MTI Wireless Edge (AIM:MWE), the AIM-listed communication and radio frequency technology group, reported revenue up 11% to $26.7m for the six months to 30 June, against $24.1m in the same period last year.
Operating profit rose 21% to $3m, net profit climbed 28% to $2.5m and basic earnings per share increased 15% to 2.88 US cents, with gross margin improving to 33.8% from 32.5%. Net cash stood at $7.7m at period end, down from $9.4m at 31 December after a $3m dividend payment in April, reflecting a strong cashflow conversion rate.
The Antenna division's revenue fell 20% year-on-year after a series of defence contracts worth around $6m were secured late in the period, weighting revenue to the second half, though operating profit held broadly level excluding a $100,000 bad debt provision. Mottech, the water control and irrigation business, was the standout performer, with sales up 31% and operating profit up 46%, aided by growth in North America, Italy and the Arabian Gulf. MTI Summit grew sales 18% and operating profit 46%, with subsidiary PSK expanding a Israeli Ministry of Defence contract to approximately $4.5m from $2.2m.
"We have entered the second half well placed to achieve a good result for the year," said chief executive Moni Borovitz, citing an extensive order backlog and rising demand across all three divisions.
The company said third-quarter trading has started well, weighted toward delivery of secured orders, with the board confident of trading in line with full-year market expectations.
News Intelligence what this means for the company
MTI Wireless Edge delivered double-digit growth across revenue (11%) and net profit (28%) in H1, with all three divisions expanding. The Antenna division's 20% revenue drop reflects timing—defence orders worth around $6m were secured late in the period, pushing revenue recognition into H2. Mottech (water control) was the standout, with sales up 31% and operating profit up 46%, while MTI Summit's PSK subsidiary expanded an Israeli Ministry of Defence contract to $4.5m from $2.2m. Net cash fell to $7.7m from $9.4m after a $3m dividend, but management flagged strong order backlog and Q3 trading weighted toward delivery of secured orders.
The H1 results confirm execution on defence and water-security tailwinds, with operating leverage evident in 21% operating profit growth on 11% revenue growth and margin expansion to 33.8%. The timing shift in Antenna revenue and confident H2 guidance hinge on delivery of the secured order backlog; execution risk remains material for a small-cap supplier dependent on lumpy defence and infrastructure procurement cycles.
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