TIDMBVC
RNS Number : 3602I
BATM Advanced Communications Ld
30 August 2016
30 August 2016
BATM Advanced Communications Limited
("BATM" or the "Group")
Interim results for six months ended 30 June 2016
BATM Advanced Communications Limited (LSE: BVC), a leading
provider of real-time technologies for networking solutions and
medical laboratory systems, announces its interim results for the
six months ended 30 June 2016.
Financial Summary
-- Group revenue of $45.1m (H1 2015: $47.6m)
-- Gross margin improved to 32.8% (H1 2015: 31.7%)
-- Cash in flow from operations of $0.1m (H1 2015: $0.5m out flow)
-- Adjusted operating loss* of $0.6m (H1 2015: $0.3m loss)
-- EBITDA of $0.3m (H1 2015: $0.6m)
-- Net loss reduced to $1.5m (H1 2015: $2.0m loss)
-- Reduced loss per share to 0.23c (H1 2015: 0.38c loss per share)
-- As at 30 June 2016, the Group had cash and financial assets
of $18.6m (31 December 2015: $23.8m)
* Adjusted to exclude amortisation of intangible assets
Operational Summary
Bio-Medical Division (57% of total revenues)
-- Blended gross margins for the whole of Bio-Medical division
improved to 26% compared with 25% in H1 2015
-- Diagnostics Unit
o Revenues increased by 19.2% and adjusted operating profit
increased by 300%
o Significantly increased number of customers as 325 diagnostic
machines were sold (462 in the whole of 2015)
o 25% increase in production of reagents compared with H1
2015
o Adaltis' Chinese partner, Egens Biotechnology Company Ltd.
("Egens"), agreed to purchase approximately 5.5% of Adaltis'
enlarged share capital for RMB20m (approximately $3m) valuing
Adaltis at approximately $58m
-- Pathogenic Waste Treatment and Sterilisation Unit
o Pathogenic Waste Treatment and Sterilisation unit successfully
executed on first significant contract for its biological waste
solution developed for the biopharmaceutical industry, which was
installed and is operating at a facility of Ceva Animal Health
("CEVA")
o Commenced first large installation of new solution for
treating agricultural waste and on track for delivering to the
customer, a major poultry farming company, for testing in Q3
2016
-- Distribution Unit
o Acquired Green Lab Hungary Engineering Ltd ("Green Lab"), a
developer and distributor of analytical instruments, for $3.8m in
cash to strengthen the Group's regional distribution network and
expand the Group's ecologic activities
o Increase in volume of Abbott products being distributed, in
Romania, and the Group commenced providing maintenance
Networking and Cyber Division (43% of total revenues)
-- Blended gross margin increased to 42% from 40% in H1 2015
resulting in move to break-even in H1 2016 compared with adjusted
operating loss of $0.2m for H1 2015
-- Networking Unit
o Gained over 35 new customers (H1 2015: 15 new customers) that
are purchasing from the Networking unit's comprehensive portfolio
of solutions
o Successfully deployed a new high capacity Carrier Ethernet
network for the Kenya Education Network ("KENET")
o Delivered project extension to Tier 1 network service provider
in Southeast Asia with deployment of 10GE solution to expand
customer's broadband capacity and enable compliance with latest
industry standards
o CloudMetro (SDN & D-NFV) platform is gaining momentum with
Communication Service Providers (CSPs) and dozens of
proof-of-concept trials were conducted successfully, including with
Tier 1 operators
-- Cyber Unit
o Awarded a significant contract as the leading supplier for an
ICT solution combined with several cyber elements to a government
defence department, worth approximately $4m over a period of up to
three years
o Engaged in several proof-of-concept trials in multiple
countries
Commenting on the results, Dr Zvi Marom, Chief Executive Officer
of BATM, said: "We are pleased with the results in the first half
as the Group capitalised on the foundations laid in 2015 for a
sustainable recovery and growth. Specifically, the Group focused on
re-investing in sales and marketing in the Bio-Medical division
resulting in it increasing its footprint and gaining a broader
customer base, particularly in the Diagnostics unit. For the
Networking and Cyber division the focus remained on conducting
proof-of-concept trials of our latest software with Tier 1
companies and government agencies whilst maintaining tight cost
control resulting in the division returning to profit at the
operating level compared with a loss in the equivalent period last
year.
