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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Global Invacom Group Limited | LSE:GINV | London | Ordinary Share | SG2E91982768 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.00 | 2.50 | 3.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMGINV
RNS Number : 1384Z
Global Invacom Group Limited
15 May 2019
Global Invacom Group Limited
("Global Invacom", the "Company" or the "Group")
Results for three months ended 31 March 2019
Singapore/London, 15 May 2019 - Global Invacom (SGX: QS9) (AIM: GINV), the global provider of satellite communications equipment, is pleased to announce its results for the three months ended 31 March 2019 ("Q1 FY2019").
Key financial highlights:
-- The Company announced a ninth consecutive quarter of profitability in Q1 FY2019 -- Revenue increased 32.4% to US$38.3 million (Q1 FY2018: US$28.9 million) -- Gross profit increased 27.4% to US$7.8 million (Q1 FY2018: US$6.1 million) -- Net profit increased 127.3% to US$0.7 million (Q1 FY2018: US$0.3 million) -- Cash and cash equivalents of US$7.8 million as at 31 March 2019
Key operation highlights:
-- Secured US$6.0 million contract to supply Direct-to-Home Satellite Outdoor Units in Asia
-- Completed first shipments of FiberGo, the Group's fully integrated fibre Data over Satellite product
-- Announced partnership with Edgewater Wireless Systems Inc. to further develop Broadcast WiFi -- Ongoing commitment to R&D to further enhance and develops the Group's product portfolio
The Group has made a strong start to FY2019, as evidenced by another quarter of profitable growth. The demand for satellite services continues to thrive with the growing trend of compact, but equally powerful transmitters fuelling the Company's sales momentum.
Revenue for the quarter rose 32.4% to US$38.3 million (Q1 FY2018: US$28.9 million), a third consecutive quarterly increase, driven by an increase in order intake from major customers in the United Kingdom and United States.
Revenue in the period increased in America, Europe and Rest of the World by US$7.6 million (+38.6%), US$1.3 million (+18.6%) and US$1.2 million (+228.0%), respectively, offset by a weak performance in Asia, down 49.7% to US$0.7 million.
Gross profit rose 27.4% in the period to US$7.8 million (Q1 FY2018: US$6.1 million) with gross profit margin falling slightly to 20.3% (Q1 FY2018: 21.0%). This reflected some localised issues at our U.S manufacturing facility in Q4 FY2018, which have now been rectified.
Net profit increased 127.3% to US$0.7 million (Q1 FY2018: US$0.3 million), the Group's ninth consecutive quarter of profitability.
Administrative expenses rose to US$6.3 million in Q1 FY2019 from US$5.4 million in Q1 FY2018, due to the inclusion of Global Skyware Limited which was acquired in late Q3 FY2018, the Group's continued emphasis on product development through R&D, and professional fees incurred for the, now terminated, reverse takeover.
Earnings per share on a fully diluted basis rose to 0.27 US cent for Q1 FY2019 (Q1 FY2018: 0.12 US cent). Net asset value per share increased to 21.04 US cents as at 31 March 2019 from 20.84 US cents as at 31 December 2018. The Group's cash and cash equivalents amounted to US$7.8 million as at 31 March 2019.
As announced on 7 May 2019, the Group secured new contracts worth US$6.0 million to supply Direct-to-Home Satellite Outdoor Units to a major Asian Satellite Service Provider. The contracts will run for 24 months and are expected to contribute to the Group's financial performance for the current financial year.
The Group announced on 6 March 2019 that it made the first shipment of FiberGo, a fully integrated and cost-effective fibre Data over Satellite ("DOS") product. This compact, flexible, easy to install system is designed for all working conditions, including inclement weather, lightning damage, humidity and salt corrosion. Global Skyware will introduce FiberGo to Asia and the Americas initially, before extending distribution to the rest of the world during the second half of 2019.
On 14 March 2019, the Group announced a strategic partnership with Edgewater Wireless Systems Inc. ("Edgewater") to further develop Broadcast WiFi ("Bx-WiFi"), a technology that enables live, high-quality and large-scale event video streaming over a WiFi network. Bx-WiFi was first unveiled and successfully live-tested by the BBC and Global Invacom in August 2017 at the Edinburgh Fringe Festival, the largest arts festival in the world. The Company believes that there are a number of scalable applications for the technology globally.
The Group continues to monitor the ongoing development of 5G throughout the world and the potential for satellite and satellite ground equipment in particular, to play its part in this evolving infrastructure. The Group is also reviewing the development of Mid Earth Orbit ("MEO") and Low Earth Orbit ("LEO") satellite constellations and the opportunities they provide.
