TIDMGINV
RNS Number : 0655R
Global Invacom Group Limited
27 February 2023
Global Invacom Group Limited
("Global Invacom", the "Company" or the "Group")
Final Results for the year ended 31 December 2022
Singapore/London, 27 February 2023 - Global Invacom (SGX: QS9)
(AIM: GINV), the global provider of satellite communications
equipment and electronics , announces its unaudited financial
results for the year ended 31 December 2022 ("FY2022").
As previously announced, the Group continued to be impacted by
well-publicised global supply chain headwinds and inflationary
pressures which, along with an underperformance within our US
subsidiary, has led to the Group recording a net loss after tax for
the year.
Key financial highlights:
-- Revenue for FY2022 decreased 11.8% to US$72.8 million (FY2021: US$82.5 million)
-- Gross profit decreased to US$13.4 million (FY2021: US$16.6 million)
-- Goodwill impairment charge of US$5.2 million and Deferred Tax
Asset write off of US$1.3 million, both relating to our US
subsidiary
-- Net loss of US$13.2 million (FY2021: net profit of US$0.6 million)
Key operational highlights:
-- Well-documented macroeconomic challenges, including labour
and raw material inflationary pressures, continue to impact the
Group's financial performance.
-- Initiated strategic and operational review of the broader
business in Q3 FY2022 aimed at strengthening the Group's operating
platform, and further developing the Group's research and
development capabilities
-- Launched additional Supervisory Control and Data Acquisition
("SCADA") products for hubs and remote locations in 1H FY2022,
consolidating the Company's position as a market-leading developer
of satellite communications ground equipment
-- Partnership with Methera Global Communications Limited
("Methera") progressing well, with the Group designing and
developing Ka-band user terminals, and currently on track to launch
products to market in 2024
-- Ability of Global Invacom to generate revenues impacted by
legacy impact of Covid-19 on the Group's Asia operations and global
supply chains, which continues to face a worldwide shortage of
semiconductors
As a designer, manufacturer, and provider of high-tech products
with an international customer and employee base, 2022 continued to
be a challenging trading environment for the Group. The Group's net
loss is substantially attributed to its US operations, with
impacting factors including the sale of key products being
postponed due to delays in customer demand. Considerable
macroeconomic headwinds impacted the Company's financial and
operational performance in the year ended 31 December 2022, and
ongoing inflationary pressures, along with reduced transportation
costs leading to increased competition from overseas suppliers,
particularly into the US market, are also expected to impact the
performance of the business in the current financial year. Global
Invacom is focused on mitigating the effects of global supply chain
issues on its core business activities and ensuring the Group is
optimised as pressures subside.
Against a challenging economic backdrop, the team worked
tirelessly throughout the year to ensure the business continued to
supply market-leading products and continued to design, develop and
launch state-of-the-art products, and the Board would like to
express its sincere thanks to our staff, partners, suppliers, and
customers for their continued support across 2022.
In Q3 FY2022, the Group commenced a comprehensive review of its
operations, focused on bolstering its operational platform and
management capabilities aimed at generating greater shareholder
value. The review continues to assess the Group's assets and cost
base to streamline certain core functions, whilst utilising its
extensive research and development capabilities to seek and secure
new markets and customers. Global Invacom remains committed to
technological innovation and development, and, by working in
collaboration with key customers, the Group has ensured it is well
positioned to maintain its reputation of developing best-in-class
solutions for the satellite industry. The expansion of the Group's
research capabilities has formed a core element of the review, and
will continue during 2023.
The Group's North America operation has committed to
streamlining its core US manufacturing functions to stabilise
operations and enhance efficiencies.
Global Invacom expanded its product portfolio during 2022 with a
range of exciting new launches within the Very Small Aperture
Terminal ("VSAT") category aimed at targeting the growing market
for data over satellite capabilities. The Group announced new SCADA
products for hubs and remote locations in 1H FY2022, which have
generated further cross-sell and upsell opportunities and expanded
the Company's market reach. Concurrently, Global Invacom's
subsidiary, OnePath Networks Limited, trading as Global Foxcom,
introduced its innovative Mini-Global Navigation Satellite System
repeater kit, diversifying its range of Satcom Repeater solutions
and increasing its presence in the aviation, commercial, and
military markets. The Group anticipates increased demand for its
satellite dishes following the completion of a long-term satellite
project, which is expected to be in operation by 2H FY2023.
As previously reported, delays in the completion of our XRJ
product, coupled with the recent decline in global demand for
satellite television products, has impacted the Group's financial
performance. Global Invacom will continue to monitor market trends
to ensure our expert R&D, marketing and sales teams are
deployed strategically across expanding categories.
The Company continues to be recognised for its expertise and
know-how in satellite communications equipment design and
innovation, and during 2022 secured mandates with key players in
the industry to develop a range of modern and affordable products
for their customers. Announced in October 2021, the Group's
partnership with Methera and its subcontractors is progressing as
planned, and Global Invacom remains committed to helping meet the
ever-expanding demand for connectivity, including from remote
communities, as it targets the delivery of Ka-band user terminals
to market in 2024.
With a blue-chip customer base and a highly experienced global
team of employees, management is focused on stabilising the
business to ensure it remains in a solid position to capitalise on
the continued demand for dependable VSAT products from a broad
range of industries including energy and defence. The Company
strives to ensure its position at the forefront of technological
innovation and - where necessary - will explore additional
partnership opportunities in the medium to long term.
Now more than ever, individuals worldwide require reliable
domestic connectivity to support their daily activities, from
business to leisure. The Group's unique capabilities as a designer,
manufacturer, and provider of equipment for both electronics and
antenna solutions means Global Invacom has an integral role to play
in delivering essential devices to customers across the globe as
the satellite communications industry continues to evolve.
Board Composition
In December 2022, the Group announced that Tony Taylor,
Executive Chairman, had stepped down as a member of the Board and
executive director. Mr Taylor made a valuable contribution to the
Group during his 16-year tenure, and the Board and the wider
executive team wish him every success in his future endeavours.
