B.O.S. Better Online Solutions .(US:BOSC)2025-03-31 19:48Financial Performance - In 2024, the company reported revenues of $40 million, a decrease from $44 million in 2023, reflecting normalized purchasing patterns post-COVID-19 [160]. - Gross profit for 2024 was $9.4 million, with a gross margin of 23.5%, compared to $9.2 million and a gross margin of 20.8% in 2023, indicating improved profitability across all divisions [161]. - Net profit for 2024 was $2.3 million, up from $2.01 million in 2023, with basic and diluted net income per share increasing to $0.40 and $0.39, respectively [164]. - Cash flow from operating activities was $1.3 million in 2024, down from $1.83 million in 2023, primarily due to a decrease in trade payables [180]. - The company had working capital of $13.7 million as of December 31, 2024, an increase from $11.14 million in 2023, indicating strong liquidity [170]. Expenses and Impairments - Sales and marketing expenses decreased to $4.4 million in 2024 from $4.89 million in 2023, aligning with the revenue decline [162]. - The company recorded an impairment of intangible assets and goodwill amounting to $1.2 million in 2024 due to decreased revenues and increased interest rates [163]. - The company recorded an impairment loss of goodwill of $707,000 for the RFID division in 2024, as its fair value was below its carrying value [196]. - Inventory write-downs were $636,000 in 2024, compared to $446,000 in 2023, reflecting risks from slow-moving items [189]. - Research and development expenses increased to $175,000 in 2024 from $158,000 in 2023, focusing on custom-made automation concepts [183]. Financing Activities - Net cash provided by financing activities in 2024 amounted to $217,000, primarily from short and long-term bank loans of $265,000 and share issuance proceeds of $119,000 [182]. - The company plans to grow its business through acquisitions of complementary businesses, which may require increasing debt and raising additional equity financing [178]. - The effective corporate tax rate is 23%, unchanged since January 1, 2018 [168]. Market Position and Growth Opportunities - The Intelligent Robotics division has 90% of its backlog serving the defense sector, indicating strong market demand [187]. - The company is well-positioned to capitalize on growth opportunities in the defense sector, which is experiencing strong expansion [185]. - The Intelligent Robotics division significantly expanded its RFID solutions portfolio in 2024, expecting revenue growth in 2025 [187]. - The flagship customers in the Supply Chain division include Israel Aerospace Industries, Elbit Systems, and Rafael, leaders in the defense segment [186]. - The company operates through three divisions: RFID, Supply Chain, and Intelligent Robotics, focusing on comprehensive technological solutions [184].