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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 : 7106V
Global Invacom Group Limited
12 August 2022
Global Invacom Group Limited
("Global Invacom", the "Company" or the "Group")
Results for the six months ended 30 June 2022
Singapore/London, 12 August 2022 - Global Invacom Group Limited (SGX: QS9) (AIM: GINV), the global provider of satellite communications equipment and electronics, is pleased to announce its financial results for the six months ended 30 June 2022 ("1H FY2022").
Key financial highlights:
-- Revenue for 1H FY2022 of US$37.4m (1H FY2021: US$40.4m) -- Gross Profit for 1H FY2022 of US$7.4m (1H FY2021: US$8.8m) -- Net loss for 1H FY2022 of US$3.3m (1H FY2021: US$1.2m net loss) -- Cash and cash equivalents as at 30 June 2022 of US$10.0m (31 December 2021: US$10.8m)
Key operational highlights:
-- Shortage of semiconductors globally, alongside material availability, price increases and labour challenges, continues to impact the Company's ability to satisfy existing orders and has impacted revenue growth in the period
-- The Group has embarked on a business review exercise, to better manage our operations, and to improve the performance of the Group
-- The Group's partnership with Methera Global Communications Limited ("Methera") and its subcontractors, announced in October 2021, is progressing well
-- In the first half of 2022, launched latest Supervisory Control and Data Acquisition ("SCADA") products for hubs and remote locations
-- In May 2022, launched innovative Mini-Global Navigation Satellite System repeater kit, increasing the Group's footprint in the commercial, military and aviation markets
Global Invacom remains well positioned to capitalise on the expected growth opportunities in the Data Over Satellite ("DOS") market, as well as the normalisation of remote working, with individuals and workforces around the globe now increasingly dependent on reliable connectivity for their daily lives.
The Group delivered sales of US$37.4 million in the first half of the year, versus US$40.4 million in 1H FY2021. This decrease was due to the shortage of semiconductors globally which continues to impact the Company's ability to satisfy existing orders and generate associated additional revenue as well as the delay in the launch of Jupiter 3. Furthermore, the Group continues to be impacted by cost price increases, compounded by labour challenges as well as business challenges faced by our customers.
The Group continues to assess its cost base to streamline certain core functions and continues to reduce administrative costs, whilst not impacting its offering to customers.
Research and development continue to be an area of importance for management with ongoing focus on product development, underpinning Global Invacom's market-leading position in the satellite communications equipment and electronics sector.
DOS remains a key product category for Global Invacom, with the accelerated demand for dependable and affordable DOS devices across a wide range of industries, including the healthcare and defence sectors, showing no signs of abating. Consequently, the Group introduced new SCADA products for hubs and remote locations which continue Global Invacom's legacy of developing world-leading satellite communications ground equipment. New products launched include antennas and Very-small-aperture Terminal ("VSAT") transceivers, alongside advanced Radio Frequency ("RF") equipment designed and manufactured by Global Skyware.
These new equipment bundles create a straightforward set up to receive and transmit signals for a full private networking solution, capable of reaching any SCADA and Machine-to-machine ("M2M") Telemetry site. It is compatible with both Internet Protocol ("IP") and legacy serial devices, and operates independently from terrestrial communications systems, thus providing dedicated and secure data communications for mission-critical traffic.
In addition to the development of new satellite communications ground equipment bundles, Global Invacom's subsidiary OnePath Networks Limited, trading as Global Foxcom, broadened its range of Satcom Repeater solutions with the launch of its innovative Mini-Global Navigation Satellite System ("GNSS") repeater kit, increasing its footprint in the commercial, military and aviation markets.
The Group's partnership with Methera and its subcontractors, announced in October 2021, is progressing well, and Global Invacom remains on track to deliver Ka-band user terminals to market in 2024 to help meet the fast-growing demand for connectivity to non-geostationary satellite orbit constellations, leveraging funding awarded by the European Space Agency.
