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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 0.0% 6.00 5.00 7.00 6.00 6.00 6.00 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Technology Hardware & Equipment 101.4 -9.5 0.0 - 15

Global Invacom Group Limited Results for the six months ended 30 June 2020

13/08/2020 7:00am

UK Regulatory (RNS & others)


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RNS Number : 9805V

Global Invacom Group Limited

13 August 2020

Global Invacom Group Limited

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

Results for the six months ended 30 June 2020

("1H FY2020")

Singapore/London, 13 August 2020 - Global Invacom (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 2020.

Key financial highlights:

   --    Revenue for 1H FY2020 of US$52.8m (1H FY2019: US$71.9m) 
   --    Gross Profit for 1H FY2020 of US$12.4m (1H FY2019: US$15.1m) 
   --    Net profit for 1H FY2020 of US$342k (1H FY2019: US$1.6m) 
   --    Cash and cash equivalents of US$7.5m (31 December 2019: US$8.9m) 

Key operational highlights:

   --    The Group achieved profitability through a challenging half year 

-- As expected, the COVID-19 pandemic has impacted demand, though the majority of the Group's factories have remained operational during this time

-- Gross Profit margin increased by 2.4% when compared with 1H FY2019, underpinned by new product designs and benefit of manufacturing shift to the Philippines

-- Direct to Home ("DTH") satellite connectivity equipment continues to support growth within the business

   --    Ongoing focus on both product development, especially within Data Over Satellite ("DOS"), and diversification, remains central to growth strategy 

The performance of the Group in the first half of the year reflects the impact of the global COVID-19 pandemic. The Group experienced lockdowns of varying degrees of interruption and length in all countries in which it operates, although this was mitigated in part by our diversity of manufacturing sites and their classification as essential suppliers.

As covered above, the majority of our factories remained operational, with office and R&D staff also successfully transitioning to working remotely. The Group has carried out rigorous risk assessments and continues to implement safe-distancing and hygiene procedures throughout our business, meaning employees are now slowly and safely returning to work. The Group continues to monitor the situation closely and will continue to act within all relevant Government guidelines for the regions in which it has sites.

The Group delivered sales of US$52.8 million in the first half of the year, with US$26.4 million of sales in the second quarter. Geographically, lower demand in America and Europe was marginally offset by increased demand across Asia. The United States, which remains a significant market for the Group, continues to be severely impacted by COVID-19, which has translated to a fall in anticipated orders.

The Group's Shanghai site ceased manufacturing in July 2020, though certain supply chain functions will continue within China going forward. Despite COVID-19, the Group has continued its transition to its third-party subcontract manufacturer in the Philippines. This relocation of manufacturing to the Philippines is already delivering manufacturing efficiencies to the Group, while maximising our sales pipeline across Asia and reducing the Group's exposure to trade disputes between China and the United States.

In the last six months, the Group has reduced its administration costs through the reduction in activity at its site in China and through reduced costs, such as travelling, which are a by-product of the COVID-19 pandemic.

Despite the negative headwinds caused by the pandemic, Global Invacom's products are expected to continue to play a crucial role in meeting global demand for data and connectivity, especially where security of transmission is important, for telecoms data backhaul or in rural areas and less developed regions where physical fibre or cable is not commercially viable. As evidenced by the Group's ability to remain profitable despite the impact of COVID-19, our combination of DTH and DOS products continues to provide a strong foundation for our business. Moving forward, the Group will continue to invest not only in R&D for DTH, but also increasingly in our DOS offering as we look to capitalise on the opportunities within this burgeoning market.

Tony Taylor, Executive Chairman of Global Invacom, commented:

"The first six months of the year have, as expected, been impacted by the global COVID-19 pandemic. The safety of our people around the world has been of paramount importance and we continue to monitor the situation in each of our key regions, to ensure the highest levels of compliance are maintained.

Our business has continued to weather these unforeseen circumstances and, pleasingly, has remained profitable for 1H FY2020, which is a testament not only to our robust business model, but also to the ability of our people to adapt to and overcome significant challenges. I would like to thank our teams worldwide for their tenacity during this difficult period.

