MTI Wireless Edge

Results for the nine months to 30 September 2021

RNS Number : 3022S
MTI Wireless Edge Limited
15 November 2021
 

15 November 2021

MTI Wireless Edge Ltd

("MTI", the "Company" or the "Group")

Financial Results for the nine months ended 30 September 2021

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce its financial results for the nine-month period ended 30 September 2021 (the "Period").

Financial highlights   - nine months to 30 September 2021

· Demand across all three divisions led to revenue growth of 8% to $32.1m (nine months to 30 September 2020: $29.7m)

·     Leading to increased profitability with profit from operations up 11% to $3.33m (nine months to 30 September 2020: $2.99m)

·     Earnings per share increased by 11% to 2.95 US cents ( nine months to 30 September 2020 : 2.65 US cents)

·     Cash flow from operations improved by 15% to $3.2m ( nine months to 30 September 2020:$2.8m)

·     Group remains ungeared with net cash of $9.3m as at 30 September 2021 (30 September 2020: $8.4m)

·   Final dividend to be confirmed in Full Year 2021 results announcement (expected to be announced in March 2022)

Operational highlights

·     Demand continued to grow for 5G backhaul antenna solutions and antennas for RFID, resulting in revenue growth in the antenna division, leading to all three divisions of the business growing year on year in the Period.

·     Although it is still in early stages of adoption of the technology, the Group saw over 30% revenue growth from 5G antennas year on year, which is testimony to the positioning of MTI's solutions with leading radio manufacturers.

·   This trend, coupled with the recovery in the RFID sub-segment, led to a change in the Group's commercial antenna revenue breakdown. For the first time the RFID and 5G sub-segments combined accounted for the majority of the Group's commercial antenna revenue. This is viewed as an important step for the Group's future potential growth. 

·   Mottech continued to perform well, recording steady growth across its main markets of agricultural irrigation, landscape irrigation and water distribution, with a good response from the customers of its newly opened office in Canada.

·   MTI Summit has had a strong Period and is well positioned going forward, especially following a new strategic agreement signed in September, where a long-term defence client made MTI Summit its primary supplier and it is expected that this will increase the client's order levels above the $4m per annum level of recent years.

·     After a short pause MTI Summit's tethered balloon project recommenced in October and should generate growing revenues going forwar d.

 

Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:

"This was another positive quarter for the Group, leading to an 11% increase in profitability for the first nine months, and I believe that we are well placed to achieve a good result for the full year. Operationally we are close to normal now, with nearly all of our markets functioning as they did pre-pandemic, but travel limitations and the availability and cost of shipment continue to be part of our challenges as part of the "new normal". In the third quarter we saw a lower gross margin rate due to our product mix, shipment costs and strengthening of the Israeli currency against the USD and the Euro , but these factors were offset due to the economies of scale achieved from the additional revenues in the Period, enabling us to increase our operational profitability. The financial base of the Company remains strong with a high level of cash generation, no debt and cash balances of $9.3 million."

"Sales of 5G and RFID antenna solutions, being our key growth engines in the antenna division, have overtaken, for the first time, our Fixed Broadband Wireless Application (FBWA) antenna sales. By far the majority of industry's investment in 5G is still to come and so the opportunity remains significant for us and we continue to be well placed with the antenna division being a key supplier to the major mobile network radio manufacturers."

"In September, MTI Summit announced a new strategic agreement with a large, long-term defence customer. Reflecting the trust built up over time, the agreement enables the client to place orders without the need for individual quotations, thus significantly speeding up all interaction and making the whole ordering process substantially more efficient."

"One fifth of the world's population live under conditions of water scarcity and the issue is getting worse. Governments globally are responding and solutions like Mottech's, which typically save 35% of the volume of water previously used, are gaining traction across all of our target markets."

"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."

Moni Borovitz, Chief Executive Officer, will provide a live investor presentation relating to the financial results for the nine-month period ended 30 September 2021 via the Investor Meet Company ("IMC") platform today at 10.00 am UK time.