Given the market challenges that the Group has faced over the past two years and what may become "new normals", the Group has embarked on a business review exercise, to better manage our operations, and to improve the performance of the Group.
Tony Taylor, Executive Chairman of Global Invacom, commented:
"Trading across the first six months of the year has not been without its challenges, as we continue to adjust to the ongoing shortages for semiconductors globally, alongside inflationary pressures across our business. These factors are not unique to our business, and we continue to drive the Company forward, which for us means an unrivalled commitment to our customers to remain at the cutting edge of innovation and product development.
Whilst we are fully aware the broader macro picture will take time to improve, Global Invacom remains well placed to capitalise on the growing demand for satellite communications services globally."
For further information, please visit www.globalinvacom.com or contact:
Global Invacom Group Limited www.globalinvacom.com Tony Taylor, Executive Chairman via Vigo Consulting 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 / Kendall Hill Tel: +44 20 7390 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
GLOBAL INVACOM GROUP LIMITED
(Incorporated in Singapore)
(Company Registration Number 200202428H)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the Six Months Ended 30 June 2022
A. Condensed Interim Consolidated Statement of Comprehensive Income Group ----------------------------------------------------------------------------------- 1H 1H Increase/ FY2022 FY2021 (Decrease) US$'000 US$'000 % Revenue 37,420 40,439 (7.5) Cost of sales (30,051) (31,653) (5.1) Gross profit 7,369 8,786 (16.1) Other income 37 1,478 (97.5) Distribution costs (156) (137) 13.9 Administrative expenses (8,106) (8,460) (4.2) Research and development expenses (1,969) (2,417) (18.5) Other operating expenses (257) (52) 394.2 Finance income - 30 (100.0) Finance costs (171) (352) (51.4) Loss before income tax (3,253) (1,124) 189.4 Income tax expense (39) (54) (27.8) --------------------------- --------------------------- ------------------------- Loss for the period (3,292) (1,178) 179.5
--------------------------- --------------------------- ------------------------- Other comprehensive (loss)/income: Items that may be reclassified subsequently to profit or loss * Exchange differences on translation of foreign subsidiaries (19) 325 N.M. Other comprehensive (loss)/income for the period, net of tax (19) 325 N.M. --------------------------- --------------------------- ------------------------- Total comprehensive loss for the period (3,311) (853) 97.1 --------------------------- --------------------------- ------------------------- Loss for the period attributable to: Equity holders of the Company (3,289) (1,177) 179.4 Non-controlling interests (3) (1) 200.0 (3,292) (1,178) 179.5 ----------------- ------------------- ------------ Total comprehensive loss for the period attributable to: Equity holders of the Company (3,308) (852) 288.2 Non-controlling interests (3) (1) 200.0 (3,311) (853) 97.1 ----------------- ------------------- ------------
N.M.: Not Meaningful
B. Condensed Interim Statements of Financial Position Group Company ------------------------------------------- ----------------------------------------- 30 Jun 31 Dec 30 Jun 31 Dec 2022 2021 2022 2021 US$'000 US$'000 US$'000 US$'000 ASSETS Non-current Assets Property, plant and equipment 7,495 8,126 - 20 Right-of-use assets 3,608 4,396 104 39 Investments in subsidiaries - - 25,375 25,375 Goodwill 6,092 6,092 - - Intangible assets 1,553 1,698 - - Deferred tax assets 1,780 1,780 - - Other receivables and prepayments 54 54 11,297 11,032 20,582 22,146 36,776 36,466 -------------------- --------------------- -------------------- ------------------- Current Assets Due from subsidiaries - - 3,201 3,265 Inventories 25,172 25,764 - - Trade receivables 9,612 13,772 - - Other receivables and prepayments 5,602 5,302 2,098 2,588 Tax receivables 218 169 - - Cash and cash equivalents 10,000 10,771 325 155 -------------------- --------------------- -------------------- ------------------- 50,604 55,778 5,624 6,008 -------------------- --------------------- -------------------- ------------------- Total assets 71,186 77,924 42,400 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 (14,691) (11,383) (30,706) (30,462) -------------------- --------------------- -------------------- ------------------- Equity attributable to owners of the Company 44,076 47,384 41,878 42,122 Non-controlling interests (22) (19) - - -------------------- --------------------- -------------------- ------------------- Total equity 44,054 47,365 41,878 42,122 -------------------- --------------------- -------------------- ------------------- Non-current Liabilities Other payables 152 152 - - Lease liabilities 2,907 3,088 - - Deferred tax liabilities 646 646 - - 3,705 3,886 - - -------------------- --------------------- -------------------- ------------------- Current Liabilities Due to subsidiaries - - - 1 Trade payables 12,089 14,479 - - Other payables 4,555 4,447 422 313 Borrowings 5,714 6,120 - - Lease liabilities 1,069 1,627 100 38 23,427 26,673 522 352 -------------------- --------------------- -------------------- ------------------- Total liabilities 27,132 30,559 522 352 -------------------- --------------------- -------------------- ------------------- Total equity and liabilities 71,186 77,924 42,400 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 loss: 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 ------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ----------------- ------------------ -------------------- --------------- 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 loss: 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 ------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ----------------- ------------------ -------------------- --------------- 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$'000 Balance as at 1 January 2022 74,240 (1,656) 725 (4,481) (2,506) (24,200) 42,122 Loss for the period - - - - - (244) (244) Other comprehensive loss: Exchange - - - - - - - differences on translating foreign operations ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ Total other comprehensive loss for the period - - - - - (244) (244) ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ Balance as at 30 June 2022 74,240 (1,656) 725 (4,481) (2,506) (24,444) 41,878 ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ Balance as at 1 January 2021 74,240 (1,656) 725 (4,481) (2,506) (22,040) 44,282 Loss for the period - - - - - (139) (139) Other comprehensive loss: Exchange - - - - - - - differences on translating foreign operations ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ Total other comprehensive loss for the period - - - - - (139) (139) ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ Balance as at 30 June 2021 74,240 (1,656) 725 (4,481) (2,506) (22,179) 44,143 ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ D. Condensed Interim Consolidated Statement of Cash Flows Group ----------------------------------------- 1H 1H FY2022 FY2021 US$'000 US$'000 Cash Flows from Operating Activities Loss before income tax (3,253) (1,124) Adjustments for: Depreciation of property, plant and equipment 895 1,143 Amortisation of intangible assets 141 266 Depreciation of right-of-use assets 847 996 Gain on disposal of property, plant and equipment (5) (1,143) Allowance/(Write-back) for inventory obsolescence 255 (2) Impairment loss of trade receivables 175 - Bad debts written off - 17
Unrealised exchange (gain)/loss (67) 124 Interest income - (30) Interest expense 171 352 Gain on lease modifications - (207) Operating cash flow before working capital changes (841) 392 Changes in working capital: Inventories 337 1,104 Trade receivables 3,944 (2,702) Other receivables and prepayments (340) 422 Trade and other payables (2,016) (2,424) -------------------- ------------------- Cash generated from/(used in) operating activities 1,084 (3,208) Interest paid (196) (116) Income tax paid (122) (2) Net cash generated from/(used in) operating activities 766 (3,326) -------------------- ------------------- Cash Flows from Investing Activities Purchase of property, plant and equipment (251) (679) Proceeds from disposal of property, plant and equipment 5 581 Net cash used in investing activities (246) (98) -------------------- ------------------- Cash Flows from Financing Activities Proceeds from borrowings 17,177 17,026 Repayment of borrowings (17,583) (14,710) Principal payment of lease liabilities (877) (740) Net cash (used in)/generated from financing activities (1,283) 1,576 -------------------- ------------------- Net decrease in cash and cash equivalents (763) (1,848) Cash and cash equivalents at the beginning of the period 10,771 11,273 Effect of foreign exchange rate changes on the balance of cash held in foreign currencies (8) 10 -------------------- ------------------- Cash and cash equivalents at the end of the period 10,000 9,435 -------------------- ------------------- 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 ended 30 June 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 ended 30 June 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 ended 30 June 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 1H FY2022 Revenue 37,420 - 37,420 ======== ======== ======== Operating loss (2,999) (83) (3,082) ======== ======== Finance costs (171) Income tax expense (39) -------- Loss for the period (3,292) ======== Amortisation of intangible assets 141 - Depreciation of property, plant and equipment 895 - Depreciation of right-of-use assets 847 - Addition to property, plant and equipment 251 - Impairment loss on trade receivables 175 - Allowance for inventory obsolescence, net 255 - 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$'000 Assets and liabilities Segment assets 67,324 1,262 68,586 Unallocated assets - Other receivables 63 - Deferred tax assets 1,780 - Cash and cash equivalents 325 - Tax receivables 218 - Right-of-use assets 214 -------- Total assets 71,186 ======== Segment liabilities 20,179 - 20,179 Unallocated liabilities - Other payables 493 - Deferred tax liabilities 646 - Borrowings 5,714 - Lease liabilities 100 -------- Total liabilities 27,132 ======== 1H FY2021 Revenue 40,439 - 40,439 ======= ===== ======== Operating loss (785) (17) (802) ======= ===== Finance income 30 Finance costs (352) Income tax expense (54) -------- Loss for the period (1,178) ======== Amortisation of intangible assets 266 - 266 Depreciation of property, plant and equipment 1,143 - 1,143 Depreciation of right-of-use assets 996 - 996 Addition to property, plant and equipment 679 - 679 Bad debts written off - 17 17 Gain on lease modifications (207) - (207) Write-back of inventory obsolescence, net (2) - (2) ------- ----- -------- Assets and liabilities Segment assets 70,826 1,825 72,651 Unallocated assets * Non-current assets 46 * Other receivables 85 * Deferred tax assets 1,363 * Cash and cash equivalents 500 * Tax receivables 1 * Right-of-use assets 105 ------- Total assets 74,751 ======= Segment liabilities 19,581 1,570 21,151 Unallocated liabilities * Other payables 334 * Provision for income tax 255 * Deferred tax liabilities 634 * Borrowings 6,199 * Lease liabilities 104 ------- Total liabilities 28,677 ======= E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 4. Segment and Revenue Information (cont'd) 4.2 Disaggregation of revenue
The Group's revenue is disaggregated by principal geographical areas, major product lines and timing of revenue recognition.
Group 1H 1H FY2022 FY2021 US$'000 US$'000 Principal geographical market America - Sale of goods 17,395 23,165 -------- -------- Europe - Sale of goods 11,488 10,997 -------- -------- Asia - Sale of goods 1,219 1,209 -------- -------- Rest of the World - Sale of goods 7,318 5,068 -------- -------- Total 37,420 40,439 ======== ======== Major product lines Sale of goods 37,420 40,439 ======== ========
The Group recognises revenue from sale of goods at a point in time, when the Group satisfies a performance obligation and the customers obtain control of the goods.
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 5. Financial Assets and Financial Liabilities (cont'd) 5.1 Significant items Group 1H 1H FY2022 FY2021 US$'000 US$'000 Interest income - 30 Interest expense (171) (352) Gain on disposal of property, plant and equipment 5 1,143 Gain on lease modifications - 207 Gain/(Loss) on foreign exchange 30 (34) Impairment loss on trade receivables (175) - Bad debts written off - (17) (Allowance)/Write-back of inventory obsolescence (255) 2 Depreciation of property, plant and equipment (895) (1,143) Depreciation of right-of-use assets (847) (996) Amortisation of intangible assets (141) (266) 5.2 Related party transactions
There are no material related party transactions apart from those disclosed elsewhere in the condensed interim financial statements.
6. Taxation
The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings.
