leadf
logo-loader
RNS
viewMTI Wireless Edge Limited

MTI Wireless Edge - Results for the nine months to 30 September 2020

RNS Number : 3432F
MTI Wireless Edge Limited
16 November 2020
 

 

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)

16 November 2020

MTI Wireless Edge Ltd

("MTI", the "Company" or the "Group")

Financial Results for the nine months ended 30 September 2020

MTI Wireless Edge Ltd (AIM: MWE), the technology group specialising in comprehensive radio frequency communication solutions across multiple sectors, is pleased to announce its financial results for the nine-month period ended 30 September 2020.

Financial highlights

·    Despite the disruption caused by the Covid-19 pandemic, the Group still recorded 2% revenue growth to $29.6m (2019: $29.0m)

·    20% increase in operating profit to $3.0m (2019: $2.5m), reflecting the benefits of increasing scale and reduced expenditure

·    Earnings per share increased by 12% to 2.65 US cents (2019: 2.36 US cents)

·    Net cash increased 33% to $8.2m at 30 September 2020 (30 September 2019: $6.2m)

Operational highlights

·    Overall, our diversified business and global footprint helped us weather the negative impact from Covid-19 and continue to grow revenues. Lower expenditure (e.g. no international travel costs or exhibitions etc.) also contributed to the Company delivering a solid trading performance for the first nine months of the year

·    Water scarcity is a growing issue reflected in the increased demand for Mottech's water management solutions, which has successfully increased its presence in Australia, China and the French vineyard sector with new innovative products expected in Q4 2020 

·    The global switch to 5G is gathering pace, translating into the first stages of deployment of our 5G backhaul solution, with initial sales starting to come through to the antenna division

·    MTI Summit continues to perform strongly, underpinned by its partnership with leading brands and increased spending in the global defence market, together with growing demand from its satellite office in Russia

·    Ongoing commitment to the Company's share repurchase programme, which was extended in July 2020

 

Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said: "MTI has demonstrated its ability to trade through the current global pandemic. Our customers continue to seek to work with us as they have done previously and, where there are challenges due to the crisis, we are finding innovative ways to meet these.  Our trading performance for the first nine months of the year reflects this and we are on track to meet our trading and financial goals (set before the start of the Covid-19 pandemic) for the full year.

Looking ahead, we continue to be excited by the prospects for growth available to each of our three divisions. All are utilising our core skills of devising radio frequency communication solutions and applying them to a wide range of businesses. Examples of this include: supporting mobile networks upgrade to 5G connectivity; automating the irrigation of large scale farms; and enhancing the way that a submarine can communicate from sea.  These are all expanding markets, which is positioning MTI well for the future.

With these factors in mind, below is a short review of each division:

The antenna division operates under the MTI Wireless brand and sells antennas and custom developed antenna solutions. The division has a range of exciting opportunities, including the future sales of its 5G backhaul antenna solutions to support mobile phone operators roll-out their 5G networks. We have entered the early stage of a global upgrade of cellular network infrastructure, to enable 5G which will allow mobile operators to provide higher bandwidth and more services to their customers. This bodes well for the medium-term prospects for this division. In addition, we won several new contracts for military applications and see some other interesting opportunities here for further development. 

Our wireless water control and management division continued to see good demand in the first nine months of the year, especially in Israel, China and Australia, which are key markets for this division. The fact that one fifth of the world's population suffers from some level of water scarcity, shows the magnitude of the issue and why addressing this challenge is critical for many governments worldwide. Operating in 20 countries offering Motorola's proven IRRInet water management system, Mottech is well placed to continue to expand using its software licensing and recurring revenue model.

The distribution and professional consulting services division, operating under the MTI Summit brand had another good period, focusing on developing design solutions for technology companies which if adopted generate product sales. There is a healthy backlog of design solutions and, as importantly, good demand for new solutions, giving the management team confidence in the prospects for this division.

 

Overall, the Company is well positioned, with a strong balance sheet and diverse business both vertically and geographically, so that even with the market uncertainty caused by the current pandemic, the Board is confident of the outlook for the business."

Moni Borovitz, Chief Executive Officer, will provide a live investor presentation relating to the financial results for the nine month period ended 30 September 2020 via the Investor Meet Company ("IMC") platform today at 10.30am UK time.