Investors can sign up for free via: https://www.investormeetcompany.com/mti-wireless-edge-ltd/register-investor  

 

 

For further information please contact:

MTI Wireless Edge Ltd

+972 3 900 8900

Moni Borovitz, CEO

http://www.mtiwirelessedge.com

 

 

Allenby Capital Limited (Nomad and Joint Broker)

+44 20 3328 5656

Nick Naylor/Alex Brearley/Piers Shimwell (Corporate Finance)

 

Amrit Nahal/David Johnson (Sales and Corporate Broking)

 

 

 

Peterhouse Capital Limited (Joint Broker)

+44 20 7469 0930

Lucy Williams/Eran Zucker

 

 

 

Novella (Financial PR)

 

Tim Robertson/Fergus Young

+44 20 3151 7008

 

 

About MTI Wireless Edge Ltd. ("MTI")

Headquartered in Israel, MTI is a technology group focused on comprehensive communication and radio frequency solutions across multiple sectors through three core divisions:

Antenna Division  

MTI is a world leader in the design, development and production of high quality, state-of-the-art, and cost-effective antenna solutions including Smart Antennas, MIMO Antennas and Dual Polarity Antennas for wireless applications. MTI supplies antennas for both military and commercial markets from 100 KHz to 90 GHz.

Internationally recognized as a producer of commercial off-the-Shelf and custom-developed antenna solutions in a broad frequency range, MTI addresses both commercial and military applications.

MTI supplies directional and omnidirectional antennas for outdoor and indoor deployments, including smart antennas for WiMAX, Broadband access, public safety, RFID, base stations and terminals for the utility market.

Military applications include a wide range of broadband, tactical and specialized communication antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide.  

Water Control & Management Division  

Via its subsidiary, Mottech Water Solutions Ltd ("Mottech"), MTI provides high-end remote control solutions for water and irrigation applications based on Motorola's IRRInet state-of-the-art control, monitoring and communication technologies.

As Motorola's global prime-distributor Mottech serves its customers worldwide through its international subsidiaries and a global network of local distributors and representatives. With over 25 years of experience in providing customers with irrigation remote control and management, Mottech's solutions ensure constant, reliable and accurate water usage, while reducing operational and maintenance costs. Mottech's activities are focused in the market segments of agriculture, water distribution, municipal and commercial landscape as well as wastewater and storm-water reuse.

Distribution & Professional Consulting Services Division  

Via its subsidiary, MTI Summit Electronics Ltd., MTI offers consulting, representation and marketing services to foreign companies in the field of RF and Microwave solutions and applications including engineering services (including design and integration) in the field of aerostat systems and the ongoing operation of Platform subsystems, SIGINT, RADAR, communication and observation systems which is performed by the Company.

 

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

 

 

Nine month period ended

 September 30,

 

Year ended December 31,

 

2021

 

2020

 

2020

 

U.S. $ in thousands

 

Unaudited

 

 

 

 

 

 

 

 

Revenues

32,062

 

29,661

 

40,893

Cost of sales

22,108

 

20,115

 

27, 816

 

 

 

 

 

 

Gross profit

9,954

 

9,546

 

13,077

Research and development expenses

725

 

666

 

1,029

Distribution expenses

2,647

 

2,698

 

3,579

General and administrative expenses

3,270

 

3,185

 

4,379

Loss (profit) from sale of property, plant and equipment

(16)

 

(13)

 

14

 

 

 

 

 

 

Profit from operations

3,328

 

2,984

 

4,076

Finance expenses

252

 

193

 

275

Finance income

(30)

 

(112)

 

(255)

 

 

 

 

 

 

Profit before income tax

3,106

 

2,903

 

4,056

Tax expenses

406

 

451

 

564

 

 

 

 

 

 

Profit

2,700

 

2,452

 

3,492

Other comprehensive income (loss) net of tax:

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

Re-measurement of defined benefit plans

-

 

-

 

42

 

 

 

 

 

 

Items that may be reclassified to profit or loss:

 

 

 

 

 

Adjustment arising from translation of financial statements of foreign operations

(106)

 

(65)

 

253

 

 

 

 

 

 

Total other comprehensive income (loss)

(106)

 

(65)

 

295

 

 

 

 

 

 

Total comprehensive income

2,594

 

2,387

 

3,787

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

Owners of the parent

2,612

 

2,327

 

3,373

Non-controlling interests

88

 

125

 

119

 

 

 

 

 

 

 

2,700

 

2,452

 

3,492

Total comprehensive income attributable to:

 

 

 

 

 

Owners of the parent

2,506

 

2,262

 

3,668

Non-controlling interests

88

 

125

 

119

 

2,594

 

2,387

 

3,787

 

 

 

 

 

 

Earnings per share (dollars)

 

 

 

 

 

Basic

0.0295

 

0.0265

 

0.0383

Diluted

0.0295

 

0.0265

 

0.0383

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

Basic

88,516,849

 

87,94 2 ,8 26

 

88,093,025

Diluted

88,516,849

 

87,94 2 ,8 2 6

 

88,093,025

 

 

 

 

 

 

 

The accompanying notes form an integral part of the financial statements.