7. Earnings Per Share Earnings per ordinary share of the Group, after deducting any provision for preference Group dividends 1H 1H FY2022 FY2021 US$ US$ -------------- ------------- (a) Based on weighted average number of ordinary shares on issue; and (1.21) cents (0.43) cent (b) On a fully diluted basis (1.21) cents* (0.43) cent* Weighted average number of ordinary shares used in computation of basic earnings per share 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 -------------- -------------
* 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 30 Jun 2022 31 Dec 2021 30 Jun 2022 31 Dec 2021 US$ US$ US$ US$ ------------ ------------ ------------ ------------ Net asset value per ordinary share based on issued share 16.22 cents 17.44 cents 15.42 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 30 June 16 2,674 4,834 7,524 Amortisation and impairment Balance at 1 January 16 1,043 4,767 5,826 Amortisation charge - 74 67 141
Currency realignment - 4 - 4 -------- ------------- ------------- -------- Balance at 30 June 16 1,121 4,834 5,971 -------- ------------- ------------- -------- Net book value Balance at 30 June - 1,553 - 1,553 ======== ============= ============= ======== 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 30 June 2022 31 December 2021 US$'000 US$'000 Cost Balance at the beginning and end of the period 9,352 9,352 ============= ============ Allowance for impairment loss Balance at the beginning and end of the period 3,260 3,260 Net carrying amount 6,092 6,092 ============= ============ E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 11. Goodwill (cont'd)
11.1 Allocation of goodwill
Goodwill has been allocated to the Group's cash generating unit ("CGU") identified according to the business segment as follows:
Group 30 June 2022 31 December 2021 US$'000 US$'000 Satellite Communications - OnePath Networks Limited ("OPN") - Israel 893 893 - Satellite Acquisition Corporation ("SAC") - United States of America 5,199 5,199 ------------- ------------ 6,092 6,092 ============= ============ 12. Property, Plant and Equipment Furniture, Machinery fittings Freehold & & Motor property equipment equipment vehicles 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 7,813 40 1,438 30,069 Currency realignment - 3 (2) - (1) - Additions - 240 11 - - 251 Disposals - (159) (2) - - (161) Balance at 30 June 2,871 17,991 7,820 40 1,437 30,159 --------- ---------- ----------- --------- ------------ -------- Accumulated Depreciation Balance at 1 January 960 12,523 7,244 40 1,176 21,943 Currency realignment - (10) (2) - (1) (13) Depreciation charge - 873 21 - 1 895 Disposals - (159) (2) - - (161) Balance at 30 June 960 13,227 7,261 40 1,176 22,664 --------- ---------- ----------- --------- ------------ -------- Net book value Balance at 30 June 1,911 4,764 559 - 261 7,495 ========= ========== =========== ========= ============ ======== 2021 Cost Balance at 1 January 2,883 17,639 7,649 40 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 7,813 40 1,438 30,069 --------- ---------- ----------- --------- ------------ -------- Accumulated Depreciation Balance at 1 January 928 11,187 6,969 40 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 7,244 40 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) 12. Property, Plant and Equipment (cont'd) Furniture, fittings & equipment Renovations Total US$'000 US$'000 US$'000 Company 2022 Cost Balance at 1 January and 30 June 211 80 291 Accumulated depreciation Balance at 1 January 192 79 271 Depreciation charge 19 1 20 Balance at 30 June 211 80 291 ----------- ------------ -------- Net book value Balance at 30 June - - - =========== ============ ======== 2021 Cost Balance at 1 January and 31 December 211 80 291 ----------- ------------ -------- Accumulated depreciation Balance at 1 January 137 72 209 Depreciation charge 55 7 62 Balance at 31 December 192 79 271 ----------- ------------ -------- Net book value Balance at 31 December 19 1 20 =========== ============ ======== 13. Investment in Subsidiaries Company 30 Jun 31 Dec 2022 2021 US$'000 US$'000 Unquoted equity shares, at cost 40,533 40,533 Accounting for employee share options 725 725 Currency realignment 131 131 Less: Allowance for impairment loss (16,014) (16,014) 25,375 25,375 ========= ========= Movement in the allowance for impairment loss are as follows: At the beginning of the period 16,014 14,287 Impairment loss recognised during the period - 1,727 --------- --------- At the end of the period 16,014 16,014 ========= ========= E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 13. Investment in Subsidiaries (cont'd)
Allowance for impairment loss
(i) Global Invacom Manufacturing Pte Ltd ("GIMPL")
As at 30 June 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 is considered to be Level 3 in the fair value hierarchy.