Investors can sign up for free via: https://www.investormeetcompany.com/mti-wireless-edge-ltd/register-investor.

 

For further information please contact:

 

MTI Wireless Edge Ltd        

+972 3 900 8900

Moni Borovitz, CEO    

http://www.mtiwirelessedge.com



Allenby Capital Limited (Nomad and Joint Broker)  


Nick Naylor, Alex Brearley (Corporate Finance)

  +44 20 3328 5656

Guy McDougall (Equity Sales)




Peterhouse Capital Limited (Joint Broker)    

+44 20 7469 0930

Lucy Williams


Eran Zucker




Novella (Financial PR)    

+44 20 3151 7008

Tim Robertson


Fergus Young


 

About MTI Wireless Edge Ltd. ("MTI")

Headquartered in Israel, MTI is a technology group focused on comprehensive communication and radio frequency solutions across multiple sectors through three core divisions:

Antenna Division 

MTI is a world leader in the design, development and production of high quality, state-of-the-art, and cost-effective antenna solutions including Smart Antennas, MIMO Antennas and Dual Polarity Antennas for wireless applications. MTI supplies antennas for both military and commercial markets from 100 KHz to 90 GHz.

Internationally recognized as a producer of commercial off-the-Shelf and custom-developed antenna solutions in a broad frequency range, MTI addresses both commercial and military applications.

MTI supplies directional and omnidirectional antennas for outdoor and indoor deployments, including smart antennas for WiMAX, Broadband access, public safety, RFID, base stations and terminals for the utility market.

Military applications include a wide range of broadband, tactical and specialized communication antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide. 

Water Control & Management Division 

Via its subsidiary, Mottech Water Solutions Ltd ("Mottech"), MTI provides high-end remote control solutions for water and irrigation applications based on Motorola's IRRInet state-of-the-art control, monitoring and communication technologies.

As Motorola's global prime-distributor Mottech serves its customers worldwide through its international subsidiaries and a global network of local distributors and representatives. With over 25 years of experience in providing customers with irrigation remote control and management, Mottech's solutions ensure constant, reliable and accurate water usage, while reducing operational and maintenance costs. Mottech's activities are focused in the market segments of agriculture, water distribution, municipal and commercial landscape as well as wastewater and storm-water reuse.

Distribution & Professional Consulting Services Division 

Via its subsidiary, MTI Summit Electronics Ltd., MTI offers consulting, representation and marketing services to foreign companies in the field of RF and Microwave solutions and applications including engineering services (including design and integration) in the field of aerostat systems and the ongoing operation of Platform subsystems, SIGINT, RADAR, communication and observation systems which is performed by the Company.

 

 

 

 

 

MTI WIRELESS EDGE LTD.

 (An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

 


Nine month period ended

 September 30,


Year ended December 31,


2020


2019


2019


U.S. $ in thousands


Unaudited









Revenues

29,661


29,004


40,043

Cost of sales

20,115


19,537


27,247







Gross profit

9,546


9,467


12,796

Research and development expenses

666


890


1,185

Distribution expenses

2,698


3,118


4,229

General and administrative expenses

3,185


2,976


3,931

Loss (profit) from sale of property, plant and equipment

(13)


8


(8)







Profit from operations

2,984


2,491


3,459

Finance expenses

193


156


211

Finance income

(112)


(101)


(161)







Profit before income tax

2,903


2,436


3,409

Tax expenses

451


358


454







Profit

2,452


2,078


2,955

Other comprehensive income (loss) net of tax:






Items that will not be reclassified to profit or loss:






Re-measurement of defined benefit plans

-


-


(6)







Items that may be reclassified to profit or loss:






Adjustment arising from translation of financial statements of foreign operations

(65)


(25)


62







Total other comprehensive income (loss)

(65)


(25)


56







Total comprehensive income

2,387


2,053


3,011







Profit attributable to:






Owners of the parent

2,327


2,052


2,849

Non-controlling interests

125


26


106








2,452


2,078


2,955

Total comprehensive income attributable to:






Owners of the parent

2,262


2,027


2,905

Non-controlling interests

125


26


106


2,387


2,053


3,011







Earnings per share (dollars)






Basic

0.0265


0.0236


0.0327

Diluted

0.0265


0.0236


0.0327







Weighted average number of shares outstanding






Basic

87,942,826


87,125,159


87,229,851

Diluted

87,942,826


87,125,159


87,229,851







 

The accompanying notes form an integral part of the financial statements.

