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(Alliance News) - BATM Advanced Communications Ltd on Monday raised full-year earnings guidance after surging bottom-line growth in the first half of the year.
The Israel-based medical technology company posted a pretax profit of USD19.8 million, up sharply from USD1.9 million a year before. Earnings before interest, tax, depreciation and amortisation for the six months ended June 30 was USD22.7 million, up from USD5.3 million a year previously.
Growth was partly attributed to "significant demand" for high-margin diagnostic solutions, especially for products related to Covid-19.
Annual Ebitda is now expected to be more than 20% ahead of market expectations. Ebitda of USD19.7 million was generated by BATM in 2020.
Half-year revenue dropped 7.8% to USD71.4 million from USD77.4 million a year prior. Annual revenue is now expected around 5% ahead of market expectations. The previous year saw revenue of USD183.6 million posted.
"This is an excellent set of results for BATM, driven by significant demand for our high-margin diagnostic solutions, especially for Covid-19, as well as the value creation through the sale of a non-core subsidiary. Equally, on an underlying basis from ongoing operations, we achieved over 8% growth in revenue and almost 30% if also excluding our exceptional ventilator contract delivered last year," commented Chief Executive Zvi Marom.
Looking ahead, BATM entered the second half with a strong order book and sustained demand for its diagnostic products, the company noted.
"We anticipate achieving better-than-expected revenue for the full year and Ebitda to be substantially ahead of market expectations with growth of over 40% year-on-year. Consequently, and supported by a robust balance sheet, the board of BATM continues to look to the future with great confidence," Marom added.
Shares in BATM were up 2.5% at 90.00 pence in London on Monday morning.
By Will Paige; willpaige@alliancenews.com
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