"Looking ahead, we are excited by the potential positive impact
of the investment in our Diagnostics business where we have
positioned ourselves to capture a significant portion of the
growing Chinese diagnostics market. This, together with the
sustained growth in the rest of the Diagnostics business, is
expected to result in further revenue growth in the second half of
the year. In addition, we expect the Green Lab acquisition to
provide access to a larger number of markets for our ecologic
solutions in the Pathogenic Waste Treatment and Sterilisation
business, which should see increased sales in the second half of
the year, as well as continue to boost the Distribution unit. As a
result of this, and further expected orders in the Cyber business
sustaining the recovery in the Networking and Cyber division, the
Board looks to the future with confidence."
Enquiries:
BATM Advanced Communications
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Dr Zvi Marom, Chief Executive Officer +972 9866 2525
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Moti Nagar, Chief Financial Officer
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finnCap
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Stuart Andrews, Scott Mathieson +44 20 7220 0500
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Shore Capital
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Mark Percy, Anita Ghanekar +44 20 7408 4090
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Luther Pendragon
--------------------------------------- -----------------
Harry Chathli, Claire Norbury +44 20 7618 9100
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The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Operational Review
In the first half of the year, the performance of the underlying
business was robust as both divisions made significant operational
progress as new products and technologies continued to replace
legacy products. Revenues for the first half of 2016 were $45.1m
(H1 2015: $47.6m) and gross margin improved to 32.8% from 31.7% in
H1 2015. Significantly, both divisions achieved milestones in
targeting new areas that the Group had identified as growth
markets. In addition, the Group was active in completing two
corporate transactions in the Bio-Medical division.
The Bio-Medical division accounted for 57% of total Group
revenues with the contribution from the Networking and Cyber
division being 43%.
Bio-Medical Division
The Bio-Medical division is engaged in the research and
development, production, marketing and distribution of medical
products, primarily laboratory diagnostic equipment and
sterilisation equipment. Sales for this division are primarily in
Europe.
H1 2016 H1 2015 H2 2015 FY 2015
-------------------- -------- -------- -------- --------
Revenues $25.8m $26.5m $26.2m $52.7m
-------------------- -------- -------- -------- --------
Gross margin 26% 25% 25% 25%
-------------------- -------- -------- -------- --------
Adjusted operating
profit* $0.0m $0.2m $0.2m $0.4m
-------------------- -------- -------- -------- --------
* Adjusted to exclude amortisation of intangible assets
In H1 2016, revenues in the Bio-Medical division were 2.6% lower
than the equivalent period last year at $25.8m (H1 2015: $26.5m)
mainly due to a reduction in revenues in the Pathogenic Waste
Treatment and Sterilisation unit. The gross profit margin was
higher in H1 2016 at 26% compared with 25% in H1 2015, mostly due
to an increase in revenue (approximately 19% y-o-y) in the
Diagnostics unit.
Distribution
The Distribution unit contributed approximately 68% of
Bio-Medical division revenues in H1 2016 compared with 67% in H1
2015. Gross margin in H1 2016 increased to 26% compared with 22% in
H1 2015. The Distribution unit generated higher adjusted operating
profit sequentially of $0.7m for H1 2016 compared with an adjusted
operating profit of $0.3m in H2 2015.
Revenue was broadly flat, however there was an increase in the
volume of Abbott products being distributed, in Romania, and the
relationship was expanded with the Group starting to provide
maintenance to some Abbott products. Abbott is one of the top three
vendors in this field in this territory and the distribution of its
products carries a higher margin and the Group anticipates further
growth with the client.
In January 2016, the Group acquired the entire issued and to be
issued share capital of Green Lab Hungary Engineering Ltd ("Green
Lab"), a Hungary-based developer and distributor of analytical
instruments for environmental and industrial sectors, for a total
consideration of $3.8m payable in cash over a three-year period.
The Group expects the Distribution unit to benefit from the
synergies with the Green Lab operations in Hungary and from Green
Lab's extensive network. Since acquisition, the integration has
progressed well, with Green Lab continuing to achieve a good level
of sales and profitability.
