On 5 August 2022, BMIT Technologies plc published its interim results covering the six-month period ended 30 June 2022.
Revenues eased by 1.3% to €12.6 million (H1 2021: €12.8 million) reflecting increased technological and competitive pressures, customer and project delays, as well as global issues with hardware lead times. Moreover, although BMIT continued to secure new customers and revenues, technology evolution and the very nature of a cloud-driven business, is having an impact on the contribution per customer. This lower contribution is being partially offset by the company’s legacy data centre business, which business to-date is still relatively strong and profitable.
On the expenditure side, total operating costs amounted to €8.3 million, thus leading to an operating profit of €4.34 million compared to €4.48 million recorded in H1 2021. Excluding depreciation and amortisation charges, EBITDA amounted to €5.38 million (H1 2021: €2.91 million) which, in turn, translated into an EBITDA margin of 42.5% (H1 2021: 44.2%).
After accounting for net finance costs of €0.12 million and a tax charge of €1.58 million, BMIT posted a net profit of €2.64 million compared to €2.75 million in H1 2021.
The Statement of Financial Position shows that, when compared to the position as at the end of 2021, total assets dropped by 6.4% to €23.9 million whilst total liabilities increased by 5.6% to €15.5 million. As a result, the company’s equity base contracted to €8.34 million.
Commenting on the results, the Directors explained that despite the prevailing economic challenges with escalating costs, supply chain issues, as well as a global shortage in adequately skilled human capital, BMIT managed to register a relatively positive performance driven by increased sales focus on cloud and managed services.
As had been forecasted in the business planning process for 2022, the market is rapidly evolving on the lines of challenging trends, driven by pervasive technological and economic market considerations. The continued and more aggressive migration to cloud at the detriment of data centre business, together with continued competition from large scale international cloud providers, is a reality and anticipated. Thus, the key trend to prevail in the short to medium term will be the accelerated pace at which this migration will take place, and which reality will continue to drive the company’s increased focus on cloud and managed services.
Notwithstanding, BMIT reiterated its commitment to further investments in its infrastructure that will strengthen its position as one of Malta’s leading technology platforms and solutions providers. Indeed, BMIT is exploring opportunities that will leverage the company’s expertise in managing mission-critical technology and infrastructure. Moreover, BMIT will continue strengthening its diversification plans, both in terms of offering and customers. In fact, the company’s objective for market expansion within and beyond Malta remains a priority in support of BMIT’s strategies.