BATM Advanced Communications (LSE:BVC), a provider of network infrastructure and cybersecurity technology, agreed to sell three of its four remaining non-core activities for $13.3m in cash, marking the central milestone of interim results for the six months to 30 June.
The proposed disposal, subject to shareholder approval at a general meeting on 24 September, values the seven businesses at 33 times their 2025 adjusted net profit.
Combined with the $1m sale of Laborator A.M.S 2000 SRL completed during the period, the two inter-conditional deals with the same buyer bring total consideration to approximately $36.6m.
Group revenue fell to $41.7m from $60.4m a year earlier, reflecting the absence of businesses divested during 2025; stripping those out, adjusted revenue rose from $39.7m to $41.7m.
BATM Networks revenue grew 20% to $8m, accelerating from 10% growth in the prior first half, driven by strong uptake of its new Carrier Ethernet product range and an initial $500,000 order from a top-10 U.S. cable and broadband operator.
BATM Cyber revenue dipped slightly to $4.8m from $5.1m on customer budget timing, though the division secured a post-period order worth c.$1.6m for its tactical encryption platform following a successful proof-of-concept.
Cash and short-term investments stood at $22.5m at period end, against $23.4m at the end of December.
"We expect to exit 2026 as a substantially transformed business, with greater capacity to invest in growth and to create value for shareholders," said chief executive Moti Nagar.
Once the disposal completes, only BATM's Hungarian environmental monitoring business will remain among its non-core operations.
Shore Capital Markets analyst Alasdair Young, in a note, described BATM’s performance as in line with expectations, with strong Networks growth offsetting timing-related Cyber softness.
The house broker to BATM pointed to the anticipated $36.6m of disposal proceeds and improving commercial momentum as underpinning a refocused Cyber and Networks investment case. Young, meanwhile, leaves Shore’s estimates unchanged and highlights management’s view that H2 momentum keeps FY26F on track.
News Intelligence what this means for the company
BATM is accelerating its pivot to core networking and cybersecurity by agreeing to sell three of four remaining non-core businesses for $13.3m (total $36.6m with prior sales), clearing the path to a 'substantially transformed' group by end-2026. Networks revenue jumped 20% to $8m on strong Carrier Ethernet uptake, including a $500,000 initial order from a top-10 U.S. cable and broadband operator, while the division secured a post-period order worth c.$1.6m for its tactical encryption platform — both signals of traction in its core markets.
The disposal removes drag from non-core operations and leaves BATM with $22.5m cash to invest in growth, but the company's adjusted revenue (ex-divested units) is flat at $41.7m, and Cyber revenue declined in the period. The bull case rests on whether Networks' 20% growth and the emerging encryption and managed services pipelines can sustain momentum once the non-core sales close and the company's focus sharpens.
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