Going forward, we will continue to focus on maximising the significant market potential of our product stack and I believe we remain well placed to return to growth as the market emerges from lockdown."

For further information, please contact:

 
 Global Invacom Group Limited               www.globalinvacom.com 
 Matthew Garner, Chief Financial Officer    Tel: +65 6431 0782 
                                             Tel: +44 203 053 3523 
 
 Strand Hanson Limited (Nominated Adviser   www.strandhanson.co.uk 
  and Broker)                                Tel: +44 20 7409 3494 
  James Harris / Richard Tulloch / Jack 
  Botros 
 Vigo Communications (UK Media & Investor   www.vigocomms.com 
  Relations) 
 Jeremy Garcia / Charlie Neish              Tel: +44 207 390 0238 
 ginv@vigocomms.com 
 

About Global Invacom Group Limited

Global Invacom is a fully integrated satellite equipment provider with sites across China, Singapore, Indonesia, Philippines, Malaysia, Israel, UK and the US. Its customers include satellite broadcasters such as BSkyB of the UK and Dish Network of the USA and Data over Satellite providers including Hughes Network Systems, Viasat and Gilat Satellite Networks .

Global Invacom provides a full range of satellite ground equipment including antennas, LNB receivers, transceivers, fibre distribution equipment, transmitters, switches and video distribution components as well as manufacturing services in military and medical industries. 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

FINANCIAL STATEMENT ANNOUNCEMENT FOR THE HALF-YEARED 30 JUNE 2020

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a) A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

Consolidated Statement of Comprehensive Income for the half-year ended 30 June 2020. These figures have not been audited.

 
                                                               Group 
                                ------------------------------------------------------------------ 
                                           1H                   1H                Increase/ 
                                         FY2020                FY2019             (Decrease) 
                                        US$'000               US$'000                 % 
 
 Revenue                                         52,773            71,945            (26.6) 
 
 Cost of sales                           (40,423)             (56,866)               (28.9) 
 
 Gross profit                            12,350                15,079                (18.1) 
 
 Other income                                       125         145                 (13.8) 
 Distribution costs               (115)                            (172)     (33.1) 
 Administrative expenses          (11,030)                    (12,197)       (9.6) 
 Other operating expenses         (378)                            (409)     (7.6) 
 Finance income                               21           98                (78.6) 
 Finance costs                    (429)                            (410)             4.6 
 
 Profit before income tax(i)                544                    2,134        (74.5) 
 
 Income tax expense               (202)                             (548)       (63.1) 
                                -----------------------  ----------------  ----------------------- 
 
   Profit for the period                            342     1,586                           (78.4) 
                                -----------------------  ----------------  ----------------------- 
 
 
 
 Other comprehensive loss: 
 
 Items that may be reclassified 
  subsequently to profit or loss 
 
   *    Exchange differences on translation of foreign 
        subsidiaries                                               (105)                (98)                     7.1 
 
   Other comprehensive loss for 
   the period, net of tax                                          (105)                (98)                     7.1 
                                                          ---------------  --------------------------  ------------- 
 
   Total comprehensive income 
   for the period                                                     237                       1,488       (84.1) 
                                                          ---------------  --------------------------  ------------- 
 
 
 Profit for the period attributable 
  to: 
 Equity holders of the Company                     345              1,586            (78.2) 
 Non-controlling interests                           (3)                     -         N.M. 
                                                   342              1,586            (78.4) 
                                       -----------------  --------------------  ----------- 
 
 Total comprehensive income 
  for the period attributable 
  to: 
 Equity holders of the Company                     240              1,488            (83.9) 
 Non-controlling interests                           (3)                     -         N.M. 
                                                   237              1,488            (84.1) 
                                       -----------------  --------------------  ----------- 
 

N.M.: Not Meaningful

Note:

   (i)    Profit before income tax was determined after (charging)/crediting the following: 
 
                                                                                   Group 
                                                           ---------------------------------------------------- 
                                                                 1H                 1H             Increase/ 
                                                                FY2020            FY2019           (Decrease) 
                                                               US$'000           US$'000               % 
 