Mr. Tony Taylor, Executive Chairman of Global Invacom, commented:
"The Group continued to deliver both revenue and profit growth, buoyed by strong contract momentum. Our focus on R&D remains our core growth engine and pleasingly, product demand from our blue-chip client base continues to be strong.
This is reflected in the healthy mix of both new contracts and renewals by long-time customers, highlighting their ongoing confidence in our products. We will continue to leverage R&D to improve and enhance our technology, so that we remain at the forefront of the satellite communications industry and continue to provide customers with the highest quality products."
**End of Press Release**
For further information, please contact:
Hot Features
Premium
Global Invacom Group Limited www.globalinvacom.com
Matthew Garner, Chief Financial Officer Tel: +65 6431 0782
Tel: +44 203 053 3523
finnCap Ltd (Nominated Adviser and Joint www.finncap.com
Broker)
Christopher Raggett / Matthew Radley (Corporate Tel: +44 207 220 0500
Finance)
Mirabaud Securities LLP (Joint Broker) www.mirabaud.com
Peter Krens (Equity Capital Markets) Tel: +44 207 878 3362
WeR1 Consultants Pte Ltd (Singapore Investor www.wer1.net
Relations)
Jordan Teo / Ryan del Agua Tel: +65 6737 4844
ginv@wer1.net
Vigo Communications (UK Media & Investor www.vigocomms.com
Relations)
Jeremy Garcia / Fiona Henson / Charlie Tel: +44 207 390 0238
Neish
ginv@vigocomms.com
About Global Invacom Group Limited
Global Invacom is a fully integrated satellite equipment provider with six manufacturing plants across China, Israel, Malaysia, UK and the US. Its customers include satellite broadcasters such as BSkyB of the UK and Dish Network of the USA and Data over Satellite providers including Hughes Network Systems, Viasat and Gilat Networks.
Global Invacom provides a full range of antennas, LNB receivers, fibre distribution equipment, transmitters, switches and video distribution components and electronics manufacturing services in satellite communications as well as manufacturing services in military, medical, and consumer electronics industries. Following the acquisition in 2015 of Global Skyware, a leading US--based designer and supplier of satellite antennas products and services, the Company became the world's only full--service outdoor unit supplier.
Global Invacom is listed on the Mainboard of the Singapore Exchange Securities Trading Limited and its shares are admitted to trading on the AIM Market of the London Stock Exchange.
For more information, please refer to www.globalinvacom.com
FINANCIAL STATEMENT ANNOUNCEMENT FOR THE THREE MONTHSED 31 MARCH 2019
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 three months ended 31 March 2019. These figures have not been audited.
Group
------------------------------------------------------------------------
Q1 Q1 Increase/
FY2019 FY2018 (Decrease)
US$'000 US$'000 %
Revenue 38,293 28,925 32.4
Cost of sales (30,534) (22,837) 33.7
Gross profit 7,759 6,088 27.4
Other income - 63 (100.0)
Distribution costs (80) (99) (19.2)
Administrative expenses (6,278) (5,433) 15.6
Other operating expenses (231) - N.M.
Finance income 28 3 833.3
Finance costs (211) (113) 86.7
Profit before income tax(i) 987 509 93.9
Income tax expense (246) (183) 34.4
----------------------- ----------------------- ----------------------
Profit after income tax attributable
to equity holders of the Company 741 326 127.3
----------------------- ----------------------- ----------------------
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
* Exchange differences on translation of foreign
subsidiaries 53 124 (57.3)
Other comprehensive income
for the period, net of tax 53 124 (57.3)
---------------- ----------------- ------------
Total comprehensive income
for the period attributable
to equity holders of the Company 794 450 76.4
---------------- ----------------- ------------
N.M.: Not Meaningful
Note:
(i) Profit before income tax was determined after (charging)/crediting the following:
Group
----------------------------------------------
Q1 Q1 Increase/
FY2019 FY2018 (Decrease)
US$'000 US$'000 %
Interest income 28 3 833.3
Interest expense (211) (113) 86.7
(Loss)/Gain on foreign exchange (223) 62 N.M.
Allowance for inventory obsolescence (110) (86) 27.9
Loss on disposal of property, plant and equipment (8) - N.M.
