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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 |
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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