TIDMGINV

RNS Number : 7750C

Global Invacom Group Limited

25 February 2022

Global Invacom Group Limited

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

Final Results for the year ended 31 December 2021

Singapore/London, 25 February 2022 - Global Invacom (SGX: QS9) (AIM: GINV), the global provider of satellite communications equipment and electronics , announces its unaudited financial results for the year ended 31 December 2021 ("FY2021").

Notwithstanding the continued impact of the COVID-19 pandemic on global trade, the Group is pleased to report a profit for the year.

Key financial highlights:

   --    Revenue for FY2021 decreased 19.9% to US$82.5 million (FY2020: US$103.1 million) 
   --    Gross profit decreased to US$16.6 million (FY2020: US$25.7 million) 
   --    Net profit decreased to US$0.6 million (FY2020: US$2.6 million) 

Key operational highlights:

-- Ongoing demand for high-tech and reliable Data over Satellite ("DOS") and Direct to Home ("DTH") devices from stable sectors including the defence and healthcare industries

-- Launched new products across all segments, bolstering the Group's portfolio and generating additional cross sell opportunities

-- Granted European Space Agency funding to develop a Ka-band user terminal and a larger enterprise solution in partnership with Methera Global Communications Limited

-- Successful and effective transition of R&D and office staff to remote working, however lingering global supply chain disruption continues to cause delays in delivering forward sales

-- Current year likely impacted by broader macro headwinds including ongoing inflationary pressure across international shipping, wages (particularly in the U.S.) and raw materials (including steel)

The combination of ongoing COVID-19 restrictions and the well documented global supply chain issues were key features in forming the broader trading conditions for the Group throughout 2021. Management believes that, whilst demand for the Company's products will remain robust, economic headwinds, including supply shortages within the semiconductor sector, and ongoing inflationary pressure across international shipping, wages (particularly in the U.S.) and raw materials (including steel), will likely impact the performance of the business in the current financial year.

As with the prior year, and given the global nature of Global Invacom's business, the health and safety of all our staff, partners, suppliers and customers continues to be of paramount importance. Faced with these challenges, the commitment of Global Invacom's global workforce who have overcome considerable obstacles to support the business throughout the year is laudable.

Despite a reduction in customer activity, Global Invacom remained profitable for the year ended 31 December 2021, facilitated by the implementation of pragmatic cost-saving initiatives, including a reduction in marketing activity and various government grants , to mitigate the impact of the COVID-19 pandemic. The Group's prudent transition of R&D employees and office staff to remote working from 2020 have enabled our international network of teams to function efficiently throughout 2021.

During 2021, the Group focused on launching a range of innovative devices to augment its product offering across all key categories. New additions to Global Invacom's portfolio include the Optical to Optical ("O2O") converter, a Fibre to the Home ("FTTH") device designed to increase the number of subscribers that can be connected to a single dish, and Ku-Band and C-Band VSAT Radio Frequency ("RF") Block Up Converters, two new DOS products that consolidate the Group's unique position as a leading manufacturer and supplier of VSAT RF electronics, antennas and feeds.

The Group continues to ensure new products function seamlessly with existing Global Invacom devices, providing an upgraded service whilst simultaneously generating valuable cross selling opportunities. As the satellite communications industry continues to evolve and new technologies emerge, the Group is focused on leveraging its R&D capabilities to future-proof new devices. With teams based in hubs across the globe, Global Invacom's employees can rapidly respond to regulatory updates in regional markets to ensure the Group continues to develop cutting-edge competitive products.

A key long-term partnership with Methera Global Communications Limited ("Methera") and its subcontractors was announced in October 2021, where, under the Advanced Research in Telecommunications Systems programme, the Group was awarded European Space Agency funding to contribute towards the development of a low-cost Ka-band user terminal and a larger enterprise solution for use with DOS. The Company aims to deliver terminals to market in 2024 to meet the surge in demand for connectivity to non-geostationary satellite orbit ("NGSO") constellations. Significantly, Global Invacom is responsible for designing and manufacturing the fully integrated user terminal which aims to give remote and under-connected communities across the globe access to affordable satellite broadband by offering service providers and operators constellations.