Depreciation of property, plant and equipment (784) (699) 12.2
Amortisation of intangible assets (230) (175) 31.4
Research and development expense (647) (586) 10.4
1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
Group Company
----------------------------------------- ----------------------------------------
31 Mar 2019 31 Dec 31 Mar 2019 31 Dec
2018 2018
US$'000 US$'000 US$'000 US$'000
ASSETS
Non-current Assets
Property, plant and
equipment 12,951 12,606 76 85
Right-of-use assets 2,846 - 228 -
Investments in
subsidiaries - - 44,893 44,892
Goodwill 9,352 9,352 - -
Intangible assets 3,446 3,656 - -
Other financial assets 2,043 1,519 2,035 1,511
Deferred tax assets 109 109 - -
Other receivables
and prepayments 55 55 9,727 9,608
30,802 27,297 56,959 56,096
------------------- -------------------- ------------------- -------------------
Current Assets
Due from subsidiaries - - 390 939
Inventories 33,327 31,625 - -
Trade receivables 27,031 24,874 - -
Other receivables
and prepayments 1,836 1,900 3,492 3,433
Tax receivables 5 15 - -
Cash and cash equivalents 7,751 8,381 175 526
------------------- -------------------- ------------------- -------------------
69,950 66,795 4,057 4,898
------------------- -------------------- ------------------- -------------------
Total assets 100,752 94,092 61,016 60,994
------------------- -------------------- ------------------- -------------------
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 (1,604) (2,161) (14,476) (13,988)
Total equity 57,163 56,606 58,108 58,596
------------------- -------------------- ------------------- -------------------
Non-current Liabilities
Other payables 104 104 - -
Lease liabilities 1,582 - 110 -
Deferred tax liabilities 406 406 - -
2,092 510 110 -
------------------- -------------------- ------------------- -------------------
Current Liabilities
Due to subsidiaries - - 2,151 2,109
Trade payables 18,900 19,381 - -
Other payables 5,975 5,326 456 221
Borrowings 14,626 11,974 - -
Lease liabilities 1,503 - 123 -
Provision for income
tax 493 295 68 68
------------------- -------------------- ------------------- -------------------
41,497 36,976 2,798 2,398
------------------- -------------------- ------------------- -------------------
Total liabilities 43,589 37,486 2,908 2,398
------------------- -------------------- ------------------- -------------------
Total equity and
liabilities 100,752 94,092 61,016 60,994
------------------- -------------------- ------------------- -------------------
1(b)(ii) Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 31 Mar 2019 As at 31 Dec 2018
Secured Unsecured Secured Unsecured
----------- --------- -----------
US$'000 US$'000 US$'000 US$'000
----------- --------- -----------
14,626 - 11,974 -
----------- --------- -----------
Amount repayable after one year
As at 31 Mar 2019 As at 31 Dec 2018
Secured Unsecured Secured Unsecured
----------- --------- -----------
US$'000 US$'000 US$'000 US$'000
----------- --------- -----------
- - - -
----------- --------- -----------
Details of any collateral
The revolving credit loans of US$14,626,000 were secured over the assets of the subsidiaries and corporate guarantees provided by the Company and the subsidiaries.
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
Group
----------------------------------------
Q1 Q1
FY2019 FY2018
US$'000 US$'000
Cash Flows from Operating Activities
Profit before income tax 987 509
Adjustments for:
Depreciation of property, plant and equipment 784 699
Amortisation of intangible assets 230 175
Loss on disposal of property, plant and equipment 8 -
Allowance for inventory obsolescence 110 86
Unrealised exchange loss/(gain) 214 (102)
Interest income (28) (3)
Interest expense 211 113
Share-based payments 2 8
Operating cash flow before working capital changes 2,518 1,485
Changes in working capital:
Inventories (1,812) 1,730
Trade receivables (2,026) 923
Other receivables and prepayments 87 1,548
Trade and other payables (232) (1,355)
------------------- -------------------
Cash (used in)/generated from operating activities (1,465) 4,331
Interest paid (60) (55)
Income tax paid (64) (77)
Net cash (used in)/generated from operating activities (1,589) 4,199
------------------- -------------------
Cash Flows from Investing Activities
Interest received 4 2
Purchase of property, plant and equipment (1,137) (290)
Proceeds from disposal of property, plant and equipment 1 -
Payment for financial asset, at fair value through profit or loss (500) -
Net cash used in investing activities (1,632) (288)
------------------- -------------------
Cash Flows from Financing Activities
Proceeds from borrowings 19,377 11,641
Repayment of borrowings (16,725) (10,225)
Net cash generated from financing activities 2,652 1,416
------------------- -------------------
