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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% 7.00 6.00 8.00 7.00 7.00 7.00 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Technology Hardware & Equipment 61.0 -0.0 0.0 - 18

Global Invacom Group Limited Results for the six months ended 30 June 2021

13/08/2021 7:00am

UK Regulatory (RNS & others)


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RNS Number : 5141I

Global Invacom Group Limited

13 August 2021

Global Invacom Group Limited

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

Results for the six months ended 30 June 2021

Singapore/London, 13 August 2021 - 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 2021 ("1H FY2021").

Key financial highlights:

   --    Revenue for 1H FY2021 of US$40.4m (1H FY2020: US$52.8m) 
   --    Gross Profit for 1H FY2021 of US$8.8m (1H FY2020: US$12.4m) 
   --    Net loss for 1H FY2021 of US$1.2m (1H FY2020: US$0.3m net profit) 
   --    Cash and cash equivalents as at 30 June 2021 of US$9.4m (31 December 2020: US$11.3m) 

Key operational highlights:

-- Continued demand for Direct to Home ("DTH") products through the Company's key customer in the United States, providing an ongoing revenue base albeit at lower levels than previous years

-- Demand for Data Over Satellite ("DOS") products continues to grow, driven by ongoing demand for connectivity and data delivery through the COVID-19 pandemic

   --    Global supply chains continue to be impacted by COVID-19 pandemic 
   --    The Group has undertaken cost reduction measures 

The financial performance of the Group in the first half of 2021 reflects broader ongoing COVID-19 challenges. The much-publicised disruption to supply chains and problems with the availability of key products, including semi-conductors and capacitors, continues to be a challenge for the Company. Furthermore, the Company has also been impacted by supply chain and global transportation network issues as a result of government restrictions, the introduction of quarantine and additional checks and measures, coupled with a shortage of personnel at key sites such as ports. This has ultimately led to a delay in the transport of products from the manufacturing facility to customer sites.

The Group delivered sales of US$ 40.4 million in the first half of the year. Geographically, we saw ongoing sales pressure in America, Europe and Asia, with an increase in demand across the Rest of the World. The United States, which remains a significant market for the Group, continues to be impacted by the ongoing pandemic, which has translated to a fall in anticipated orders.

As reported in the FY2020 full year results statement, in 2020 the Group restructured its development, sales and marketing teams to focus on the DOS products, a growth market, leaving just a core team focused on the DTH markets. The Group has also undertaken, and is continuing, a restructuring across the Group to reduce its cost base, removing excess headcount in non-core functions, and a reduction in administrative costs.

DOS continues to underpin 4G/5G and high-speed broadband access, service providers are adopting satellite solutions to meet the significant growth in demand where traditional fibre and cable solutions are not viable. We continue to work to position ourselves to take advantage of this potential growth in demand.

The Group's DTH products continue to generate good sales, albeit at lower levels than in previous years. As such, we continue to invest in the development of bespoke new products for our key customer in the United States but have reduced the size of the team focused on this segment.

The Group continues to monitor the pandemic situation closely, carrying out rigorous risk assessments and implementing stringent hygiene procedures across our sites. This has enabled us to allow our employees to return to work safely should they wish to do so. As a global business, the Group continues to monitor the situation closely and to adhere to all relevant Government guidelines for the regions in which it is present.

The challenges faced by the Group in the first half will likely continue to impact the Group's business throughout FY2021. Notwithstanding that, the Group believes Global Invacom's products have a key role to play in the provision of this connectivity as restrictions ease across territories, supply chains recover, and demand starts to normalise.

Tony Taylor, Executive Chairman of Global Invacom, commented:

"The first half of 2021 has been challenging as we faced down a number of operational and macroeconomic headwinds. Despite this, our business has delivered a solid performance, supported by a highly skilled and talented workforce.

"As global restrictions ease, and supply chains move more freely, I firmly believe our business is ideally placed to deliver a sustainable recovery in the medium term."

