MTI Wireless Edge reports 'solid' first-half revenue growth

Communications and radio frequency technology company MTI Wireless Edge reported “solid” revenue growth in its first half on Monday, of 9% to $21.3m (£15.38m).

The AIM-traded firm said its operating profit was ahead 14% at $2.2m for the six months ended 30 June, while its net profit increased 13% to $1.73m.

Earnings per share were ahead 14% year-on-year at 1.89 US cents.

Cash flow from operations was up 53% at $3.1m, with the board describing the company’s balance sheet as “strong”, with net cash standing at $9.7m as at 30 June, compared to $7.6m a year earlier.

The company paid a 2020 dividend of 2.5 cents per share on 31 March, which was an increase on the two-cent-per-share distribution paid a year earlier.

On the operational front, MTI reported a “positive” trading period, with “good contributions” from all three of its divisions.

It said MTI Summit was continuing to benefit from increased government spending on defence, while Mottech opened a new, wholly-owned subsidiary and office in Canada, retaining “key” city-centre contracts in Israel and internationally.

The antenna division, meanwhile, secured its first contract to develop antennas for use in space, while the take-up of 5G antennas was in line with internal forecasts.

“This has been another good trading period for the company - we are winning new, and retaining existing contracts, and several of the new contracts we have won are with substantial corporations which may well lead to greater opportunities in the future,” said chief executive officer Moni Borovitz.

“Alongside this, we made solid progress across all three divisions and as a result we are well placed to continue to grow our revenue streams and profitability.”

At 1111 BST, shares in MTI Wireless Edge were down 4.31% at 73.2p.