Gordon Blaikie, Global Invacom's current Chief Operating Officer
and an executive director, has assumed the role of Interim Chief
Executive Officer whilst the Group identifies a permanent
replacement. Mr Blaikie has 11 years' experience at Global Invacom,
overseeing the manufacturing entities and sales functions of the
Group and regularly worked closely with the Board and senior
management team to improve the Group's operating performance. In
addition, Wayne Porritt, an existing Independent Non-Executive
Director of the Company, became Independent Non-Executive
Chairman.
Outlook
Due to the prevailing economic pressures on the business, the
current financial year is expected to be challenging for the Group.
With supply chain and inflationary pressures forecast to ease in
FY2023, the Group is focused on continuing to implement its
operational restructuring and establishing the underlying
foundations for long-term growth.
Gordon Blaikie, Interim Chief Executive Officer of Global
Invacom, commented:
"Despite facing considerable challenges during 2022, the Group
made solid progress across its sales and marketing divisions, as
well as in product development .
"We continue to attract significant partners, with our
cutting-edge VSAT products generating strong industry demand, and
in Q3 FY2022 the Group experienced encouraging signs of renewed
customer activity, which is pleasing.
"The perseverance of our team throughout the year has not gone
unnoticed, and the Board and management would like to extend their
profound gratitude to all staff for their hard work and
dedication.
"We look forward to progressing our restructuring and
operational review to help stabilise the business, the Group's key
strategic priority, as well as exploring additional commercial
opportunities to further grow the company's profile globally."
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic
law.
For further information, please contact:
Global Invacom Group Limited www.globalinvacom.com
Gordon Blaikie, Interim Chief Executive via Vigo Consulting
Officer
Strand Hanson Limited (Nominated Adviser www.strandhanson.co.uk
and Broker)
James Harris / Richard Johnson / David Tel: +44 20 7409
Asquith 3494
Vigo Consulting (UK Media & Investor www.vigoconsulting.com
Relations)
Jeremy Garcia / Fiona Hetherington / Tel: +44 20 7390
Kendall Hill 0238
ginv@vigoconsulting.com
About Global Invacom Group Limited
Global Invacom is a fully integrated satellite equipment
provider with sites across Singapore, China, Indonesia,
Philippines, Malaysia, Israel, UK and the U.S. Its customers
include satellite broadcasters such as Sky Group of the UK and Dish
Network of the USA and Data over Satellite providers including
Hughes Network Systems, Viasat and Gilat Satellite Networks.
Global Invacom provides a full range of satellite ground
equipment including antennas, LNB receivers, transceivers, fibre
distribution equipment, transmitters, switches, and video
distribution components, as well as manufacturing services for the
defence and healthcare sectors. The Group is the world's only
full--service outdoor unit supplier.
Global Invacom is listed on the Mainboard of the Singapore
Exchange Securities Trading Limited and its shares are admitted to
trading on the AIM Market of the London Stock Exchange.
For more information, please refer to www.globalinvacom.com
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the Six Months and Full Year Ended 31 December 2022
A. Condensed Interim Consolidated Statement of Comprehensive Income
Group Group
-------------------------------------------------------------------- ------------------------------------------------------
2H 2H FY2021 Increase/ Increase/
FY2022 (Decrease) FY2022 FY2021 (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Revenue 35,349 42,102 (16.0) 72,769 82,541 (11.8)
Cost of sales (29,303) (34,338) (14.7) (59,354) (65,991) (10.1)
Gross profit 6,046 7,764 (22.1) 13,415 16,550 (18.9)
Other income 9 4,007 (99.8) 46 5,485 (99.2)
Distribution costs (98) (231) (57.6) (254) (368) (31.0)
Administrative expenses (7,379) (7,458) (1.1) (15,485) (15,918) (2.7)
Research and development
expenses (1,741) (2,579) (32.5) (3,710) (4,996) (25.7)
Impairment of goodwill (5,199) - N.M. (5,199) - N.M.
Other operating expenses (311) (211) 47.4 (568) (263) 116.0
Finance income - - - - 1 (100.0)
Finance costs (307) (196) (56.6) (478) (519) (7.9)
(Loss)/Profit before
income tax (8,980) 1,096 N.M. (12,233) (28) N.M.
Income tax (expense)/credit (917) 640 N.M. (956) 586 N.M.
------------------------ ---------------------- ------------------ --------------- ----------------- ------------------
(Loss)/Profit for the
period/year (9,897) 1,736 N.M. (13,189) 558 N.M.
------------------------ ---------------------- ------------------ --------------- ----------------- ------------------
Other comprehensive
loss:
Items that may be reclassified
subsequently to profit
or loss
* Exchange differences on translation of foreign
subsidiaries (658) (445) 47.9 (677) (120) 464.2
Other comprehensive
loss for the period/year,
net of tax (658) (445) 47.9 (677) (120) 464.2
------------------------ ---------------------- ------------------ --------------- ----------------- ------------------
Total comprehensive
(loss)/income for the
period/year (10,555) 1,291 N.M. (13,866) 438 N.M.
------------------------ ---------------------- ------------------ --------------- ----------------- ------------------
(Loss)/Profit for
the
period/year
attributable
to:
Equity holders of
the
Company (9,895) 1,738 N.M. (13,184) 561 N.M.
Non-controlling
interests (2) (2) 0.0 (5) (3) 66.7
-------------- -------------- ------------- -------------- ---------------- ------------
(9,897) 1,736 N.M. (13,189) 558 N.M.
-------------- -------------- ------------- -------------- ---------------- ------------
Total comprehensive
(loss)/income for
the
period/year
attributable
to:
Equity holders of
the
Company (10,553) 1,293 N.M. (13,861) 441 N.M.
Non-controlling
interests (2) (2) 0.0 (5) (3) 66.7
-------------- -------------- ------------- -------------- ---------------- ------------
(10,555) 1,291 N.M. (13,866) 438 N.M.