For further information, please 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 / Rob Patrick                        Tel: +44 20 7409 3494 
 
 Vigo Consulting (UK Media & Investor Relations)   www.vigoconsulting.com 
 Jeremy Garcia / Fiona Hetherington / Kendall      Tel: +44 207 390 0238 
  Hill 
 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 US. 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 2021

 
 Table of Contents                                                  Page 
       Condensed Interim Consolidated Statement of Comprehensive 
 A.     Income                                                       4 
 B.    Condensed Interim Statements of Financial Position            5 
 C.    Condensed Interim Statements of Changes in Equity             6 
       Condensed Interim Consolidated Statement of Cash 
 D.     Flows                                                        8 
       Notes to the Condensed Interim Consolidated Financial 
 E.     Statements                                                   9 
       Other Information Required by Listing Rule Appendix 
 F.     7.2                                                          20 
 
   A.      Condensed Interim Consolidated Statement of Comprehensive Income 
 
                                                                                            Group 
                                                         --------------------------------------------------------------------------- 
                                                                      1H                         1H                  Increase/ 
                                                                    FY2021                     FY2020                (Decrease) 
                                                                   US$'000                    US$'000                    % 
 
 Revenue                                                       40,439                         52,773                   (23.4) 
 
 Cost of sales                                              (31,653)                       (40,423)                    (21.7) 
 
 Gross profit                                                    8,786                        12,350                   (28.9) 
 
 Other income                                                    1,478                              125                  N.M. 
 Distribution costs                                               (137)                          (115)                    19.1 
 Administrative expenses                                    (10,877)                       (11,030)                      (1.4) 
 Other operating expenses                                           (52)                         (378)                 (86.2) 
 Finance income                                                        30                             21                  42.9 
 Finance costs                                                    (352)                          (429)                 (17.9) 
 
 (Loss)/Profit before income 
  tax                                                          (1,124)                              544                  N.M. 
 
 Income tax expense                                                 (54)                         (202)                 (73.3) 
                                                         ---------------------------  -----------------------  --------------------- 
 
   (Loss)/Profit for the period                                              (1,178)                      342  N.M. 
                                                         ---------------------------  -----------------------  --------------------- 
 
    Other comprehensive income/(loss): 
 
 Items that may be reclassified 
  subsequently to profit or loss 
 
   *    Exchange differences on translation of foreign 
        subsidiaries                                                325                         (105)                    N.M. 
 
   Other comprehensive income/(loss) 
   for the period, net of tax                                       325                         (105)                    N.M. 
                                                         ---------------------------  -----------------------  --------------------- 
 
   Total comprehensive (loss)/income 
   for the period                                                (853)                             237                   N.M. 
                                                         ---------------------------  -----------------------  --------------------- 
 
 
 (Loss)/Profit for the period 
  attributable to: 
 Equity holders of the Company              (1,177)                    345           N.M. 
 Non-controlling interests                          (1)                  (3)       (66.7) 
                                            (1,178)                    342           N.M. 
                                      -----------------  -------------------  ----------- 
 
 Total comprehensive (loss)/income 
  for the period attributable 
  to: 
 Equity holders of the Company                 (852)                   240           N.M. 
 Non-controlling interests                          (1)                  (3)       (66.7) 
                                               (853)                   237           N.M. 
                                      -----------------  -------------------  ----------- 
 

