BATM swing to loss amid restructuring and sale of business units

BATM Advanced Communications Ltd on Monday reported a swing to a loss in the first half of its financial year, reflecting the absence of contributions from businesses sold during 2025, the company said.

The Hod Hasharon, Israel-based provider of network infrastructure and cybersecurity technologies said it continues to make “significant progress” with the potential sale of three of its remaining four non-core activities, worth USD13.3 million.

BATM swung to a pretax loss of USD1.6 million for the six months that ended June 30 from USD600,000 profit a year before.

Revenue was USD41.7 million, down 31% from USD60.4 million a year ago. The company pointed to the “contribution from businesses sold during 2025 and the impact of foreign exchange movements” to explain the decrease in revenue.

Operating profit was USD1.4 million, down 18% from USD1.7 million a year ago. Adjusted earnings before tax, depreciation and amortisation was USD1.6 million, down 18% from USD1.7 million at constant exchange rates.

Adjusted Ebitda was USD2.2 million when also excluding amortisation of intangible assets, share-based payments, and in exceptional expenses in the first half of 2025 related to corporate activity.

BATM said first-half performance was in line with management’s expectations. The company said it expects to exit the year as a substantially transformed, simplified, high-growth and higher-margin technology business as it progresses with the exit from its non-core activities.

The sale of three non-core activities is subject to shareholder and other approvals and will bring in USD13.3 million in cash, BATM said. A separate agreement by one of the businesses being sold for the sale of 96.8 million BATM shares at 18.15 pence will bring in another £17.6 million. This will bring today cash consideration to about USD36.6 million.

Shares in BATM were flat at 11.85p on Monday morning in London.

Chief Executive Officer Moti Nagar said the company made “significant progress in reshaping BATM into a high-growth, higher-margin technology business.”

The disposal of almost all the company’s remaining non-core activities “represents a major step in sharpening our strategic focus and building a stronger platform for future growth,” he added.

BATM said second-half orders could be affected by Israeli elections, expected in October, and the announcement of government budgets.

“Looking ahead, we remain on track to deliver underlying revenue growth for the full year in line with management’s expectations, supported by our strong pipeline and order book. More importantly, we expect to exit 2026 as a substantially transformed business, with greater capacity to invest in growth and to create value for shareholders.”

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