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED   STATEMENTS OF

CHANGES IN EQUITY

 

For the nine month period ended September 30 , 2021 (Unaudited) :

 

Attributed to owners of the parent

 

 

 

Share capital

Additional paid-in capital

Capital reserve

for share-based

payment

transactions

Translation differences

Retained earnings

Total attributable to owners of the  parent

Non-controlling interest

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

 

Balance at January 1, 2021

209

23,167

-

191

999

24,566

987

25,553

 

 

 

 

 

 

 

 

 

Changes during the nine month period

  ended September 30, 2021:

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

2,612

2,612

88

2,700

Other comprehensive loss

 

 

 

 

 

 

 

 

Translation differences

-

-

-

(106)

-

(106)

-

(106)

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

-

-

-

(106)

2,612

2,506

88

2,594

Profit from acquisition of treasury shares (note 5B)

-

5

-

-

-

5

-

5

Dividend

-

-

-

-

(2,213)

(2,213)

-

(2,213)

 

 

 

 

 

 

 

 

 

Balance at September 30, 2021

209

23,172

-

85

1,398

24,864

1,075

25,939

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes form an integral part of the financial statements.

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED   STATEMENTS OF

CHANGES IN EQUITY (CONT.)

 

For the nine month period ended September 30 , 2020 (Unaudited) :

 

Attributed to owners of the parent

 

 

 

Share capital

Additional paid-in capital

Capital reserve

for share-based

payment

transactions

Translation differences

Accumulated losses

Total attributable to owners of the  parent

Non-controlling interest

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

 

Balance at January 1, 2020

207

22,868

52

(62)

(658)

22,407

883

23,290

 

 

 

 

 

 

 

 

 

Changes during the nine month period

  ended September 30, 2020:

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

2,327

2,327

125

2,452

Other comprehensive loss

 

 

 

 

 

 

 

 

Translation differences

-

-

-

(65)

-

(65)

-

(65)

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

-

-

-

(65)

2,327

2,262

125

2,387

Dividend

-

-

-

-

(1,758)

(1,758)

-

(1,758)

Exercise of options to share capital

2

306

(54)

-

-

254

-

254

Profit from acquisition and disposal of treasury shares

-

8

-

-

-

8

-

8

Acquisition of the non-controlling interest in subsidiary

-

(15)

-

-

-

  (15)

(15)

  (30)

Share based payment

-

-

2

-

-

  2

-

  2

 

 

 

 

 

 

 

 

 

Balance at September 30, 2020

209

23,167

-

(127)

(89)

23,160

993

24,153

 

 

 

 

 

 

 

 

 

 

The accompanying notes form an integral part of the financial statements.

 

 

INTERIM CONSOLIDATED   STATEMENTS OF CHANGES IN EQUITY (CONT.)

For the year ended December 31, 2020 :

 

Attributable to owners of the parent

 

 

Share capital

Additional paid-in capital

Capital Reserve from share-based payment transactions

Translation differences

Accumulated losses

Total attributable to owners of the  parent

Non-controlling interests

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

 

Balance as at January 1, 2020

207

22,868

52

(62)

(658)

22,407

883

23,290

 

 

 

 

 

 

 

 

 

Changes during 2020: 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

Profit for the year

-

-

-

-

3,373

3,373

119

3,492

Other comprehensive income

 

 

 

 

 

 

 

 

Re measurements on defined benefit plans

-

-

-

-

42

42

-

42

Translation differences

-

-

-

253

-

253

-

253

 

 

 

 

 

 

 

 

 

Total comprehensive income for the year

-

-

-

253

3,415

3,668

119

3,787

Dividend

-

-

-

-

(1,758)

(1,758)

-

(1,758)

Exercise of options to share capital

2

306

(54)

-

-

254

-

254

Acquisition of the non-controlling interest in subsidiary

-

(15)

-

-

-

  (15)

(15)

  (30)

Profit from acquisition and disposal of treasury shares

-

8

-

-

-

8

-

8

Share based payment

-

-

2

-

-

2

-

2

 

 

 

 

 

 

 

 

 

Balance as at December 31, 2020

209

23,167

-

191

999

24,566

987

25,553

 

 

 

 

 

 

 

 

 

 

The accompanying notes form an integral part of the financial statements.