N.M.: Not Meaningful

   B.     Condensed Interim Statements of Financial Position 
 
                                               Group                                      Company 
                            -------------------------------------------  ----------------------------------------- 
                                   30 Jun                 31 Dec                30 Jun                31 Dec 
                                     2021                  2020                   2021                 2020 
                                   US$'000               US$'000                US$'000              US$'000 
 ASSETS 
 Non-current Assets 
 Property, plant and 
  equipment                                8,775                  9,410                    46                   82 
 Right-of-use assets                       5,472                  6,340                   105                  162 
 Investments in 
  subsidiaries                                 -                      -                27,102               27,102 
 Goodwill                                  6,092                  6,092                     -                    - 
 Intangible assets                         1,998                  2,291                     -                    - 
 Other financial assets                        8                      8                     -                    - 
 Deferred tax assets                       1,363                  1,363                     -                    - 
 Other receivables and 
  prepayments                                 54                     54                10,793               10,563 
                                          23,762                 25,558                38,046               37,909 
                            --------------------  ---------------------  --------------------  ------------------- 
 Current Assets 
 Due from subsidiaries                         -                      -                 4,168                4,045 
 Inventories                              25,714                 26,816                     -                    - 
 Trade receivables                        13,373                 10,689                     -                    - 
 Other receivables and 
  prepayments                              2,466                  2,033                 3,059                3,513 
 Tax receivables                               1                      -                     -                    - 
 Cash and cash equivalents                 9,435                 11,273                   165                  150 
                            --------------------  ---------------------  --------------------  ------------------- 
                                          50,989                 50,811                 7,392                7,708 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 Total assets                             74,751                 76,369                45,438               45,617 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 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                               (12,676)               (11,824)              (28,441)             (28,302) 
                            --------------------  ---------------------  --------------------  ------------------- 
 Equity attributable 
  to owners of the Company                46,091                 46,943                44,143               44,282 
 Non-controlling interests                  (17)                   (16)                     -                    - 
                            --------------------  ---------------------  --------------------  ------------------- 
 Total equity                             46,074                 46,927                44,143               44,282 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 Non-current Liabilities 
 Other payables                              124                    124                     -                    - 
 Lease liabilities                         4,309                  4,848                    39                   39 
 Deferred tax liabilities                    634                    634                     -                    - 
                                           5,067                  5,606                    39                   39 
                            --------------------  ---------------------  --------------------  ------------------- 
 Current Liabilities 
 Due to subsidiaries                           -                      -                   919                  835 
 Trade payables                           10,815                 12,509                     -                    - 
 Other payables                            4,969                  5,589                   272                  333 
 Borrowings                                6,199                  3,883                     -                    - 
 Lease liabilities                         1,372                  1,854                    65                  128 
 Provision for income 
  tax                                        255                      1                     -                    - 
                            --------------------  ---------------------  --------------------  ------------------- 
                                          23,610                 23,836                 1,256                1,296 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 Total liabilities                        28,677                 29,442                 1,295                1,335 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 Total equity and 
  liabilities                             74,751                 76,369                45,438               45,617 
                            --------------------  ---------------------  --------------------  ------------------- 
 
   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 
  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 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 
 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 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 
 
                                                                                 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 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 
                             ----------  -----------  ----------  ----------  -------------  --------------  -------- 
 
 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 
                             ----------  -----------  ----------  ----------  -------------  --------------  -------- 
 
   D.     Condensed Interim Consolidated Statement of Cash Flows 
 
                                                                                             Group 
                                                                           ----------------------------------------- 
                                                                                    1H                    1H 
                                                                                   FY2021               FY2020 
                                                                                  US$'000              US$'000 
 Cash Flows from Operating Activities 
 (Loss)/Profit before income tax                                                   (1,124)                    544 
 Adjustments for: 
 Depreciation of property, plant and equipment                                       1,143                1,388 
 Amortisation of intangible assets                                                       266                  446 
 Depreciation of right-of-use assets                                                     996              1,076 
 Gain on disposal of property, plant and equipment                                 (1,143)                         - 
 (Write-back)/Allowance for inventory obsolescence                                         (2)                  19 
 Impairment of trade receivables                                                              -               274 
 Bad debts written off                                                                     17                      - 
 Unrealised exchange loss/(gain)                                                         124                 (53) 
 Interest income                                                                        (30)                 (21) 
 Interest expense                                                                        352                  429 
 Gain on lease modifications                                                          (207)                        - 
 Operating cash flow before working capital changes                                      392              4,102 
 Changes in working capital: 
 Inventories                                                                         1,104              (1,256) 
 Trade receivables                                                                 (2,702)                 (324) 
 Other receivables and prepayments                                                       422               (395) 
 Trade and other payables                                                          (2,424)              (2,756) 
                                                                           --------------------  ------------------- 
 Cash used in operating activities                                                 (3,208)                 (629) 
 Interest paid                                                                        (116)                  (60) 
 Income tax paid                                                                           (2)                     - 
 Net cash used in operating activities                                             (3,326)                 (689) 
                                                                           --------------------  ------------------- 
 
 Cash Flows from Investing Activities 
 Interest received                                                                            -                 21 
 Purchase of property, plant and equipment                                            (679)                (966) 
 Proceeds from disposal of property, plant and equipment                                 581                       - 
 Net cash used in investing activities                                                  (98)               (945) 
                                                                           --------------------  ------------------- 
 
 Cash Flows from Financing Activities 
 Proceeds from borrowings                                                         17,026               23,238 
 Repayment of borrowings                                                       (14,710)              (21,906) 
 Principal payment of lease liabilities                                              (740)             (1,109) 
 Net cash generated from financing activities                                       1,576                    223 
                                                                           --------------------  ------------------- 
 
 Net decrease in cash and cash equivalents                                        (1,848)             (1,411) 
 Cash and cash equivalents at the beginning of the period                         11,273                 8,912 
 Effect of foreign exchange rate changes on the balance of cash held in 
  foreign currencies                                                                      10                (23) 
                                                                           --------------------  ------------------- 
 Cash and cash equivalents at the end of the period                                 9,435                7,478 
                                                                           --------------------  ------------------- 
 
   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 2021 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 2021 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 2020.

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 2020, 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 2021. 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 2020.

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 
   --      Note 12 - impairment test on investments in subsidiaries 

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 2021.

   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 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 for inventory obsolescence, 
  net                                          (2)         -       (2) 
 
 
 
                                  Sat 
                                 Comms       CM       Group 
                                US$'000   US$'000   US$'000 
 
 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 
                                                   ======== 
 
 
 1H FY2020 
 Revenue                                  51,174   1,599   52,773 
                                         =======  ======  ======= 
 
 Operating profit                            875      77      952 
                                         =======  ====== 
 Finance income                                                21 
 Finance costs                                              (429) 
 Income tax expense                                         (202) 
                                                          ------- 
 Profit for the period                                        342 
                                                          ======= 
 
 Amortisation of intangible assets           446       -      446 
 Depreciation of property, plant 
  and equipment                            1,387       1    1,388 
 Depreciation of right-of-use assets       1,014      62    1,076 
 Addition to property, plant and 
  equipment                                  966       -      966 
 Impairment loss on trade receivables        274       -      274 
 Allowance for inventory obsolescence, 
  net                                         58    (39)       19 
                                         -------  ------  ------- 
 
 
               Assets and liabilities 
 Segment assets                          80,032   1,239   81,271 
 Unallocated assets 
 
   *    Non-current assets                                   138 
 
   *    Other receivables                                     97 
 
   *    Deferred tax assets                                  975 
 
   *    Cash and cash equivalents                            274 
 
   *    Tax receivables                                        1 
 
   *    Right-of-use assets                                   88 
                                                         ------- 
 Total assets                                             82,844 
                                                         ======= 
 
 Segment liabilities                     18,870   1,606   20,476 
 Unallocated liabilities 
 
   *    Other payables                                       306 
 
   *    Provision for income tax                             143 
 
   *    Deferred tax liabilities                             428 
 
   *    Borrowings                                        10,261 
 
   *    Lease liabilities                                  6,928 
                                                         ------- 
 Total liabilities                                        38,542 
                                                         ======= 
 
 
 
 
   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 
                                   FY2021    FY2020 
                                  US$'000   US$'000 
 Principal geographical market 
 America 
  - Sale of goods                  23,165    35,862 
                                 --------  -------- 
 
 Europe 
  - Sale of goods                  10,997    12,059 
                                 --------  -------- 
 
 Asia 
  - Sale of goods                   1,209     2,014 
                                 --------  -------- 
 
 Rest of the World 
  - Sale of goods                   5,068     2,838 
                                 --------  -------- 
 
 
 Total                             40,439    52,773 
                                 ========  ======== 
 
 Major product lines 
 Sale of goods                     40,439    52,773 
                                 ========  ======== 
 
 

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.

   5.     Financial Assets and Financial Liabilities 

Set out below is an overview of the financial assets and financial liabilities of the Group as at 30 June 2021 and 31 December 2020:

 
                                 Level 1   Level 2   Level 3   Total 
                                 US$'000   US$'000   US$'000  US$'000 
 Group and Company 
 30 June 2021 
 Financial asset at fair value 
  through other comprehensive 
  income                                -         -        8        8 
                                 ========  ========  =======  ======= 
 
 31 December 2020 
 Financial asset at fair value 
  through other comprehensive 
  income                                -         -        8        8 
                                 ========  ========  =======  ======= 
 