Pathogenic Waste Treatment and Sterilisation
The Pathogenic Waste Treatment and Sterilisation unit accounted
for 9% of the Bio-Medical division's revenues in H1 2016 compared
with 14% of revenues in H1 2015, reflecting a reduction in revenues
primarily as a result of lower sales of control systems and medical
waste products. The unit continues to focus on the treatment of
biological waste, based on unique patented technology. In its
traditional business, the Group experienced an increase in OEM
(Original Equipment Manufacturer) orders from the US.
During the period, the installation and operation of the first
biological waste solution unit for the biopharma industry was
completed for CEVA. This project is expected to grow to $1.2m
following further orders for the CEVA's European and US-based
production sites in H2 2016 and 2017.
During 2015, the unit launched a unique solution, based on its
patented ISS technology, for agri-business, which treats waste from
poultry and larger animals such as cattle, pigs and cows. Over the
last year, the solution has been tested with the relevant
regulatory authorities to confirm its uniqueness and efficiency.
During the period, the Group made progress under its contracts
awarded in the second half of last year. In particular, it
commenced implementing the new ISS-based solution for a major
poultry farming company, and is on track for delivery to the
customer for testing in Q3 2016, when the Group expects to commence
generating revenue under this contract
This unit is also benefitting from the initial synergies with
Green Lab, and expects the acquisition to provide access to a
larger number of markets for the ecologic solutions of the
Pathogenic Waste Treatment and Sterilisation business, which should
see increased sales in the second half of the year.
Diagnostics
The Diagnostics unit represented 23% of the Bio-Medical
division's revenues in H1 2016 compared with 19% during the first
half of 2015, reflecting an increase in revenues of 19.2%. The
Diagnostics unit continued to achieve a high margin of 32.4% and
contributed a higher adjusted operating profit compared with H1
2015.
The growth in revenues is due to an increase in sales of both
instruments and reagents. During the six-month period the Group
sold 325 instruments compared with 462 for the full twelve months
of 2015. The customer base has also broadened as a significant
proportion of the instruments sold in 2015 were under a single
contract. In addition, production of reagents increased 25% in H1
2016 over the same period of the prior year.
In December 2015, BATM entered into an agreement with Gamida for
Life ("Gamida"), an international group of companies focused on
healthcare and life sciences, to establish a joint venture company,
Ador, to progress the development and marketing of a unique,
rapid-results molecular diagnostics system. During the first half
of 2016, progress was made on preparing for the production and
marketing of the new instrument, and a selection of reagent kits,
which are expected to reach the market during H2 2016.
As announced on 30 June 2016, a significant milestone was
achieved when the Diagnostics unit entered into an investment
agreement and a strategic joint venture with its Chinese partner,
Egens Biotechnology Company Ltd. ("Egens"), a leading biotechnology
company combining biological material development and diagnostic
reagent manufacturing. Under the terms of the agreement, Egens
purchased RMB20m (approximately $3m) of new shares in Adaltis,
equivalent to approximately 5.5% of Adaltis' enlarged share
capital, valuing Adaltis at approximately $58m. The joint venture
company, Adaltis Bio Med Company ("ABC"), is already making
significant progress and is expected to make a material
contribution to revenues in H2 2016.
Networking and Cyber Division
The Networking and Cyber division is mostly engaged in the
research and development, production and marketing of data
communication products in the field of local and wide area networks
and premises management systems. Sales for this division are
global.
H1 2016 H1 2015 H2 2015 FY 2015
-------------------- -------- -------- -------- --------
Revenues $19.1m $20.9m $23.2m $44.1m
-------------------- -------- -------- -------- --------
Gross margin 42% 40% 40% 40%
-------------------- -------- -------- -------- --------
Adjusted operating
profit (loss)* $0.0m $(0.2m) 0.3m $0.1m
-------------------- -------- -------- -------- --------
* Adjusted to exclude amortisation of intangible assets
In H1 2016, there was a $1.8m decrease in revenues to $19.1m as
the division continued to wind down the legacy products business
whilst gaining traction with new products and solutions. Gross
profit margin improved to 42% in H1 2016 compared with 40% in H1
2015.