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

F INANCIAL P OSITION

 

 

30.09.2021

 

30.09.2020

 

31.12.2020

 

U.S. $ in thousands

 

Unaudited

 

 

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

9,323

 

8,393

 

9,577 

Trade and other receivables

11,168

 

9,651

 

10,653

Unbilled revenue

2,700

 

3,059

 

2,318

Current tax receivables

482

 

547

 

557

Inventories

5,985

 

5,611

 

6,399

 

 

 

 

 

 

 

29,658

 

27,261

 

29,509

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS:

 

 

 

 

 

Long term prepaid expenses

38

 

44

 

44

Property, plant and equipment

5,570

 

4,921

 

4,818

Deferred tax assets

744

 

649

 

696

Intangible assets

1,027

 

1,077

 

1,065

 

 

 

 

 

 

 

7,379

 

6,691

 

6,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

37,037

 

33,952

 

36,132

 

 

 

 

 

 

 

The accompanying notes form an integral part of the financial statements.

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

F INANCIAL P OSITION

 

 

30.09.2021

 

30.09.2020

 

31.12.2020

 

U.S. $ In thousands

 

Unaudited

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current maturities and short term bank credit and loans

20

 

162

 

105

Trade payables

5,282

 

4,283

 

5,098

Other accounts payable

4,425

 

3,987

 

4,094

Current tax payables

82

 

238

 

213

 

 

 

 

 

 

 

9,809

 

8,670

 

9,510

 

 

 

 

 

 

NON- CURRENT LIABILITIES:

 

 

 

 

 

Contingent consideration

-

 

47

 

51

Lease liabilities

438

 

195

 

155

Loans from banks , net of current maturities

17

 

48

 

37

Employee benefits, net

834

 

839

 

826

 

 

 

 

 

 

 

1,289

 

1,129

 

1,069

 

 

 

 

 

 

Total liabilities

11,156

 

9,799

 

10,579

 

 

 

 

 

 

EQUITY

 

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

 

Share capital

209

 

209

 

209

Additional paid-in capital

23,172

 

23,167

 

23,167

Translation differences

85

 

(127)

 

191

Retained earnings

1,398

 

(89)

 

999

 

 

 

 

 

 

 

24,864

 

23,160

 

24,566

 

 

 

 

 

 

Non-controlling interest

1,075

 

993

 

987

 

 

 

 

 

 

Total equity

25,939

 

24,153

 

25,553

 

 

 

 

 

 

Total equity and liabilities

37,037

 

33,952

 

36,132

 

 

 

 

 

 

             

 

November 14, 2021

 

 

 

Date of approval of financial statements

Moshe Borovitz

Chief Executive Officer

Elhanan Zeira

Controller

Zvi Borovitz

Non-executive Chairman of the Board

 

The accompanying notes form an integral part of the financial statements.

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

 

 

Nine month period ended

 September 30,

 

Year ended December 31,

 

 

2021

 

2020

 

2020

 

 

U.S. $ in thousands

 

 

Unaudited

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Profit for the period

 

2,700

 

2,452

 

3,492

Adjustments for:

 

 

 

 

 

 

Depreciation and amortization

 

702

 

781

 

1,009

Loss from sale of property, plant and equipment

 

47

 

13

 

13

Equity settled share-based payment expense

 

-

 

2

 

2

Finance expenses, net

 

24

 

56

 

69

Tax expenses 

 

406

 

451

 

564

Changes in operating assets and  liabilities:

 

 

 

 

 

 

Decrease (increase) in inventories

 

357

 

60

 

(557)

Decrease (increase) in trade receivables

 

(15)

 

57

 

(1,053)

Decrease (increase) Increase in unbilled revenues

 

(382)

 

79

 

548

Decrease (increase) in other accounts receivables

 

(492)

 

(193)

 

255

Increase (decrease) in trade and other accounts payables

 

376

 

(665)

 

140

Increase (decrease) in employee benefits, net

 

8

 

(4)

 

25

 

 

 

 

 

 

 

Cash from operations

 

3,731

 

3,089

 

4,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest received

 

3

 

23

 

28

Interest paid

 

(30)

 

(33)

 

(43)

Income tax paid

 

(511)

 

(306)

 

(494)

 

 

 

 

 

 

 

Net cash provided by operating activities

 

3,193

 

2,773

 

3,998

 

 

 

 

 

 

 

               

 

The accompanying notes form an integral part of the financial statements.

