BATM Advanced Communications Ltd (LSE:BVC) reported revenue from continuing operations of $123.2m in 2025, compared with $117.3m the previous year on a comparable basis. Profitability improved significantly during the period, with gross profit rising to $40.1m and adjusted operating profit increasing to $14.7m from $3.8m a year earlier.
Adjusted EBITDA more than doubled as the group benefited from improved operational performance and capital gains generated through business disposals. Gross margin strengthened to 32.5%, although cash and short-term investments declined to $23.4m by year-end.
During 2025, the company executed a major strategic shift by selling four non-core businesses, followed by a fifth disposal after the year-end, generating a combined $24.4m. The divestments are part of a broader plan to simplify the organisation and redirect resources toward higher-growth areas such as networking and cybersecurity.
The group’s networking division returned to strong growth, with revenue increasing 36% and a healthy project pipeline emerging for 2026. Meanwhile, the cybersecurity unit reported lower sales after an exceptionally strong 2024 driven by large orders, but it secured new development projects that are expected to support future growth.
BATM has also reclassified its diagnostics activities as non-core. The proprietary diagnostics business moved from an adjusted operating loss of $1.8m in 2024 to a small profit in 2025 after shifting strategy toward reagent sales and completing the sale of its diagnostic distribution arm. That disposal generated a capital gain of $14.1m.
Management also highlighted increasing collaboration between the networking and cybersecurity units, including joint sales efforts and integration of their technology platforms. This combined secure connectivity offering could help the group win larger contracts and deliver stronger results in the coming year.
The company’s outlook remains mixed. While recent restructuring and strategic disposals are positive developments and technical indicators show improving momentum, profitability challenges and negative earnings still weigh on valuation metrics. Nonetheless, management believes the streamlined business is better positioned to compete in higher-margin secure networking and cyber markets.
More about BATM Advanced Communications
BATM Advanced Communications is a global technology provider specialising in advanced network infrastructure, cybersecurity and diagnostic solutions. Listed in both London and Tel Aviv, the company is increasingly concentrating on secure managed networking and cybersecurity through its BATM Networks and BATM Cyber divisions, while gradually reducing exposure to non-core diagnostics operations.
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