 Interest income                                                       21                98            (78.6) 
 Interest expense                                                 (429)             (410)                   4.6 
 Loss on foreign exchange                                         (102)             (380)              (73.2) 
 Write-back of payables                                                 -                74          (100.0) 
 Loss on disposal of property, plant and equipment                      -              (13)          (100.0) 
 Depreciation of property, plant and equipment                 (1,388)           (1,573)               (11.8) 
 Amortisation of intangible assets                                (446)             (460)                (3.0) 
 Depreciation of right-of-use assets                           (1,076)           (1,152)                 (6.6) 
 (Allowance)/Write-back for inventory obsolescence, net              (19)              264               N.M. 
 Impairment of trade receivables                                  (274)                      -           N.M. 
 Bad debts written off                                                  -              (16)          (100.0) 
 Research and development expense                                 (881)          (1,061)               (17.0) 
 
 

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.

 
                                                Group                                     Company 
                             ------------------------------------------  ----------------------------------------- 
                                    30 Jun                31 Dec                30 Jun                31 Dec 
                                     2020                  2019                   2020                 2019 
                                   US$'000               US$'000                US$'000              US$'000 
 ASSETS 
 Non-current Assets 
  Property, plant and 
   equipment                          9,707               10,254                      138                   168 
  Right-of-use assets                 6,655                  7,533                       88                 144 
  Investments in 
   subsidiaries                                -                      -          27,586               27,586 
  Goodwill                            6,092                  6,092                          -                    - 
  Intangible assets                   2,678                  3,104                          -                    - 
  Other financial assets                      8                      8                      -                    - 
  Deferred tax assets                     975                   975                         -                    - 
  Other receivables and 
   prepayments                              54                    54             10,335               10,100 
                                    26,169                28,020                 38,147               37,998 
                             -------------------  ---------------------  --------------------  ------------------- 
 Current Assets 
  Due from subsidiaries                        -                      -            3,763                4,105 
  Inventories                       27,032                25,795                            -                    - 
  Trade receivables                 19,878                19,846                            -                    - 
  Other receivables and 
   prepayments                        2,286                  1,909                 3,479                3,407 
  Tax receivables                             1                   38                        -                    - 
  Cash and cash equivalents           7,478                  8,912                    274                   610 
                             -------------------  ---------------------  --------------------  ------------------- 
                                    56,675                56,500                   7,516                8,122 
                             -------------------  ---------------------  --------------------  ------------------- 
 
 Total assets                       82,844                84,520                 45,663               46,120 
                             -------------------  ---------------------  --------------------  ------------------- 
 
 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                       (14,451)               (14,691)              (27,244)             (26,853) 
                             -------------------  ---------------------  --------------------  ------------------- 
  Equity attributable to 
   owners 
   of the Company                   44,316                44,076                 45,340               45,731 
  Non-controlling interests              (14)                   (11)                        -                    - 
                             -------------------  ---------------------  --------------------  ------------------- 
 Total equity                       44,302                44,065                 45,340               45,731 
                             -------------------  ---------------------  --------------------  ------------------- 
 
 Non-current Liabilities 
  Other payables                          108                   108                         -                    - 
  Lease liabilities                   5,766                  5,948                          -                 35 
  Deferred tax liabilities                428                   428                         -                    - 
                                      6,302                  6,484                          -                 35 
                             -------------------  ---------------------  --------------------  ------------------- 
 Current Liabilities 
  Due to subsidiaries                          -                      -                     -                    - 
  Trade payables                    11,509                12,903                            -                    - 
  Other payables                      9,165               10,238                      233                   238 
  Borrowings                        10,261                   8,929                          -                    - 
  Lease liabilities                   1,162                  1,897                       90                 116 
  Provision for income tax                143                        4                      -                    - 
                             -------------------  ---------------------  --------------------  ------------------- 
                                    32,240                33,971                      323                   354 
                             -------------------  ---------------------  --------------------  ------------------- 
 
 Total liabilities                  38,542                40,455                      323                   389 
                             -------------------  ---------------------  --------------------  ------------------- 
 
 Total equity and 
  liabilities                       82,844                84,520                 45,663               46,120 
                             -------------------  ---------------------  --------------------  ------------------- 
 
 
   1(b)(ii)    Aggregate amount of group's borrowings and debt securities. 