Adjusted operating profit was break-even in H1 2016 compared
with an adjusted operating loss of $0.2m for H1 2015.
Telco Systems gained over 35 new customers in the period
compared with 15 new customers in H1 2015. This included the
successful deployment of a new high capacity Carrier Ethernet
network for the Kenya Education Network ("KENET").
Telco Systems continued to invest in its leading-edge technology
and solutions and added 100GE capabilities to its new aggregation
and ATCA solutions to meet the ever-increasing demand for
bandwidth. During the period, it completed a project extension to a
Tier 1 network service provider in Southeast Asia with the
deployment of a 10GE solution to expand the customer's broadband
capacity in compliance with latest industry standards. In addition,
its CloudMetro (SDN & D-NFV) platform is gaining momentum with
Communication Service Providers (CSPs) and dozens of
proof-of-concept trials were conducted successfully, including with
Tier 1 operators.
The Cyber unit was awarded a significant contract as the leading
supplier for the delivery of an Information Communication
Technology solution combined with several cyber elements to a
government defence department. This contract is the second such
contract awarded to BATM by a national government and is worth
approximately $4m over a period of up to three years. The Cyber
unit also conducted several proof-of-concept trials with Tier 1
companies and government agencies, which it expects to result in
orders in the second half of the year.
The Group continues to maintain tight cost control in this
division and reduced operating expenses by 8% compared with the
same period last year.
Financial Review
Revenues in the first half of 2016 decreased by $2.5m to $45.1m
(H1 2015: $47.6m). Bio-Medical division revenues decreased by 2.6%
to $25.8m (H1 2015: $26.5m) whilst the Networking and Cyber
division revenues decreased by 8.6% to $19.1m (H1 2015:
$20.9m).
The blended gross profit margin for the first half of 2016 was
32.8% (H1 2015: 31.7%). This increase is mostly due to the
increased contribution to revenue from the Diagnostics unit and an
improvement in gross margin in the Networking and Cyber
division.
Sales and marketing expenses were $7.3m (H1 2015: $7.3m),
representing 16% of revenue compared with 15% in the first half of
2015.
General and administrative expenses were $4.7m (H1 2015: $5.0m),
representing a decrease of 6% compared with the same period last
year.
Research and development investment in the first half of 2016
decreased to $3.4m (H1 2015: $3.5m).
Net finance expense was $0.4m (H1 2015: $0.8m). The decrease is
mainly due to the adverse effect of foreign exchange rate
fluctuations.
Net loss after tax attributable to equity holders of the parent
amounted to $0.9m (H1 2015: $1.5m), resulting in a basic loss per
share of 0.23c (H1 2015: 0.38c).
The Group's balance sheet remains strong with effective
liquidity of $18.6m compared with $23.8m as at 31 December 2015.
Period-end cash is comprised as follows: cash and deposits up to
three months duration of $16.1m and short-term cash deposits up to
one year of $2.5m. The decline in cash balances is mainly due to
the payment of $1.9m representing the initial portion of the
consideration for the acquisition of Green Lab; purchase of
property, plant and equipment of $1.7m, mainly in the sterilisation
business; and a change in working capital.
Inventories decreased to $20.9m (31 December 2015: $22.6m). The
decrease is mainly due to a lower level of inventory due to
seasonality in the Distribution unit.
Trade and other receivables decreased to $28.1m from $31.2m at
the end of 2015 mostly due to a decrease in trade receivable in the
Networking and Cyber division.
Intangible assets and goodwill increased to $20.2m (31 December
2015 $15.6m). This increase is mostly due to the investment in
Green Lab.
Property, plant and equipment increased to $19.4m (31 December
2015: $18.1m). This increase is due to the purchase of property,
plant and equipment mainly in the sterilisation business.
The balance of trade and other payables decreased to $22.6m (31
December 2015: $27.4m). The decrease is mostly due to a decrease in
the levels of inventory in the Distribution unit.
Cash inflow from operations was $0.1m for the first half of 2016
compared with an outflow of $0.5m for the first half of the prior
year.
