Interim Management Statement

12 May 2009 07:00



BATM Advanced Communications Limited

Interim Management Statement

BATM Advanced Communications Limited ("BATM" or "the Company") (LSE: BVC), a leading designer and producer of Carrier Ethernet and metropolitan telecom systems, is today issuing its first Interim Management Statement for financial year 2009 which covers the period from 1 January 2009 to 30 April 2009.

Current trading update 

Total revenues in the first four months of 2009 were broadly in line with the same period in 2008. As expected, revenues in the telecom sector were lower in US$ terms than last year's record comparable period, while revenues in the medical sector continue to grow and were higher than last year, partially as a result of the acquisitions made in 2008 and 2009. The gross margin in the first four months has fallen slightly compared to H2 2008 as a result of a continued weakening of the Euro and the higher percentage of medical equipment of overall sales.

Financial position 

The Company's balance sheet remains very strong and at the end of April the effective cash balance stood at $61.7 million, an improvement of $4.4 million compared to the position at the beginning of the financial year. 

Acquisition of clinical chemistry diagnostic company:

As previously announced with the Company's final results for the year ended 31 December 2008, in February 2009 BATM acquired a controlling interest in an Italian clinical chemistry diagnostics Company called ISE.  The directors believe that this transaction will strengthen the Company's future position in the medical equipment offering, and will allow it to realize synergies with its existing medical business in Eastern Europe.

Outlook Despite the general market conditions and lower profitability in the first four months of the year, the Company has seen an improvement in its order book recently, which leads the management to remain cautiously optimistic that BATM will meet its targets for the full year.

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