Amount repayable in one year or less, or on demand

 
    As at 30 Jun 2020       As at 31 Dec 2019 
 Secured    Unsecured    Secured    Unsecured 
           -----------  ---------  ----------- 
 US$'000     US$'000     US$'000     US$'000 
           -----------  ---------  ----------- 
 10,261         -         8,929         - 
           -----------  ---------  ----------- 
 

Amount repayable after one year

 
    As at 30 Jun 2020       As at 31 Dec 2020 
 Secured    Unsecured    Secured    Unsecured 
           -----------  ---------  ----------- 
 US$'000     US$'000     US$'000     US$'000 
           -----------  ---------  ----------- 
    -           -           -           - 
           -----------  ---------  ----------- 
 

Details of any collateral

The revolving credit loans of US$10,261,000 were secured over the assets of the subsidiaries and corporate guarantees provided by the Company and the subsidiaries.

1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.

 
                                                                                             Group 
                                                                           ----------------------------------------- 
                                                                                    1H                    1H 
                                                                                   FY2020               FY2019 
                                                                                  US$'000              US$'000 
 Cash Flows from Operating Activities 
 Profit before income tax                                                               544               2,134 
 Adjustments for: 
 Depreciation of property, plant and equipment                                       1,388                1,573 
 Amortisation of intangible assets                                                      446                  460 
 Loss on disposal of property, plant and equipment                                            -                 13 
 Depreciation of right-of-use assets                                                 1,076                1,152 
 Allowance/(Write-back) for inventory obsolescence, net                                    19              (264) 
 Impairment of trade receivables                                                        274                        - 
 Bad debts written off                                                                        -                 16 
 Unrealised exchange gain                                                               (53)                 (95) 
 Interest income                                                                        (21)                 (98) 
 Interest expense                                                                       429                  410 
 Share-based payments                                                                         -                   2 
 Write-back of payables                                                                       -              (74) 
 Operating cash flow before working capital changes                                  4,102                5,229 
 Changes in working capital: 
 Inventories                                                                      (1,256)                  (174) 
 Trade receivables                                                                    (324)               2,746 
 Other receivables and prepayments                                                    (395)                (142) 
 Trade and other payables                                                         (2,756)              (5,303) 
                                                                           --------------------  ------------------- 
 Cash (used in)/generated from operating activities                                   (629)               2,356 
 Interest paid                                                                          (60)               (235) 
 Income tax paid                                                                              -            (198) 
 Net cash (used in)/generated from operating activities                               (689)               1,923 
                                                                           --------------------  ------------------- 
 
 Cash Flows from Investing Activities 
 Interest received                                                                         21                   30 
 Purchase of property, plant and equipment                                            (966)            (1,842) 
 Proceeds from disposal of property, plant and equipment                                      -                   1 
 Acquisition of a business                                                                    -            (279) 
 Payment for financial asset, at fair value through profit or loss                            -            (500) 
 Net cash used in investing activities                                                (945)            (2,590) 
                                                                           --------------------  ------------------- 
 
 Cash Flows from Financing Activities 
 Proceeds from borrowings                                                         23,238               36,494 
 Repayment of borrowings                                                       (21,906)              (34,818) 
 Principal payment of lease liabilities                                           (1,109)              (1,459) 
 Net cash generated from financing activities                                           223                  217 
                                                                           --------------------  ------------------- 
 
 Net decrease in cash and cash equivalents                                        (1,411)                 (450) 
 Cash and cash equivalents at the beginning of the period                           8,912                8,381 
 Effect of foreign exchange rate changes on the balance of cash held in 
  foreign currencies                                                                   (23)                 (40) 
                                                                           --------------------  ------------------- 
 Cash and cash equivalents at the end of the period(i)                              7,478                7,891 
                                                                           --------------------  ------------------- 
 

Note:

(i) For the purpose of presentation in the consolidated statement of cash flows, the consolidated cash and cash equivalents comprise the following:

 
                                                                                     1H                1H 
                                                                                    FY2020           FY2019 
                                                                                   US$'000          US$'000 
 
    Cash and bank balances                                                            7,449            7,861 
    Fixed deposits                                                                          29               30 
                                                                              ----------------  --------------- 
    Cash and cash equivalents per the consolidated statement of cash flows            7,478            7,891 
                                                                              ----------------  --------------- 
 

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.

