BATM’s underlying pre-tax profits slumped more than 75 per cent to $5.5m last year as the designer and producer of broadband systems and medical laboratory equipment suffered the fall-out from the loss of work from Nokia Siemens Network.
This led to a 25 per cent collapse in revenues in BATM’s telecoms business and a near 70 per cent fall in operating profits to $7.8m. However, there has been an improvement in trading and management reports a 5 per cent like-for-like sales increase since the year end.
BATM’s loss-making medical division continues to make progress, but with a lower gross margin of 20 per cent and higher operating costs (sales and marketing), this impacted profits even revenues rose 37 per cent. The company is targeting maiden profits from this division in 2011.
Reflecting limited visibility of revenues and a modest recovery in the telcoms business, house broker Shore Capital is taking a cautious stance and has downgraded its 2011 adjusted pre-tax profit estimate from $13.9m to $9.9m, giving EPS of 2.2¢ (2010: $5.5m and 1.2¢).
BATM ADVANCED COMMUNICATIONS (BVC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 21.25p | MARKET VALUE: | £85m | |
| TOUCH: | 21-21.5p | 12-MONTH HIGH: | 44p | LOW: 20p |
| DIVIDEND YIELD: | 3.8% | PE RATIO: | 82 | |
| NET ASSET VALUE: | 31¢* | NET CASH: | US$54m | |
| Year to 31 Dec | Turnover (US$m) | Pre-tax profit (US$m) | Earnings per share (US¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 74 | 6.9 | 1.66 | nil |
| 2007 | 97 | 20.0 | 5.08 | 0.50 |
| 2008 | 135 | 23.7 | 6.19 | 0.69 |
| 2009 | 135 | 18.4 | 5.11 | 0.80** |
| 2010 | 121 | 1.0 | 0.42 | 0.80 |
| % change | -11 | -94 | -92 | - |
Ex-div: 22 Jun Payment: 18 Jul *Included intangible assets of $31.1m, or 8¢ a share **Excludes special dividend of 0.55p a share £1=US$1.62 | ||||