-------------- -------------- ------------- -------------- ---------------- ------------
N.M.: Not Meaningful
B. Condensed Interim Statements of Financial Position
Group Company
------------------------------------------- -----------------------------------------
31 Dec 31 Dec 31 Dec 31 Dec
2022 2021 2022 2021
US$'000 US$'000 US$'000 US$'000
ASSETS
Non-current Assets
Property, plant and
equipment 6,641 8,126 - 20
Right-of-use assets 3,095 4,396 41 39
Investments in
subsidiaries - - 17,824 25,375
Goodwill 893 6,092 - -
Intangible assets 1,417 1,698 - -
Deferred tax assets 585 1,780 - -
Other receivables and
prepayments 54 54 - 11,032
12,685 22,146 17,865 36,466
-------------------- --------------------- -------------------- -------------------
Current Assets
Due from subsidiaries - - 2,499 3,265
Inventories 22,869 25,764 - -
Trade receivables 10,011 13,772 - -
Other receivables and
prepayments 1,274 5,302 13,786 2,588
Tax receivables 167 169 - -
Cash and cash equivalents 9,244 10,771 168 155
-------------------- --------------------- -------------------- -------------------
43,565 55,778 16,453 6,008
-------------------- --------------------- -------------------- -------------------
Total assets 56,250 77,924 34,318 42,474
-------------------- --------------------- -------------------- -------------------
EQUITY AND LIABILITIES
Equity
Share capital 60,423 60,423 74,240 74,240
Treasury shares (1,656) (1,656) (1,656) (1,656)
Reserves (25,160) (11,383) (38,472) (30,462)
-------------------- --------------------- -------------------- -------------------
Equity attributable
to owners of the Company 33,607 47,384 34,112 42,122
Non-controlling interests (24) (19) - -
-------------------- --------------------- -------------------- -------------------
Total equity 33,583 47,365 34,112 42,122
-------------------- --------------------- -------------------- -------------------
Non-current Liabilities
Other payables 172 152 - -
Lease liabilities 1,599 3,088 - -
Deferred tax liabilities 684 646 - -
2,455 3,886 - -
-------------------- --------------------- -------------------- -------------------
Current Liabilities
Due to subsidiaries - - - 1
Trade payables 10,006 14,479 - -
Other payables 3,109 4,447 168 313
Borrowings 5,488 6,120 - -
Lease liabilities 1,607 1,627 38 38
Provision for income
tax 2 - - -
-------------------- --------------------- -------------------- -------------------
20,212 26,673 206 352
-------------------- --------------------- -------------------- -------------------
Total liabilities 22,667 30,559 206 352
-------------------- --------------------- -------------------- -------------------
Total equity and
liabilities 56,250 77,924 34,318 42,474
-------------------- --------------------- -------------------- -------------------
C. Condensed Interim Statements of Changes in Equity
Attributable
to
Group equity
Foreign holders
Capital Share currency of
Share Treasury Merger redemption options Capital translation Retained the Non-controlling
capital shares reserves reserves reserve reserve reserve profits Company interests Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as
at 1 January
2022 60,423 (1,656) (10,150) 6 725 (5,109) (1,084) 4,229 47,384 (19) 47,365
Loss for the
period - - - - - - - (3,289) (3,289) (3) (3,292)
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - (19) - (19) - (19)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Total other
comprehensive
loss for the
period - - - - - - (19) (3,289) (3,308) (3) (3,311)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Balance as
at 30 June
2022 60,423 (1,656) (10,150) 6 725 (5,109) (1,103) 940 44,076 (22) 44,054
Share-based
payments - - - - 36 - (1) 49 84 - 84
Transfer to
capital
reserve
in accordance
with
statutory
requirements - - - - - (2,727) 2,343 384 - - -
Loss for the
period - - - - - - (9,895) (9,895) (2) (9,897)
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - (658) - (658) - (658)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Total other
comprehensive
loss for the
period - - - - - - (658) (9,895) (10,553) (2) (10,555)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Balance as
at 31
December
2022 60,423 (1,656) (10,150) 6 761 (7,836) 581 (8,522) 33,607 (24) 33,583
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Balance as
at 1 January
2021 60,423 (1,656) (10,150) 6 725 (5,109) (964) 3,668 46,943 (16) 46,927
Loss for the
period - - - - - - - (1,177) (1,177) (1) (1,178)
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - 325 - 325 - 325
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Total other
comprehensive
income/(loss)
for the
period - - - - - - 325 (1,177) (852) (1) (853)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Balance as
at 30 June
2021 60,423 (1,656) (10,150) 6 725 (5,109) (639) 2,491 46,091 (17) 46,074
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Profit/(Loss)
for the
period - - - - - - - 1,738 1,738 (2) 1,736
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - (445) - (445) - (445)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Total other
comprehensive
(loss)/income
for the
period - - - - - - (445) 1,738 1,293 (2) 1,291
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
Balance as
at 31
December
2021 60,423 (1,656) (10,150) 6 725 (5,109) (1,084) 4,229 47,384 (19) 47,365
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ------------------ ----------------------- --------------------- -------------------
C. Condensed Interim Statements of Changes in Equity (cont'd)
Foreign
Share currency
Share Treasury options Capital translation Accumulated
Company capital shares reserve reserve reserve losses Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as at
1 January
2022 74,240 (1,656) 725 (4,481) (2,506) (24,200) 42,122
Loss for the
period - - - - - (244) (244)
Other
comprehensive
loss:
Exchange - - - - - - -
differences
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Total other
comprehensive
loss for the
period - - - - - (244) (244)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Balance as at
30 June 2022 74,240 (1,656) 725 (4,481) (2,506) (24,444) 41,878
Share-based
payments - - (12) - - - (12)
Loss for the
period - - - - - (7,754) (7,754)
Other
comprehensive
loss:
Exchange - - - - - - -
differences
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Total other
comprehensive
loss for the
period - - - - - (7,754) (7,754)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Balance as at
31 December
2022 74,240 (1,656) 713 (4,481) (2,506) (32,198) 34,112
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Balance as at
1 January
2021 74,240 (1,656) 725 (4,481) (2,506) (22,040) 44,282
Loss for the
period - - - - - (139) (139)
Other
comprehensive
loss:
Exchange - - - - - - -
differences
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Total other
comprehensive
loss for the
period - - - - - (139) (139)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Balance as at
30 June 2021 74,240 (1,656) 725 (4,481) (2,506) (22,179) 44,143
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Loss for the
period - - - - - (2,021) (2,021)
Other
comprehensive
loss:
Exchange - - - - - - -
differences
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Total other
comprehensive
loss for the
period - - - - - (2,021) (2,021)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Balance as at
