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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Global Invacom Group Limited | LSE:GINV | London | Ordinary Share | SG2E91982768 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.00 | 2.50 | 3.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMGINV
RNS Number : 9214O
Global Invacom Group Limited
11 November 2016
11 November 2016
Global Invacom Group Limited
Q3 FY2016 Results
Singapore and U.K. AIM Market-listed Global Invacom Group Extends Turnaround, Reports Net Profit of US$0.7 Million in Q3 FY2016
-- Net profit of US$0.7 million (Q3 FY2015: US$2.7 million loss) -- Gross profit of US$7.2 million (Q3 FY2015: US$6.3 million) -- Secured approval to supply next-generation products; positioned for improved sales
Global Invacom Group Limited ("Global Invacom" or "the Group"), a satellite communications ("Sat Comms") equipment provider listed on the Singapore Exchange and the U.K. AIM Market, today announces a net profit of US$0.7 million for the three months ended 30 September 2016 ("Q3 FY2016") compared to a US$2.7 million loss a year earlier.
The second consecutive quarter of profitability came on the back of increased demand in the United States for the Group's electronics products. Net profit for the nine months ended 30 September 2016 ("9M FY2016") was US$0.3 million compared to a loss of US$5.6 million in 9M FY2015.
Revenue for Q3 FY2016 was basically flat, down 0.4% to US$32.1 million from US$32.2 million in Q3 FY2015, due mainly to a US$2.4 million reduction in the Electronics Manufacturing Services and lower year-on-year sales orders in Asia. However, revenue for 9M FY2016 rose 11.8% to US$96.3 million from US$86.2 million a year ago.
With the inclusion of Global Skyware, Q3 FY2016 revenue from America and Europe rose US$2.3 million (+11.9%) and US$0.5 million (+6.9%), respectively, offset by a fall in revenue from Asia and the Rest of the World by US$2.1 million (-61.5%) and US$0.8 million (-54.6%), respectively.
Gross profit increased by US$0.9 million, or 15.4%, to US$7.2 million in Q3 FY2016 from US$6.3 million in Q3 FY2015. Gross profit margin improved to 22.6% from 19.5% due to a favourable product mix, improved efficiencies and tighter factory cost control.
-
Administrative expenses fell 34.1% to US5.7 million in Q3 FY2016 from US$8.7 million in Q3 FY 2015, representing 17.9% and 27.1% of revenue, respectively. This was due to the absence of professional fees in relation to the Global Skyware acquisition, lower legal costs related to a dispute in Q3 FY2015 and cost savings arising from restructuring and rationalisation in FY2016.
Earnings per share on a fully diluted basis was 0.26 U.S. cent in Q3 FY2016 compared to a loss per share of 1.04 U.S. cents in Q3 FY2015. Net asset value per share improved to 20.31 U.S. cents as at 31 September 2016 compared to 20.05 U.S. cents as at 31 December 2015.
The Group has completed the first phase of research and development for next-generation Low Noise Block ("LNB") products that support digital channel stacking switch ("DCSS") technology, and has secured production approval for volume supply to its largest customer, which will commence in Q4 FY2016. The Group will complete R&D and deploy DCSS technology across its LNBs for all customers and territories over the next 12 months.
Mr. Tony Taylor, Executive Chairman of Global Invacom, said, "The Group-wide restructuring and cost improvement has clearly contributed to our second consecutive quarter of profit. We have consolidated our supply chain, strengthened our management team and widened our sales network. We will continue to build on this momentum to drive sustainable growth and strengthen our global leadership in the R&D and production of Sat Comms equipment."
For media queries, please contact
Matthew Garner
Chief Financial Officer
Global Invacom Group Limited
8 Temasek Boulevard Freeman House #20-03 Suntec Tower John Roberts Business Three Park Singapore 038988 Canterbury CT5 3BJ +65 6884 3423 +44 203 053 3523
On behalf of Global Invacom Group Limited:
finnCap Ltd (Nominated Adviser and Joint Broker)
Christopher Raggett / Simon Hicks (Corporate Finance)
Rhys Williams (Corporate Broking and Sales)
+44 207 220 0500
Mirabaud Securities LLP (Joint Broker)
Peter Krens (Equity Capital Markets)
+44 207 878 3362
Bell Pottinger LLP (UK Financial PR)
David Rydell / Lucy Stewart
+44 203 772 2500
WeR1 Consultants Pte Ltd (Singapore Financial PR)
Grace Yew, graceyew@wer1.net
Wendy Sim, wendysim@wer1.net
+65 6737 4844
About Global Invacom Group Limited
Global Invacom Group Limited ("Global Invacom") is listed on the Singapore Exchange Securities Trading Limited Mainboard ("SGX-ST") and its shares are admitted to trading on the AIM Market of the London Stock Exchange in the U.K.
Global Invacom is a fully integrated satellite equipment provider with seven manufacturing plants across China, Israel, Malaysia, U.K. and the U.S. Its customers include satellite broadcasters such as BSkyB of the U.K. and Dish Network of the U.S.
On 24 August 2015, Global Invacom completed the acquisition of Global Skyware, a leading U.S.-based designer and supplier of satellite antennas products and services for C-band, Ku-band and Ka-band frequency platforms, positioning itself as the world's only full-service outdoor unit supplier.
Global Invacom provides a full range of dish antennas, LNB receivers, transmitters, switches and video distribution components and electronics manufacturing services in satellite communications as well as manufacturing services in TV peripherals, computer peripherals, medical, and consumer electronics industries.
For more information, please refer to www.globalinvacom.com
FINANCIAL STATEMENT ANNOUNCEMENT FOR Q3 AND NINE MONTHSED 30 SEPTEMBER 2016
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS
1(a) A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.
Consolidated Statement of Comprehensive Income for the nine months period ended 30 September 2016. These figures have not been audited.
Hot Features
Premium
Group Group
---------------------------------------------------------- -------------------------------------- -------------
Q3 Q3 Increase/ 9 Months 9 Months Increase/
FY2016 FY2015 (Decrease) FY2016 FY2015 (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Revenue 32,068 32,192 (0.4) 96,343 86,162 11.8
Cost of sales (24,833) (25,921) (4.2) (76,128) (68,739) 10.7
Gross profit 7,235 6,271 15.4 20,215 17,423 16.0
Other income - 224 100.0 17 193 (91.2)
Distribution
costs (46) (217) (78.8) (232) (273) (15.0)
Administrative
expenses (5,747) (8,721) (34.1) (18,526) (22,322) (17.0)
Other operating
expenses (24) - N.M. (87) (41) 112.2
Finance income 1 - N.M. 13 15 (13.3)
Finance costs (227) (74) 206.8 (551) (94) 486.2
Profit/(Loss)
before
income tax(i) 1,192 (2,517) N.M. 849 (5,099) N.M.
Income tax
expense (494) (194) 154.6 (580) (452) 28.3
------------------- ----------------------- ------------ -------------------- ---------------- -------------
Profit/(Loss)
after
income tax
attributable
to
equity
holders
of the
Company 698 (2,711) N.M. 269 (5,551) N.M.
------------------- ----------------------- ------------ -------------------- ---------------- -------------
Other comprehensive
(loss)/ income:
Items that may
be reclassified
subsequently to
profit or loss
* Exchange differences on translation of
foreign subsidiaries (248) (941) (73.6) 231 (995) N.M.
Items that may
not be reclassified
subsequently to
profit or loss - - - - - -
----------------- --------------- ---------------------- ----------------- -------------- ------------------
Other comprehensive
(loss)/income for
the period, net
of tax (248) (941) (73.6) 231 (995) N.M.
----------------- --------------- ---------------------- ----------------- -------------- ------------------
Total comprehensive
income/(loss) for
the period attributable
to equity holders
of the Company 450 (3,652) N.M. 500 (6,546) N.M.
----------------- --------------- ---------------------- ----------------- -------------- ------------------
N.M.: Not Meaningful
Note:
(i) Profit/(Loss) before income tax was determined after (charging)/crediting the following:
Group Group
-------------------------------------------- -------------------------------------------------
Q3 Q3 FY2015 Increase/ 9 Months FY2016 9 Months Increase/
FY2016 (Decrease) FY2015 (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Interest
income 1 - N.M. 13 15 (13.3)
Interest
expense on
borrowings (227) (74) 206.8 (551) (94) 486.2
(Loss)/Gain on
foreign
exchange (24) 249 N.M. (87) 171 N.M.
Gain/(Loss) on
disposal of
property,
plant and
equipment - 4 (100.0) - (41) (100.0)
Depreciation
of property,
plant and
equipment (643) (597) 7.7 (1,875) (1,394) 34.5
Amortisation
of intangible
assets (40) (129) (69.0) (116) (305) (62.0)
Allowance for
inventory
obsolescence (156) (37) 321.6 (483) (290) 66.6
Operating
lease expense (818) (425) 92.5 (2,501) (1,212) 106.4
Research and
development
expense (422) (212) 99.1 (1,177) (600) 96.2
1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
Group Company
------------------------------------------ -----------------------------------------
30 Sep 31 Dec 30 Sep 31 Dec
2016 2015 2016 2015
US$'000 US$'000 US$'000 US$'000
ASSETS
Non-current Assets
Property, plant
and equipment 13,512 13,896 4 1
Investments in
subsidiaries - - 53,373 53,155
Goodwill 9,352 9,352 - -
Intangible assets 3,027 3,069 - -
Available-for-sale
financial assets 8 8 - -
Deferred tax assets 685 723 - -
Other receivables
and prepayments 56 56 7,476 8,262
26,640 27,104 60,853 61,418
------------------- --------------------- -------------------- -------------------
Current Assets
Due from
subsidiaries - - 933 139
Inventories 29,181 27,859 - -
Trade receivables 17,849 21,306 - -
Other receivables
and prepayments 3,566 3,973 4,077 5,705
Tax receivables 524 431 - -
Cash and cash
equivalents 11,457 8,866 1,331 1,637
------------------- --------------------- -------------------- -------------------
62,577 62,435 6,341 7,481
------------------- --------------------- -------------------- -------------------
Total assets 89,217 89,539 67,194 68,899
------------------- --------------------- -------------------- -------------------
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 (3,587) (4,305) (12,457) (11,202)
Total equity 55,180 54,462 60,127 61,382
------------------- --------------------- -------------------- -------------------
Non-current
Liabilities
Other payables 944 1,333 - -
Deferred tax
liabilities 171 171 - -
1,115 1,504 ? - -
------------------- --------------------- -------------------- -------------------
Current Liabilities
Due to subsidiaries - - 6,610 4,653
Trade payables 19,476 19,392 - -
Other payables 5,723 8,524 372 2,779
Borrowings 7,404 5,348 - -
Provision for
income tax 319 309 ? 85 85
------------------- --------------------- -------------------- -------------------
32,922 33,573 7,067 7,517
------------------- --------------------- -------------------- -------------------
Total liabilities 34,037 35,077 7,067 7,517
------------------- --------------------- -------------------- -------------------
Total equity and
liabilities 89,217 89,539 67,194 68,899
------------------- --------------------- -------------------- -------------------
1(b)(ii) Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 30 Sep As at 31 Dec
2016 2015
------------------ ------------------
Secured Unsecured Secured Unsecured
------- --------- ------- ---------
US$'000 US$'000 US$'000 US$'000
------- --------- ------- ---------
7,404 - 5,348 -
------- --------- ------- ---------
Amount repayable after one year
As at 30 Sep As at 31 Dec
2016 2015
------------------ ------------------
Secured Unsecured Secured Unsecured
------- --------- ------- ---------
US$'000 US$'000 US$'000 US$'000
------- --------- ------- ---------
- - - -
------- --------- ------- ---------
Details of any collateral
The loans of US$7,404,000 were secured over the subsidiaries' bank deposit of US$400,000, cash collateral of US$1,000,000 and corporate guarantees provided by the Company.
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
Group Group
--------------------------------------- ----------------------------------------
Q3 FY2016 Q3 FY2015 9 Months FY2016 9 Months FY2015
US$'000 US$'000 US$'000 US$'000
Cash Flows from Operating
Activities
Profit/(Loss) before income tax 1,192 (2,517) 849 (5,099)
Adjustments for:
Depreciation of property, plant
and equipment 643 597 1,875 1,394
Amortisation of intangible
assets 40 129 116 305
(Gain)/Loss on disposal of
property, plant and equipment - (4) - 41
Allowance for inventory
obsolescence 156 37 483 290
Unrealised exchange gain (289) (617) (70) (455)
Interest income (1) - (13) (15)
Interest expense 227 74 551 94
Share-based payments 45 88 218 134
Operating cash flow before
working capital changes 2,013 (2,213) 4,009 (3,311)
Changes in working capital:
Inventories (2,563) 169 (1,802) 580
Trade receivables (474) (370) 3,481 335
Other receivables and
prepayments (819) (165) 516 (665)
Trade and other payables 2,648 (1,693) (468) 1,623
------------------- ------------------ ------------------- -------------------
Cash generated from/(used in)
operating activities 805 (4,272) 5,736 (1,438)
Interest paid (302) (74) (534) (94)
Income tax paid (208) (215) (513) (667)
Net cash generated from/(used
in) operating activities 295 (4,561) 4,689 (2,199)
------------------- ------------------ ------------------- -------------------
Cash Flows from Investing
Activities
Interest received 1 - 13 15
Purchase of property, plant and
equipment (256) (100) (1,371) (335)
Proceeds from disposal of
property, plant and
equipment - 6 - 6
Increase in capitalised
development cost - (14) - (279)
Acquisition of subsidiary, net
of cash acquired - 501 - 501
Cash consideration paid for
reverse acquisition - (5,500) - (5,500)
Decrease/(Increase) in
restricted cash - 2,016 5 (765)
Net cash used in investing
activities (255) (3,091) (1,353) (6,357)
------------------- ------------------ ------------------- -------------------
Cash Flows from Financing
Activities
Proceeds from borrowings 11,569 4,763 35,203 7,403
Repayment of borrowings (9,765) (5,998) (33,069) (6,164)
Proceeds from shareholders'
loan - 2,850 - 2,850
Repayment of shareholders' loan (2,850) - (2,850) -
Dividends paid - - - (1,078)
Purchase of treasury shares - (1,656) - (8,829)
Sale of treasury shares - - - 2,361
Net cash used in financing
activities (1,046) (41) (716) (3,457)
------------------- ------------------ ------------------- -------------------
Group Group
--------------------------------- ------------------------------------
Q3 FY2016 Q3 FY2015 9 Months FY2016 9 Months FY2015
US$'000 US$'000 US$'000 US$'000
Net (decrease)/increase in cash and
cash equivalents (1,006) (7,693) 2,620 (12,013)
Cash and cash equivalents at the
beginning of the period 11,066 15,955 7,448 20,555
Effect of foreign exchange rate changes
on the balance
of cash held in foreign currencies (16) (474) (24) (754)
---------------- --------------- ---------------- ----------------
Cash and cash equivalents at the end of
the period(i) 10,044 7,788 10,044 7,788
---------------- --------------- ---------------- ----------------
Note:
(i) For the purpose of presentation in the consolidated statement of cash flows, the consolidated cash and cash equivalents comprise the following:
Q3 Q3 9 Months FY2016 9 Months FY2015
FY2016 FY2015
US$'000 US$'000 US$'000 US$'000
Cash and bank
balances 11,014 8,731 11,014 8,731
Fixed deposits 443 469 443 469
---------------------- --------------------- ---------------------- ---------------------
11,457 9,200 11,457 9,200
Less: Restricted
cash* (1,413) (1,412) (1,413) (1,412)
---------------------- --------------------- ---------------------- ---------------------
Cash and cash
equivalents per
the consolidated
statement of cash
flows 10,044 7,788 10,044 7,788
---------------------- --------------------- ---------------------- ---------------------
* Restricted cash includes cash collateral amounted to US$1,000,000 (9 Months FY2015: US$1,000,000) and fixed deposits amounted to US$400,000 (9 Months FY2015: US$400,000) pledged with the banks for facilities and loans granted to the Group. As at 30 September 2016, the Group had utilised US$7,404,000 of the facilities and loans granted.
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Foreign
Capital Share currency
Share Treasury Merger redemption options Capital translation Retained Total
Group capital shares reserves reserves reserve reserve reserve profits
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as
at 1 Jan 2016 60,423 (1,656) (10,150) 6 353 (3,786) (1,281) 10,553 54,462
Share-based
payments - - - - 87 - - - 87
Loss for the
period - - - - - - - (654) (654)
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - 578 - 578
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Total other
comprehensive
income/(loss)
for the
period - - - - - - 578 (654) (76)
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Balance as
at 31 Mar
2016 60,423 (1,656) (10,150) 6 440 (3,786) (703) 9,899 54,473
Share-based
payments - - - - 86 - - - 86
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Profit for
the period - - - - - - - 225 225
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - (99) - (99)
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Total other
comprehensive
(loss)/income
for the
period - - - - - - (99) 225 126
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Balance as
at 30 Jun
2016 60,423 (1,656) (10,150) 6 526 (3,786) (802) 10,124 54,685
Share-based
payments - - - - 45 - - - 45
Transfer to
capital
reserve
in accordance
with
statutory
requirements - - - - - 91 - (91) -
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Profit for
the period - - - - - - - 698 698
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - (248) - (248)
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Total other
comprehensive
(loss)/income
for the
period - - - - - - (248) 698 450
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Balance as
at 30 Sep
2016 60,423 (1,656) (10,150) 6 571 (3,695) (1,050) 10,731 55,180
------------------ ------------------ ------------------ ---------------------- ------------------ ------------------- ---------------------- -------------------- ----------------
Foreign
Capital Share currency
Share Treasury Merger redemption options Capital translation Retained Total
Group capital shares reserves reserves reserve reserve reserve profits
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as
at 1 Jan 2015 60,423 (3,421) (10,150) 6 131 642 (360) 12,812 60,083
Purchase of
treasury
shares - (3,424) - - - - - - (3,424)
Share-based
payments - - - - 22 - - - 22
Loss for the
period - - - - - - - (933) (933)
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - 168 - 168
-------------------- ------------------ ------------------ ---------------------- ------------------ -------------------- ---------------------- -------------------- ----------------
Total other
comprehensive
income/(loss)
for the
period - - - - - - 168 (933) (765)
-------------------- ------------------ ------------------ ---------------------- ------------------ -------------------- ---------------------- -------------------- ----------------
Balance as
at 31 Mar
2015 60,423 (6,845) (10,150) 6 153 642 (192) 11,879 55,916
Purchase of
treasury
shares - (3,749) - - - - - - (3,749)
Sale of
treasury
shares - 2,777 - - - (416) - - 2,361
Share-based
payments - - - - 24 - - - 24
Payment of
dividends - - - - - - - (1,078) (1,078)
Transfer to
capital
reserve
in accordance
with
statutory
requirements - - - - - 53 - (53) -
-------------------- ------------------ ------------------ ---------------------- ------------------ -------------------- ---------------------- -------------------- ----------------
Loss for the
period - - - - - - - (1,907) (1,907)
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - (222) - (222)
-------------------- ------------------ ------------------ ---------------------- ------------------ -------------------- ---------------------- -------------------- ----------------
Total other
comprehensive
loss for the
period - - - - - - (222) (1,907) (2,129)
-------------------- ------------------ ------------------ ---------------------- ------------------ -------------------- ---------------------- -------------------- ----------------
Balance as
at 30 Jun
2015 60,423 (7,817) (10,150) 6 177 279 (414) 8,841 51,345
Purchase of
treasury
shares - (1,656) - - - - - - (1,656)
Issuance of
treasury
shares - 7,817 - - - (4,065) - - 3,752
Share-based
payments - - - - 88 - - - 88
Loss for the
period - - - - - - - (2,711) (2,711)
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - (941) - (941)
-------------------- ------------------ ------------------ ---------------------- ------------------ -------------------- ---------------------- -------------------- ----------------
Total other
comprehensive
loss for the
period - - - - - - (941) (2,711) (3,652)
-------------------- ------------------ ------------------ ---------------------- ------------------ -------------------- ---------------------- -------------------- ----------------
Balance as
at 30 Sep
2015 60,423 (1,656) (10,150) 6 265 (3,786) (1,355) 6,130 49,877
-------------------- ------------------ ------------------ ---------------------- ------------------ -------------------- ---------------------- -------------------- ----------------
Foreign
Share currency
Company Share Treasury options Capital translation Accumulated
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 Jan 2016 74,240 (1,656) 353 (4,481) (2,067) (5,007) 61,382
Share-based
payments - - 87 - - - 87
Loss for the
period - - - - - (527) (527)
Other
comprehensive
loss:
Exchange
differences - - - - - - -
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Total other
comprehensive
loss for the
period - - - - - (527) (527)
Balance as
at 31 Mar
2016 74,240 (1,656) 440 (4,481) (2,067) (5,534) 60,942
Share-based
payments - - 86 - - - 86
Loss for the
period - - - - - (996) (996)
Other
comprehensive
loss:
Exchange
differences - - - - - - -
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Total other
comprehensive
loss for the
period - - - - - (996) (996)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Balance as
at 30 Jun
2016 74,240 (1,656) 526 (4,481) (2,067) (6,530) 60,032
Share-based
payments - - 45 - - - 45
Profit for
the period - - - - - 50 50
Other
comprehensive
income:
Exchange
differences - - - - - - -
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Total other
comprehensive
income for
the period - - - - - 50 50
Balance as
at 30 Sep
2016 74,240 (1,656) 571 (4,481) (2,067) (6,480) 60,127
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Balance as
at 1 Jan 2015 74,240 (3,421) 131 - 1,714 (11,046) 61,618
Purchase of
treasury
shares - (3,424) - - - - (3,424)
Share-based
payments - - 22 - - - 22
Loss for the
period - - - - - (294) (294)
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - (2,296) - (2,296)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Total other
comprehensive
loss for the
period - - - - (2,296) (294) (2,590)
Balance as
at 31 Mar
2015 74,240 (6,845) 153 - (582) (11,340) 55,626
Purchase of
treasury
shares - (3,749) - - - - (3,749)
Sale of
treasury
shares - 2,777 - (416) - - 2,361
Share-based
payments - - 24 - - - 24
Payment of
dividends - - - - - (1,078) (1,078)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Profit for
the period - - - - - 3,156 3,156
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - 1,318 - 1,318
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Total other
comprehensive
income for
the period - - - - 1,318 3,156 4,474
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Balance as
at 30 Jun
2015 74,240 (7,817) 177 (416) 736 (9,262) 57,658
Purchase of
treasury
shares - (1,656) - - - - (1,656)
Issuance of
treasury
shares - 7,817 - (4,065) - - 3,752
Share-based
payments - - 89 - - - 89
Loss for the
period - - - - - (249) (249)
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - (3,198) - (3,198)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Total other
comprehensive
loss for the
period - - - - (3,198) (249) (3,447)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
Balance as
at 30 Sep
2015 74,240 (1,656) 266 (4,481) (2,462) (9,511) 56,396
------------------------ ------------------------ ------------------------ ------------------------ ------------------------------- ----------------------------- -------------------------------
1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on.
State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.
No. of
9 Months FY2016 shares US$'000
Balance as at 1 Jan 2016 and 30
Sep 2016 271,662,227 72,584
---------------- --------
No. of
9 Months FY2015 shares US$'000
Balance as at 1 Jan 2015 269,059,299 70,819
Purchase of treasury shares (11,610,000) (3,424)
----------------- --------
Balance as at 31 Mar 2015 257,449,299 67,395
Purchase of treasury shares (15,004,900) (3,749)
Sale of treasury shares 12,000,000 2,777
----------------- --------
Balance as at 30 Jun 2015 254,444,399 66,423
Purchase of treasury shares (10,740,000) (1,656)
Issuance of treasury shares pursuant
to the acquisition of the entire
equity interest in Satellite Acquisition
Corporation 27,957,828 7,817
Balance as at 30 Sep 2015 271,662,227 72,584
----------------- --------
There were 10,740,072 treasury shares held by the Company as at 30 September 2016 and 30 September 2015.
1(d)(iii) To show the 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.
30 Sep 2016 31 Dec 2015
--------------------------------------------------------- ------------ ------------
Total number of issued shares excluding treasury shares 271,662,227 271,662,227
--------------------------------------------------------- ------------ ------------
1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
No. of
9 Months FY2016 shares US$'000
Balance as at 1 Jan 2016 and
30 Sep 2016 10,740,072 1,656
----------- --------
2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.
These figures have not been audited or reviewed.
3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter).
Not applicable.
4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
The accounting policies and methods of computation have been applied consistently for the current financial period ended 30 September 2016 as those used in the audited financial statements for the year ended 31 December 2015, except for the adoption of the new or revised International Financial Reporting Standards ("IFRS") applicable for the financial period beginning 1 January 2016.
5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.
The Group has adopted all of the new or revised IFRS that are effective for the financial period beginning 1 January 2016 and are relevant to its operations. The adoption of these IFRS does not have financial impact on the Group's financial position or results.
6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.
Earnings per ordinary share of the Group, after Group Group
deducting any provision for preference dividends
----------------------------------------------------- --------------------------- ----------------------------------
Q3 Q3 9 Months FY2016 9 Months FY2015
FY2016 FY2015 US$ US$
US$ US$
----------------------------------------------------- ------------ ------------- ---------------- ----------------
(a) Based on weighted average number of ordinary 0.26 cent (1.04) cents 0.10 cent (2.14) cents
shares on issue; and
(b) On a fully diluted basis 0.26 cent (1.04) cents 0.10 cent (2.13) cents
Weighted average number of ordinary shares used in
computation of basic earnings per share 271,662,227 259,528,197 271,662,227 259,528,197
Weighted average number of ordinary shares used in
computation of diluted earnings per share 271,763,615 259,528,197 271,662,227 260,405,588
----------------------------------------------------- ------------ ------------- ---------------- ----------------
7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the:
(a) current financial period reported on; and
(b) immediately preceding financial year.
Group Company
-------------------------------------------------------------- -------------------------- --------------------------
30 Sep 2016 31 Dec 2015 30 Sep 2016 31 Dec 2015
US$ US$ US$ US$
-------------------------------------------------------------- ------------ ------------ ------------ ------------
Net asset value ("NAV") per ordinary share based on issued 20.31 cents 20.05 cents 22.13 cents 22.59 cents
share capital
Total number of issued shares 271,662,227 271,662,227 271,662,227 271,662,227
-------------------------------------------------------------- ------------ ------------ ------------ ------------
8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:
(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.
Review of Financial Performance
Revenue
The Group's revenue was US$32.1 million in Q3 FY2016, US$0.1 million lower than US$32.2 million in Q3 FY2015. It recognised three months' revenue contribution of US$10.4 million in Q3 FY2016 from its latest acquisition, Satellite Acquisition Corporation ("Global Skyware") of the United States. Despite the reduction in its Contract Manufacturing segment of US$2.4 million and lower sales orders in Asia in Q3 FY2016 against Q3 FY2015, the Group's revenue for the nine months ended 30 September 2016 increased 11.8% to US$96.3 million from US$86.2 million a year ago.
By geography, with the inclusion of Global Skyware, revenue for Q3 FY2016 from America and Europe increased by US$2.3 million (+11.9%) and US$0.5 million (+6.9%), respectively; offset by a fall in revenue from Asia and the Rest of the World by US$2.1 million (-61.5%) and US$0.8 million (-54.6%), respectively, against Q3 FY2015.
Gross Profit
Gross profit increased by US$0.9 million or 15.4% to US$7.2 million in Q3 FY2016 from US$6.3 million in Q3 FY2015. Gross profit margin improved to 22.6% in Q3 FY2016 from 19.5% in Q3 FY2015. Excluding Global Skyware, gross profit margin would have risen by 4.8% against Q3 FY2015 to 29.0% in Q3 FY2016. The favourable product mix variation, efficiency improvement and Group-wide factory cost control have resulted in the increased gross profit margin.
Administrative Expenses
Administrative expenses decreased significantly to US$5.7 million in Q3 FY2016 from US$8.7 million in Q3 FY2015, representing 17.9% and 27.1% of revenue, respectively. This was primarily due to the absence of professional fees in relation to the acquisition of Global Skyware and the reduction in legal costs on a dispute with a supplier that was incurred in Q3 FY2015, cost savings incurred from streamlining programmes, as well as a restructuring and rationalisation exercise in FY2016.
Finance Costs
The increase in finance costs was mainly attributable to the increase in borrowings in Q3 FY2016 relating to Global Skyware.
Profit before Tax & Net Profit
The Group recorded a profit before tax of US$1.2 million in Q3 FY2016 compared to a loss before tax of US$2.5 million in Q3 FY2015, with a positive margin of 3.7% compared to a negative margin of 7.8%, respectively. On an organic basis, excluding the loss from Global Skyware, the Group would have posted a profit before tax in the quarter of US$1.6 million.
Overall, the Group posted a net profit of US$0.7 million in Q3 FY2016 compared to a net loss of US$2.7 million in Q3 FY2015, with a positive margin of 2.2% compared to a negative margin of 8.4%, respectively. On an organic basis, excluding Global Skyware, the Group would have posted a net profit of US$1.1 million.
Review of Financial Position
Non-current assets decreased primarily with the depreciation of property, plant and equipment.
Net current assets increased by US$0.8 million to US$29.7 million as at 30 September 2016 compared to US$28.9 million as at 31 December 2015. Inventories increased by US$1.3 million in preparation of anticipated and confirmed orders for the next few months and improved collections has resulted in trade and other receivables decreased by US$3.9 million. The repayment of the shareholders' loan has also resulted in the decrease of other payables by US$2.8 million. On the other hand, borrowings increased by US$2.0 million to US$7.4 million and cash and cash equivalents improved by US$2.6 million to US$11.5 million as at 30 September 2016.
Non-current liabilities decreased by US$0.4 million due to the release of a provision for litigation that the Group settled with a former supplier.
The Group's net asset value stood at US$55.2 million as at 30 September 2016, compared to US$54.5 million as at 31 December 2015.
Review of Cash Flows
Net cash generated from operating activities was US$0.3 million, comprising cash inflow from operating cash activities before working capital changes of US$2.0 million, net working capital outflow of US$1.2 million and payment of interest and income tax expense of US$0.5 million.
Net cash used in investing activities was US$0.3 million, mainly comprising the purchase of machinery and equipment.
Net cash used in financing activities was US$1.0 million, arising from the repayment of shareholders' loan, offset by the receipt of bank loans.
Overall, the Group recorded a net decrease in cash and cash equivalents of US$1.0 million in Q3 FY2016, bringing cash and cash equivalents per the consolidated statement of cash flows to US$10.0 million as at 30 September 2016.
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
No forecast or prospect statement was made by the Company in the previous announcement made on 4 August 2016.
10. 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.
The Q3 FY2016 results mark the Group's second consecutive quarter of profitability. The Group intends to build on this turnaround in the coming quarters as it continues to reap the benefits of its restructuring and cost improvement initiatives.
The integration of the Group's US subsidiary, Raven Antenna Systems - previously trading as Skyware Global - has progressed significantly although there are still further improvements and research and development projects to complete. Since completing the acquisition on 24 August 2015, the subsidiary has been rebranded as Global Skyware to bring the business in line with the Group's wider brand and to fully consolidate its US supply chain. The Group will recognise Global Skyware's first full-year revenue contributions in FY2016.
Further to the announcement of 8 November 2016, the Group is exploring the potential consolidation of its activities in China under its wholly-owned subsidiary, Global Invacom Manufacturing (Shanghai) Co., Ltd ("Shanghai subsidiary"), to optimise manufacturing cost efficiencies. Critical equipment and customer inventory from the Group's Shenzhen subsidiary, Radiance Electronics (Shenzhen) Co., Ltd, may be transferred to the Shanghai subsidiary. The Group will announce any material developments relating to this matter as and when appropriate.
The Group believes the expected launch of two new communication satellites in the coming months by a leading US broadcaster will underpin demand for its next-generation Satellite Communications ("Sat Comms") products. Worldwide, the global satellite manufacturing and launch market is expected to grow at a CAGR of 5.14% between 2014 and 2019.* Developing markets in Latin America, the Middle East and Southeast Asia continue to offer potential for the adoption of new Sat Comms services.
Despite global concerns about Britain's economic prospects following its decision in June to leave the European Union ("Brexit"), the Group remains upbeat about its Sat Comms business. The weakening of the British Pound against major currencies has provided, and is expected to continue to provide, short-term foreign exchange benefits for the Group's UK-based operating costs. Pending the outcome of a UK parliamentary vote on Brexit - as announced by a UK High Court recently - the Group will consider establishing a logistics hub in an EU country to continue tariff-free transactions via a possible UK-EU Free Trade Agreement that may need to be negotiated. Revenue from the Group's Sat Comms sales is predominantly transacted in US Dollars, as well as the bulk of its raw material spend.
The Group remains mindful of the significant technology change that recently swept the satellite ground equipment industry with the introduction of digital channel stacking switch ("DCSS") technology, which allows up to 32 continuous video streams from a single Low Noise Block ("LNB"). This impacted the Group's FY2015 performance as major customers had to destock, and is likely to persist for the remainder of 2H FY2016.
The Group has completed research on next-generation LNBs that support DCSS, and has secured approval to supply LNBs from a main customer. It is one of only two main suppliers for this project. This approval marks a significant achievement for the Group, which has invested in the new generation of LNBs since 2014. The Group expects to deploy the DCSS technology across its LNBs for all customers and territories. Delivery of the new products will commence in Q4 FY2016, following which the Group will supply similar LNBs to other customers.
*Source: The Satellite Industry Association's 2015 State of the Satellite Industry Report
11. 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.
12. If no dividend has been declared/recommended, a statement to that effect.
No dividend has been declared or recommended for the nine months period ended 30 September 2016.
13. 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 and there were no IPTs for the nine months period ended 30 September 2016.
14. Confirmation that the Company has procured undertaking from all its directors and executive officers pursuant to Rule 720(1).
The Company confirms that it has procured undertakings from all its directors and executive officers under Rule 720(1) of the Listing Manual of the Singapore Exchange Securities Trading Limited.
CONFIRMATION BY THE BOARD OF DIRECTORS (THE "BOARD") 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 nine months period ended 30 September 2016 to be false or misleading in any material aspect.
On behalf of the Board
Anthony Brian Taylor Matthew Jonathan Garner
Director Director
BY ORDER OF THE BOARD
Anthony Brian Taylor
Chairman
11 November 2016
The information communicated in this announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRTDMMMMNGDGVZM
(END) Dow Jones Newswires
November 11, 2016 02:00 ET (07:00 GMT)
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