MTI Wireless Edge reported steady nine-month revenue growth, with its water-management business the standout performer and defence work an increasingly important driver across the group.
The AIM-listed technology group, which spans radio-frequency antennas, defence communications and electronic water and irrigation management, posted revenue up 9% to $41.2m for the nine months to 30 September, with pre-tax profit up 10% to $4.3m.
But behind the group figures, the divisional picture was mixed, and some areas showed weakness.
Mottech was the clear winner, growing revenue 22% and operating profit 60% as governments and businesses push to cut water waste, and in October it bought its Texas-based distributor Interspec – a first step towards a direct presence in the large US market.
The antenna division is still running below last year on a nine-month basis, though the decline is narrowing as a record haul of defence contracts won in April begins converting into sales, and a richer product mix held the profit impact to just 3%.
The drag came from the MTI Summit division, where revenue rose 12%, but operating profit fell 12%: much of the growth came from lower-margin defence volume, including an Israeli defence ministry contract that has expanded almost fourfold in six months, while a delay from a major European supplier has dammed up a sizeable order backlog.
Management expects that backlog to unwind in the coming months as the supplier resolves its own systems problems, leaving the group on track for what it called a good full-year result.
Shares were down 3% after the less-than-convincing update.