 

 

 

MTI WIRELESS EDGE LTD.

 (An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY

 

For the nine month period ended September 30, 2020 (Unaudited):

 


Attributed to owners of the parent




Share capital

Additional paid-in capital

Capital reserve

for share-based

payment

transactions

Translation differences

Accumulated losses

Total attributable to owners of the  parent

Non-controlling interest

Total equity


U.S. $ in thousands










Balance at January 1, 2020

207

22,868

52

(62)

(658)

22,407

883

23,290






 

 


 

Changes during the nine month period

    ended September 30, 2020:









Comprehensive income






 


 

Profit for the period

-

-

-

-

2,327

2,327

125

2,452

Other comprehensive loss




 




 

Translation differences

-

-

-

(65)

-

(65)

-

(65)







 


 

Total comprehensive income (loss) for the period

-

-

-

(65)

2,327

2,262

125

2,387

Dividend

-

-

-

-

(1,758)

(1,758)

-

(1,758)

Exercise of options to share capital

2

306

(54)

-

-

254

-

254

Profit from acquisition and disposal of treasury shares (note 5B)

-

8

-

-

-

8

-

8

Acquisition of the non-controlling interest in subsidiary

(note 5D)

-

(15)

-

-

-

  (15)

(15)

  (30)

Share based payment

-

-

2

-

-

     2

-

    2

 

 

 

 

 

 

 

 

 

Balance at September 30, 2020

209

23,167

-

(127)

(89)

23,160

993

24,153

 

 

 

 

 

 

 

 

 

The accompanying notes form an integral part of the financial statements.

 

 

 

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY (CONT.)

 

For the nine month period ended September 30, 2019 (Unaudited):

 


Attributed to owners of the parent




Share capital

Additional paid-in capital

Capital reserve

for share-based

payment

transactions

Translation differences

Retained earnings

Total attributable to owners of the  parent

Non-controlling interest

Total equity


U.S. $ in thousands










Balance at January 1, 2019

205

22,388

366

(124)

(2,195)

20,640

375

21,015






 

 


 

Changes during the nine month period

    ended September 30, 2019:









Comprehensive income






 


 

Profit for the period

-

-

-

-

2,052

2,052

26

2,078

Other comprehensive loss









Translation differences

-

-

-

(25)

-

(25)

-

(25)







 


 

Total comprehensive income (loss) for the period

-

-

-

(25)

2,052

2,027

26

2,053

Dividend

-

-

-

-

(1,306)

(1,306)

-

(1,306)

Non-controlling Interest of newly purchased subsidiary

-

-

-

-

-

-

402

402

Exercise of options to share capital

2

111

(24)

-

-

89

-

89

Issuance of treasury shares (note 5C)

-

18

-

-

-

18

-

18

Share based payment

-

-

6

-

-

6

-

6

 

 

 

 

 

 

 

 

 

Balance at September 30, 2019

207

22,517

348

(149)

(1,449)

21,474

803

22,277

 

 

 

 

 

 

 

 

 

 

The accompanying notes form an integral part of the financial statements.

 

 

 

INTERIM CONSOLIDATED STATEMENTS OF

 CHANGES IN EQUITY (CONT.)

For the year ended December 31, 2019 :

 


Attributable to owners of the parent



Share capital

Additional paid-in capital

Capital Reserve from share-based payment transactions

Translation differences

Accumulated losses

Total attributable to owners of the  parent

Non-controlling interests

Total equity


U.S. $ in thousands










Balance as at January 1, 2019

205

22,388

366

(124)

(2,195)

20,640

375

21,015










Changes during 2019:









Comprehensive income









Profit for the year

-

-

-

-

2,849

2,849

106

2,955

Other comprehensive income (loss)









Remeasurements on defined benefit plans

-

-

-

-

(6)

(6)

-

(6)