 
 
                                                                                                                                                      Attributable 
                                                                                                                       Foreign                         to equity 
             Group                                                        Capital          Share                       currency                         holders 
                             Share         Treasury        Merger        redemption       options        Capital      translation       Retained         of 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 
         2020                60,423         (1,656)      (10,150)            6                 725      (5,109)          (1,217)           1,054          44,076               (11)         44,065 
        Profit/(Loss) 
         for the 
         period                     -              -              -               -            -       -                        -           345               345              (3)             342 
        Other 
        comprehensive 
        loss: 
        Exchange 
         differences 
         on 
         translating 
         foreign 
         operations        -              -              -              -                -              -             (105)            -              (105)            -                  (105) 
                        -------------  -------------  -------------  ---------------  -------------  ------------  ---------------  -------------  ---------------  -----------------  ------------- 
        Total other 
         comprehensive 
         (loss)/income 
         for the 
         period            -              -              -              -                -              -             (105)            345            240              (3)                237 
                        -------------  -------------  -------------  ---------------  -------------  ------------  ---------------  -------------  ---------------  -----------------  ------------- 
        Balance as at 
         30 June 
         2020                60,423         (1,656)      (10,150)                 6           725       (5,109)          (1,322)           1,399          44,316               (14)        44,302 
                        -------------  -------------  -------------  ---------------  -------------  ------------  ---------------  -------------  ---------------  -----------------  ------------- 
 
        Balance as at 
         1 January 
         2019                60,423         (1,656)      (10,150)                 6            723       (3,560)         (1,289)         12,109           56,606              -             56,606 
        Adoption of 
         SFRS(I) 
         16                         -              -            -              -              -        -                     -            (239)             (239)     -                      (239) 
        Adjusted 
         balance at 
         1 January 
         2019                60,423         (1,656)      (10,150)                6             723       (3,560)         (1,289)         11,870           56,367              -             56,367 
        Share-based 
         payments                   -              -              -                -              2             -                -              -                2             -                   2 
                        ------------- 
        Profit for the 
         period                     -              -              -              -                -           -                  -         1,586            1,586            -               1,586 
        Other 
        comprehensive 
        loss: 
        Exchange 
         differences 
         on 
         translating 
         foreign 
         operations            -              -              -               -               -             -             (100)             -             (100)               -              (100) 
                        -------------  -------------  -------------  ---------------  -------------  ------------  ---------------  -------------  ---------------  -----------------  ------------- 
        Total other 
         comprehensive 
         (loss)/income 
         for the 
         period                -              -              -               -               -              -            (100)           1,586           1,486               -              1,486 
                        -------------  -------------  -------------  ---------------  -------------  ------------  ---------------  -------------  ---------------  -----------------  ------------- 
        Balance as at 
            30 June 
             2019            60,423         (1,656)      (10,150)                 6            725       (3,560)         (1,389)         13,456           57,855                   -        57,855 
                        -------------  -------------  -------------  ---------------  -------------  ------------  ---------------  -------------  ---------------  -----------------  ------------- 
 
 
                                                                                                       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 
         2020                  74,240             (1,656)                725           (4,481)           (2,506)          (20,591)             45,731 
        Loss for the 
         period                         -                 -                  -                 -                  -            (391)             (391) 
        Other 
        comprehensive 
        loss: 
        Exchange                        -                 -                  -                 -                  -                  -                 - 
        differences on 
        translating 
        foreign 
        operations 
                        -----------------  ----------------  -----------------  ----------------  -----------------  -----------------  ---------------- 
        Total other 
         comprehensive 
         loss for the 
         period                         -                 -                  -                 -                  -            (391)             (391) 
                        -----------------  ----------------  -----------------  ----------------  -----------------  -----------------  ---------------- 
        Balance as at 
         30 June 2020          74,240             (1,656)                725           (4,481)           (2,506)          (20,982)             45,340 
                        -----------------  ----------------  -----------------  ----------------  -----------------  -----------------  ---------------- 
 
