Global Invacom Group Limited Current Trading & COVID-19 Update (8374M)

TIDMGINV

RNS Number : 8374M

Global Invacom Group Limited

14 May 2020

14 May 2020

Global Invacom Group Limited

("Global Invacom", the "Company" or the "Group")

Current Trading & COVID-19 Update

Global Invacom (SGX: QS9) (AIM: GINV), the global provider of satellite communications equipment and electronics, provides the following trading and COVID-19 update.

In general, the current global COVID-19 pandemic has had a negative impact on Group for the financial period ended 31 March 2020 ("Q1 FY2020").

Based on a preliminary review and estimates of the unaudited management accounts of the Group as at the date of this announcement, the financial assessments and impact on the Group from the COVID-19 pandemic situation for Q1 FY2020 are as follows:

-- Group revenue for the period ended 31 March 2020 is 31.1% lower than the corresponding period in Q1 FY2019. Based on the unaudited financial statements, revenue for Q1 FY2020 is lower at US$26.4 million due to reduced orders from our customers and some impact on our production facilities around the world as we adapted our working practices to comply with regional variations on social distancing and best practice during the pandemic. The unaudited loss in Q1 FY2020 was US$1.1 million mainly due to this reduction in revenue, which is the Group's second lowest since 2013.

-- The Group has been working to reduce its operating costs which have declined by 7.2% on Q1 FY2019.

-- The Group continues to see demand from its customers during this pandemic period and the Group is deemed an essential supplier for its supply of equipment to the Communications, Entertainment, Medical and Military markets.

As there are too many uncertainties over how long the COVID-19 outbreak will last, the Group will continue to monitor the financial impact and make appropriate announcements to keep shareholders apprised on any material developments.

The Company is currently making preparations for its annual general meeting ("AGM") to be held in June 2020. Once the date and time is fixed, the Company will issue a notice of AGM to all shareholders.

Shareholders and potential investors are reminded to exercise caution when dealing or trading in the securities of the Company and should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers if they are in doubt about the actions that they should take.

For further information, please contact:

 
 Global Invacom Group Limited               www.globalinvacom.com 
 Matthew Garner, Chief Financial Officer    Tel: [phone] 
                                             Tel: [phone] 
                                             3523 
 
 finnCap Ltd (Nominated Adviser and Joint   www.finncap.com 
  Broker) 
 Christopher Raggett / Matthew Radley       Tel: [phone] 
  (Corporate Finance)                        0500 
 
 Mirabaud Securities LLP (Joint Broker)     www.mirabaud.com 
 Peter Krens (Equity Capital Markets)       Tel: [phone] 
                                             3362 
 
 Vigo Communications (Media & Investor      www.vigocomms.com 
  Relations) 
 Jeremy Garcia / Charlie Neish              Tel: [phone] 
                                             0238 
 [e-mail] 
 

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 and Data over Satellite providers including Hughes Network Systems, Viasat and Gilat Satellite Networks.

Global Invacom provides a full range of antennas, LNB receivers, transceivers, 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

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 [e-mail] or visit www.rns.com.

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May 14, 2020 02:01 ET (06:01 GMT)