 
   5.1    Significant items 
 
                                                            Group 
                                                        1H        1H 
                                                       FY2021    FY2020 
                                                      US$'000   US$'000 
 
 Interest income                                           30        21 
 Interest expense                                       (352)     (429) 
 Gain on disposal of property, plant and 
  equipment                                             1,143         - 
 Gain on lease modifications                              207         - 
 Impairment of trade receivables                            -     (274) 
 Loss on foreign exchange                                (34)     (102) 
 Bad debts written off                                   (17)         - 
 Write-back/(Allowance) for inventory obsolescence          2      (19) 
 Depreciation of property, plant and equipment        (1,143)   (1,388) 
 Depreciation of right-of-use assets                    (996)   (1,076) 
 Amortisation of intangible assets                      (266)     (446) 
 Research and development expense                       (792)     (881) 
 
 
   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 
                                                                                               FY2021         FY2020 
                                                                                                 US$           US$ 
                                                                                           -------------  ------------ 
 (a) Based on weighted average number of ordinary shares on issue; and                      (0.43) cent     0.13 cent 
 (b) On a fully diluted basis                                                               (0.43) cent*   0.13 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.

   8.      Net Asset Value 
 
                                                                           Group                      Company 
                                                                 30 Jun 2021   31 Dec 2020   30 Jun 2021   31 Dec 2020 
                                                                     US$           US$           US$           US$ 
                                                                ------------  ------------  ------------  ------------ 
 Net asset value per ordinary share based on issued share        16.97 cents   17.28 cents   16.25 cents   16.30 cents 
 capital 
 Total number of issued shares                                   271,662,227   271,662,227   271,662,227   271,662,227 
                                                                ------------  ------------  ------------  ------------ 
 
   9.      Fair Value Measurement 

The Group and the Company categories fair value measurement using a fair value hierarchy that is dependent on the valuation inputs used as follows:

(i) quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date (Level 1);

(ii) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and

(iii) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

The following table presents the financial assets and financial liabilities measurement at fair value as at the statement of financial position date by level of the fair value hierarchy:

 
                                       Level 1   Level 2   Level 3   Total 
                                       US$'000   US$'000   US$'000  US$'000 
 Group and Company 
 30 June 2021 
 Financial asset at fair 
  value through other comprehensive 
  income                                       -        -        8        8 
                                        ========  =======  =======  ======= 
 
 31 December 2021 
 Financial asset at fair 
  value through other comprehensive 
  income                                       -        -        8        8 
                                        ========  =======  =======  ======= 
 

9.1 Fair value of the Group's and the Company's financial assets and liabilities that are measured at fair value on a recurring basis

The Group and Company's financial asset, at fair value through profit or loss as at the statement of financial position date is considered not significant.

9.2 Fair value of the Group's and the Company's financial assets and liabilities that are not measured at fair value on a recurring basis (but fair value disclosure is required)

(i) The carrying amounts of financial assets and liabilities with a maturity of less than 1 year, which include cash and cash equivalents, borrowings, receivables and payables are assumed to approximate their fair values due to their short-term maturities.

(ii) The carrying amount of non-current portion of loans to subsidiaries, non-current portion of other payables and non-current lease liabilities to the financial statements are reasonable approximation of their fair value.

   9.3    Valuation Policies and Procedures 

The Group and the Company has established a control framework with respect to the measurement of fair values. This framework includes the finance team that reports directly to the Chief Executive Officer and has overall responsibility for all significant fair value measurements, including Level 3 fair values.

The finance team regularly reviews significant unobservable inputs and valuation adjustments. If third party information is used to measure fair value, then the finance team assesses and documents the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of SFRS(I), including the level in the fair value hierarchy the resulting fair value estimate should be classified.

Significant valuation issues are reported to the Company's Audit and Risk Committee.