(ii) Global Invacom Holdings Limited and its subsidiaries ("GIHL Group")
As at 30 June 2022 and 31 December 2021, an allowance for impairment loss of US$7,366,000 was made on the cost of investment in GIHL Group, as the allocated CGU, to which the investment relates to, was incurring losses from operations. The recoverable amount was based on management's estimate of the fair value less costs to sell, with reference to the fair value of the net assets of GIHL Group, which is considered to be Level 3 in the fair value hierarchy.
14. Borrowings
Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 30 Jun 2022 As at 31 Dec 2021 Secured Unsecured Secured Unsecured --------- -------- --------- US$'000 US$'000 US$'000 US$'000 --------- -------- --------- 5,714 - 6,120 - --------- -------- ---------
Amount repayable after one year
As at 30 Jun 2022 As at 31 Dec 2021 Secured Unsecured Secured Unsecured --------- -------- --------- US$'000 US$'000 US$'000 US$'000 --------- -------- --------- - - - - --------- -------- ---------
The revolving credit loans of US$5,714,000 were secured over the assets of the subsidiaries and corporate guarantees provided by the Company and the subsidiaries.
15. Share Capital 1H FY2022 No. of shares US$'000 Balance as at 1 Jan 2022 and 30 Jun 2022 271,662,227 72,584 -------------------- ----------- 1H FY2021 No. of shares US$'000 Balance as at 1 Jan 2021 and 30 Jun 2021 271,662,227 72,584 -------------------- -----------
There were 10,740,072 treasury shares held by the Company as at 30 June 2022 and 30 June 2021 and there were no subsidiary holdings.
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 15. Share Capital (cont'd)
Total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year:
30 Jun 2022 31 Dec 2021 Total number of issued shares excluding treasury shares 271,662,227 271,662,227 ------------ ------------
Total number of treasury shares as at the end of the current financial period reported on:
1H FY2022 No. of shares US$'000 Balance as at 1 Jan 2022 and 30 Jun 2022 10,740,072 1,656 -------------- -------- 16. 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 consolidated statement of financial position of Global Invacom Group Limited and its subsidiaries as at 30 June 2022 and the related condensed interim consolidated statement of comprehensive income, condensed interim statements of financial position, condensed interim consolidated statement of changes in equity and condensed interim consolidated statement of cash flows for the six-month period 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 six months ended 30 June 2022 ("1H FY2022") decreased by 7.5% to US$37.4 million from US$40.4 million in the prior year ("1H FY2021"). The ongoing shortage of semiconductors globally and the delay in the launch of Jupiter 3 continues to impact the Group's ability to satisfy existing orders and generate associated additional revenue.
Geographically, the Group's revenue for 1H FY2022 decreased in America by US$5.8 million (-24.9%), partially offset by an increase in Europe, Asia and Rest of the World by US$0.5 million (+4.5%), US$0.01 million (+0.8%) and US$2.3 million (+44.4%), respectively.
Gross Profit
The decrease in revenue has resulted in a 16.1% decrease in gross profit from US$8.8 million in 1H FY2021 to US$7.4 million in 1H FY2022. Gross profit margin has decreased marginally by 2 .0 percentage points from 21.7% to 19 .7 %, impacted by cost price increases, compounded by labour shortages.
Other Income
Other income in 1H FY2022 were mainly from gains on the disposal of equipment and foreign exchange gains. Other income in 1H FY2021 were mainly from gains on the disposal of equipment of US$1.1 million, gain on lease modifications of US$0.2 million, with the remainder comprised subsidy support received from various government bodies across the Group due to the pandemic.
