BMIT Technologies plc - Full-Year Results
On 8 March 2023, BMIT Technologies plc published its Annual Report and Financial Statements for the year ended 31 December 2022.
Revenues increased by 1.9% to a record of €25.8 million as the double-digit growth in the sale of hardware and licenses (+26.7% to €2.84 million) outweighed the marginal drop in income from data centre and related services (-0.5% to €22.9 million).
Operating costs also increased by 1.5% to €17.2 million in line with the expansion in business. However, given the sharper increase in revenues, operating profit (‘EBIT’) rose by 2.7% to €8.59 million compared to €8.36 million in 2021. Excluding depreciation and amortisation charges, EBITDA increased by 0.5% to €10.7 million whilst the EBITDA margin eased to 41.5% compared to 42.1% in 2021. On the other hand, the EBIT margin improved minimally to 33.3% from 33.0% in the previous year.
After taking into account a marginal finance cost of €0.25 million, BMIT reported a pre-tax profit of €8.34 million, representing a growth of 3.0% over the previous corresponding figure of €8.10 million. The tax charge for the year amounted to €2.98 million, thus leading to a net profit figure of €5.36 million (+5.8%) which translates into a return on average equity of 49% (2021: 45.1%).
The Statement of Financial Position shows total assets remained relatively unchanged at €25.5 million. On the other hand, total liabilities decreased by 2.0% to €14.4 million as the lower levels of lease and tax liabilities outweighed the higher levels of trade and other payables. As a result, the company’s equity base advanced by 2.5% to €11.1 million compared to €10.8 million as at 31 December 2020.
The Directors of BMIT are recommending the payment of a net dividend of €0.0246 per share which is 1.5% lower than the net dividend of €0.02497 per share in respect of the 2021 financial year. Shareholders as at close of trading on 4 April 2023 will be entitled to receive the dividend which is expected to be paid on 12 May 2023 subject to shareholders’ approval during the upcoming Annual General Meeting which is scheduled to be held on 10 May 2023.
In the commentary to the 2022 Annual Report, the CEO remarked that 2023 will be a year of transformation for BMIT as it continues to expand the product portfolio to ensure that customers are provided with all their digital requirements. The company is in the process of expanding from an infrastructure solutions provider to a full-suite technology advisor and provider. The CEO noted that BMIT is not only Malta’s leading and largest provider for colocation and data centre services, but also the first cloud services provider. As part of the continued business transformation, the company is also focusing on cybersecurity as this has been identified as an area of increasing importance with attractive business opportunities and can be offered as part of a comprehensive service package to existing customers.