Translation differences

-

-

-

62

-

62

62










Total comprehensive income for the year

-

-

-

62

2,843

2,905

106

3,011

Dividend

-

-

-

-

(1,306)

(1,306)

-

(1,306)

Non-controlling Interest of newly purchased subsidiary

-

-

-

-

-

-

402

402

Classification of ESOP that expired

-

291

(291)

-

-

-

-

-

Exercise of options to share capital

2

146

(31)

-

-

117

-

117

Profit from acquisition and disposal of treasury shares

-

43

-

-

-

43

-

43

Share based payment

-

-

8

-

-

8

-

8

Balance as at December 31, 2019

207

22,868

52

(62)

(658)

22,407

883

23,290



















 

The accompanying notes form an integral part of the financial statements.

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

 


30.09.2020


30.09.2019


31.12.2019


U.S. $ in thousands


Unaudited



ASSETS






CURRENT ASSETS:






Cash and cash equivalents

8,393


6,732


8,140 

Trade and other receivables

9,651


9,882


9,799

Unbilled revenue

3,059


2,111


2,866

Current tax receivables

547


644


672

Inventories

5,611


5,510


5,748








27,261


24,879


27,225













NON-CURRENT ASSETS:






Long term prepaid expenses

44


34


31

Property, plant and equipment

4,921


5,293


5,212

Deferred tax assets

649


638


664

Intangible assets

1,077


1,129


1,116








6,691


7,094


7,023








 


 


 







Total assets

33,952


31,973


34,248







 

The accompanying notes form an integral part of the financial statements.

 

 

 

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION


30.09.2020


30.09.2019


31.12.2019


U.S. $ In thousands


Unaudited



LIABILITIES AND EQUITY






CURRENT LIABILITIES:






Current maturities and short term bank credit

162


299


312

Trade payables

4,283


4,941


6,448

Other accounts payable

3,987


3,015


2,691

Current tax payables

238


119


230








8,670


8,374


9,681







NON- CURRENT LIABILITIES:






Contingent consideration

47


69


69

Lease liabilities

195


222


224

Loans from banks, net of current maturities

48


226


141

Employee benefits, net

839


805


843








1,129


1,322


1,277







Total liabilities

9,799


9,696


10,958







EQUITY






Equity attributable to owners of the parent






Share capital

209


207


207

Additional paid-in capital

23,167


22,517


22,868

Capital reserve from share-based payment transactions

-


348


52

Translation differences

(127)


(149)


(62)

Accumulated losses

(89)


(1,449)


(658)








23,160


21,474


22,407







Non-controlling interest

993


803


883







Total equity

24,153


22,277


23,290







Total equity and liabilities

33,952


31,973


34,248







 

 

November 15, 2020

 

 

 

Date of approval of financial statements

Moshe Borovitz

Chief Executive Officer

Elhanan Zeira

Controller

Zvi Borovitz

Non-executive Chairman of the Board

 

The accompanying notes form an integral part of the financial statements.

 

 

 

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

 


Nine month period  ended

 September 30,


Year ended December 31,



2020


2019


2019



U.S. $ in thousands



Unaudited



Cash Flows from Operating Activities:







Profit for the period


2,452


2,078


2,955

Adjustments for:







Depreciation and amortization


781


735


973

Loss (gain) from sale of property, plant and equipment


13


(8)


(8)

Equity settled share-based payment expense


2


6


8

Finance (income) expenses, net


56


(2)


32

Tax expenses 


451


358


454

Changes in operating assets and liabilities:







Decrease in inventories


60


707


523

Decrease (increase) in trade receivables


57


(44)


233

Decrease (increase) in other accounts receivables


79


(80)


(137)

Decrease (increase) in unbilled revenues


(193)


160


(595)

Increase (decrease) in trade and other accounts payables


(665)


689


1,821

Increase (decrease) in employee benefits, net


(4)


104


136








Cash from operations


3,089


4,703


6,395















Interest received


23


28


44

Interest paid


(33)


(45)


(77)

Income tax paid


(306)


(726)


(764)








Net cash provided by operating activities


2,773


3,960


5,598








 

The accompanying notes form an integral part of the financial statements.

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS (cont.)