   10.    Intangible Assets 
 
                                          Intellectual   Capitalised 
                                Trading     property      development 
                                  name       rights          costs       Total 
                                US$'000     US$'000        US$'000      US$'000 
 Group 
 2021 
 Cost 
 Balance at 1 January 
  and 30 June                        16          2,674          4,834     7,524 
 
 Amortisation and impairment 
 Balance at 1 January                16            757          4,460     5,233 
 Amortisation charge                  -            113            153       266 
 Currency realignment                 -             27              -        27 
                               --------  -------------  -------------  -------- 
 Balance at 30 June                  16            897          4,613     5,526 
                               --------  -------------  -------------  -------- 
 
 Net book value 
 Balance at 30 June                   -          1,777            221     1,998 
                               ========  =============  =============  ======== 
 
 2020 
 Cost 
 Balance at 1 January                16          2,685          4,823     7,524 
 Currency realignment                 -           (11)             11         - 
                               --------  -------------  -------------  -------- 
 Balance at 31 December              16          2,674          4,834     7,524 
                               --------  -------------  -------------  -------- 
 
 Amortisation and impairment 
 Balance at 1 January                16            483          3,921     4,420 
 Amortisation charge                  -            250            539       789 
 Currency realignment                 -             24              -        24 
                               --------  -------------  -------------  -------- 
 Balance at 31 December              16            757          4,460     5,233 
                               --------  -------------  -------------  -------- 
 
 Net book value 
 Balance at 31 December               -          1,917            374     2,291 
                               ========  =============  =============  ======== 
 
 
   11.    Goodwill 
 
                                                Group 
                                      30 June 2021   31 December 
                                                         2020 
                                        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 
                                     =============  ============ 
 

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 2021   31 December 
                                                            2020 
                                           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   vehicles   equipment    Renovations    Total 
                          US$'000     US$'000    US$'000     US$'000       US$'000     US$'000 
  Group 
  2021 
  Cost 
  Balance at 1 January       2,883      17,639         40        7,649         1,458     29,669 
  Currency realignment           -        (18)          -           11           (1)        (8) 
  Additions                      -         627          -           51             1        679 
  Balance at 30 
   June                      2,883      18,248         40        7,711         1,458     30,340 
                         ---------  ----------  ---------  -----------  ------------  --------- 
 
  Accumulated 
   Depreciation 
  Balance at 1 January         928      11,187         40        6,969         1,135     20,259 
  Currency realignment           -         153          -           11           (1)        163 
  Depreciation charge           20       1,010          -           79            34      1,143 
  Balance at 30 
   June                        948      12,350         40        7,059         1,168     21,565 
                         ---------  ----------  ---------  -----------  ------------  --------- 
 
  Net book value 
  Balance at 30 
   June                      1,935       5,898          -          652           290      8,775 
                         =========  ==========  =========  ===========  ============  ========= 
 
  2020 
  Cost 
  Balance at 1 January       2,807      28,069        220        8,377         1,376     40,849 
  Currency realignment          76        (12)          -           53           184        301 
  Additions                      -       1,462          -          410           104      1,976 
  Disposals                      -       (146)          -            -          (10)      (156) 
  Write-off                      -    (11,734)      (180)      (1,191)         (196)   (13,301) 
  Balance at 31 
   December                  2,883      17,639         40        7,649         1,458     29,669 
                         ---------  ----------  ---------  -----------  ------------  --------- 
 
  Accumulated 
   Depreciation 
  Balance at 1 January         849      20,640        220        7,629         1,257     30,595 
  Currency realignment           -         419          -          (1)           (1)        417 
  Depreciation charge           79       1,963          -          532            75      2,649 
  Disposals                      -       (101)          -            -             -      (101) 
  Write-off                      -    (11,734)      (180)      (1,191)         (196)   (13,301) 
  Balance at 31 
   December                    928      11,187         40        6,969         1,135     20,259 
                         ---------  ----------  ---------  -----------  ------------  --------- 
 
  Net book value 
  Balance at 31 
   December                  1,955       6,452          -          680           323      9,410 
                         =========  ==========  =========  ===========  ============  ========= 
 
 
 
 
 
 
                                      Furniture, 
                                       fittings 
                                           & 
                                      equipment    Renovations    Total 
                                       US$'000       US$'000     US$'000 
  Company 
  2021 
  Cost 
  Balance at 1 January and 30 June           211            80       291 
 
  Accumulated depreciation 
  Balance at 1 January                       137            72       209 
  Depreciation charge                         28             8        36 
  Balance at 30 June                         165            80       245 
                                     -----------  ------------  -------- 
 
  Net book value 
  Balance at 30 June                          46             -        46 
                                     ===========  ============  ======== 
 
