Business
Trading Statement
Trading Statement.
About this update from Batm Advanced Communications Ltd.
[{"type":"text","content":"\n \nRNS Number : 4128G BATM Advanced Communications Ld 06 June 2013 \n \n\n6 June 2013\n \nBATM Advanced Communications Limited\n(\"BATM\" or \"the Group\")\n \nTrading Update\n \nBATM Advanced Communications Limited (LSE: BVC; TASE: BATM), a leading provider of real-time technologies for the networked telecoms and medical laboratory equipment markets, provides the following update on trading. \n \nAs stated in the Group's interim management statement for the first quarter of 2013, BATM was on schedule to deliver solid growth in 2013. At the beginning of Q2 2013, the Group was gearing up its production in the Medical division businesses of diagnostics and pathogenic waste management in response to significant demand for its products. In order to meet this demand in the diagnostics business, BATM also increased spending on seeking registration. Disappointingly, components supplied by third parties failed to arrive during May as scheduled, and consequently BATM was unable to fulfill orders and was forced to postpone deliveries. However, the backlog remains substantial and, with certain components required to complete some orders having been received, the Group is working towards clearing this in the second half of 2013.\n \nSeparately, due to ongoing global economic and commercial uncertainty, the Group has re-enforced its policy of tight credit control for certain customers of the distribution business of the Medical division whereby shipping should only occur once payment has been received by BATM or it has complete confidence that payment will be forthcoming. Consequently, and in accordance with this policy, the Group was forced to stop supplies to certain major customers globally during May 2013. This has resulted in revenues in this business being lower than anticipated. \n \nThe consequence of the above factors is that the Group expects first half 2013 revenue and profit to be materially below management's expectations. In contrast, the Group has opened trading in June 2013 very well and its businesses are returning to normality. Accordingly, the Group expects H2 2013 performance to be in line with management's expectations. For the full year to 31 December 2013 as a whole, the Group still expects to achieve higher revenue and profit than for the full year to 31 December 2012.\n \nLo...