Strong financial base

Financial highlights

·    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:$2.8ma)

·     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 forward.