More generally, O3b mPOWER plan to launch their O3b mPOWER communications system during 2022, which comprises of an initial constellation of 11 high-performance satellites, intelligent software and extensive ground infrastructure. Hughes, the global provider of high-speed satellite internet service, also indicated that their much-anticipated GEO satellite Jupiter system is currently scheduled to be launched during Q4 2022.

Globally, the normalisation of remote working across an array of sectors is a development which will benefit the Group in the medium-to-long-term, accelerating the demand for fast and reliable connectivity from businesses and consumers, as strong domestic connectivity has become essential for both work and leisure. The underlying versatility of the Group, a designer, manufacturer, and provider of satellite communications solutions, was integral to securing the partnership with Methera and will continue to provide Global Invacom with opportunities to serve the growing DOS market as well as the sizeable demand for DTH products.

Board Composition

In July 2021, the Group appointed Gordon Blaikie as an Executive Director to replace Malcolm Burrell who stepped down from his roles of Executive Director and Chief Technical Officer as part of his retirement plan. Mr Blaikie has worked with Global Invacom for 10 years progressing to become the Group's Chief Operating Officer, a role he remains in alongside his new position as Executive Director of the Company. Mr Blaikie has supervised the manufacturing entities and sales functions of the Group and regularly worked closely with the Board and senior management team to streamline and enhance the Group's operating performance. Mr Burrell remains the Group's Chief Risk Officer, overseeing the risk and sustainability management of the Group.

Concurrently, Derek Grice was appointed as the Group's new Chief Technical Officer. Mr Grice is leveraging his 35+ years of satellite product development experience and DOS market knowhow to oversee the development of new technologies and products for current and future market opportunities being addressed by the Company, as well as manage stakeholder relationships, effectively communicating technology advances and innovations.

Outlook

Whilst the Company continues to see strong demand for its products, the current financial year remains challenging. Although the impact of the Covid pandemic is easing, management remains vigilant as to the financial impact of any potential future lockdowns. Elsewhere, supply shortages within the semiconductor sector, and ongoing inflationary pressure across international shipping, wages (particularly in the U.S.) and raw materials (including steel), will likely impact the performance of the business in the current financial year.

Financial Review

The Group's revenue for the year ended 31 December 2021 ("FY2021") decreased by 19.9% to US$82.5 million from US$103.1 million in the prior year ("FY2020"). Revenue for the second half year ended 31 December 2021 ("2H FY2021") was US$42.1 million against US$50.3 million in the prior year ("2H FY2020"). The ongoing COVID-19 pandemic impacted the Group globally, as there have been a reduction in orders from our customers. It has also impacted the Group's production facilities around the world as working practices were adapted to comply with regional variations on social distancing guidelines during the pandemic.

Geographically, Group revenue for FY2021 decreased in America by US$22.8 million (-32.9%) and increased in Europe, Asia and Rest of the World ("RoW") by US$0.5 million (+2.0%), US$0.5 million (+11.9%) and US$1.3 million (+22.5%), respectively. Revenue for 2H FY2021 decreased in America and RoW by US$10.1 million (-30.2%) and US$0.9 million (-32.3%), respectively, compensated by an increase in Europe and Asia by US$1.5 million (+13.0%) and US$1.3 million (+59.8%), respectively, compared to the prior year.

The decrease in revenue resulted in a 35.6% decrease in gross profit from US$25.7 million in FY2020 to US$16.6 million in FY2021. Gross profit margin has decreased by 4.8 percentage points from 24.9% to 20.1%, mainly attributable to higher materials costs and the supply chain constraints that continue to cause disruptions to the Group.

