MTI Wireless Edge - new defence contract adds to recent wins - shares 48p, brokers 100p 'fair value'

01.09.2025

The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, MTI Wireless Edge (LON:MWE) has this morning announced that its subsidiary, P.S.K Wind Technologies, has secured a new contract from an existing customer.

The order involves the construction and delivery of integrated shelters for a defence application.

The contract is valued at approximately $1.1m, with delivery expected within the next 10 months.

This latest win marks the third significant contract announcement for PSK this year, highlighting its recovery and strong customer demand.

PSK's robust order backlog and pipeline of upcoming tenders position it well for sustained growth.

Management Comment

CEO Moni Borovitz stated that:

"This is the third significant contract announcement for PSK this year, reaffirming its recovery and the high customer demand for its products.

As announced last month, PSK has a strong order backlog and pipeline of upcoming tenders, putting PSK in a good position to achieve sustained growth over the medium to long term."

Broker's View

Analyst Rob Sanders, at Shore Capital Markets, is very positive about this group's prospects.

"This contract win follows last week’s interim results, when we suggested that PSK was moving towards profitability.

Indeed, all three divisions look set for further progress.

We continue to believe that each of the divisions has growth drivers with, in our view, Mottech potentially will see stronger demand than we forecast, as its software improves the efficiency of irrigation systems, while reducing the cost of operating them.

We also expect to see good demand for the defence-related products and services of Summit/PSK.

Finally, the Antenna division is also likely to benefit from increased defence spending as well as the rollout of 5G across the world.

We are encouraged by the likely much-improved EBIT margin for Mottech in H2 and the confidence that Antennas and Summit continue to be well-placed to deliver improved profitability as FY25F progresses."

Sanders is looking for the current year to end-December to increase sales to $51.5m ($45.6m), while adjusted pre-tax profits could rise to $5.2m ($4.8m), with 5.5c (5.0c) per share of earnings, and a 3.4c (3.3c) dividend.

The £41.3m-capitalised group is expected to hold net cash of $8.5m ($6.0m) at the year-end

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My View

These shares have an attractive upside from the current 48p.