LONDON (ShareCast) - (Sharecast News) - Communications and radio frequency technology company MTI Wireless Edge reported a 3% improvement in first-half revenues to $19.6m (£14.98m) on Monday, despite closures in some of its key markets.
The AIM-traded firm said its operating profit was 28% firmer year-on-year for the six months ended 30 June at $1.9m, driven by improved profit margins.

That, it said, led to a 21% rise in net profit to $1.54m.

Earnings per share were 12% higher at 1.65 US cents, while the board said the company has "very little debt", as net cash increased 50% to $7.6m as at 30 June.

A 2019 dividend of two cents per share was paid on 10 April.

On the operational front, MTI said that while the Covid-19 pandemic did slow activity in its first half, all three of the company's divisions still recorded growth on a year-on-year basis.

Mottech enjoyed a strong performance over the period, with increased demand for its water management systems in China and the successful launch of its Tethys system targeting the vineyard market in France.

There was also a positive outlook for 5G backhaul antennas, as Covid-19 increased demand for broadband - a key driver for growth in the antenna division.

MTI Summit was also performing "strongly", the board said, underpinned by its partnership with leading brands, and increased spending in the global defence market.

The board reiterated its ongoing commitment to the share repurchase programme, and said the strength of the firm's order book underpinned its confidence in the outlook for the business.

MTI Wireless Edge said it was on track to meet market expectations for profitability for the 2020 financial year.

"That MTI remains on track to meet market expectations for profitability for the 2020 financial year despite the closure of some of our key markets over part of the period and the general slowdown caused by Covid-19, I believe reflects extremely well on MTI," said chief executive officer Moni Borovitz.

"The Covid-19 pandemic did reduce revenue in certain areas and added to supply chain costs, in particular freight costs, however, this was offset by cost savings across the business and with its balanced diversification across three divisions and multiple countries."

Borovitz said overall, management was "cautiously optimistic" for MTI's prospects in 2020.

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

At 0913 BST, shares in MTI Wireless Edge were up 2.03% at 37.24p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE