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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 Apr 2019 to Apr 2024
TIDMGINV
RNS Number : 4010X
Global Invacom Group Limited
10 August 2018
Global Invacom Group Limited
("Global Invacom", the "Company" or the "Group")
Results for the six months ended 30 June 2018
("1H FY2018")
Global Invacom (SGX: QS9) (AIM: GINV), the global provider of satellite communications equipment, is pleased to announce its financial results for the six months ended 30 June 2018 ("1H FY2018") and three months ended 30 June 2018 ("Q2 FY2018").
Key financial highlights:
-- The Company announced sixth consecutive quarter of profitability in Q2 FY2018 -- Revenue remained stable at US$55.4m (1H FY2017: US$57.4m) -- Gross profit margin improved 0.6% point to 21.2% (1H FY2017: 20.6%) -- Gross profit constant at US$11.8m (1H FY2017: US$11.8m) -- Cash and cash equivalents of US$13.4m (31 December 2017: US$7.2m)
Key operational highlights:
-- Continued progress and sales momentum from increased adoption of Digital Channel Stacking Switch ("DCSS") products
-- Group continues to leverage and grow its existing position in the sizeable and expanding Very Small Apertune Terminal ("VSAT") market for data/internet by satellite
-- Focused on further product deployment and diversification to expand the Group's product offering and geographical reach
-- Appointment of Malcolm John Burrell as Chief Technology Officer, to drive new technology development in global satellite communications sector
The Group's sales reflected continued demand across the global footprint, with notable sales growth in Europe, particularly for VSAT and DCSS products.
The global market for satellite communications equipment remains robust, amidst a period of major industry-wide change. The transition of technology to DCSS products presents Global Invacom with a number of opportunities, in particular for ground equipment for Direct-to-Home ("DTH") televison viewing via satellite, and the increased global demand for data/internet everywhere through its VSAT equipment.
The Group expects to roll out more advanced satellite broadcasting products in the US and Europe to meet growing demand for DCSS products as broadcasters continue to migrate to the new technology. The Group remains confident of its ability to capitalise on the opportunity through leveraging its customer relationships as the adoption of DCSS continues apace.
The Group also notes that despite a slowdown in the US, there is still a global increase in demand for DTH satellite broadcast services, and therefore demand from broadcasters for the associated equipment required to deliver services. The Group notes however that the US still has a sizeable target market with over 169 million pay TV subscribers(1) who are still transitioning to DCSS technology.
Demand for data/internet continues to grow globally, with VSAT technology key in delivering connectivity in many territories and geographies. In 1H FY2018, 38.7% of revenues for the Group were generated from sales of VSAT products around the world, and we continue to see demand increasing for these products across the Group's global footprint.
As one of only seven companies capable of delivering fully integrated satellite communications design, manufacture and innovation services, Global Invacom is well positioned in both markets to capitalise on the opportunity.
In the second half of 2018, the Group will continue to build on the manufacturing improvements made in 2017 and the first half of the year, and research and development will remain a key priority. In June 2018, Global Invacom announced the appointment of Malcolm John Burrell as Chief Technology Officer who will oversee the continued innovation to provide best in class solutions to broadcasters, developers and mobile systems integrators. Technological improvements such as the new slimline products will allow the Group to continue to improve margins and Global Invacom will continue to develop efficient and cost-effective products.
The first half of the year has also seen the successful roll out of the Group's Iridium In-hanger GPS solution through its wholly owned subsidiary Foxcom. Initially aimed at the aerospace sector, this product has broad applications and demonstrates the Group's ability to diversify into new markets.
Tony Taylor, Executive Chairman of Global Invacom, commented:
"The satellite ground equipment sector is undergoing a once-in-a-decade technological shift, and the Company is very well placed to benefit. The innovative products that we are developing such as new slimline products, low-cost LNBs and new satellite antennas are in continual demand.
In the VSAT market, the Group is observing rising demand driven by developing countries and rural communities demanding enhanced connectivity where cable or fibre is not a viable solution, proving satellites can be an attractive option compared to other communication technologies.
Our core focus remains to leverage our position in the market to drive sales, and to continue driving R&D, to develop innovative, market leading products that meet customer demands. We have laid strong foundations in the first half of the year which will allow the Group to build momentum through the second half of FY2018 and beyond."
The full financial statements can be viewed on Global Invacom's website: www.globalinvacom.com
(1) - https://www.hollywoodreporter.com/news/directvs-subscriber-slide-drags-at-t-1131159
For further information, please contact:
Hot Features
Premium
Global Invacom Group Limited www.globalinvacom.com
Matthew Garner, Chief Financial Officer Tel: +65 6431 0782
Tel: +44 203 053 3523
finnCap Ltd (Nominated Adviser and Joint www.finncap.com
Broker)
Christopher Raggett / Simon Hicks (Corporate Tel: +44 207 220 0500
Finance)
Mirabaud Securities LLP (Joint Broker) www.mirabaud.com
Peter Krens (Equity Capital Markets) Tel: +44 207 878 3362
WeR1 Consultants Pte Ltd (Singapore Investor www.wer1.net
Relations)
Lai Kwok Kin / Roshan Singh Tel: +65 6737 4844
roshansingh@wer1.net
gigl@wer1.net
Vigo Communications (UK Media & Investor www.vigocomms.com
Relations)
Jeremy Garcia / Fiona Henson Tel: +44 207 390 0238
ginv@vigocomms.com
About Global Invacom Group Limited
Global Invacom is a fully integrated satellite equipment provider with six manufacturing plants across China, Israel, Malaysia, UK and the US. Its customers include satellite broadcasters such as BSkyB of the UK and Dish Network of the USA.
Global Invacom provides a full range of antennas, LNB receivers, fibre distribution equipment, transmitters, switches and video distribution components and electronics manufacturing services in satellite communications as well as manufacturing services in military, medical, and consumer electronics industries. Following the acquisition in 2015 of Global Skyware, a leading US-based designer and supplier of satellite antennas products and services, the Company became 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
FINANCIAL STATEMENT ANNOUNCEMENT FOR Q2 AND HALF-YEARED 30 JUNE 2018
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 Q2 and the half-year ended 30 June 2018. These figures have not been audited.
Group Group
----------------------------------- ----------------------------------
Q2 Q2 FY2017 Increase/ 1H 1H Increase/
FY2018 (Decrease) FY2018 FY2017 (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Revenue 26,471 29,893 (11.4) 55,396 57,424 (3.5)
Cost of sales (20,788) (24,089) (13.7) (43,625) (45,595) (4.3)
Gross profit 5,683 5,804 (2.1) 11,771 11,829 (0.5)
Other income 10 711 (98.6) 31 915 (96.6)
Distribution costs (81) (83) (2.4) (180) (229) (21.4)
Administrative expenses (5,177) (5,246) (1.3) (10,610) (10,315) 2.9
Other operating expenses (55) - N.M. (13) (106) (87.7)
Finance income 41 5 720.0 44 10 340.0
Finance costs (134) (95) 41.1 (247) (207) 19.3
Profit before income
tax(i) 287 1,096 (73.8) 796 1,897 (58.0)
Income tax expense (81) (223) (63.7) 264) (419) (37.0)
--------- ---------- ------------ --------- --------- ------------
Profit after income
tax attributable to
equity holders of the
Company 206 873 (76.4) 532 1,478 (64.0)
--------- ---------- ------------ --------- --------- ------------
Other comprehensive
income:
Items that may be reclassified
subsequently to profit
or loss
Exchange differences
on translation of foreign
subsidiaries 70 221 (68.3) 194 108 (79.6)
Other comprehensive
income for the period,
net of tax 70 221 (68.3) 194 108 (79.6)
---- ------ --------- ---- ------ ---------
Total comprehensive
income for the period
attributable to equity
holders of the Company 276 1,094 (74.8) 726 1,586 (54.2)
---- ------ --------- ---- ------ ---------
N.M.: Not Meaningful
Note:
(i) Profit before income tax was determined after (charging)/crediting the following:
Group Group
-------------------------------- --------------------------------
Q2 Q2 Increase/ 1H 1H Increase/
FY2018 FY2017 (Decrease) FY2018 FY2017 (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Interest income 41 5 720.0 44 10 340.0
Interest expense (134) (95) 41.1 (247) (207) 19.3
(Loss)/Gain on foreign exchange (42) 131 N.M. 20 184 (89.1)
Write-back of payables - 578 (100.0) - 578 (100.0)
Loss on disposal of property, plant and
equipment (13) - N.M. (13) (20) (35.0)
Impairment of property, plant and equipment - - - - (86) (100.0)
Depreciation of property, plant and equipment (704) (629) 11.9 (1,403) (1,222) 14.8
Amortisation of intangible assets (176) (160) 10.0 (351) (308) 14.0
(Allowance)/Write-back for inventory
obsolescence, net (68) (126) (46.0) (154) 263 N.M.
Operating lease expense (1,008) (795) 26.8 (1,717) (1,611) 6.6
Research and development expense (727) (413) 76.0 (1,313) (803) 63.5
1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
Group Company
------------------ --------------------
30 Jun 31 Dec 30 Jun 31 Dec
2018 2017 2018 2017
US$'000 US$'000 US$'000 US$'000
ASSETS
Non-current Assets
Property, plant and
equipment 11,645 12,393 103 7
Investments in subsidiaries - - 44,885 44,874
Goodwill 9,352 9,352 - -
Intangible assets 1,872 2,172 - -
Available-for-sale
financial assets 8 8 - -
Deferred tax assets 198 198 - -
Other receivables and
prepayments 54 55 9,371 9,154
23,129 24,178 54,359 54,035
-------- -------- --------- ---------
Current Assets
Due from subsidiaries - - 1,250 1,895
Inventories 28,532 29,022 - -
Trade receivables 16,769 19,268 - -
Other receivables and
prepayments 1,714 3,361 5,361 5,263
Tax receivables - 11 - -
Cash and cash equivalents 13,386 7,152 213 733
-------- -------- --------- ---------
60,401 58,814 6,824 7,891
-------- -------- --------- ---------
Total assets 83,530 82,992 61,183 61,926
-------- -------- --------- ---------
EQUITY AND LIABILITIES
Equity
Share capital 60,423 60,423 74,240 74,240
Treasury shares (1,656) (1,656) (1,656) (1,656)
Reserves (2,561) (3,297) (13,783) (13,320)
Total equity 56,206 55,470 58,801 59,264
-------- -------- --------- ---------
Non-current Liabilities
Other payables 103 111 - -
Deferred tax liabilities 489 489 - -
592 600 - -
-------- -------- --------- ---------
Current Liabilities
Due to subsidiaries - - 2,121 2,140
Trade payables 14,128 12,206 - -
Other payables 3,869 6,528 193 454
Borrowings 8,595 8,025 - -
Provision for income
tax 140 163 68 68
-------- -------- --------- ---------
26,732 26,922 2,382 2,662
-------- -------- --------- ---------
Total liabilities 27,324 27,522 2,382 2,662
-------- -------- --------- ---------
Total equity and liabilities 83,530 82,992 61,183 61,926
-------- -------- --------- ---------
1(b)(ii) Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 30 Jun 2018 As at 31 Dec 2017
Secured Unsecured Secured Unsecured
----------- --------- -----------
US$'000 US$'000 US$'000 US$'000
----------- --------- -----------
8,595 - 8,025 -
----------- --------- -----------
Amount repayable after one year
As at 30 Jun 2018 As at 31 Dec 2017
Secured Unsecured Secured Unsecured
----------- --------- -----------
US$'000 US$'000 US$'000 US$'000
----------- --------- -----------
- - - -
----------- --------- -----------
Details of any collateral
The revolving credit loans of US$8,595,000 were secured over the assets of the subsidiaries and corporate guarantees provided by the Company and the subsidiaries.
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
Group Group
--------------------- --------------------
Q2 Q2 FY2017 1H 1H
FY2018 FY2018 FY2017
US$'000 US$'000 US$'000 US$'000
Cash Flows from Operating Activities
Profit before income tax 287 1,096 796 1,897
Adjustments for:
Depreciation of property, plant and equipment 704 629 1,403 1,222
Amortisation of intangible assets 176 160 351 308
Loss on disposal of property, plant and equipment 13 - 13 20
Impairment of property, plant and equipment - - - 86
Allowance/(Write-back) for inventory obsolescence, net 68 126 154 (263)
Unrealised exchange loss 312 235 210 17
Interest income (41) (5) (44) (10)
Interest expense 134 95 247 207
Share-based payments 3 35 11 75
Write-back of payables - (578) - (578)
Operating cash flow before working capital changes 1,656 1,793 3,141 2,981
Changes in working capital:
Inventories (1,394) 108 336 (730)
Trade receivables 1,585 (2,015) 2,508 (28)
Other receivables and prepayments 92 2,700 1,640 2,124
Trade and other payables 253 (1,292) (1,102) (3,417)
--------- ---------- --------- ---------
Cash generated from operating activities 2,192 1,294 6,523 930
Interest paid (64) (105) (119) (217)
Income tax paid (2) (331) (79) (135)
Net cash generated from operating activities 2,126 858 6,325 578
--------- ---------- --------- ---------
Cash Flows from Investing Activities
Interest received 42 7 44 10
Purchase of property, plant and equipment (421) (601) (711) (861)
Proceeds from disposal of property, plant and equipment 28 - 28 27
Decrease in restricted cash - 1,000 - 1,000
Net cash (used in)/generated from investing activities (351) 406 (639) 176
--------- ---------- --------- ---------
Cash Flows from Financing Activities
Proceeds from borrowings 12,629 17,837 24,270 28,542
Repayment of borrowings (13,475) (15,628) (23,700) (26,138)
--------- ---------- --------- ---------
Net cash (used in)/generated from financing activities (846) 2,209 570 2,404
--------- ---------- --------- ---------
Net increase in cash and cash equivalents 929 3,473 6,256 3,158
Cash and cash equivalents at the beginning of the period 12,512 6,442 7,152 6,742
Effect of foreign exchange rate changes on the balance of cash held in
foreign currencies (55) 18 (22) 33
--------- ---------- --------- ---------
Cash and cash equivalents at the end of the period(i) 13,386 9,933 13,386 9,933
--------- ---------- --------- ---------
Note:
(i) For the purpose of presentation in the consolidated statement of cash flows, the consolidated cash and cash equivalents comprise the following:
Q2 Q2 1H 1H
FY2018 FY2017 FY2018 FY2017
US$'000 US$'000 US$'000 US$'000
Cash and bank balances 13,356 9,904 13,356 9,904
Fixed deposits 30 229 30 229
-------- -------- -------- --------
13,386 10,133 13,386 10,133
Less: Restricted cash* - (200) - (200)
-------- -------- -------- --------
Cash and cash equivalents per the consolidated statement of cash flows 13,386 9,933 13,386 9,933
-------- -------- -------- --------
* Restricted cash in Q2 FY2017 included fixed deposits amounted to US$200,000 pledged with the banks for banker's guarantee and loans granted to the Group. As at 30 June 2018, the Group had utilised US$8,595,000 of the facilities and loans granted.
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Foreign
Capital Share currency
Share Treasury Merger redemption options Capital translation Retained
Group capital shares reserves reserves reserve reserve reserve profits Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as at
1 Jan 2018 60,423 (1,656) (10,150) 6 706 (3,695) (872) 10,708 55,470
Share-based
payments - - - - 8 - - - 8
Profit for the
period - - - - - - - 326 326
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - 124 - 124
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Total other
comprehensive
income for
the
period - - - - - - 124 326 450
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Balance as at
31 Mar 2018 60,423 (1,656) (10,150) 6 714 (3,695) (748) 11,034 55,928
Share-based
payments - - - - 3 - - - 3
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Profit for the
period - - - - - - - 206 206
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - 69 - 69
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Total other
comprehensive
income for
the
period - - - - - - 69 206 275
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Balance as at
30 Jun 2018 60,423 (1,656) (10,150) 6 717 (3,695) (679) 11,240 56,206
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Balance as at
1 Jan 2017 60,423 (1,656) (10,150) 6 613 (3,695) (986) 7,759 52,314
Share-based
payments - - - - 40 - - - 40
Profit for the
period - - - - - - - 605 605
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - (113) - (113)
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Total other
comprehensive
income for
the
period - - - - - - (113) 605 492
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Balance as at
31 Mar 2017 60,423 (1,656) (10,150) 6 653 (3,695) (1,099) 8,364 52,846
Share-based
payments - - - - 35 - - - 35
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Profit for the
period - - - - - - - 873 873
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - 221 - 221
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Total other
comprehensive
income for
the
period - - - - - - 221 873 1,094
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
Balance as at
30 Jun 2017 60,423 (1,656) (10,150) 6 688 (3,695) (878) 9,237 53,975
--------- --------- --------- ----------- --------- --------- ------------ --------- --------
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 Jan 2018 74,240 (1,656) 706 (4,481) (1,927) (7,618) 59,264
Share-based payments - - 7 - - - 7
Loss for the period - - - - - (234) (234)
Other comprehensive
loss:
Exchange differences - - - -
on translating - - -
foreign operations
--------- --------- --------- --------- ------------- ------------ --------
Total other comprehensive
loss for the period - - - - - (234) (234)
Balance as at
31 Mar 2018 74,240 (1,656) 713 (4,481) (1,927) (7,852) 59,037
Share-based payments - - 4 - - - 4
Loss for the period - - - - - (240) (240)
Other comprehensive
loss:
Exchange differences - - - -
on translating - - -
foreign operations
--------- --------- --------- --------- ------------- ------------ --------
Total other comprehensive
loss for the period - - - - - (240) (240)
--------- --------- --------- --------- ------------- ------------ --------
Balance as at
30 Jun 2018 74,240 (1,656) 717 (4,481) (1,927) (8,092) 58,801
--------- --------- --------- --------- ------------- ------------ --------
Balance as at
1 Jan 2017 74,240 (1,656) 613 (4,481) (2,067) (6,994) 59,655
Share-based payments - - 38 - - - 38
Loss for the period - - - - - (85) (85)
Other comprehensive
income:
Exchange differences
on translating
foreign operations - - - - 140 - 140
--------- --------- --------- --------- ------------- ------------ --------
Total other comprehensive
income for the
period - - - - 140 (85) 55
Balance as at
31 Mar 2017 74,240 (1,656) 651 (4,481) (1,927) (7,079) 59,748
Share-based payments - - 37 - - - 37
Loss for the period - - - - - (56) (56)
Other comprehensive
loss:
Exchange differences - - - -
on translating - - -
foreign operations
--------- --------- --------- --------- ------------- ------------ --------
Total other comprehensive
loss for the period - - - - - (56) (56)
--------- --------- --------- --------- ------------- ------------ --------
Balance as at
30 Jun 2017 74,240 (1,656) 688 (4,481) (1,927) (7,135) 59,729
--------- --------- --------- --------- ------------- ------------ --------
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.
1H FY2018 No. of shares US$'000
Balance as at 1 Jan 2018 and 30 Jun 2018 271,662,227 72,584
-------------- --------
1H FY2017 No. of shares US$'000
Balance as at 1 Jan 2017 and 30 Jun 2017 271,662,227 72,584
-------------- --------
There were 10,740,072 treasury shares held by the Company as at 30 June 2018 and 30 June 2017 and there was no subsidiary holdings.
1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.
30 Jun 2018 31 Dec 2017
Total number of issued shares excluding treasury shares 271,662,227 271,662,227
------------ ------------
1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
1H FY2018 No. of shares US$'000
Balance as at 1 Jan 2018 and 30 Jun
2018 10,740,072 1,656
-------------- --------
1(d)(v) A statement showing all sales, transfers, cancellation and/or use of subsidiary holdings as at the end of the current financial period reported on.
1H FY2018 No. of shares US$'000
Balance as at 1 Jan 2018 and 30 Jun - -
2018
-------------- --------
2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.
These figures have not been audited or reviewed.
3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter).
Not applicable.
4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
The accounting policies and methods of computation have been applied consistently for the current financial period ended 30 June 2018 as those used in the audited financial statements for the year ended 31 December 2017, except for the adoption of the new or revised International Financial Reporting Standards ("IFRS") applicable for the financial period beginning 1 January 2018.
5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.
The Group has adopted all of the new or revised IFRS that are effective for the financial period beginning 1 January 2018 and are relevant to its operations. The adoption of these IFRS does not have financial impact on the Group's financial position or results.
6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.
Earnings per ordinary share of the Group, after deducting any Group Group
provision for preference dividends
Q2 Q2 1H
FY2018 FY2017 FY2018 1H
US$ US$ FY2017
US$ US$
------------ ------------ ------------ ------------
(a) Based on weighted average number of ordinary shares on 0.08 cent 0.32 cent 0.20 cent 0.54 cent
issue; and
(b) On a fully diluted basis 0.08 cent 0.32 cent 0.20 cent 0.54 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 271,662,227 272,196,579 271,662,227 272,501,910
------------ ------------ ------------ ------------
* Diluted earnings per share for Q2 FY2018 and 1H FY2018 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.
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 Jun 2018 31 Dec 2017 30 Jun 2018 31 Dec 2017
US$ US$ US$ US$
------------ ------------ ------------ ------------
Net asset value per ordinary share based on issued share 20.69 cents 20.42 cents 21.64 cents 21.82 cents
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 for the six months ended 30 June 2018 ("1H FY2018") was US$55.4 million from US$57.4 million in the prior year ("1H FY2017") partly driven by slower orders from key customers in the US and expected delays for Very Small Aperture Terminal ("VSAT") projects. Revenue for the quarter ended ("Q2 FY2018") amounted to US$26.5 million against US$29.9 million in the prior year quarter ("Q2 FY2017").
Geographically, Group revenue for 1H FY2018 increased in Europe by US$3.7 million (+37.1%) although offset by reductions in America, Asia and Rest of the World ("RoW") by US$3.5 million (-8.5%), US$0.6 million (-16.5%) and US$1.6 million (-55.3%), respectively. Similarly, revenue for Q2 FY2018 increased in Europe by US$1.8 million (+38.4%) but declined in America, Asia and RoW by US$4.3 million (-19.4%), US$0.3 million (-18.5%) and US$0.6 million (-43.1%), respectively compared to the earlier year.
Reflecting the satellite broadcasting industry's growing adoption of the technological change to Digital Channel Stacking Switch ("DCSS"), the Group is now providing 100% DCSS product to its largest customer.
In addition to its provision of services for the Direct-to-Home ("DTH") market, 38.7% of its revenue in 1H FY2018 has been derived from the fast growing data/internet market including VSAT products where the Group holds a strong position following the acquisition of Global Skyware in FY2015.
Gross Profit
Gross profit margin improved 0.6 percentage point from 20.6% to 21.2% with gross profit for 1H FY2018 remaining level at US$11.8 million on reduced revenue.
Similarly, for Q2 FY2018, gross profit margin improved by 2.1 percentage points from 19.4% to 21.5% from product mix and manufacturing improvements with gross profit remaining on a level with previous year at US$5.7 million from US$5.8 million on lower revenues.
Administrative Expenses
Administrative expenses for 1H FY2018 increased 2.9% to US$10.6 million compared to US$10.3 million in 1H FY2017, representing 19.2% and 18.0% of revenue, respectively, with more spent on research and development on new initiatives and projects. Administrative expenses for Q2 FY2018 maintained at US$5.2 million compared to the previous year.
Other Operating Expenses
Other operating expenses in Q2 FY2018 derived primarily from foreign exchange losses and loss on disposal of machinery and equipment.
Profit Before Tax & Net Profit
The Group posted a profit before tax of US$0.8 million in 1H FY2018, compared to US$1.9 million the year earlier, representing margins of 1.4% and 3.3%, respectively. Excluding a one-off write-back of payables amounting to US$0.6 million following the closure of the non-core subcontracting site in 1H FY2017, margins would be 1.4% and 2.3%, respectively.
For Q2 FY2018, the Group recorded US$0.3 million profit before tax compared to US$1.1 million in the prior year quarter, representing margins of 1.1% and 3.7%, respectively. Similarly, excluding the write-back of payables amounting to US$0.6 million in Q2 FY2017, margins would be 1.1% and 1.7%, respectively.
Overall, the Group posted a net profit of US$0.5 million in 1H FY2018, compared to US$1.5 million in 1H FY2017, representing net margins of 1.0% and 2.6%, respectively. Excluding the write-back of payables amounting to US$0.6 million following the closure of the non-core subcontracting site in 1H FY2017, margins would be 1.0% and 1.6%, respectively.
The Group recorded a net profit of US$0.2 million in Q2 FY2018 compared to US$0.9 million the prior year quarter, representing net margins of 0.8% and 2.9%, respectively. Excluding the write-back of payables amounting to US$0.6 million following the closure of the non-core subcontracting site in Q2 FY2017, margins would be 0.8% and 1.0%, respectively.
Review of Financial Position
Non-current assets decreased, primarily due to the depreciation of property, plant and equipment as well as the amortisation of intangible assets.
Net current assets increased by US$1.8 million to US$33.7 million as at 30 June 2018 compared to US$31.9 million as at 31 December 2017. Inventories and trade and other receivables decreased by US$0.5 million and US$4.1 million, respectively, owing to tighter control and faster collections from the customers. Trade and other payables decreased by US$0.8 million following the continuing rectification of trade supplier payments. Borrowings increased by US$0.6 million to US$8.6 million offset by an increase in cash and cash equivalents of US$6.2 million to US$13.4 million as at 30 June 2018 compared to US$7.2 million as at 31 December 2017.
The Group's net asset value stood at US$56.2 million as at 30 June 2018, compared to US$55.5 million as at 31 December 2017.
Review of Cash Flows
In Q2 FY2018, net cash generated from operating activities amounted to US$2.1 million, comprising US$1.7 million cash inflow from operating activities (before working capital changes), US$0.5 million net working capital inflow and US$0.1 million payment of interest.
In 1H FY2018, net cash generated from operating activities amounted to US$6.3 million, comprising US$3.1 million cash inflow from operating activities (before working capital changes), US$3.4 million net working capital inflow and US$0.2 million payment of interest and income tax.
Net cash used in investing activities in Q2 FY2018 and 1H FY2018 amounted to US$0.4 million and US$0.6 million, respectively, relating predominately to purchase of machinery.
Net cash used in financing activities amounted to US$0.8 million in Q2 FY2018 and net cash generated from financing activities amounted to US$0.6 million in 1H FY2018, attributable to the net repayment and proceeds of borrowings, respectively.
Overall, the Group recorded a net increase in cash and cash equivalents amounting to US$0.9 million and US$6.3 million in Q2 FY2018 and 1H FY2018, respectively, bringing cash and cash equivalents per the consolidated statement of cash flows to US$13.4 million as at 30 June 2018.
9. 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.
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.
According to the research report by MarketsandMarkets(1) the Satellite Communications ("Sat Comms") equipment market - Global Forecast to 2022 - is estimated to be US$20.2 billion in 2017, driven by the growing demand for dynamic and uninterrupted communication cross-industries. Moreover, as satellite equipment manufacturers leverage on infrastructure constraints to make available higher bandwidth (4K and developing 8K) amidst emerging trends including 5G convergence, the growth of autonomous vehicles and connected devices.
Amidst media reports that the growing popularity of OTT streaming, or 'cord-cutting', could threaten the satellite broadcasting industry, there is a growing consensus of co-existence with traditional pay TV. Instead of customer defection and direct substitute, the industry views OTT as a complementary layer to linear television services. Distribution and monetisation models are still evolving ahead of the advent of broadcasting technologies such as the UHD/4K transmissions and even 8K, amidst the ongoing migration of the satellite broadcasting industry to DCSS technology. These will require stable infrastructure that can handle spikes in bandwidth consumption. Sat Comms technology, which can save costly investments in terrestrial technology is able to distribute such content over many parts of the globe.
In the data/internet segment, the demand for high-bandwidth connectivity is growing worldwide as operators in developing countries seek lower-cost equipment to meet demand in emerging markets. The Group's acquisitions recently, including Global Skyware in FY2015, recognised this fast-growing demand in this segment and has given it a strong position with this segment now accounting for close to 40% of revenues in 1H FY2018.
The DCSS technological shift and the demand for new, less costly data/internet components continues to underpin the Group's commitment to R&D.
The forward strategy of the Group will revolve on:
i) Rolling out product pipelines to include more advanced Sat Comms broadcasting equipment products to customers in Americas and Europe. These include DCSS products such as the new Western Arc Hybrid LNB, launched in 2H FY2017. Other new products - including slimline products and low-cost LNBs based on a new chip design - are expected to enter production throughout the rest of FY2018.
ii) Developing and rolling out new products and antennas for satellite ground equipment for data and internet usage. Of the Group's subsidiaries, Global Skyware will supply 100% new design antennas to its major customer from August 2018 and Foxcom recently launched its Hangar Repeater Solution to enable aircraft ground engineers to undertake 24/7 avionics testing of Inmarsat, Iridium and GPS satellite signals indoors.
iii) Having achieved the financial turnaround of its US and Israel subsidiaries through oprerational refinement and cost reductions, the Group will further streamline the supply chain across its global footprint.
iv) Refining product development across its global footprint to meet requirements and match demand in key markets. To this end, the Group announced on 1 June 2018 the appointment of Mr Malcolm John Burrell as Chief Technology Officer. Mr Burrell will remain Executive Director and Chief Risk Officer.
The Group will also increase investor engagement with a view to exiting the SGX-Watch List (having been included since June 2018 due to the Minimum Trading Price criterion).
(1) Source: Satellite Communications Equipment Market by Product, Technology, End-Use, Vertical and Region - Global Forecast to 2022 by MarketsandMarkets.
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 six months ended 30 June 2018.
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 six months ended 30 June 2018.
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 six months ended 30 June 2018 to be false or misleading in any material aspect.
On behalf of the Board
Anthony Brian Taylor Matthew Jonathon Garner Director Director --------------------- ------------------------
BY ORDER OF THE BOARD
Anthony Brian Taylor
Executive Chairman
10 August 2018
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR FKCDPABKDKFK
(END) Dow Jones Newswires
August 10, 2018 02:00 ET (06:00 GMT)
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