very much. The new CEO and his radical new focus have been slow (in the market's mind anyway) to deliver major news thus far and the share price has drifted. I don't agree with the market's assessment but fine, I accept that's what makes a market and more than ever, the pressure is on for Moti to deliver. Meantime however, your mishmash of ancient tropes and conspiracy theories and downright frightening capital market's ignorance, have nothing whatever to do with BATM at present and thus require no 'facts' in response. Sheesh
Https://www.lse.co.uk/rns/BVC/grant-of-options-x3r08zdgufnx1ss.html
Grant of options - 3 Jan 2023
Moti Nagar CEO 16,433,937
Gideon Chitayat* 1,229,369
Total = 17663306 options granted.
https://www.lse.co.uk/rns/BVC/transaction-in-own-shares-and-tvr-ag7ttc3q63ko1x0.html
Final buy back 21 December 2022
4,495,000 Ordinary Shares held in treasury.
Still not a single fact back from you.
Aside from the needless double-spacing and severe cap lock abuse, that is unquestionably one of the dumbest, most-FACT free posts I have ever read. '.....They are unable to distribute profits.....' huh? '....They have since issued more options than the stock they bought back, diluted holders even more!....' whaaaaa?? Did you think you were writing about your fantasy football team or something? It might have made more sense then. A more transparent attempt at mindless trolling would be hard to find. God, I wish I was wrong earlier, but you're even worse than I speculated.
You're right about one thing. you obviously don't get paid to write.
I was going to leave it, but since you insist,
I was invested here, as you well know. During that time I received the paltry 1p dividend, which then had Israeli withholding tax applied. This is around 23%, I was making the point that profits can not be effectively distributed via a dividend - this is a fact. So if the money does start rolling in from these contracts, (minus the 30% of admin costs here), how can investors benefit? If you want to label it as a growth stock, what is the exit strategy? I cant see one which is beneficial to private investors.
As for baseless slurs on the management, I base my slurs on the past words and actions of the BOD of BatM:
They proposed a substantial share buy back - FACT
They bought back no where near the amount that they stated - FACT
Consequently, they mis lead investors at the time - FACT
They have since issued more options than the stock they bought back, diluted holders even more!
So why should an investor trust BatM to look after them, when they have a past track record of deceit?
This is another reason why this share price will not appreciate, most investors (who conduct DD) are going to look at this as a massive red flag, and then start to think, what else might they be lying about. Back to the buy back, they didn't really have the money to accomplish the buy back, so it was very disingenuous.
The two combined also make this stock very susceptible to short selling, as it will always be over valued, any spike can be sold into. BatM, can not provide enough good news to combat this. This is not their fault, but worth mentioning since shorting is talked about so much here.
It would make the most sense to take this back private, it is clearly undervalued, but I feel the only people who can realise the value here are the current directors and key share holders. Putting integrity to one side, it would be quite a smart thing to do.
In very simple terms:
They do not need further access to equity.
They are unable to distribute profits.
These are the main reasons to be a listed company on a stock exchange. They remain listed as they don't want to stump up the cash to buy share holders out. I cant see a buy out as the company is too fragmented, so it all rests on when Zvi wants to cash it in, and how he wants to do it, and what conscience ultimately he has.
I do not get paid to write, I wish I did! I just write it, like I am trying to assume in good faith that, 'you just write yours'. I am happy to point out the issues that I overlooked, which ultimately cost me money here. I am very happy to discuss BatM, but have heard little tangible rebuttal of my argument from you, instead you prefer to be the clown, why is that?
InContext, you are quoting more puff piece from the results. Nothing about profit, just one line on revenue growth - doesn't even split it out for each group. It is a start, but out of date, and not reflecting inflation, and operating costs. Might not transla
'.....Even once BatM do become more profitable, the issue as I see it is getting that money back to share holders. This is an awful stock in all respects for these reasons. I wouldn't put it past BatM to try to take this back private at all time lows. They never had your interests at heart.....' Gobbledygook like this, a combination of baseless slurs against management and gibberish like claiming a key for the Company right now is 'getting that money back to share holders', is like a fingerprint identifying the writer immediately as a troll for hire.
In 2022, we delivered a solid performance while navigating substantial global economic change – with the main effects of the pandemic subsiding, inflationary cost pressures and significant fluctuations in currency exchange. Against this backdrop, I am pleased to report a strong performance in both of our divisions, with Group revenue increasing by 12.7% for ongoing operations when excluding the exceptional contribution of sales of COVID-19 products to both years.
Dartron you should read my comments more accurately I stated Ex Covid. You could not have read the company year end report either as it does deal with the situation in total and ex covid. The facts are there in published form its not conjecture
Enjoying the petty squabbling that is going on, I think you are both right in your own ways, but the share price does not reflect any of this, batm did say it had no intentions of going private, but I don’t see any of the great things to come as they said over the last few years, it is pity, because I .once did actually believe it was a good bet , but now that I am not in the share and have an outside view, I see no sense to invest in the stock!
My english was perfect. Maybe you need to graduate from reading RNSs in order to improve your comprehension skills. Anyway, while Incontext answers your meaningless question in his own time, I'm jumping in an attempt to save everyone a bit of time and explain your likely provenance and why you have appeared suddenly making baseless accusations and generally writing gibberish. Clear enough?
Question directed to InContext, awaiting his response.
Sorry didn't understand your last post Bluerill, seemed a bit confused / not great english.