        Balance as at 
         1 January 
         2019                  74,240             (1,656)                723           (4,481)           (1,927)            (8,303)            58,596 
        Adoption of 
         SFRS(I) 16                     -                 -                  -                 -                  -               (5)                (5) 
                        -----------------  ----------------  -----------------  ----------------  -----------------  -----------------  ---------------- 
        Adjusted 
         balance at 1 
         January 
         2019                  74,240             (1,656)                723           (4,481)           (1,927)            (8,308)            58,591 
        Share-based 
         payments                       -                 -                 2                  -                  -                  -                 2 
                        ----------------- 
        Profit for the 
         period                         -                 -                  -                 -                  -           1,812              1,812 
        Other 
        comprehensive 
        income: 
        Exchange                        -                 -                  -                 -                  -                  -                 - 
        differences on 
        translating 
        foreign 
        operations 
                        -----------------  ----------------  -----------------  ----------------  -----------------  -----------------  ---------------- 
        Total other 
         comprehensive 
         income for 
         the period                     -                 -                  -                 -                  -           1,812              1,812 
                        -----------------  ----------------  -----------------  ----------------  -----------------  -----------------  ---------------- 
        Balance as at 
         30 June 2019          74,240             (1,656)                725           (4,481)           (1,927)            (6,496)            60,405 
                        -----------------  ----------------  -----------------  ----------------  -----------------  -----------------  ---------------- 
 

1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on.

State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.

 
        1H FY2020                                     No. of shares      US$'000 
 
        Balance as at 1 Jan 2020 and 30 Jun 2020          271,662,227       72,584 
                                                   ------------------  ----------- 
 
          1H FY2019                                   No. of shares      US$'000 
 
        Balance as at 1 Jan 2019 and 30 Jun 2019          271,662,227       72,584 
                                                   ------------------  ----------- 
 
 

There were 10,740,072 treasury shares held by the Company as at 30 June 2020 and 30 June 2019 and there was no subsidiary holdings.

1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

 
                                                            30 Jun 2020   31 Dec 2019 
 Total number of issued shares excluding treasury shares    271,662,227   271,662,227 
                                                           ------------  ------------ 
 

1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.

 
 1H FY2020                              No. of shares   US$'000 
 
 Balance as at 1 Jan 2020 and 30 Jun 
  2020                                   10,740,072      1,656 
                                       --------------  -------- 
 

1(d)(v) A statement showing all sales, transfers, cancellation and/or use of subsidiary holdings as at the end of the current financial period reported on.

 
 1H FY2020                             No. of shares   US$'000 
 
 Balance as at 1 Jan 2020 and 30 Jun         -            - 
  2020 
                                      --------------  -------- 
 

2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.

These figures have not been audited or reviewed.

   3.             Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter). 

Not applicable.

3A. Where the latest financial statements are subject to an adverse opinion, qualified opinion or disclaimer of opinion: -

   (a)   Updates on the efforts taken to resolve each outstanding audit issues. 

(b) Confirmation from the Board that the impact of all outstanding audit issues on the financial statements have been adequately disclosed.

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.

The Group has applied the same accounting policies and methods of computation consistent with those used in the most recent audited financial statements for the year ended 31 December 2019.

5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

The Group has adopted various new and revised SFRS(I)s and IFRSs that are relevant to its operations and effective for the period beginning 1 January 2020. The adoption of the new and revised SFRS(I)s and IFRSs has no material financial impact on the Group's financial statements.

6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.

 
 Earnings per ordinary share of the Group, after deducting any provision for preference                Group 
 dividends 
                                                                                                 1H            1H 
                                                                                                FY2020        FY2019 
                                                                                                 US$           US$ 
                                                                                            ------------  ------------ 
 (a) Based on weighted average number of ordinary shares on issue; and                        0.13 cent     0.58 cent 
 (b) On a fully diluted basis                                                                0.13 cent*    0.58 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.

