- Annual pre-tax profit up 12 per cent to $4.8mn
- EPS rises 9 per cent to 4.58¢
- Net cash of $8.1mn (9.2¢)
The latest results from Israel-based MTI Wireless Edge (MWE:40p) highlighted the benefits of diversification as growth from the technology group's antennae and water management systems units more than mitigated a weaker performance from its electronics division.
The antennae business sells 'off the shelf' flat and parabolic antennas as well as custom-developed antenna solutions to a range of commercial and military customers. Buoyed by a sharp rise in military sales, divisional operating profit surged from $0.3mn to $0.8mn. Current events around the world suggest that requirements for military equipment will continue to grow in the coming years as western governments increase their defence budgets, too. Moreover, the conflict in the Middle East has triggered an increase in demand that should lead to higher stock levels of all military equipment being maintained by the Israeli government going forward. Defence-related work now accounts for 44 per cent of group sales.