Similarly, gross profit decreased from US$13.4 million in 2H FY2020 to US$7.8 million in 2H FY2021. Gross profit margin has decreased by 8.2 percentage points from 26.6% to 18.4%.

Administrative expenses, together with research and development expenses, for FY2021 decreased 9.0% to US$20.9 million compared to US$23.0 million in FY2020, representing 22.3% and 25.3% of revenue, respectively. The ongoing cost control measures across the Group, including a reduction in travelling and marketing activity, have resulted in lower administrative expenses being incurred. For 2H FY2021, administrative and research and development expenses decreased 16.1% to US$10.0 million compared to US$12.0 million in the previous year, representing 23.8% of revenue for both periods.

In 2H FY2021, the UK Group received research and development tax credits from the UK government and, coupled with deferred taxes, resulted in the Group recording a net profit of US$1.7 million compared to US$2.3 million in the prior year, representing a margin of 4.1% and 4.5%, respectively. For FY2021, the Group recorded a net profit of US$0.6 million, compared to US$2.6 million the prior year, representing a margin of 0.7% and 2.5%, respectively.

The Group recorded a net increase in cash and cash equivalents amounting to US$1.3 million and net decrease amounting to US$0.5 million in 2H FY2021 and FY2021, respectively, bringing cash and cash equivalents per the consolidated statement of cash flows to US$10.8 million as at 31 December 2021.

Tony Taylor, Executive Chairman of Global Invacom, commented:

"2021 was another challenging year for Global Invacom, but, despite broader macro-economic headwinds impacting our markets, the Group delivered another profitable performance, underpinning the resilience of our business.

The Group's new products and R&D efforts, alongside our partnership with Methera, demonstrate our ambitions, and we anticipate that significant further commercial opportunities will be generated over the medium term.

The Board and management would like to thank our dedicated team who continue to work tirelessly to help the Group across all key operations."

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 / Kendall Hill                      Tel: +44 20 7390 0238 
 ginv@vigoconsulting.com 
 

About Global Invacom Group Limited

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

Global Invacom provides a full range of satellite ground equipment including antennas, LNB receivers, transceivers, fibre distribution equipment, transmitters, switches, and video distribution components, as well as manufacturing services for the defence and healthcare sectors. The Group is the world's only full--service outdoor unit supplier.

Global Invacom is listed on the Mainboard of the Singapore Exchange Securities Trading Limited and its shares are admitted to trading on the AIM Market of the London Stock Exchange.

For more information, please refer to www.globalinvacom.com

About Methera Global Communications Limited

Based in Oxfordshire, UK, Methera owns a unique constellation of medium earth orbit ("MEO") satellites that enable customers to deliver ultrafast and superfast broadband satellite services to underserved areas of the world. Methera's applications enable the delivery of fibre speeds to areas of the world where it is uneconomic or impracticable to build fibre networks, with its customer base ranging from governments and telecoms companies to internet services providers.

GLOBAL INVACOM GROUP LIMITED

(Incorporated in Singapore)

(Company Registration Number 200202428H)

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS

For the Six Months and Full Year Ended 31 December 2021

 
 Table of Contents                                                  Page 
       Condensed Interim Consolidated Statement of Comprehensive 
 A.     Income                                                       2 
 B.    Condensed Interim Statements of Financial Position            3 
 C.    Condensed Interim Statements of Changes in Equity             4 
       Condensed Interim Consolidated Statement of Cash 
 D.     Flows                                                        6 
       Notes to the Condensed Interim Consolidated Financial 
 E.     Statements                                                   7 
       Other Information Required by Listing Rule Appendix 
 F.     7.2                                                          17 
 
   A.      Condensed Interim Consolidated Statement of Comprehensive Income 
 
                                                                                         Group                                                             Group 
                                                        -----------------------------------------------------------------------  -------------------------------------------------------- 
                                                                  2H                   2H FY2020               Increase/                                                 Increase/ 
                                                                 FY2021                                        (Decrease)            FY2021           FY2020             (Decrease) 
                                                                US$'000                 US$'000                    %                 US$'000         US$'000                 % 
 