Outlook
The momentum achieved in the first half in the Bio-Medical
division has continued into the second half of the year led by
sustained growth in the Diagnostics unit. The Diagnostic unit's
joint venture company, Adaltis Bio Med Company, is already making
good progress in China and is expected to make a material
contribution to revenues in H2 2016. This, in addition to the
already growing diagnostics business, is expected to result in
further acceleration in the second half of the year. In the
Pathogenic Waste Treatment and Sterilisation business unit, the
Group expects the Green Lab acquisition to provide access to a
larger number of markets, which it anticipates will lead to
increased sales.
The Networking and Cyber division continues to make progress in
its recovery. The management team are focused on maintaining tight
cost control in this division whilst continuing to drive the
business forward. Several customers are testing its new SDN and NFV
networking solutions, and the Group anticipates receiving orders
later this year. The division's Cyber unit continues to experience
increased interest from government agencies and corporations for
its solutions and anticipates winning additional contracts in the
second half of the year. As a result of growth in the Diagnostics
unit and continued recovery in the Networking and Cyber division,
the Board looks to the future with increased confidence.
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED INCOME STATEMENTS
Six months ended 30
June
2 0 1 6 2015
US$ in thousands
Unaudited Unaudited
Revenues 45,122 47,566
Cost of revenues 30,340 32,482
Gross profit 14,782 15,084
--------------- ---------------
Operating expenses
Sales and marketing expenses 7,305 7,259
General and administrative expenses 4,710 4,959
Research and development expenses 3,394 3,476
Other operating expenses 545 442
Total operating expenses 15,954 16,136
--------------- ---------------
Operating loss (1,172) (1,052)
Finance income 125 103
Finance expenses (513) (920)
Loss before tax (1,560) (1,869)
Income tax 27 (102)
Loss for the period (1,533) (1,971)
Attributable to:
Owners of the Company (935) (1,543)
Non-controlling interests (598) (428)
Loss for the period (1,533) (1,971)
Profit (loss) per share (In cents):
From continuing
and discontinued operations
Basic and Diluted (0.23) (0.38)
From continuing operations
Basic and Diluted (0.23) (0.38)
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Six months ended 30
June
2 0 1 6 2 0 15
US$ in thousands
Unaudited Unaudited
Loss for the period (1,533) (1,971)
Items that may be reclassified subsequently
to profit or loss :
Exchange differences on translating foreign
operations 595 (2,797)
Total Comprehensive loss of the Period (938) (4,768)
Attributable to:
Owners of the Company (184) (4,145)
Non-controlling interests (754) (623)
(938) (4,768)
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 30 June 31 December
2 0 1 6 2 0 1 5 2 0 1 5
US$ in thousands
Unaudited Unaudited Audited
Current assets
Cash and cash
equivalents 16,112 19,081 17,042
Trade and other
receivables 28,067 27,257 31,180
Financial assets 2,537 11,159 6,778
Inventories 20,894 23,246 22,630
67,610 80,743 77,630
------------------------------ ------------------------------ ------------------------------
Non-current assets
Property, plant and
equipment 19,445 19,417 18,140
Investment property 3,729 2,542 3,791
Goodwill 15,339 11,611 11,430
Other intangible
assets 4,841 3,997 4,168
Available for sale
Investments
carried at fair
value 614 6,009 611
Other assets - 5,041 -
Deferred tax asset 3,582 5,937 3,582
------------------------------ ------------------------------ ------------------------------
47,550 54,554 41,722
------------------------------ ------------------------------ ------------------------------
Total assets 115,160 135,297 119,352
============================== ============================== ==============================
Current liabilities
Short-term bank
credit 4,667 3,978 2,763
Trade and other
payables 22,576 24,466 27,442
