Mail on Sunday tip for MWE11 Mar 2025 09:13
The Mail's tip for those who can't access it as it's paywalled - the info re drones is particularly interesting:
Https://www.thisismoney.co.uk/money/mailplus/article-14476719/Defence-stocks-value-finance-experts-Ukraine-Israel-Mti-MSI-Pennant.html
"Defence stocks are soaring in value, but ignore the big guns and cash in with our finance expert's guide to these brilliant value hidden gems"
"MTi Group
Russia’s brutal invasion of Ukraine is upending convention, not just in terms of who sides with whom but also in how war itself is waged. Drones have become a key weapon, with the Ukrainians upping production to almost four million a year and Russia racing to keep pace.
In order for these unmanned vehicles to be effective, they have to be deadly accurate both in where they are going and how.
MTI Wireless Edge helps drones to reach their destination, even if they are beset with obstacles, from natural hazards to sophisticated jamming techniques designed to throw unmanned vehicles off-kilter.
Headquartered in Israel, MTI is a world leader in the production of antennae, supplying defence companies both at home and across the globe. The kit is used to direct drones in the air, on the ground and at sea. The antennae also help to identify and intercept rocket attacks and can even be wrapped around missiles to maximise accuracy and reduce risk.
With the world becoming more unpredictable by the day, interest in MTI products is growing, not least in Germany, which is building a new missile defence system deploying MTI’s equipment. Elsewhere too, orders are coming in thick and fast from a substantial pipeline of new opportunities.
MTI is a pioneer in irrigation as well, developing sensors that can reduce water usage by up to 35 per cent. Initially developed for arid regions – including California, Australia and the Arabian Gulf – recent orders have come from France, Italy and even Sweden, as farmers and park owners strive to keep land fertile amid changing weather patterns.
Moni Borovitz, MTi Group’s chief executive, also builds antennae for 5G towers, a fast-growing market where annual expenditure is approaching £75 million.
MTI has honed its technology at home but around 55 per cent of revenues are generated overseas – a percentage that is likely to increase over time.
Results for 2024 are out later this month and should reveal rising sales and profits, with further growth expected this year and beyond. MTI pays decent dividends too, with 3.3 cents (2.6p) expected for the year just ended, rising to 3.4 cents this year and 3.6 cents next.
The Borovitz family owns about 30 per cent of the shares, so members’ interests are closely aligned with individual shareholders, and since MTI floated on Aim in 2006 dividend payments have been missed only once, after the global financial crisis.
Midas verdict: At 58p, MTI shares are well below their 2021 peak of 87p. That seems undeserved. The company’s technology i
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