 Revenue                                                   42,102                  50,285                    (16.3)                 82,541          103,058            (19.9) 
 
 Cost of sales                                           (34,338)                (36,930)                       (7.0)             (65,991)         (77,353)            (14.7) 
 
 Gross profit                                                7,764                 13,355                    (41.9)                 16,550            25,705           (35.6) 
 
 Other income                                                4,007                   2,099                      90.9                  5,485             2,224          146.6 
 Distribution costs                                           (231)                     (67)                  244.8                    (368)             (182)         102.2 
 Administrative expenses                                   (7,458)                 (9,410)                   (20.7)               (15,918)         (18,020)            (11.7) 
 Research and development 
  expenses                                                 (2,579)                 (2,549)                        1.2               (4,996)           (4,969)               0.5 
 Other operating expenses                                     (211)                   (516)                  (59.1)                    (263)             (894)         (70.6) 
 Finance income                                                       -                      1             (100.0)                            1               22       (95.5) 
 Finance costs                                                (196)                   (333)                  (41.1)                    (519)             (762)         (31.9) 
 
 Profit/(Loss) before 
  income tax                                                 1,096                   2,580                   (57.5)                      (28)           3,124            N.M. 
 
 Income tax credit/(expense)                                     640                  (313)                     N.M.                      586            (515)           N.M. 
                                                        ----------------------  ----------------------  -----------------------  --------------  ---------------  ----------------------- 
 
   Profit for the period/year                                            1,736                   2,267     (23.4)                   558             2,609            (78.6) 
                                                        ----------------------  ----------------------  -----------------------  --------------  ---------------  ----------------------- 
 
 Other comprehensive 
  (loss)/income: 
 
 Items that may be reclassified 
  subsequently to profit 
  or loss 
 
   *    Exchange differences on translation of foreign 
        subsidiaries                                          (445)                      358                    N.M.                   (120)               253           N.M. 
 
   Other comprehensive 
   (loss)/income for the 
   period/year, net of 
   tax                                                        (445)                      358                    N.M.                   (120)               253           N.M. 
                                                        ----------------------  ----------------------  -----------------------  --------------  ---------------  ----------------------- 
 
   Total comprehensive 
   income for the period/year                                1,291                   2,625                               (50.8)          438            2,862                      (84.7) 
                                                        ----------------------  ----------------------  -----------------------  --------------  ---------------  ----------------------- 
 
 
 Profit for the 
 period/year 
 attributable to: 
  Equity holders of 
   the 
   Company                   1,738           2,269           (23.4)             561           2,614           (78.5) 
  Non-controlling 
   interests                       (2)             (2)            0.0             (3)               (5)       (40.0) 
                        --------------  --------------  -------------  --------------  ----------------  ----------- 
                             1,736           2,267           (23.4)             558           2,609           (78.6) 
                        --------------  --------------  -------------  --------------  ----------------  ----------- 
 
 Total comprehensive 
 income/(loss) for the 
 period/year 
 attributable 
 to: 
  Equity holders of 
   the 
   Company                   1,293           2,627           (50.8)             441           2,867           (84.6) 
  Non-controlling 
   interests                       (2)             (2)            0.0             (3)               (5)       (40.0) 
                        --------------  --------------  -------------  --------------  ----------------  ----------- 
                             1,291           2,625           (50.8)             438           2,862           (84.7) 
                        --------------  --------------  -------------  --------------  ----------------  ----------- 
 