31 December
2021 74,240 (1,656) 725 (4,481) (2,506) (24,200) 42,122
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
D. Condensed Interim Consolidated Statement of Cash Flows
Group Group
------------------------------------ -------------------------------------
2H FY2022 2H FY2021 FY2022 FY2021
US$'000 US$'000 US$'000 US$'000
Cash Flows from Operating Activities
(Loss)/Profit before income tax (8,980) 1,096 (12,233) (28)
Adjustments for:
Depreciation of property, plant and
equipment 854 760 1,749 1,903
Amortisation of intangible assets 137 325 278 591
Depreciation of right-of-use assets 760 868 1,607 1,864
Loss/(Gain) on disposal of property,
plant and equipment 278 - 273 (1,143)
Allowance/(Write-back) of inventory
obsolescence, net 611 (736) 866 (738)
(Write-back)/Impairment loss on trade
receivables (35) - 140 -
Impairment loss on other financial
assets - 8 - 8
Unrealised exchange (gain)/loss (884) 60 (951) 184
Interest income - - - (1)
Interest expense 307 196 478 519
Share-based payments 36 - 36 -
Bad debts written back - (113) - (96)
(Gain)/Loss on lease modifications (125) 144 (125) (63)
Write-back of payables - (880) - (880)
Impairment of goodwill 5,199 - 5,199 -
Operating cash flow before working
capital changes (1,842) 1,728 (2,683) 2,120
Changes in working capital:
Inventories 1,692 686 2,029 1,790
Trade receivables 2,323 (2,978) 6,267 (5,680)
Other receivables and prepayments 1,694 (390) 1,354 3
Trade and other payables (3,446) 3,777 (5,462) 1,382
------------------ ---------------- ------------------ -----------------
Cash generated from/(used in)
operating activities 421 2,823 1,505 (385)
Interest paid (26) (34) (222) (150)
Income tax paid (4) - (126) (2)
Net cash generated from/(used in)
operating activities 391 2,789 1,157 (537)
------------------ ---------------- ------------------ -----------------
Cash Flows from Investing Activities
Interest received - 1 - 1
Purchase of property, plant and
equipment (219) (384) (470) (1,063)
Proceeds from disposal of property,
plant and equipment 3 203 8 784
Net cash used in investing activities (216) (180) (462) (278)
------------------ ---------------- ------------------ -----------------
Cash Flows from Financing Activities
Proceeds from borrowings 18,624 17,738 35,801 34,764
Repayment of borrowings (18,850) (17,817) (36,433) (32,527)
Principal repayment of lease
liabilities (704) (1,202) (1,581) (1,942)
Net cash (used in)/generated from
financing activities (930) (1,281) (2,213) 295
------------------ ---------------- ------------------ -----------------
Net (decrease)/increase in cash and
cash equivalents (755) 1,328 (1,518) (520)
Cash and cash equivalents at the
beginning of the period/year 10,000 9,435 10,771 11,273
Effect of foreign exchange rate
changes on the balance of cash held
in foreign currencies (1) 8 (9) 18
------------------ ---------------- ------------------ -----------------
Cash and cash equivalents at the end
of the period/year 9,244 10,771 9,244 10,771
------------------ ---------------- ------------------ -----------------
E. Notes to the Condensed Interim Consolidated Financial Statements
1. General Information
Global Invacom Group Limited (the "Company") is a public limited
company incorporated and domiciled in Singapore and is listed on
the Mainboard of the Singapore Exchange Securities Trading Limited
("SGX-ST"). The Company is also listed on the AIM Market of the
London Stock Exchange ("AIM") in the United Kingdom (UK). These
condensed interim consolidated financial statements as at and for
the six months and full year ended 31 December 2022 comprise the
Company and its subsidiaries (the "Group"). The principal activity
of the Company is that of an investment holding company.
The principal activities of the Group are design, manufacture
and supply of a full range of satellite ground equipment, including
antennas, LNB receivers, transceivers, fibre distribution
equipment, transmitters, switches and video distribution
components.
2. Basis of Preparation
The condensed interim financial statements for the six months
and full year ended 31 December 2022 have been prepared in
accordance with Singapore Financial Reporting Standards
(International) ("SFRS(I)") 1-34 Interim Financial Reporting issued
by the Accounting Standards Council Singapore. The condensed
interim financial statements do not include all the information
required for a complete set of financial statements. However,
selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the
changes in the Group's financial position and performance of the
Group since the last annual financial statements for the year ended
31 December 2021.
The accounting policies adopted are consistent with those of the
previous financial year which were prepared in accordance with
SFRS(I)s and International Financial Reporting Standards ("IFRSs"),
except for the adoption of new and amended standards as set out in
Note 2.1.
The condensed interim financial statements are presented in
United States dollar which is the Company's functional
currency.
2.1 New and Amended Standards Adopted by the Group
There has been no change in the accounting policies and methods
of computation adopted by the Group for the current reporting
period compared with the audited financial statements for the year
ended 31 December 2021, except for the adoption of new or revised
SFRS(I) and interpretations of SFRS(I) ("INT SFRS(I)") that are
mandatory for the financial year beginning on or after 1 January
2022. The adoption of these SFRS(I) and INT SFRS(I) has no
significant impact on the Group.
2.2 Use of Judgements and Estimates
In preparing the condensed interim financial statements,
management has made judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
The significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements as at and for the year ended 31 December
2021.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected.
Information about critical judgements in applying accounting
policies that have the most significant effect on the amounts
recognised in the financial statements is included in the following
notes:
-- Note 9 - capitalised development costs
-- Note 11 - impairment test on property, plant and equipment
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
2. Basis of Preparation (cont'd)
2.2 Use of Judgements and Estimates (cont'd)
Information about assumptions and estimation uncertainties that
have a significant risk of resulting in a material adjustment to
the carrying amounts of assets and liabilities within the next
interim period are included in the following notes:
-- Note 10 - impairment test of goodwill: key assumptions underlying recoverable amounts
-- Note 11 - useful lives of property, plant and equipment
3. Seasonal Operations
The Group's businesses are not affected significantly by
seasonal or cyclical factors during the six months and full year
ended 31 December 2022.
4. Segment and Revenue Information
The Group is organised into the following main business
segments:
-- Satellite C ommunications ("Sat Comms"); and
-- Contract Manufacturing ("CM")
These operating segments are reported in a manner consistent
with internal reporting provided to the executive directors who are
responsible for allocating resources and assessing performance of
the operating segments.
4.1 Reportable Segments
Sat
Comms CM Group
US$'000 US$'000 US$'000
FY2022
Revenue 72,769 - 72,769
========= ======== =========
Operating loss (11,755) - (11,755)
========= ========
Finance costs (478)
Income tax expense (956)
---------
Loss for the year (13,189)
=========
Amortisation of intangible assets 278 - 278
Depreciation of property, plant
and equipment 1,749 - 1,749
Depreciation of right-of-use assets 1,607 - 1,607
Addition to property, plant and
equipment 470 - 470
Impairment of goodwill 5,199 - 5,199
Impairment loss on trade receivables 140 - 140
Gain on lease modifications (125) - (125)
Allowance for inventory obsolescence,
net 866 - 866
--------- -------- ---------
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
4. Segment and Revenue Information (cont'd)
4.1 Reportable Segments (cont'd)
Sat
Comms CM Group
US$'000 US$'000 US$'000
Assets and liabilities
Segment assets 55,095 - 55,095
Unallocated assets
- Other receivables 85
- Deferred tax assets 585
- Cash and cash equivalents 168
- Tax receivables 167
- Right-of-use assets 150
--------
Total assets 56,250
========
Segment liabilities 16,247 - 16,247
Unallocated liabilities
- Other payables 208
- Provision for income tax 2
- Deferred tax liabilities 684
- Borrowings 5,488
- Lease liabilities 38
--------
Total liabilities 22,667
========
FY2021
Revenue 82,541 - 82,541
======= ===== =======
Operating profit/(loss) 507 (17) 490
======= =====
Finance income 1
Finance costs (519)
Income tax credit 586
-------
Profit for the year 558
=======
Amortisation of intangible assets 591 - 591
Depreciation of property, plant
and equipment 1,903 - 1,903
Depreciation of right-of-use assets 1,864 - 1,864
Addition to property, plant and
equipment 1,063 - 1,063
Impairment loss on other financial
assets 8 - 8
Bad debts written (back)/off (113) 17 (96)
Gain on lease modifications (63) - (63)
Write-back of inventory obsolescence,
net (738) - (738)
------- ----- -------
Assets and liabilities
Segment assets 74,109 1,573 75,682
Unallocated assets
- Non-current assets 20
- Other receivables 79
- Deferred tax assets 1,780
- Cash and cash equivalents 155
- Tax receivables 169
- Right-of-use assets 39
-------
Total assets 77,924
=======
Segment liabilities 23,393 - 23,393
Unallocated liabilities
- Other payables 362
- Deferred tax liabilities 646
- Borrowings 6,120
- Lease liabilities 38
-------
Total liabilities 30,559
=======
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
4. Segment and Revenue Information (cont'd)
4.2 Disaggregation of Revenue
The Group's revenue is disaggregated by principal geographical
areas, major product lines and timing of revenue recognition.
Group Group
2H 2H
FY2022 FY2021 FY2022 FY2021
US$'000 US$'000 US$'000 US$'000
Principal geographical
market
America
- Sale of goods 22,861 23,295 40,256 46,460
-------- -------- -------- --------
Europe
- Sale of goods 7,949 13,364 19,437 24,361
-------- -------- -------- --------
Asia
- Sale of goods 1,155 3,483 2,374 4,692
-------- -------- -------- --------
Rest of the World
- Sale of goods 3,384 1,960 10,702 7,028
-------- -------- -------- --------
Total 35,349 42,102 72,769 82,541
======== ======== ======== ========
Major product lines
Sale of goods 35,349 42,102 72,769 82,541
======== ======== ======== ========
The Group recognises revenue from sale of goods at a point in
time, when the Group satisfies a performance obligation and the
customers obtain control of the goods.
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
5. Financial Assets and Financial Liabilities
5.1 Significant Items
Group Group
2H 2H
FY2022 FY2021 FY2022 FY2021
US$'000 US$'000 US$'000 US$'000
Interest income - - - 1
Interest expense (307) (196) (478) (519)
Write-back of payables - 880 - 880
Impairment of goodwill (5,199) - (5,199) -
(Loss)/Gain on disposal of
property, plant and equipment (302) - (273) 1,143
Gain/(Loss) on lease modifications 125 (144) 125 63
(Write-back)/Impairment loss
on trade receivables (35) - 140 -
Impairment loss on other financial
assets - (8) - (8)
Gain/(Loss) on foreign exchange 177 (159) (88) (193)
Bad debts written back - 113 - 96
(Allowance)/Write-back of
inventory obsolescence (611) 736 (866) 738
Depreciation of property,
plant and equipment (854) (760) (1,749) (1,903)
Depreciation of right-of-use
assets (760) (868) (1,607) (1,864)
Amortisation of intangible
assets (137) (325) (278) (591)
Operating lease expense (12) (19) (22) (19)
5.2 Related Party Transactions
There are no material related party transactions apart from
those disclosed elsewhere in the condensed interim financial
statements.
6. Taxation
The Group calculates the period income tax expense using the tax
rate that would be applicable to the expected total annual
earnings.
7. (Loss)/Earnings Per Share
(Loss)/Earnings per ordinary share of the Group, after Group Group
deducting any provision for preference
dividends
2H 2H
FY2022 FY2021 FY2022 FY2021
US$ US$ US$ US$
-------------- ------------- -------------- ------------
(a) Based on weighted average number of ordinary shares (3.64) cents 0.64 cent (4.85) cents 0.21 cent
on issue; and
(b) On a fully diluted basis (3.64) cents* 0.64 cent* (4.85) cents* 0.21 cent*
Weighted average number of ordinary shares used in
computation of basic earnings per share 271,662,227 271,662,227 271,662,227 271,662,227
Weighted average number of ordinary shares used in
computation of diluted earnings per share 271,662,227 271,662,227 271,662,227 271,662,227
-------------- ------------- -------------- ------------
* Diluted earnings per share are the same as the basic earnings
per share because the potential ordinary shares to be converted are
anti-dilutive as the effect of the share conversion would be to
increase the earnings per share.
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
8. Net Asset Value
Group Company
31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021
US$ US$ US$ US$
------------ ------------ ------------ ------------
Net asset value per ordinary share based on issued share 12.37 cents 17.44 cents 12.56 cents 15.51 cents
capital
Total number of issued shares 271,662,227 271,662,227 271,662,227 271,662,227
------------ ------------ ------------ ------------
9. Intangible Assets
Intellectual Capitalised
Trading property development
name rights costs Total
US$'000 US$'000 US$'000 US$'000
Group
2022
Cost
Balance at 1 January
and 31 December 16 2,674 4,834 7,524
Amortisation and impairment
Balance at 1 January 16 1,043 4,767 5,826
Amortisation charge - 211 67 278
Currency realignment - 3 - 3
-------- ------------- ------------- --------
Balance at 31 December 16 1,257 4,834 6,107
-------- ------------- ------------- --------
Net book value
Balance at 31 December - 1,417 - 1,417
======== ============= ============= ========
2021
Cost
Balance at 1 January
and 31 December 16 2,674 4,834 7,524
Amortisation and impairment
Balance at 1 January 16 757 4,460 5,233
Amortisation charge - 284 307 591
Currency realignment - 2 - 2
-------- ------------- ------------- --------
Balance at 31 December 16 1,043 4,767 5,826
-------- ------------- ------------- --------
Net book value
Balance at 31 December - 1,631 67 1,698
======== ============= ============= ========
10. Goodwill
Group
31 December 31 December
2022 2021
US$'000 US$'000
Cost
Balance at the beginning and end
of the year 6,092 9,352
============ ============
Allowance for impairment loss
Balance at the beginning and end
of the year 5,199 3,260
Net carrying amount 893 6,092
============ ============
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
10. Goodwill (cont'd)
10.1 Allocation of Goodwill
Goodwill has been allocated to the Group's cash generating unit
("CGU") identified according to the business segment as
follows:
Group
31 December 31 December
2022 2021
US$'000 US$'000
Satellite Communications
- OnePath Networks Limited ("OPN")
- Israel 893 893
- Satellite Acquisition Corporation
("SAC") - United States of America - 5,199
------------ ------------
893 6,092
============ ============
11. Property, Plant and Equipment
Furniture,
Machinery fittings
Freehold & Motor &
property equipment vehicles equipment Renovations Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Group
2022
Cost
Balance at 1 January 2,871 17,907 40 7,813 1,438 30,069
Currency realignment - 96 - (3) 8 101
Additions - 429 - 19 22 470
Write-off - (183) - (2) - (185)
Disposals - (281) - (1) (11) (293)
Balance at 31
December 2,871 17,968 40 7,826 1,457 30,162
--------- ---------- --------- ----------- ------------ --------
Accumulated
depreciation
Balance at 1 January 960 12,523 40 7,244 1,176 21,943
Currency realignment (6) 15 - 8 9 26
Depreciation charge 16 1,438 - 136 159 1,749
Write-off - (183) - (2) - (185)
Disposals - - - (1) (11) (12)
Balance at 31
December 970 13,793 40 7,385 1,333 23,521
--------- ---------- --------- ----------- ------------ --------
Net book value
Balance at 31
December 1,901 4,175 - 441 124 6,641
========= ========== ========= =========== ============ ========
2021
Cost
Balance at 1 January 2,883 17,639 40 7,649 1,458 29,669
Currency realignment - (19) - 12 (1) (8)
Additions - 814 - 152 97 1,063
Disposals (12) (527) - - (116) (655)
Balance at 31
December 2,871 17,907 40 7,813 1,438 30,069
--------- ---------- --------- ----------- ------------ --------
Accumulated
depreciation
Balance at 1 January 928 11,187 40 6,969 1,135 20,259
Currency realignment 44 322 - - 70 436
Depreciation charge - 1,541 - 275 87 1,903
Disposals (12) (527) - - (116) (655)
Balance at 31
December 960 12,523 40 7,244 1,176 21,943
--------- ---------- --------- ----------- ------------ --------
Net book value
Balance at 31
December 1,911 5,384 - 569 262 8,126
========= ========== ========= =========== ============ ========
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
11. Property, Plant and Equipment (cont'd)
Furniture,
fittings
&
equipment Renovations Total
US$'000 US$'000 US$'000
Company
2022
Cost
Balance at 1 January and 31 December 211 80 291
Accumulated depreciation
Balance at 1 January 192 79 271
Depreciation charge 19 1 20
Balance at 31 December 211 80 291
----------- ------------ --------
Net book value
Balance at 31 December - - -
=========== ============ ========
2021
Cost
Balance at 1 January and 31 December 211 80 291
Accumulated depreciation
Balance at 1 January 137 72 209
Depreciation charge 55 7 62
Balance at 31 December 192 79 271
----------- ------------ --------
Net book value
Balance at 31 December 19 1 20
=========== ============ ========
12. Investment in Subsidiaries
Company
31 Dec 31 Dec
2022 2021
US$'000 US$'000
Unquoted equity shares, at cost 40,533 40,533
Accounting for employee share options 713 725
Currency realignment 130 131
Less: Allowance for impairment loss (23,552) (16,014)
17,824 25,375
========= =========
Movement in the allowance for impairment
loss are as follows:
At the beginning of the year 16,014 14,287
Impairment loss recognised during the year 7,538 1,727
--------- ---------
At the end of the year 23,552 16,014
========= =========
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
12. Investment in Subsidiaries (cont'd)
Allowance for impairment loss
(i) Global Invacom Manufacturing Pte Ltd ("GIMPL")
As at 31 December 2022 and 31 December 2021, an allowance for
impairment loss of US$8,648,000 was made on the cost of investment
in GIMPL, as the allocated CGU, to which the investment relates to,
was incurring losses from operations due to the restructuring costs
incurred. The recoverable amount was based on management's estimate
of the fair value less costs to sell, with reference to the fair
value of the net assets of GIMPL, which was considered to be Level
3 in the fair value hierarchy.
(ii) Global Invacom Holdings Limited and its subsidiaries ("GIHL Group")
As at 31 December 2022 and 31 December 2021, an allowance for
impairment loss of US$14,904,000 and US$7,366,000, respectively,
was made on the cost of investment in GIHL Group, as the allocated
CGU, to which the investment relates to, was incurring losses from
operations. The recoverable amount was based on management's
estimate of the fair value less costs to sell, with reference to
the fair value of the net assets of GIHL Group, which is considered
to be Level 3 in the fair value hierarchy.
13. Borrowings
Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 31 Dec 2022 As at 31 Dec 2021
Secured Unsecured Secured Unsecured
--------- -------- ---------
US$'000 US$'000 US$'000 US$'000
--------- -------- ---------
5,488 - 6,120 -
--------- -------- ---------
Amount repayable after one year
As at 31 Dec 2022 As at 31 Dec 2021
Secured Unsecured Secured Unsecured
--------- -------- ---------
US$'000 US$'000 US$'000 US$'000
--------- -------- ---------
- - - -
--------- -------- ---------
The revolving credit loans of US$5,488,000 were secured over the
assets of the subsidiaries and corporate guarantees provided by the
Company and the subsidiaries.
14. Share Capital
FY2022 No. of shares US$'000
Balance as at 1 Jan 2022 and 31 Dec
2022 271,662,227 72,584
-------------------- -----------
FY2021 No. of shares US$'000
Balance as at 1 Jan 2021 and 31 Dec
2021 271,662,227 72,584
-------------------- -----------
There were 10,740,072 treasury shares held by the Company as at
31 December 2022 and 31 December 2021 and there were no subsidiary
holdings.
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
14. Share Capital (cont'd)
Total number of issued shares excluding treasury shares as at
the end of the current financial period and as at the end of the
immediately preceding year:
31 Dec 2022 31 Dec 2021
Total number of issued shares excluding treasury shares 271,662,227 271,662,227
------------ ------------
Total number of treasury shares as at the end of the current
financial period reported on:
FY2022 No. of shares US$'000
Balance as at 1 Jan 2022 and 31 Dec
2022 10,740,072 1,656
-------------- --------
15. Subsequent Events
There are no known subsequent events which have led to
adjustments to this set of interim financial statements.
F. Other Information Required by Listing Rule Appendix 7.2
1. Review
The condensed interim consolidated statement of financial
position of Global Invacom Group Limited and its subsidiaries as at
31 December 2022 and the related condensed interim consolidated
statement of comprehensive income, condensed interim consolidated
statement of changes in equity and condensed interim consolidated
statement of cash flows for the six-month period and full year then
ended and certain explanatory notes have not been audited or
reviewed by the auditors.
2. Review of Performance of the Group
2.1 Review of Financial Performance
Revenue
T he Group's revenue for the year ended 31 December 2022
("FY2022") decreased by 11.8% to US$72.8 million from US$82.5
million in the prior year ("FY2021"). Revenue for the second half
year ended 31 December 2022 ("2H FY2022") was US$35.3 million
against US$42.1 million in the prior year ("2H FY2021"). Pressure
on the Group's revenue during FY2022 has been sustained. The legacy
recovery of global supply chains, combined with increased raw
material prices, has impacted our ability to fulfill demand. In
addition, the market requirement for our products has been impacted
by the ongoing delays to the launch of satellites, delaying demand
for some of our legacy products, and delays in bringing new
products to market.
Geographically, Group revenue for FY2022 decreased in America,
Europe and Asia by US$6.2 million (-13.4%), US$4.9 million (-20.2%)
and US$2.3 million (-49.4%), respectively and increased in R est of
the World ("RoW") by US$3.7 million (+52.3%). Revenue for 2H FY2022
decreased in the same segments, America, Europe and Asia by US$0.4
million (-1.9%), US$5.4 million (-40.5%) and US$2.3 million
(-66.8%), respectively, compensated by an increase in RoW by US$1.4
million (+72.7%), compared to the prior year.
Gross Profit
The decrease in revenue resulted in a 18.9% decrease in gross
profit from US$16.6 million in FY2021 to US$13.4 million in FY2022.
Gross profit margin has decreased marginally by 1.7 percentage
points from 20.1% to 18.4%, where the Group, particularly our US
subsidiary, has come under sustained selling price, labour shortage
and material costs pressures. As demand and supply chains the Group
operates within open up, the Group has experienced a net increase
in pressure on our margins.
Similarly, gross profit decreased from US$7.8 million in 2H
FY2021 to US$6.0 million in 2H FY2022. Gross profit margin has
decreased by 1.3 percentage points from 18.4% to 17.1%.
Other Income
Other income in 2H FY2021 and FY2021 relates primarily to a
grant from the US Government of US$2.7 million, gain on disposal of
equipment of US$1.1 million, write-back of payables of US$0.9
million and subsidy support received from various government bodies
across the Group due to the COVID-19 pandemic.
Administrative and Research and Development Expenses
Administrative expenses, together with research and development
expenses, for FY2022 decreased 8.2% to US$19.2 million compared to
US$20.9 million in FY2021, representing 26.4% and 25.3% of revenue,
respectively as a result of the ongoing cost savings measures to
streamline certain core functions across the Group. For 2H FY2022,
administrative and research and development expenses, decreased
9.1% to US$ 9.1 million compared to US$10.0 million in the previous
year, representing 25.8% and 23.8% of revenue, respectively.
Impairment of Goodwill
The impairment charge in 2H FY2022 and FY2022 was attributed to
a goodwill impairment of US$5.2 million, which is non-cash in
nature, related to the performance of the Group's US subsidiary.
The requirement to recognise this charge has arisen due to the
sustained loss making position of the Group's US subsidiary.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
2. Review of Performance of the Group (cont'd)
2.1 Review of Financial Performance (cont'd)
Profit Before Tax & Net Profit
The Group posted a loss before tax of US$12.2 million in FY2022,
compared to a loss before tax of US$28,000 the prior year,
representing a negative margin of 16.8% and 0.03%, respectively.
For 2H FY2022, the Group recorded a loss before tax of US$9.0
million compared to a profit before tax of US$1.1 million in the
prior year, representing a negative margin of 25.4% compared to a
margin of 2.6%.
The Group received research and development tax credits from the
UK Government and has written-off deferred tax assets of US$1.3
million related to the US subsidiary.
Overall, the Group recorded a net loss of US$13.2 million in
FY2022, compared to a net profit of US$0.6 million the prior year,
representing a negative margin of 18.1% compared to a margin of
0.7%, respectively. For 2H FY2022, the Group recorded a net loss of
US$9.9 million compared to a net profit of US$1.7 million in the
prior year, representing a negative margin of 28.0% compared to a
margin of 4.1%.