  2020 
  Cost 
  Balance at 1 January                       209            80       289 
  Additions                                    2             -         2 
  Balance at 31 December                     211            80       291 
                                     -----------  ------------  -------- 
 
  Accumulated depreciation 
  Balance at 1 January                        76            45       121 
  Depreciation charge                         61            27        88 
  Balance at 31 December                     137            72       209 
                                     -----------  ------------  -------- 
 
  Net book value 
  Balance at 31 December                      74             8        82 
                                     ===========  ============  ======== 
 

The proceeds from disposal of property, plant and equipment of US$581,000 and gain on disposal of property, plant and equipment of US$1,143,000 pertains to machinery and equipment that was fully written off in the prior financial year ended 31 December 2020.

13. Investment in Subsidiaries

 
                                                        Company 
                                                   30 Jun     31 Dec 
                                                    2021       2020 
                                                  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             (14,287)   (14,287) 
                                                    27,102     27,102 
                                                 =========  ========= 
 
  Movement in the allowance for impairment 
   loss are as follows: 
 
  At the beginning of the period                    14,287     13,803 
  Impairment loss recognised during the period           -        484 
                                                 ---------  --------- 
  At the end of the period                          14,287     14,287 
                                                 =========  ========= 
 
 

Allowance for impairment loss

   (i)      Global Invacom Manufacturing Pte Ltd ("GIMPL") 

As at 30 June 2021 and 31 December 2020, 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 2021 and 31 December 2020, an allowance for impairment loss of US$5,639,000 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 2021    As at 31 Dec 2020 
Secured   Unsecured  Secured   Unsecured 
          ---------  --------  --------- 
US$'000    US$'000   US$'000    US$'000 
          ---------  --------  --------- 
 6,199        -       3,883        - 
          ---------  --------  --------- 
 

Amount repayable after one year

 
 As at 30 Jun 2021    As at 31 Dec 2020 
Secured   Unsecured  Secured   Unsecured 
          ---------  --------  --------- 
US$'000    US$'000   US$'000    US$'000 
          ---------  --------  --------- 
   -          -         -          - 
          ---------  --------  --------- 
 

The revolving credit loans of US$6,199,000 were secured over the assets of the subsidiaries and corporate guarantees provided by the Company and the subsidiaries.

   15.    Share Capital 
 
 1H FY2021                                 No. of shares       US$'000 
 
 Balance as at 1 Jan 2021 and 30 Jun 
  2021                                          271,662,227       72,584 
                                       --------------------  ----------- 
 
   1H FY2020                               No. of shares       US$'000 
 
 Balance as at 1 Jan 2020 and 30 Jun 
  2020                                          271,662,227       72,584 
                                       --------------------  ----------- 
 
 

There were 10,740,072 treasury shares held by the Company as at 30 June 2021 and 30 June 2020 and there was no subsidiary holdings.

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 2021   31 Dec 2020 
 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 FY2021                              No. of shares   US$'000 
 
 Balance as at 1 Jan 2021 and 30 Jun 
  2021                                   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 2021 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 2021 ("1H FY2021") decreased by 23.4% to US$40.4 million from US$52.8 million in the prior year ("1H FY2020"). The current COVID-19 pandemic situation has impacted the business of the Group globally. The Group has seen a reduction in orders from our customers and selected 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 FY2021 decreased in America, Europe and Asia by US$12.7 million (-35.4%), US$1.1 million (-8.8%) and US$0.8 million (-40.0%), respectively, offset by an increase in Rest of the World by US$2.2 million (+78.6 %).

Gross Profit

The decrease in revenue has resulted in a 28.9 % decrease in gross profit from US$12.4 million in 1H FY2020 to US$ 8.8 million in 1H FY2021. Gross profit margin has decreased marginally by 1.7 percentage points from 23.4% to 21.7 %, mainly attributable to higher materials, shipping and logistics costs due to the ongoing pandemic and supply chain constraints.

Other Income

Other income in 1H FY2021 was derived 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 comprising subsidy support received from various government bodies across the Group due to the pandemic.

Administrative Expenses

Administrative expenses for 1H FY2021 decreased 1.4 % to US$ 10.9 million compared to US$11.0 million in 1H FY2020, representing 26.9 % and 20.9% 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 FY2021 were attributed mainly to foreign exchange losses and bad debts written off.

