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(Alliance News) - BATM Advanced Communications Ltd on Monday reported considerable profit growth as sales of Covid-19 test kits and ventilators drove up BioMedical division revenue.
Shares in BATM were down 4.3% at 110.10 pence in London in morning trading.
The Hod Hasharon, Israel-based company provides technologies for networking solutions and medical laboratory systems and posted a USD13.3 million pretax profit for 2020, more than twice its USD4.8 million profit the year before.
Revenue jumped 49% to USD183.6 million from USD123.4 million, including a doubling of BioMedical division revenue to USD128.7 million from USD64.4 million thanks to sales of Covid-19 diagnostic kids as well as critical care ventilators.
This more than offset a decrease in Networking & Cyber division revenue to USD54.9 million from USD59.0 million as Covid-19 inhibited BATM's ability to travel to customer premises and install equipment.
For 2021, the company expects to achieve revenue from its continuing operations, excluding the impact of a large ventilator contract received in 2020, and to achieve further gross margin improvement due to increase revenue contributions from molecular diagnostics and network function virtualisation solutions.
Chief Executive Zvi Marom said: "Looking ahead, we entered 2021 with sustained momentum in the Bio-Medical division as we continue to receive strong demand for our Covid-19 test kits and instruments. We are also scheduled to launch various new, very advanced diagnostic testing kits this year.
"In the Networking & Cyber division, we expect sales of NFVTime to make a good contribution to the full year revenue of this division. This will enable us to achieve further improvement in our gross margin, reflecting the strengthened foundations of the group. As a result, the board of BATM looks to the future with great confidence."
BATM's board has resolved to recommend distributing a dividend for 2020 after publishing its audited annual report and accounts, in accordance with Israeli law, with more details expected in due course.
By Anna Farley; annafarley@alliancenews.com
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