Net (decrease)/increase in cash and cash equivalents (569) 5,327
Cash and cash equivalents at the beginning of the period 8,381 7,152
Effect of foreign exchange rate changes on the balance of cash held in
foreign currencies (61) 33
------------------- -------------------
Cash and cash equivalents at the end of the period(i) 7,751 12,512
------------------- -------------------
Note:
(i) For the purpose of presentation in the consolidated statement of cash flows, the consolidated cash and cash equivalents comprise the following:
Q1 Q1
FY2019 FY2018
US$'000 US$'000
Cash and bank balances 7,721 12,481
Fixed deposits 30 31
---------------- ---------------
Cash and cash equivalents per the consolidated statement of cash flows 7,751 12,512
---------------- ---------------
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Foreign
Capital Share currency
Share Treasury Merger redemption options Capital translation Retained
Group capital shares reserves reserves reserve reserve reserve profits Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as at
1 Jan 2019 60,423 (1,656) (10,150) 6 723 (3,560) (1,289) 12,109 56,606
Effect of
adoption
of SFRS(I) 16 - - - - - - - (239) (239)
Share-based
payments - - - - 2 - - - 2
Profit for the
period - - - - - - - 741 741
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - 53 - 53
------------ ------------ ------------ --------------- ------------ ------------- --------------- ------------- ------------
Total other
comprehensive
income for
the
period - - - - - - 53 741 794
------------ ------------ ------------ --------------- ------------ ------------- --------------- ------------- ------------
Balance as at
31 Mar 2019 60,423 (1,656) (10,150) 6 725 (3,560) (1,236) 12,611 57,163
------------ ------------ ------------ --------------- ------------ ------------- --------------- ------------- ------------
Balance as at
1 Jan 2018 60,423 (1,656) (10,150) 6 706 (3,695) (872) 10,708 55,470
Share-based
payments - - - - 8 - - - 8
Profit for the
period - - - - - - - 326 326
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - - 124 - 124
------------ ------------ ------------ --------------- ------------ ------------- --------------- ------------- ------------
Total other
comprehensive
income for
the
period - - - - - - 124 326 450
------------ ------------ ------------ --------------- ------------ ------------- --------------- ------------- ------------
Balance as at
31 Mar 2018 60,423 (1,656) (10,150) 6 714 (3,695) (748) 11,034 55,928
------------ ------------ ------------ --------------- ------------ ------------- --------------- ------------- ------------
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 Jan 2019 74,240 (1,656) 723 (4,481) (1,927) (8,303) 58,596
Effect of
adoption
of SFRS(I) 16 - - - - - (5) (5)
Share-based
payments - - 2 - - - 2
Loss for the
period - - - - - (485) (485)
Other
comprehensive
loss:
Exchange
differences - - - - - - -
on translating
foreign
operations
---------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------
Total other
comprehensive
loss for the
period - - - - - (485) (485)
Balance as at
31 Mar 2019 74,240 (1,656) 725 (4,481) (1,927) (8,793) 58,108
---------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------
Balance as at
1 Jan 2018 74,240 (1,656) 706 (4,481) (1,927) (7,618) 59,264
Share-based
payments - - 7 - - - 7
Loss for the
period - - - - - (234) (234)
Other
comprehensive
loss:
Exchange
differences - - - - - - -
on translating
foreign
operations
---------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------
Total other
comprehensive
loss for the
period - - - - - (234) (234)
Balance as at
31 Mar 2018 74,240 (1,656) 713 (4,481) (1,927) (7,852) 59,037
---------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------
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 the number of shares that may be issued on conversion of all the outstanding convertibles, if any, against the total number of issued shares excluding treasury shares and subsidiary holdings 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.
State also the number of shares held as treasury shares and the number of subsidiary holdings, if any, and the percentage of the aggregate number of treasury shares and subsidiary holdings held against the total number of shares outstanding in a class that is listed 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.
Q1 FY2019 No. of shares US$'000
Balance as at 1 Jan 2019 and 31 Mar 2019 271,662,227 72,584
------------------ -----------
Q1 FY2018 No. of shares US$'000
Balance as at 1 Jan 2018 and 31 Mar 2018 271,662,227 72,584
------------------ -----------
There were 10,740,072 treasury shares held by the Company as at 31 March 2019 and 31 March 2018 and there were no subsidiary holdings.
1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.
