Mti Wireless Share News (MWE)

(Sharecast News) - MTI Wireless Edge reported revenue of $11.3m in the March quarter on Wednesday, representing a 1% year-on-year increase.

The AIM-traded company said its profit before tax jumped 15%, to reach $1.1m, thanks to an expanded gross margin and higher interest received from cash on deposit.

It said it achieved a net profit of $0.88m in the three months ended 31 March, making for a 9% increase from the previous year's first quarter.

Earnings per share grew 14% to reach 1.01 US cents.

MTI Wireless Edge said it maintained a strong financial position, with net cash totalling $8.5m at the end of March, compared to $6.5m a year earlier.

The board did note, however, that the annual dividend of $2.5m was paid in April this year, with last year's distribution being released in March.

"This represents a solid start to 2023, off the back of a successful period in 2022," said chief executive officer Moni Borovitz.

"There is clear ongoing demand for our comprehensive communication and radio frequency solutions across all three divisions and we feel confident in the outlook for the year.

"Rising interest rates fed through into increased financial income and positive FX rates also helped the increase in profit margin."

Borovitz noted that the overall financial position of the group was "strong", providing it with flexibility to support or expand the business.

"While there remain multiple economic and geopolitical challenges across the globe, the fundamentals of our business remain strong.

"We sell our market leading expertise in radio frequency communications across three divisions, all of which address sizable and growing markets.

"Water scarcity is a reality, with a recent report from the Global Commission on the Economics of Water predicting a 40% shortfall in freshwater supply by 2030, putting governments and businesses under pressure to find workable solutions, such as those provided by Mottech."

5G was meanwhile described by the CEO as "inevitable", with Borovitz adding that MTI's position in the market was "significantly boosted" by its ABS antenna solution, which had initiated new relationships with several key tier one and two mobile radio manufacturers.

"Defence, for obvious reasons, has become an increased priority for nearly all leading nations - this is being clearly reflected in current orders and the opportunities we see.

"Looking ahead, we believe that the company's clear focus on providing radio frequency solutions, coupled to being diversified across several markets, positions us well to continue to grow and expand through a mix of acquisition-led and organic growth."

At 1450 BST, shares in MTI Wireless Edge were up 4.78% at 51.34p.

Reporting by Josh White for Sharecast.com.