Administrative and Research and Development Expenses
Administrative expenses, together with research and development expenses, for 1H FY2022 decreased 7.4% to US$10.1 million compared to US$10.9 million in 1H FY2021, representing 26.9% of revenue in both periods. The ongoing cost control measures across the Group to streamline certain core functions, in line with the challenging market dynamics, have resulted in lower administrative expenses being incurred, whilst not impacting its offering to the customers.
Other Operating Expenses
Other operating expenses in 1H FY2022 were attributed mainly to impairment loss on trade receivables and final liquidation fees of a subsidiary in China.
Loss Before Tax & Net Loss
The Group posted a loss before tax of US$3.3 million in 1H FY2022, compared to a loss before tax of US$1.1 million in 1H FY2021.
Overall, the Group posted a net loss of US$3.3 million in 1H FY2022, compared to a net loss of US$1.2 million in 1H FY2021.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd) 2. Review of Performance of the Group (cont'd) 2.2 Review of Financial Position
Non-current assets decreased by US$1.6 million to US$20.6 million as at 30 June 2022, due to the depreciation of plant and equipment, the right-of-use assets and the amortisation of intangible assets.
Net current assets decreased by US$1.9 million to US$27.2 million as at 30 June 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$0.6 million, US$3.9 million and US$2.3 million respectively, with the decrease in sales. Tax receivables increased by US$0.1 million to US$0.2 million.
Cash and cash equivalents decreased by US$0.8 million to US$10.0 million as at 30 June 2022 from US$10.8 million at 31 December 2021 and borrowings decreased by US$0.4 million to US$5.7 million as at 30 June 2022 from US$6.1 million as at 31 December 2021.
Repayment of leases has resulted in a decrease of US$0.6 million in the current portion of lease liabilities and US$0.2 million in the non-current portion of lease liabilities.
The Group's net asset value stood at US$44.1 million as at 30 June 2022, compared to US$47.4 million as at 31 December 2021.
2.3 Review of Cash Flows
In 1H FY2022, net cash generated from operating activities amounted to US$0.8 million, comprising US$0.8 million cash outflow from operating activities (before working capital changes), US$1.9 million net working capital inflow and US$0.3 million payment of interest and income tax.
Net cash used in investing activities in 1H FY2022 amounted to US$0.3 million, mainly due to the purchase of machinery and equipment, set off against the proceeds from the disposal of machinery and equipment.
Net cash used in financing activities amounted to US$1.3 million in 1H FY2022, attributable to the repayment of borrowings and lease liabilities.
Overall, the Group recorded a net decrease in cash and cash equivalents amounting to US$0.8 million in 1H FY2022, bringing cash and cash equivalents per the consolidated statement of cash flows to US$10.0 million as at 30 June 2022.
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.
The Group's financial and operational performance in the next reporting period and the next 12 months will continue to be influenced by the much-publicised shortage of semiconductors globally, which continues to impact the Company's ability to satisfy existing orders and generate associated additional revenue. Furthermore, the Group continues to be impacted by cost price increases, compounded by labour challenges a s well as business challenges faced by our customers .
As a direct consequence of the above external factors, the Group continues to assess its cost base to streamline certain core functions and continues to reduce administrative costs, whilst not impacting its offering to customers.
Given the market challenges that the Group has faced over the past two years and what may become "new normals", the Group has embarked on a business review exercise, to better manage our operations, and to improve the performance of the Group.
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 six months ended 30 June 2022.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
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 six months ended 30 June 2022.
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 six months ended 30 June 2022 to be false or misleading in any material aspect.
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.
On behalf of the Board
Anthony Brian Taylor Gordon Blaikie
Executive Director Executive Director
BY ORDER OF THE BOARD
Anthony Brian Taylor
Executive Chairman
12 August 2022
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
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August 12, 2022 02:00 ET (06:00 GMT)
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