31 Mar 2019 31 Dec 2018
Total number of issued shares excluding treasury shares 271,662,227 271,662,227
------------ ------------
1(d)(iv) A statement showing all sales, transfers, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
Q1 FY2019 No. of shares US$'000
Balance as at 1 Jan 2019 and 31 Mar
2019 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.
Q1 FY2019 No. of shares US$'000
Balance as at 1 Jan 2019 and 31 Mar - -
2019
-------------- --------
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.
4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
Except as disclosed in Note 5 below, 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 2018.
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 2019. Except as disclosed below, the adoption of the new and revised SFRS(I)s and IFRSs has no material financial impact on the Group's financial statements.
SFRS(I) 16 and IFRS 16, Leases sets out a revised framework for the recognition, measurement, presentation and disclosure of leases, and replaces existing lease accounting guidance. SFRS(I) 16 and IFRS 16 requires lessees to recognise right-of-use assets and lease liabilities for all leases with a term of more than 12 months, except where the underlying asset is of low value. The right-of-use asset is depreciated and interest expense is recognised on the lease liability. The accounting requirements for lessors have not been changed substantially and continue to be based on classification as operating and finance leases. Disclosure requirements have been enhanced for both lessors and lessees.
The Group adopted SFRS(I) 16 and IFRS 16 on 1 January 2019 based on a permitted transition approach that does not restate comparative information, but recognised the cumulative effect of initially applying SFRS(I) 16 and IFRS 16 as an adjustment to the opening balance of retained earnings on 1 January 2019. The Group also adopted an expedient offered by SFRS(I) 16 and IFRS 16, exempting the Group from having to reassess whether pre-existing contracts contain a lease.
The Group and the Company have entered into several leasing arrangements with lessors for factory buildings and office premises. Prior to the adoption of SFRS(I) 16 and IFRS 16, the Group and the Company recognised these arrangement as operating leases and payments made under operating leases are recognised in the income statement on a straight-line basis over the period of the lease. Upon adoption of SFRS(I) 16 and IFRS 16, the Group and the Company recognised the right-of-use assets and lease liabilities. The nature of expenses related to those leases will change as SFRS(I) 16 and IFRS 16 replaces the straight-line operating lease expense with depreciation charge for right-of-use assets and interest expenses on lease liabilities. The Group does not restate the comparative information for the effect of adopting SFRS(I) 16 and IFRS 16 due to the exemption in SFRS(I) 16 and IFRS 16 but has instead recognised the effect in retained earnings and other reserves as at 1 January 2019.
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
Q1 Q1
FY2019 FY2018
US$ US$
------------ ------------
(a) Based on weighted average number of ordinary shares on issue; and 0.27 cent 0.12 cent
(b) On a fully diluted basis 0.27 cent* 0.12 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 for Q1 FY2019 is 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
31 Mar 2019 31 Dec 2018 31 Mar 2019 31 Dec 2018
US$ US$ US$ US$
------------ ------------ ------------ ------------
Net asset value per ordinary share based on issued share 21.04 cents 20.84 cents 21.39 cents 21.57 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
The Group's revenue was US$38.3 million in Q1 FY2019, US$9.4 million higher than US$28.9 million in Q1 FY2018, attributed to the increase in orders from key customers in the UK and US.
Geographically, Group revenue for Q1 FY2019 from America, Europe and Rest of the World regions increased by US$7.6 million (+38.6%), US$1.3 million (+18.6%) and US$1.2 million (+228.0%), respectively against Q1 FY2018 which was offset by a decline in revenue from Asia by US$0.7 million (-49.7%).
Gross Profit
In line with the increase in revenue, gross profit increased by US$1.7 million or 27.4% to US$7.8 million in Q1 FY2019 from US$6.1 million in Q1 FY2018. Gross profit margin ("GPM") dipped slightly to 20.3% in Q1 FY2019 from 21.0% in Q1 FY2018 as a result from the variation of the product mix but remains level with Q4 FY2018.
Administrative Expenses
Administrative expenses increased to US$6.3 million in Q1 FY2019 from US$5.4 million in Q1 FY2018, but are reduced as a percentage of revenue representing 16.4% and 18.8% respectively, with continued emphasis on R&D to strengthen its product offerings, increase in depreciation with the additions in machineries and the professional fees incurred for the reverse takeover. Q1 FY2019 also recognises a full quarter of costs from the Group's Data Over Satellite electronics sites which were not acquired until Q3 FY2018.
Other Operating Expenses
Other operating expenses arose mainly from foreign exchange losses.
