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(Sharecast News) - MTI Wireless Edge reported higher first-quarter revenue and profit on Tuesday, and said trading had accelerated in April after multiple defence contract wins worth more than $9m.
The AIM-traded technology group, which provides communication and radio frequency solutions, said revenue rose 6% to $12.8m for the three months ended 31 March, from $12.0m a year earlier.
Operating profit increased 21% to $1.5m, while net profit attributable to shareholders rose 18% to $1.2m.
Earnings per share increased 18% to 1.40 US cents.
MTI ended the quarter with net cash of $8.5m, compared with $9.4m at the end of December, with the movement reflecting particularly strong cash collection in the fourth quarter of 2025.
The company said its antenna division had a slower first quarter, with revenue down 20% year-on-year, mainly because of lower E-band 5G backhaul sales in India compared with earlier periods.
Military antennas were the division's main revenue contributor, supported by RFID sales and sales of its ABS antenna solution for 5G backhaul.
MTI said higher global defence spending had driven strong demand for military antennas, increasing the order backlog in April.
The company added that demand for its solutions to support mobile operators' 5G rollouts remained unchanged, although the timing of new orders was difficult to predict.
The water control and management division, which operates under the Mottech brand, delivered a strong performance. Revenue rose 19% year-on-year, with profits also increasing sharply, driven mainly by international markets including North America, Italy and the Arabian Gulf.
The distribution and professional consulting services division, operating under MTI Summit Electronics, increased revenue by 20% in the quarter.
MTI said the division delivered a much-improved performance, with solid contributions from PSK and other parts of the business, and a good level of profitability.
New business wins have created a lengthy order backlog for both the traditional representation business and PSK, supporting prospects for the rest of 2026.
Chief executive Moni Borovitz said the group had delivered a strong first-quarter performance, particularly from Mottech, which benefited from increased demand from international customers seeking water management services.
"Moving into Q2, we received a record level of defence related orders worth just over $9 million, the majority of which is expected to be fulfilled in the current year, adding to a backlog of orders for 2026 that was already high," he said.
Borovitz said defence orders were likely to remain a key revenue driver in the short to medium term, but added that MTI's diversification across multiple markets remained a core strength.
"Overall, MTI is in a good position with net cash of $8.5m, a strong balance sheet and a growing customer base," he said.
At 1337 BST, shares in MTI Wireless Edge were up 6.56% at 65p.
Reporting by Josh White for Sharecast.com.
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