Profit Before Tax & Net Profit

The Group posted a loss before tax of US$ 1.1 million in 1H FY2021, compared to a profit of US$0.5 million in 1H FY2020.

Overall, the Group posted a net loss of US$ 1.2 million in 1H FY2021, compared to a net profit of US$0.3 million in 1H FY2020.

   2.2    Review of Financial Position 

Non-current assets decreased by US$1.8 million to US$23.8 million as at 30 June 2021, due to the depreciation of plant and equipment, the right-of-use assets and the amortisation of intangible assets.

Net current assets increased by US$0.4 million to US$27.4 million as at 30 June 2021 compared to US$27.0 million as at 31 December 2020. Trade and other receivables increased by US$3.1 million due to slower collections, offset by a decrease in inventories and trade and other payables of US$1.1 million and US$ 2.3 million respectively, resulting from inventory control, longer shipment lead times and continuing payment to suppliers.

Cash and cash equivalents decreased by US$1.8 million to US$9.4 million as at 30 June 2021 from US$11.3 million at 31 December 2020 and borrowings increased by US$2.3 million to US$6.2 million as at 30 June 2021 from US$3.9 million as at 31 December 2020.

Provision for income tax increased by US$0.3 million and the repayment of leases has resulted in a decrease of US$0.5 million in the current portion of lease liabilities.

With the repayment of leases, the non-current portion of the lease liabilities decreased by US$0.5 million to US$4.3 million as at 30 June 2021.

The Group's net asset value stood at US$46.1 million as at 30 June 2021, compared to US$46.9 million as at 31 December 2020.

   2.3    Review of Cash Flows 

In 1H FY2021, net cash used in operating activities amounted to US$3.3 million, comprising US$0.4 million cash inflow from operating activities (before working capital changes), US$3.6 million net working capital outflow and US$0.1 million payment of interest and income tax.

Net cash used in investing activities in 1H FY2021 amounted to US$0.1 million, mainly due to the purchase and proceeds from the disposal of machinery and equipment.

Net cash generated from financing activities amounted to US$1.6 million in 1H FY2021, attributable to the net proceeds of borrowings offset by the repayment of lease liabilities.

Overall, the Group recorded a net decrease in cash and cash equivalents amounting to US$1.8 million in 1H FY2021, bringing cash and cash equivalents per the consolidated statement of cash flows to US$9.4 million as at 30 June 2021.

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 COVID-19 global pandemic has continued to impact sales and profit growth in the period. We have now implemented processes enabling our employees to return to work safely should they wish to do so. As a global business, the Group continues to monitor the situation closely and to adhere to all relevant Government guidelines for the regions in which it is present and has adopted stringent hygiene procedures and safe-distancing measures throughout the business.

The Group's manufacturing sites have continued to experience delays due to global supply chains and availability of core components within its key markets, which has adversely impacted the Group's growth as well as our customers' sales. Equally, shutdowns in certain territories and geographies have also adversely impacted our sales.

Global Invacom's products are expected to play a crucial role in meeting global demand for data and connectivity in the future. The COVID-19 pandemic has served to accelerate global demand for constant connectivity and service providers are increasingly seeking satellite solutions where traditional fibre and cable networks aren't suitable or capable of satisfying demand.

According to Fortune Business Insights, the global satellite market was valued at US$23.4 billion in 2020 and is projected to grow to US$46.5 billion by 2028, driven by universal demand for greater connectivity, coupled with the launch of smaller satellites for use across multiple industries including civil engineering, energy, oil and gas and others. [1]

The Group delivered 1H FY2021 sales of US$40.4 million, with lower demand in America, Europe and Asia, offset by increased demand across the Rest of the World. The United States remains a significant market for the Group.

The challenges faced by the Group in the first half will continue to impact the Group's business throughout FY2021. Notwithstanding that, the Group believes Global Invacom's products have a key role to play in the provision of this connectivity as restrictions ease across territories, supply chains recover, and demand starts to normalise.

   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 2021.

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 2021.

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 2021 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

13 August 2021

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

   [1]   fortunebusinessinsights.com/satellite-communication-satcom-market-102679 

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.

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END

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