MTI Wireless Edge (AIM: MWE), the Israeli-headquartered antenna, water control and radio-frequency distribution group, reported nine-month revenue up 9% to $41.2m and pre-tax profit up 10% to $4.3m today. The unaudited figures cover the period to 30 September, and the company says it is on track for a good year.
A year earlier revenue was $37.8m and pre-tax profit $3.9m. Basic earnings per share rose 7% to 4.60 US cents from 4.31 cents. Net cash stood at $8.95m, against $6.40m a year before, although operating cash flow fell to $3.6m from $4.0m.
Mottech, the water control division, drove the growth. Its revenue rose 22% to $16.4m and the company says segment profit climbed 60%, with demand strong in Israel, Italy, South Africa and the Arabian Gulf. Mottech Italy, set up in May, has won two service contracts.
The division is also MTI’s route into the United States. It bought Interspec, its Texas-based long-term distributor, in October, as announced on 21 October. Chief executive Moni Borovitz said:
Mottech, in particular, is delivering a standout year, with demand opening up in new markets for its water management solutions, alongside our acquisition of Interspec which provides our first direct presence in the valuable US market.
Moni Borovitz, chief executive, MTI Wireless Edge
Antenna was the weak spot. Revenue fell 11% to $10.9m, an improvement on the 20% fall in the first half, and the company says segment profit slipped 3% as a higher-margin mix limited the decline. Defence contracts won in April are now feeding into sales.
MTI Summit, the RF distribution and defence consulting arm, grew revenue 12% to $14.1m, but the company says segment profit fell 12% on a lower-margin sales mix. Its PSK defence unit’s Israeli Ministry of Defence contract has expanded nearly fourfold in six months, and part of that volume carries lower margins. A supply delay at a major European supplier, caused by ERP (enterprise software) integration problems, softened recent revenue and built an order backlog the company expects to unwind over the coming months.
The board expects to declare a progressive final dividend when full-year results arrive in the first quarter of 2027. It points to a healthy order backlog and tenders across all three divisions.