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS (cont.)

 

 

 

Nine month period ended

 September 30,

 

Year ended December 31,

 

 

 

2021

 

2020

 

2020

 

 

 

U.S. $ in thousands

 

 

 

Unaudited

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

Proceeds from sale of property, plant and equipment

 

77

 

28

 

28

 

Payment of contingent consideration regarding business acquisition

 

(54)

 

-

 

-

 

changes in contingent consideration regarding business acquisition

 

-

 

(22)

 

(21)

 

Purchase of property, plant and equipment

 

(766)

 

(363)

 

(454)

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(743)

 

(357)

 

(447)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

Dividend

 

(2,213)

 

(1,758)

 

(1,758)

 

Payments of lease liabilities

 

(324)

 

(376)

 

(493)

 

Treasury shares acquired

 

5

 

(155)

 

(155)

 

Treasury shares sold

 

-

 

163

 

163

 

Exercise of share options

 

-

 

254

 

254

 

Acquisition of the non-controlling interest in subsidiary

 

-

 

(30)

 

(30)

 

Repayment of long-term loans from banks

 

(111)

 

(234)

 

(308)

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

(2,643)

 

(2,136)

 

(2,327)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in cash and cash equivalents during the period 

 

(193)

 

280

 

1,224

 

Cash and cash equivalents at the beginning of the period

 

9,577

 

8,140

 

8,140

 

Exchange differences on balances of cash and cash equivalents

 

(61)

 

(27)

 

213

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at the end of the period

 

9,323

 

8,393

 

9,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                         

The accompanying notes form an integral part of the financial statements.

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

Note 1 - General :

Corporate information:

M.T.I Wireless Edge Ltd. (hereafter - the "Company" , or collectively with its subsidiaries, the "Group" ) is an Israeli corporation. The Company was incorporated under the Companies Act in Israel on December 30, 1998, and commenced operations on July 1, 2000.   Since March 2006, the Company's shares have been trading on the AIM market of the London Stock Exchange.

The formal address of the Company is 11 Hamelacha Street, Afek industrial Park, Rosh-Ha'Ayin, Israel.

The Company and its subsidiaries are engaged in the following areas:

-  Development, design, manufacture and marketing of antennas for the military and civilian sectors.

A leading provider of remote control solutions for water and irrigation applications based on Motorola's IRRInet state of the art control, monitoring and communication technologies.

-  Providing consulting, representation and marketing services to foreign companies in the field of RF and Microwave, including engineering services in the field of aerostat systems and system engineering services.

In these financial statements, the Company included the results of its aerostat system division in its representation and consulting services division, as it deems this appropriate given the nature of the consulting services provided in both segments and the respective size of these segments.

 

Note 2 - Significant Accounting Policies :

The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in International Accounting Standard No. 34 ("Interim Financial Reporting").

The interim consolidated financial information set out above does not constitute full year-end accounts within the meaning of Israeli Companies Law. It has been prepared on the going concern basis in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS). Statutory financial information for the financial year ended December 31, 2020 was approved by the board on February 28, 2021. The report of the auditors on those financial statements was unqualified.

The interim consolidated financial statements as of September 30, 2021 have not been audited.

The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2020 and for the year then ended and with the notes thereto. The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2020 are applied consistently in these interim consolidated financial statements.

 

Note 3 - REVENUES:

 

 

Nine month period  ended 

  September 30,

 

Year ended December 31,

 

 

 

2021

 

2020

 

2020

 

 

U.S. $ in thousands

 

 

Unaudited

 

 

Revenues arise from:

 

 

 

 

 

 

Sale of goods *

 

26,484

 

24,888

 

3 3 , 788

Rendering of services**

 

3,900

 

3,077

 

4, 863

Projects**

 

1,678

 

1,696

 

2 , 242

 

 

32,062

 

29,661

 

40, 89 3

 

 

 

 

 

 

 

                 

(*) at the point of time

(**) over time

 

 

Note 4 - operating SEGMENTS:

The following tables present revenue and profit information regarding the Group's operating segments for the nine month period ended September 30, 202 1 and 20 20 respectively and for the year ended December 31, 2020 .

