Mti Wireless Company Research (MWE)

Interims from MTI Wireless Edge, the technology group focused on comprehensive communications and radio frequency solutions, saw further good growth in Antennas (+22%), a return to growth at Mottech (+8%) and an improvement at MTI Summit/PSK (-4%). As a result, group revenue increased 8% to $24.1m. Each division remained profitable and EBIT increased 11% to $2.5m while PBT was flat at $2.3m. Basic EPS +17% to 2.50 cents, reflecting lower tax and share repurchases, and operating cashflow +66% to $2.5m with cash of $5.5m, post the FY24 dividend. MTI benefits from its diversified business model and entered H2 with a strong order book and sales pipeline despite the ongoing conflict in Israel. The company provides exposure to three global growth themes (increased defence spend, 5G network roll outs, and water usage efficiency) and a track record of profit and cash delivery. We leave forecasts and fair value of 83p/share unchanged, equivalent to an FY26 EV/EBITDA of 12.5x and yield of 3.4%.