Other liabilities 633 5,041 -
Provisions 215 242 217
------------------------------ ------------------------------ ------------------------------
28,091 33,727 30,422
Non-current
liabilities
Long-term
liabilities 5,729 5,087 6,636
Deferred tax
liabilities 997 1,046 1,095
Retirement benefit
obligation 738 746 707
7,464 6,879 8,438
Total liabilities 35,555 40,606 38,860
Equity
Share capital 1,216 1,216 1,216
Share premium
account 407,487 407,367 407,436
Foreign currency
translation
reserve and other
reserves (19,637) (18,276) (20,388)
Accumulated deficit (307,249) (294,607) (306,314)
------------------------------ ------------------------------ ------------------------------
Equity attributable
to equity
holders of the:
Owners of the
Company 81,817 95,700 81,950
Non-controlling
interest (2,212) (1,009) (1,458)
============================== ============================== ==============================
Total equity 79,605 94,691 80,492
============================== ============================== ==============================
Total equity and
liabilities 115,160 135,297 119,352
============================== ============================== ==============================
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Six months ended 30 June 2016
Share Attributable Non-Controlling
Share Premium Translation Other Accumulated to owners Interests Total
Capital Account reserve Reserve Deficit of the equity
Parent
US$ in thousands
As at 1
January
2016 1,216 407,436 (20,053) (335) (306,314) 81,950 (1,458) 80,492
Recognition
of
share-based
payments 51 51 51
Loss for
the period (935) (935) (598) (1,533)
Comprehensive
income (loss)
for the
period 751 - 751 (156) 595
Total
comprehensive
loss for
the period 751 (935) (184) (754) (938)
As at 30
June 2016
(unaudited) 1,216 407,487 (19,302) (335) (307,249) 81,817 (2,212) 79,605
Six months ended 30 June 2015
Share Attributable Non-Controlling
Share Premium Translation Other Accumulated to owners Interests Total
Capital Account reserve Reserve Deficit of the equity
Parent
US$ in thousands
As at 1
January
2015 1,216 407,345 (15,812) 138 (293,064) 99,823 (386) 99,437
Recognition
of
share-based
payments 22 22 22
Loss for
the period (1,543) (1,543) (428) (1,971)
Comprehensive
loss for
the period (2,602) - (2,602) (195) (2,797)
Total
comprehensive
loss for
the period (2,602) (1,543) (4,145) (623) (4,768)
As at 30
June 2015
(unaudited) 1,216 407,367 (18,414) 138 (294,607) 95,700 (1,009) 94,691
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 June
2 0 1 6 2 0 1 5
US$ in thousands
Unaudited Unaudited
Net cash used in operating activities
(Appendix A) (158) (3,601)
----------------- -----------------
Investing activities
Interest received 91 78
Proceeds on disposal of property, plant
and equipment 52 1,409
Proceeds on disposal of deposits
Proceeds on disposal of financial assets 1,651 9,750
carried at fair value through profit
and loss 525 -
Proceeds on disposal of held to maturity 3,229 -
investment
Purchases of property, plant and equipment (1,731) (651)
Increase of other intangible assets (1,192) -
Purchases of financial assets carried
at fair value
through profit and loss - (291)
Purchases of deposits
Purchase of financial assets carried
at fair value (1,151) (1,650)
through profit and loss
Acquisition of subsidiary (Appendix - (1,709)
B) (1,862) -
Net Cash outflow on acquisition of business
combinations - (346)
Net cash from (used in) investing activities (388) 6,590
----------------- -----------------
Financing activities
Decrease in short-term bank credit (2) (42)
Bank loan repayment (3,928) (1,822)
Bank loan received 3,599 2,222
Net cash from (used in) financing activities (331) 358
---------------- -----------------
Increase (decrease) in cash and cash
equivalents (877) 3,347
Cash and cash equivalents at the beginning
of the period 17,042 15,940
Effects of exchange rate changes on
the balance of cash held
in foreign currencies (53) (206)
Cash and cash equivalents at the end
of the period 16,112 19,081
BATM ADVANCED COMMUNICATIONS LTD.