7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the:

(a) current financial period reported on; and

(b) immediately preceding financial year.

 
                                                                           Group                      Company 
                                                                 30 Jun 2020   31 Dec 2019   30 Jun 2020   31 Dec 2019 
                                                                     US$           US$           US$           US$ 
                                                                ------------  ------------  ------------  ------------ 
 Net asset value per ordinary share based on issued share        16.31 cents   16.22 cents   16.69 cents   16.83 cents 
 capital 
 Total number of issued shares                                   271,662,227   271,662,227   271,662,227   271,662,227 
                                                                ------------  ------------  ------------  ------------ 
 
   8.             A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business.  It must include a discussion of the following: 

(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and

(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.

Review of Financial Performance

Revenue

T he Group's revenue for the six months ended 30 June 2020 ("1H FY2020") decreased by US$19.1 million to US$52.8 million from US$71.9 million in the prior year ("1H FY2019"). The current COVID-19 pandemic situation has impacted on the business of the Group globally. It has resulted in the reduced orders from our customers and some impact on our production facilities around the world as we adapted our working practices to comply with regional variations on social distancing and best practices during this pandemic.

Geographically, the Group's revenue for 1H FY2020 decreased in America, Europe and Rest of the World by US$16.3 million (-31.3%), US$3.0 million (-19.8%) and US$0.6 million (-19.3%), respectively, offset by an increase in Asia by US$0.8 million (+71.2 %).

Gross Profit

The decrease in revenue has resulted in a 18.1% decrease in gross profit from US$15.1 million in 1H FY2019 to US$12.4 million in 1H FY2020. Despite the decrease in gross profit, gross profit margin improved by 2.4 percentage points from 21.0% to 23.4% from improved product mix and manufacturing improvements .

Other Income

Other income in 1H FY2020 derived mainly from the government support in Singapore and Israel pertaining to the COVID-19 pandemic and government subsidies in China.

Administrative Expenses

Administrative expenses for 1H FY2020 decreased 9.6% to US$11.0 million compared to US$12.2 million in 1H FY2019, representing 20.9% and 17.0% of revenue, respectively. The ongoing cost control measures across the Group globally, coupled with reduction in travelling, marketing, trade shows etc during this pandemic period has resulted in lower administrative expenses incurred.

Other Operating Expenses

Other operating expenses in 1H FY2020 were attributed mainly from foreign exchange losses and the impairment of trade receivables from the UK customers.

Profit Before Tax & Net Profit

The Group posted a profit before tax of US$0.5 million in 1H FY2020, compared to US$2.1 million the prior year, representing margins of 1.0% and 3.0%, respectively.

Overall, the Group posted a net profit of US$0.3 million in 1H FY2020, compared to US$1.6 million in 1H FY2019, representing net margins of 0.6% and 2.2%, respectively.

Review of Financial Position

Non-current assets decreased by US$1.9 million to US$26.2 million as at 30 June 2020, due to the depreciation of plant and equipment and the right-of-use assets and the amortisation of intangible assets.

Net current assets increased by US$1.9 million to US$24.4 million as at 30 June 2020 compared to US$22.5 million as at 31 December 2019. Inventories and trade and other receivables increased by US$1.2 million and US$0.4 million, respectively, due to slower movement of goods during this period, offset by a decrease in trade and other payables of US$2.4 million, attributed to the continuing payment to suppliers and the settlement of compensation costs in Shanghai. Cash and cash equivalents decreased by US$1.4 million to US$7.5 million from US$8.9 million and borrowings increased by US$1.3 million to US$10.3 million from US$8.9 million as at 30 June 2020 and 31 December 2019, respectively. Provision for income tax increased by US$0.1 million and the repayment of leases has resulted in a decrease in the current portion of lease liabilities by US$0.7 million.

Similarly, with the repayment of leases, the non-current portion of the lease liabilities decreased by US$0.2 million to US$5.8 million as at 30 June 2020.