2.2 Review of Financial Position
Non-current assets decreased by US$9.5 million to US$12.7
million as at 31 December 2022, due to the impairment of goodwill
and deferred tax assets.
Net current assets decreased by US$5.8 million to US$23.3
million as at 31 December 2022 compared to US$29.1 million as at 31
December 2021. Inventories, trade and other receivables and trade
and other payables decreased by US$2.9 million, US$7.8 million and
US$5.8 million, respectively, with decrease in demand and
controlled purchases. In 2H FY2022, the Group's US subsidiary has
also received US$2.7 million in proceeds from the US government
related a grant support which was accounted for within other
receivables. Tax receivables remained at US$0.2 million as at 31
December 2022.
Cash and cash equivalents decreased by US$1.5 million to US$9.2
million as at 31 December 2022 from US$10.7 million at 31 December
2021, and borrowings decreased by US$0.6 million to US$5.5 million
as at 31 December 2022 from US$6.1 million as at 31 December 2021.
The current portion of the lease liabilities remained at US$1.6
million as at 31 December 2022.
With the repayment of leases, the non-current portion of the
lease liabilities decreased by US$1.5 million to US$1.6 million as
at 31 December 2022.
The Group's net asset value stood at US$33.6 million as at 31
December 2022, compared to US$47.4 million as at 31 December
2021.
2.3 Review of Cash Flows
In 2H FY2022, net cash generated from operating activities was
US$0.4 million, comprising US$1.9 million cash outflow from
operating activities (before working capital changes) and US$2.3
million net working capital inflow .
In FY2022, net cash generated from operating activities was
US$1.2 million, comprising US$$2.7 million cash outflow from
operating activities (before working capital changes), US$4.2
million net working capital inflow and US$0.3 million payment of
interest and income tax.
Net cash used in investing activities in 2H FY2022 and FY2022
amounted to US$0.2 million and US$0.5 million, respectively,
relating predominately to the purchase of machinery and equipment,
offset against proceeds from the disposal of property, plant and
equipment.
Net cash used in financing activities in 2H FY2022 and FY2022
was US$0.9 million and US$2.2 million, respectively, attributable
to the net proceeds of borrowings and repayment of lease
liabilities.
The Group recorded a net de crease in cash and cash equivalents
amounting to US$0.7 million and US$1.5 million in 2H FY2022 and
FY2022, respectively, bringing cash and cash equivalents per the
consolidated statement of cash flows to US$9.2 million as at 31
December 2022.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
3. Where a forecast, or a prospect statement, has been
previously disclosed to shareholders, any variance between it and
the actual results.
No prospect statement was made.
4. A commentary at the date of the announcement of the
significant trends and competitive conditions of the industry in
which the group operates and any known factors or events that may
affect the group in the next reporting period and the next 12
months.
As a designer, manufacturer, and provider of high-tech products
with an international customer and employee base, 2022 continued to
be a challenging trading environment for the Group. The Group's net
loss is substantially attributed to its US operations, with
impacting factors including the sale of key products being
postponed due to delays in customer demand.
Considerable macroeconomic headwinds impacted the Company's
financial and operational performance in the year ended 31 December
2022, and ongoing inflationary pressures, along with reduced
transportation costs leading to increased competition from overseas
suppliers, particularly into the US market, are also expected to
impact the performance of the business in the current financial
year. Global Invacom is focused on mitigating the effects of global
supply chain issues on its core business activities and ensuring
the Group is optimised as pressures subside.
In Q3 FY2022, the Group commenced a comprehensive review of its
operations, focused on bolstering its operational platform and
management capabilities aimed at generating greater shareholder
value. The review continues to assess the Group's assets and cost
base to streamline certain core functions, whilst utilising its
extensive research and development capabilities to seek and secure
new markets and customers.
The current financial year is expected to be challenging for the
Group due to the prevailing economic pressures on the business. The
supply chain and inflationary pressures experienced in 2022 are
forecast to ease during FY2023.
In order to establish long-term growth, and as part of its
operational restructuring, Global Invacom remains committed to
technological innovation and development. By working in
collaboration with key customers, the Group is well positioned to
maintain its reputation of developing best-in-class solutions for
the satellite industry.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
5. Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported
on?
None.
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the
immediately preceding financial year?
None.
(c) Date payable
Not applicable.
(d) Books closure date
Not applicable.
6. If no dividend has been declared/recommended, a statement to
that effect and the reason(s) for the decision.
Due to the operating conditions faced by the Group, no dividend
has been declared or recommended for the year ended 31 December
2022.
7. If the Group has obtained a general mandate from shareholders
for Interested Person Transactions ("IPTs"), the aggregate value of
such transactions as required under Rule 920(1)(a)(ii). If no IPTs
mandate has been obtained, a statement to that effect.
The Company does not have a shareholders' mandate for IPTs for
the year ended 31 December 2022.
8. Confirmation Pursuant to Rule 705(5) of the Listing Manual
We do hereby confirm, for and on behalf of the Board of Global
Invacom Group Limited (the "Company"), that to the best of our
knowledge, nothing has come to the attention of the Board of the
Company which may render the financial results for the year ended
31 December 2022 to be false or misleading in any material
aspect.
9. Confirmation Pursuant to Rule 720(1) of the Listing Manual
Global Invacom Group Limited confirms that undertakings under
Rule 720(1) have been obtained from all its directors and executive
officers in the format set out in Appendix 7.7.
10. Disclosure of person occupying a managerial position in the
issuer or any of its principal subsidiaries who is a relative of a
director or chief executive officer or substantial shareholder of
the issuer pursuant to Rule 704(13) in the format below. If there
are no such persons, the issuer must make an appropriate negative
statement.
Neither Global Invacom Group Limited nor any of its principal
subsidiaries have any person occupying a managerial position who is
related to a director, chief executive officer or substantial
shareholder.
On behalf of the Board
Wayne Robert Porritt Gordon Blaikie
Independent Non-Executive Chairman Executive Director
BY ORDER OF THE BOARD
Wayne Robert Porritt
Independent Non-Executive Chairman
27 February 2023
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END
FR SEUEFMEDSEIE
(END) Dow Jones Newswires
February 27, 2023 02:00 ET (07:00 GMT)
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