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MTI Wireless Edge Limited

MTI Wireless Edge Limited Ready to capitalize on the enormous opportunities

MTI Wireless Edge Limited (LON:MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solution provider, announced today its audited results for the year ended 31 December 2016 (the “Period”).

Highlights:

  • Revenues increased by 19% during the Period to $23.3m (2015: $19.6m)
  • Gross profit increased during the Period by 11% to $8.6m (2015: $7.7m)
  • Generated over $1.2m of cash from operation (2015: $0.2m)
  • Profit before tax remains strong at $1.2m (2015: $1.4m)
  • Earnings per share of 1.81 US Cents (2015: 2.37 US Cents)
  • Shareholder’s equity grew during the Period to $18.9m (31 December 2015: $18.4m)
  • Dividend of $0.01 per share declared with a scrip dividend alternative offered to all shareholders

 

Zvi Borovitz, Non-Executive Chairman of MTI Wireless Edge Limited, commented: “During 2016 we completed the integration in our recently acquired Mottech Water Solutions and we strengthened our sales and marketing in key territories. The steps we took returned the business to growth and laid the foundations to capitalize on the enormous opportunities and the future growth.

We enter 2017 with confidence in the growth prospects of our business and its ability to increase its revenues and generate cash. In our wireless controller segment, via Mottech, we see many opportunities to grow the business and we remain focused on building our offering for various markets in the water management segment. In the antenna military segment we continue to see good demand and, given the current backlog and pipeline of opportunities in this segment, we have a strong belief that the growth will continue in 2017 and beyond. In the broadband wireless access sector the pipeline of opportunities we currently see in the market should produce a return to growth in 2017, including from the millimetre wave (including 60 – 80 GHz and 5G) where we see slow improvement in demand and where our key advantage of flat antenna remains solid. 2016 brought new significant potential for this segment with new customer wins. We are confident that this will be part of MTI’s growth in the future.”

Declaration of final dividend with a scrip dividend alternative

The Board of MTI is pleased to announce a final dividend in respect of the year ended 31 December 2016 (the “2016 Dividend”) of US$0.01 per ordinary share in the Company (“Ordinary Share”). It is intended that the 2016 Dividend will be paid on 5 April 2017 to holders of Ordinary Shares recorded on the register as at the close of business on 3 March 2017.

The Company will also be offering a scrip dividend alternative to the 2016 Dividend (the “Scrip Dividend Alternative”) to certain qualifying shareholders (“Qualifying Shareholders”). Under the Scrip Dividend Alternative, Qualifying Shareholders may elect to receive new ordinary shares (or new depositary interests, as applicable) (the “Scrip Dividend Shares”) in place of their cash dividend. Qualifying Shareholders may only elect to receive Scrip Dividend Shares in respect of their entire 2016 Dividend entitlement and may not split their 2016 Dividend entitlement between the two alternative options. A circular and form of election (the “Scrip Election Form”) will be posted to Shareholders today to explain how Qualifying Shareholders may elect to take up the Scrip Dividend Alternative. Scrip Election Forms or, for Shareholders with interests held through CREST, the CREST dividend election input message must be submitted and returned by the deadline of 5.00 p.m. on 15 March 2017.

The Board believes that the Scrip Dividend Alternative is likely to benefit both the Company and shareholders. MTI will be able to retain the cash that otherwise would be paid out as cash dividends and re-invest into the Company. Qualifying Shareholders will be able, inter alia, to increase their interests in MTI without incurring dealing costs or paying stamp duty reserve tax.

The Scrip Dividend Alternative is conditional on:

(a) admission of the Scrip Dividend Shares to trading on AIM; and

(b) the Board not deciding to revoke its decision to offer Scrip Dividend Shares.

Each Qualifying Shareholder’s entitlement to Scrip Dividend Shares is to be calculated based on the Scrip reference price per ordinary share, which will be calculated based on the mean closing mid-market price of an Ordinary Share between 2 March 2017 and 8 March 2017 (the “Scrip reference Price”).

Expected timetable

Event

 

Date

Record date

3 March 2017

Expected date for confirmation of the Scrip reference Price per Ordinary Share

8 March 2017

Final time and date for receipt of Scrip Election Forms (for Ordinary Shares held in certificated form) and dividend election input messages in CREST (for Depositary Interests)

5.00 p.m. on

15 March 2017

Posting of cheques for payment of cash dividends

4 April 2017

Dispatch of certificates for Scrip Dividend Shares that are to be held in certificated form

5 April 2017

CREST accounts credited with Depositary Interests in respect of Scrip Dividend Shares

5 April 2017

Expected date for admission of Scrip Dividend Shares to trading on the Alternative Investment Market

5 April 2017

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