Profit Before Tax & Net Profit
The Group recorded a profit before tax of US$1.0 million in Q1 FY2019 compared to US$0.5 million in Q1 FY2018, representing a margin of 2.6% compared to a margin of 1.8%, respectively.
Overall, the Group posted a net profit of US$0.7 million in Q1 FY2019 compared to US$0.3 million in Q1 FY2018, representing a net margin of 1.9% compared to 1.1%, respectively.
Review of Financial Position
Non-current assets increased by US$3.5 million to US$30.8 million as at 31 March 2019, primarily due to the adoption of SFRS(I) 16 on leases, addition of property, plant and equipment as well as the interest accrued on the convertible loans subscribed in Tactilis Sdn. Bhd.
Net current assets decreased by US$1.3 million to US$28.5 million as at 31 March 2019 compared to US$29.8 million as at 31 December 2018. Inventories, trade and other receivables and trade and other payables increased by US$1.7 million, US$2.1 million and US$0.2 million, respectively, in preparation of the next quarter orders and with the increased sales towards the end of the quarter. Borrowings also increased by US$2.6 million to US$14.6 million, offset by a decrease in cash and cash equivalents of US$0.6 million to US$7.8 million as at 31 March 2019 compared to US$8.4 million as at 31 December 2018. Provision for income tax increased by US$0.2 million, in line with the increase in profits. The adoption of SFRS(I) 16 on leases increased the current portion of lease liabilities by US$1.5 million.
Similarly, the non-current portion of the lease liabilities increased to US$1.6 million.
The Group's net asset value stood at US$57.2 million as at 31 March 2019, compared to US$56.6 million as at 31 December 2018.
Review of Cash Flows
Net cash used in operating activities in Q1 FY2019 was US$1.6 million, comprising cash inflow from operating activities before working capital changes of US$2.5 million, net working capital outflow of US$4.0 million and payment of interest and income tax expense of US$0.1 million.
Net cash used in investing activities was US$1.6 million in Q1 FY2019, mainly attributable to the purchase of machinery and equipment and investment in convertible notes in Tactilis Sdn. Bhd.
Net cash generated from financing activities was US$2.6 million in Q1 FY2019, arising mainly from the net proceeds of borrowings.
Overall, the Group recorded a net decrease in cash and cash equivalents of US$0.6 million in Q1 FY2019, bringing cash and cash equivalents per the consolidated statement of cash flows to US$7.8 million as at 31 March 2019.
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 Group continues to see revenue growth resulting from its introduction of new and improved products to its key customers which they, in turn, have established as their standard products for all their suppliers. This has resulted in good volumes of product sales and a competitive advantage which the Group will strive to maintain.
As a result of the above successes, the Group continues to emphasise R&D to address customer preferences while striving to improve product performance, as well as cost savings from more efficient operations and smaller form factors requiring less raw materials. The Group continues to believe that the investment in R&D for electronics and antennas in both the Direct to Home and Data over Satellite ("DOS") markets will place it in a strong position compared to their competitors.
The Group continues to monitor the ongoing development of 5G throughout the world and the potential for satellite and satellite ground equipment in particular, to play its part in this evolving infrastructure. The Group is also reviewing the development of Medium Earth Orbit ("MEO") and Low Earth Orbit ("LEO") satellite constellations and the opportunities it provides.
The Group is also mindful of the further recent tariff increases imposed by the United States of America ("USA") on products manufactured in the People's Republic of China ("China") and it has been working internally on processes and externally with its affected end customers to limit the exposure to these increases.
The shortages of electronic components which significantly impacted the Group's gross margins in FY2018 began to decrease during the quarter and its logistics teams continue to find greater availability thus reducing the potential additional cost of spot buys in FY2019.
As part of its continuing processes, the Group monitors the cost, efficiency and effectiveness of its various manufacturing sites around the world being particularly conscious of increasing labour costs.
As announced on 21 April 2019, the proposed acquisition of Tactilis has been mutually terminated by the company and the vendor with immediate effect. All fees, costs and expenses incurred in relation to the proposed acquisition will be borne equally by both sides. The portion to be borne by the vendor, which had been advanced by the company, will be fully reimbursed on or before 16 July 2019.
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.
Due to the operating conditions faced by the Group, no dividend has been declared or recommended for the three months ended 31 March 2019.
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 and there were no IPTs for the three months ended 31 March 2019.
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 three months ended 31 March 2019 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
15 May 2019
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
QRFLLFVLEVIELIA
(END) Dow Jones Newswires
May 15, 2019 07:37 ET (11:37 GMT)
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