 



Nine month period ended

 September 30,


Year ended December 31,

 



2020


2019


2019

 



U.S. $ in thousands

 



Unaudited



 

Cash Flows From Investing Activities:







 

Proceeds from sale of property, plant and equipment


28


8


31

 

Payment of contingent consideration regarding business acquisition


(22)


-


-

 

Acquisition of initially consolidated subsidiaries


-


(23)


(23)

 

Purchase of property, plant and equipment


(363)


(554)


(707)

 








 

Net cash used in investing activities


(357)


(569)


(699)

 








 








 

Cash Flows From Financing Activities:







 

Dividend


(1,758)


(1,306)


(1,306)

 

Payments of lease liabilities


(376)


(385)


(511)

 

Treasury shares acquired


(155)


(305)


(428)

 

Treasury shares sold


163


323


471

 

Exercise of share options


254


89


117

 

Acquisition of the non-controlling interest in subsidiary


(30)


-


-

 

Repayment of long-term loan from banks


(234)


(483)


(554)

 








 

Net cash used in financing activities


(2,136)


(2,067)


(2,211)

 








 








 

Increase in cash and cash equivalents during the period 


280


1,324


2,688

 

 

Cash and cash equivalents at the beginning of the period


8,140


5,401


5,401

 

 

Exchange differences on balances of cash and cash equivalents


(27)


7


51

 








 

Cash and cash equivalents at the end of the period


8,393


6,732


8,140

 








 

 








The accompanying notes form an integral part of the financial statements.

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

Note 1 - General:

Corporate information:

M.T.I Wireless Edge Ltd. (hereafter - the "Company", or collectively with its subsidiaries, the "Group") is an Israeli corporation. The Company was incorporated under the Companies Act in Israel on December 30, 1998, and commenced operations on July 1, 2000. Since March 2006, the Company's shares have been traded on the AIM market of the London Stock Exchange.

The formal address of the Company is 11 Hamelacha Street, Afek industrial Park, Rosh-Ha'Ayin, Israel.

The Company and its subsidiaries are engaged in the following areas:

-     Development, design, manufacture and marketing of antennas for the military and civilian sectors.

-     A leading provider of remote control solutions for water and irrigation applications based on Motorola's IRRInet state of the art control, monitoring and communication technologies.

-     Providing consulting, representation and marketing services to foreign companies in the field of RF and Microwave, including engineering services in the field of aerostat systems and system engineering services.

 

Note 2 - Significant Accounting Policies:

The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in International Accounting Standard No. 34 ("Interim Financial Reporting").

The interim consolidated financial information set out above does not constitute full year-end accounts within the meaning of Israeli Companies Law. It has been prepared on the going concern basis in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS). Statutory financial information for the financial year ended December 31, 2019 was approved by the board on March 1, 2019. The report of the auditors on those financial statements was unqualified.

The interim consolidated financial statements as of September 30, 2020 have not been audited.

The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2019 and for the year then ended and with the notes thereto. The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2019 are applied consistently in these interim consolidated financial statements.

 

Note 3 - REVENUES:



Nine month period  ended 

    September 30,


Year ended December 31,

 



2020


2019


2019



U.S. $ in thousands



Unaudited



Revenues arise from:







Sale of goods*


24,888


23,803


32,236

Rendering of services**


3,077


3,161


4,299

Projects**


1,696


2,040


3,508



29,661


29,004


40,043








(*) at a point in time

(**) over time

 

Note 4 - operating SEGMENTS:

The following tables present revenue and profit information regarding the Group's operating segments for the nine month period ended September 30, 2020 and 2019 respectively and for the year ended December 31, 2019.

 

Nine month period ended September 30, 2020 (Unaudited)


Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total


U.S. $ in thousands

Revenues






External

8,534

12,172

8,955

-

29,661

Internal

-

-

105

(105)

-







Total

8,534

12,172

9,060

(105)

29,661













Segment profit







Finance expense, net





81

Tax expenses





451







Profit











As of September 30, 2020


Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total


U.S. $ in thousands







Segment assets

13,791

10,148

6,881

-

30,820







Unallocated assets





3,132







Segment liabilities

3,035

2,740

3,407

-

9,182







Unallocated liabilities





617

 

Note 4- operating SEGMENTS (CONT.):

 

