16th Feb 2017 08:59
LONDON (Alliance News) - MTI Wireless Edge Ltd said Thursday its profit dropped in 2016, as it proposed a scrip dividend alternative to shareholders.
MTI, which manufactures flat panel antennas and operates a wireless water management business, reported a pretax profit of USD1.2 million for 2016, down from USD1.4 million in 2015.
Revenue increased to USD23.3 million from USD19.6 million. However, this was matched by a cost of sales increase to USD14.7 million from USD11.9 million. Distribution expenses also rose to USD3.3 million from USD2.4 million.
MTI declared a final dividend of 1.0 US cents per share, with a scrip dividend alternative to qualifying shareholders.
MTI said during the year it completed the integration of Mottech Water Solutions, the wireless irrigation control business it acquired in April 2015. MTI also said it saw growth in its military antenna segment, but a revenue decrease in wireless broadband access.
"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," said Zvi Borovitz, non-executive chairman of MTI.
"We enter 2017 with confidence in the growth prospects of our business and its ability to increase its revenues and generate cash," added Borovitz.
Shares in MTI Wireless were down 7.4% at 18.75 pence Thursday.
By Adam Clark; [email protected]
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