APPICES TO CONSOLIDATED STATEMENT OF CASH FLOWS
APPIX A
RECONCILIATION OF OPERATING LOSS FOR THE PERIOD TO NET CASH
USED IN OPERATING ACTIVITIES
Six months ended 30
June
2 0 1 6 2 0 1 5
US$ in thousands
Unaudited Unaudited
Operating loss from continuing operations
Adjustments for: (1,172) (1,052)
Amortization of intangible assets 579 789
Depreciation of property, plant and equipment
and investment property 901 870
Capital gain of property, plant and equipment - (490)
Stock options granted to employees 51 22
Increase (decrease) in retirement benefit obligation 30 (40)
Decrease in provisions (2) (76)
Operating cash flow before movements in working
capital 387 23
Decrease in inventory 1,821 956
Decrease in receivables 3,763 3,204
Decrease in payables (5,864) (1,614)
Effects of exchange rate changes on the balance
sheet (49) (3,075)
Cash from (used in) operations 58 (506)
Income taxes paid (12) (3,471)
Income taxes received - 649
Interest paid (204) (273)
Net cash used in operating activities (158) (3,601)
BATM ADVANCED COMMUNICATIONS LTD.
APPICES TO CONSOLIDATED STATEMENT OF CASH FLOWS
APPIX B
ACQUISITION OF SUBSIDIARY
GREEN LAB
2016
US$ in thousands
Unaudited
Net assets acquired
Property, plant and equipment 230
Inventory 85
Trade and other receivables 645
Cash 49
Trade payables and other liabilities (993)
16
Goodwill 3,795
Total consideration 3,811
Satisfied by:
Cash 1,911
Consideration recorded as liability 1,900
3,811
Net cash outflow arising on acquisition
Cash consideration 1,911
Cash and cash equivalents acquired (49)
1,862
BATM ADVANCED COMMUNICATIONS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of preparation
The interim consolidated financial statements of the Company
have been prepared in conformity with International Accounting
Standard No. 34 "interim financial reporting" (hereafter "IAS
34").
In preparing these interim consolidated financial statements,
the Company implemented accounting policies, presentation
principles and calculation methods identical to those implemented
in preparation of its consolidated financial statements as of 31
December 2015 and for the period ended on that date. The condensed
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2015,
which have been prepared in accordance with IFRSs.
Note 2 - Profit/(loss) per share
Profit/(loss) per share is based on the weighted average number
of shares in issue for the period of 403,150,820 (H1 2015:
403,150,820). The number used for the calculation of the diluted
profit per share for the period (which includes the effect of
dilutive stock option plans) is 403,150,820 shares (H1 2015
403,150,820).
Note 3 - Segments
Business Segment
Six months ended 30 June 2016
Networking Bio-Medical Unallocated Total
and Cyber
US$ in thousands
Revenues 19,137 25,800 185 45,122
Segment profit/(loss) 43 4 (674) (627)
Reconciliation-
Other operating
expenses (545)
Net Finance cost (388)
Loss before tax (1,560)
Six months ended 30 June 2015
Networking Bio-Medical Unallocated Total
and Cyber
US$ in thousands
Revenues 20,948 26,479 139 47,566
Segment profit/(loss) (151) 240 (699) (610)
Reconciliation-
Other operating
expenses (442)
Net Finance cost (817)
Loss before tax (1,869)
Note 4 - Financial instruments
The fair value of the financial instruments of the Group carried
at amortised cost is not considered to be materially different from
the amortised cost.
The following provides information of financial instruments that
are measured subsequent to initial recognition at fair value,
grouped into Level 3 based on the degree to which their fair value
is observable:
Level 3 fair value measurements are those derived from valuation
techniques that include inputs for the liabilities that are not
based on observable market data (unobservable inputs).
Financial liabilities-Government grants total amount: $3.5m
Note 5 - Investment in subsidiary: Green Lab
In January 2016, the Group acquired the entire issued and to be
issued share capital of Green Lab Hungary Engineering Ltd ("Green
Lab"), a Hungary-based developer and distributor of analytical
instruments for environmental and industrial sectors, for a total
consideration of $3.8m payable in cash over a three-year
period.
The Company has not yet completed the purchase price allocation
to the assets, liabilities and contingent liabilities of Green Lab
and has temporarily classified the access cost as goodwill.
Note 6 - Non-cash transactions
The acquisition of Green Lab in the total consideration of $3.8m
payable in cash over a three-year period comprising: $1.9m paid in
cash on the acquisition date and $1.9m will be paid in three equal
annual instalments and presented as non-cash transaction (Appendix
B).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEEESUFMSELA
(END) Dow Jones Newswires
August 30, 2016 02:01 ET (06:01 GMT)
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