The Group's net asset value stood at US$44.3 million as at 30 June 2020, compared to US$44.1 million as at 31 December 2019.

Review of Cash Flows

In 1H FY2020, net cash used in operating activities amounted to US$0.7 million, comprising US$4.1 million cash inflow from operating activities (before working capital changes), US$4.7 million net working capital outflow and US$0.1 million payment of interest.

Net cash used in investing activities in 1H FY2020 amounted to US$0.9 million, mainly due to the purchase of machinery and equipment.

Net cash generated from financing activities amounted to US$0.2 million in 1H FY2020, attributable to the net proceeds of borrowings offset by the repayment of lease liabilities.

Overall, the Group recorded a net de crease in cash and cash equivalents amounting to US$1.4 million in 1H FY2020, bringing cash and cash equivalents per the consolidated statement of cash flows to US$7.5 million as at 30 June 2020.

9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.

No prospect statement was made.

10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

The COVID-19 global pandemic has impacted sales and profit growth in the period. However, the Group is pleased to report that the majority of its factories remained operational, with office and R&D staff successfully transitioning to remote working. Our people are now slowly and safely returning to work, after the Group carried out rigorous risk assessments and implemented safe-distancing and hygiene procedures throughout the business.

The Group's manufacturing sites continued to see demand from key customers throughout the pandemic as the Group and the markets which it serves, including the Communication and Medical markets, are deemed an essential supply. Despite these sites remaining open, significant market-wide disruption to our global sales efforts has ultimately impacted growth. The Group has particularly noted slowdowns in areas where installers are required to be physically on site - something that the lockdown procedures in many regions would not allow. We anticipate that, as lockdown eases, this business will gradually return.

The Group delivered 1H FY2020 sales of US$52.8 million, with lower demand in America and Europe partiality offset by increased demand across Asia. The United States, which remains a significant market for the Group, remains in lockdown and has seen a fall in anticipated orders.

The Group's Shanghai site ceased manufacturing in July 2020, though it will continue to support certain supply chain functions going forward. The Group has continued the transition to its third-party subcontract manufacturer in the Philippines and this should deliver manufacturing efficiencies to the Group, while maximising our sales pipeline across Asia and reducing the Group's exposure to trade disputes between China and the United States.

Despite the current negative headwinds caused by the pandemic, Global Invacom's products are expected to continue to play a crucial role in meeting global demand for data and connectivity, especially where security of transmission is important, for telecoms data backhaul or in rural areas and less developed regions where physical fibre or cable is not commercially viable.

   11.          Dividend 
   (a)   Current Financial Period Reported On 

Any dividend declared for the current financial period reported on?

None.

   (b)   Corresponding Period of the Immediately Preceding Financial Year 

Any dividend declared for the corresponding period of the immediately preceding financial year?

None.

   (c)   Date payable 

Not applicable.

   (d)   Books closure date 

Not applicable.

12. If no dividend has been declared/recommended, a statement to that effect 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 2020.

13. If the Group has obtained a general mandate from shareholders for Interested Person Transactions ("IPTs"), the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPTs mandate has been obtained, a statement to that effect.

The Company does not have a shareholders' mandate for IPTs for the six months ended 30 June 2020.

14. Confirmation that the Company has procured undertaking from all its directors and executive officers pursuant to Rule 720(1).

The Company confirms that it has procured undertakings from all its directors and executive officers under Rule 720(1) of the Listing Manual of the Singapore Exchange Securities Trading Limited.

CONFIRMATION BY THE BOARD OF DIRECTORS (THE "BOARD") PURSUANT TO RULE 705(5) OF THE LISTING MANUAL

We do hereby confirm, for and on behalf of the Board of Global Invacom Group Limited (the "Company"), that to the best of our knowledge, nothing has come to the attention of the Board of the Company which may render the financial results for the six months ended 30 June 2020 to be false or misleading in any material aspect.

On behalf of the Board

Anthony Brian Taylor Matthew Jonathan Garner

Director Director

BY ORDER OF THE BOARD

Anthony Brian Taylor

Executive Chairman

13 August 2020

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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August 13, 2020 02:00 ET (06:00 GMT)

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