Nine month period ended September 30, 2019 (Unaudited)


Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total


U.S. $ in thousands

Revenues






External

8,903

11,979

8,122

-

29,004

Internal

-

-

118

(118)

-







Total

8,903

11,979

8,240

(118)

29,004













Segment profit (loss)







Finance expense, net





55

Tax expenses





358







Profit











 

As of September 30, 2019


Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total


U.S. $ in thousands







Segment assets

13,700

9,481

5,076

-

28,257







Unallocated assets





3,716







Segment liabilities

3,030

1,913

2,717

-

7,660







Unallocated liabilities





2,036







 

 

Year ended December 31, 2019


Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total


U.S. $ in thousands

Revenues






External

12,015

16,518

11,510

-

40,043

Inter-segment

-

-

171

(171)

-







Total













Segment profit







Finance expense, net





50

Tax expenses





454







Profit











 

Note 4- operating SEGMENTS (CONT.):

 

As of December 31, 2019


Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total


U.S. $ in thousands







Segment assets

14,576

9,793

5,729

-

30,098







Unallocated assets





4,150







Segment liabilities

3,514

1,836

3,837

-

9,187







Unallocated liabilities





1,771







 

Note 5 - SIGNIFICANT EVENTS:

A.  On 1 March 2020, the Board of directors declared a cash dividend of 2 US cents per share, representing approximately $1,758,000 in total. This dividend was paid on 10 April 2020 to shareholders on the register at the close of trading on 20 March 2020.

B.   On 24 January 2019, the Company announced a share repurchase program to conduct market purchases of ordinary shares of par value 0.01 Israeli Shekels each ("Ordinary Shares") in the Company up to a maximum value of £150,000 (the "Programme"). On 23 January 2020, the Company announced that the board of directors of the Company and the board of directors of MTI Engineering had decided to continue with the Programme for another nine months until 26 July 2020 and on 27 July 2020 it was announced that the Programme would be extended until 26 January 2021. As at 30 September 2020, no Ordinary Shares were held in treasury under the Programme.

In 2020, MTI Engineering generated a profit of $8,000 in relation to the Programme, which was recorded in additional paid-in-capital.

C.   During January to September 2020, employees of the Company exercised options over 710,000 Ordinary Shares in exchange for a total consideration of approximately $254,000. There are currently no share options granted under the current employee share option plan of the Company.

D.  Mottech Water Solutions Ltd ("Mottech"), a subsidiary of the company, signed an agreement in May 2020 to acquire its joint venture partner's 40% holding in a joint venture it established in China in 2017 ("Mottech China"). Following this acquisition, Mottech China is now a fully owned subsidiary of the Company.

E.   Outbreak of COVID-19 and Business Continuity - In December 2019, the COVID-19 pandemic broke out in China, and the virus has spread to many countries around the world. In January 2020, the World Health Organization announced the outbreak of the Coronavirus as a global health emergency, and in March 2020, the World Health Organization declared the pandemic to be a global pandemic. The spread of the virus is an unusual event on its scale and is dynamic and emergent. Policymakers around the world were forced to take unprecedented steps to curb the pandemic, including the isolation of civilians and establishing strict regulations and rules to create social distancing, to reduce the chances of infection.

 

Note 5 - SIGNIFICANT EVENTS (CONT.):

 

This included restricting inbound and outbound flights. Along with the dangerous impacts on human lives as a result of the outbreak, significant global and local business impacts have been recorded.

While the Group's offices were partially and/or temporarily closed (depending on country of operations) during the second part of March and most of April 2020, the Group was able to maintain good levels of operation using remote work procedures and a sufficient level of production in its production facilities while assuring the health of employees.

As of the date of this report the Group has resumed operations in all of its facilities (still under health requirements and regulations), although working from home is still allowed in Israel. The Company sees recovery in most of the territories where it operates, although there are still significant challenges. All aspects of the Group's supply chain are working slower, and the Company's industry has been affected on the operational level, along with the rest of the world economy as it faces the risk of a global recession where the ability to predict the timing of a recovery is uncertain.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
QRTBXLLFBFLLFBQ

Quick facts: MTI Wireless Edge Limited

Price: -

Market: AIM
Market Cap: -
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

59 min read