 

Nine month period   ended September 30, 2021 (Unaudited)

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

U.S. $ in thousands

Revenues

 

 

 

 

 

External

8,591

13,049

10,422

-

32,062

Internal

-

-

105

(105)

-

 

 

 

 

 

 

Total

8,591

13,049

10,527

(105)

32,062

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit

425

1,417

1,297

189

3,328

 

 

 

 

 

 

Finance expense, net

 

 

 

 

222

Tax expenses

 

 

 

 

406

 

 

 

 

 

 

Profit

 

 

 

 

2,700

 

 

 

 

 

 

As of September 30, 2021

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

U.S. $ in thousands

 

 

 

 

 

15,069

10,894

8,307

-

34,270

 

 

 

 

 

 

 

 

 

2,825

 

 

 

 

 

3,169

3,926

3,130

-

10,225

 

 

 

 

 

 

 

 

 

931

 

Note 4- operating SEGMENTS (CONT.):

Nine month period   ended September 30, 2020 (Unaudited)

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

U.S. $ in thousands

Revenues

 

 

 

 

 

External

8,534

12,172

8,955

-

29,661

Internal

-

-

105

(105)

-

 

 

 

 

 

 

Total

8,534

12,172

9,060

(105)

29,661

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit

61

1,516

1,230

177

2,984

 

 

 

 

 

 

Finance expense, net

 

 

 

 

81

Tax expenses

 

 

 

 

451

 

 

 

 

 

 

Profit

 

 

 

 

2,452

 

 

 

 

 

 

 

As of September 30, 2020

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

U.S. $ in thousands

 

 

 

 

 

13,791

10,148

6,881

-

30,820

 

 

 

 

 

 

 

 

 

3,132

 

 

 

 

 

3,035

2,740

3,407

-

9,182

 

 

 

 

 

 

 

 

 

617

 

Year ended December 31, 2020

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

U.S. $ in thousands

Revenues

 

 

 

 

 

External

11,187

16,121

13,585

-

40,893

Inter-segment

-

-

144

(144)

-

 

 

 

 

 

 

Total

11,187

16,121

13,729

(144)

40,893

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit

158

1,928

1,614

376

4,076

 

 

 

 

 

 

Finance expense, net

 

 

 

 

20

Tax expenses

 

 

 

 

564

 

 

 

 

 

 

Profit

 

 

 

 

3,492

 

Note 4- operating SEGMENTS (CONT.):

Year ended December 31, 2020

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

U.S. $ in thousands

 

 

 

 

 

14,531

11,194

8,429

-

34,154

 

 

 

 

 

 

 

 

 

1,978

 

 

 

 

 

3,511

3,133

3,621

-

10,265

 

 

 

 

 

 

 

 

 

314

 

Note 5 - SIGNIFICANT EVENTS:

A.  On 28 February 2021, the Board of directors declared a cash dividend of 2.5 US cents per share, representing approximately $2,213,000, in total. This dividend was paid on 31 March 2021 to shareholders on the register at the close of trading on 19 March 2021.

B.  On 24 January 2019, the Company announced a share repurchase program to conduct market purchases of ordinary shares of par value 0.01 Israeli Shekels each ("Ordinary Shares") in the Company up to a maximum value of £150,000 (the "Programme"). On 1 5 August 2021, the Company's board of directors and the board of directors of MTI Engineering decided to continue with the Programme until end of August 2022. As at 30 September 2021, 50,000 Ordinary Shares were held in treasury under the Programme.

C.  On 4 February 2021, the Company's subsidiary Mottech Water Solutions Ltd registered and opened a wholly-owned subsidiary in Canada and is working on establishing its activities in Canada.

D.  The effects of the COVID-19 outbreak on the Company and Business Continuity in 2020 was disclosed in the 2020 annual report in note 26c. Since the beginning of 2021 and until the date of this report the Company was able to maintain good levels of operation using remote work procedures and a sufficient level of production in its production facilities while assuring the health of its employees.

All aspects of the Group's supply chain are working slower, and the Company's industry has been affected on the operational level, along with the rest of the world economy as it faces the risk of a global recession where the ability to predict the timing of a recovery is uncertain.

The introduction of vaccines, and their fast adoption in Israel and consequences, does provide hope that a worldwide recovery will start in the near term, but there is still uncertainty regarding the duration for which vaccines will be efficacious and the level of protection they provide against new variants of COVID-19. This, together with the uncertainty of the level of the global economic slowdown, its duration and its medium to long term effects creates challenges, but the Company believes that if there is no further deterioration in the situation, its financial strength and business stability will allow it to navigate through this.

E On 19 April 2021 at an extraordinary shareholders meeting, Mrs. Lihi Elimelech Bechor was re-elected as an external director for another three year term.

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