BATM FY results to beat expectations as Covid boosts demand

BATM said on Monday that full-year revenues and earnings are set to be ahead of market expectations following stronger-than-expected demand for its diagnostic kits towards the end of the year.

The company, which provides real-time technologies for networking solutions and medical laboratory systems, said demand was boosted by the second wave of the Covid-19 pandemic.

As a result, revenue for full year 2020 is set to be at least $180m - "significantly ahead" of upgraded market expectations and representing annual growth of more than 45% - while earnings before interest, tax, depreciation and amortisation will be "substantially ahead".

"As stated in the interim results announcement, the group entered the second half of 2020 with a substantially higher backlog than at the same point in the prior year," it said. "This momentum continued through the second half, with stronger-than-anticipated demand for the group's diagnostics solutions towards the end of the year as the second wave of the Covid-19 pandemic spread across the globe."

BATM said growth was driven by the Bio-Medical division. In particular, the Diagnostics unit rapidly developed testing kits in response to the Covid outbreak and saw strong demand throughout the year for its reagents and instruments. These sales were mainly to public health authorities in Europe and South East Asia, and BATM said it has continued to receive significant orders for its diagnostic solutions into 2021.

At 1100 GMT, the shares were up 8.4% at 110p.