N.M.: Not Meaningful

   B.     Condensed Interim Statements of Financial Position 
 
                                               Group                                      Company 
                            -------------------------------------------  ----------------------------------------- 
                                   31 Dec                 31 Dec                31 Dec                31 Dec 
                                     2021                  2020                   2021                 2020 
                                   US$'000               US$'000                US$'000              US$'000 
 ASSETS 
 Non-current Assets 
 Property, plant and 
  equipment                           8,126                  9,410                       20                   82 
 Right-of-use assets                  4,396                  6,340                       39                 162 
 Investments in 
  subsidiaries                                 -                      -          25,375               27,102 
 Goodwill                             6,092                  6,092                          -                    - 
 Intangible assets                    1,698                  2,291                          -                    - 
 Other financial assets                        -                     8                      -                    - 
 Deferred tax assets                  1,780                  1,363                          -                    - 
 Other receivables and 
  prepayments                              54                     54             11,032               10,563 
                                   22,146                 25,558                 36,466               37,909 
                            --------------------  ---------------------  --------------------  ------------------- 
 Current Assets 
 Due from subsidiaries                         -                      -            3,265                4,045 
 Inventories                       25,764                 26,816                            -                    - 
 Trade receivables                 16,456                 10,689                            -                    - 
 Other receivables and 
  prepayments                         2,618                  2,033                 2,588                3,513 
 Tax receivables                         169                          -                     -                    - 
 Cash and cash equivalents         10,771                 11,273                      155                   150 
                            --------------------  ---------------------  --------------------  ------------------- 
                                   55,778                 50,811                   6,008                7,708 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 Total assets                      77,924                 76,369                 42,474               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                        (11,383)               (11,824)              (30,462)             (28,302) 
                            --------------------  ---------------------  --------------------  ------------------- 
 Equity attributable 
  to owners of the Company         47,384                 46,943                 42,122               44,282 
 Non-controlling interests               (19)                   (16)                        -                    - 
                            --------------------  ---------------------  --------------------  ------------------- 
 Total equity                      47,365                 46,927                 42,122               44,282 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 Non-current Liabilities 
 Other payables                          152                    124                         -                    - 
 Lease liabilities                    3,088                  4,848                          -                 39 
 Deferred tax liabilities                646                    634                         -                    - 
                                      3,886                  5,606                          -                 39 
                            --------------------  ---------------------  --------------------  ------------------- 
 Current Liabilities 
 Due to subsidiaries                           -                      -                    1                835 
 Trade payables                    14,479                 12,509                            -                    - 
 Other payables                       4,447                  5,589                    313                   333 
 Borrowings                           6,120                  3,883                          -                    - 
 Lease liabilities                    1,627                  1,854                       38                 128 
 Provision for income 
  tax                                          -                     1                      -                    - 
                            --------------------  ---------------------  --------------------  ------------------- 
                                   26,673                 23,836                      352               1,296 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 Total liabilities                 30,559                 29,442                      352               1,335 
                            --------------------  ---------------------  --------------------  ------------------- 
 
 Total equity and 
  liabilities                      77,924                 76,369                 42,474               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 
 income: 
 Exchange 
  differences 
  on 
  translating 
  foreign 
  operations        -                    -                    -                    -                      -                    -                     325                     -                  325                   -                     325 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 Total other 
  comprehensive 
  income/(loss) 
  for the 
  period            -                    -                    -                    -                      -                    -                     325                     (1,177)            (852)                 (1)                   (853) 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 Balance as 
  at 30 June 
  2021                    60,423              (1,656)            (10,150)                           6                725             (5,109)                   (639)                 2,491               46,091                   (17)            46,074 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 Profit/(Loss) 
  for the 
  period                           -                    -                    -                      -                    -                     -                       -             1,738                 1,738                    (2)             1,736 
 Other 
 comprehensive 
 loss: 
 Exchange 
  differences 
  on 
  translating 
  foreign 
  operations        -                    -                    -                    -                      -                    -                     (445)                   -                  (445)                 -                     (445) 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 Total other 
  comprehensive 
  (loss)/income 
  for the 
  period            -                    -                    -                    -                      -                    -                     (445)                   1,738              1,293                 (2)                   1,291 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 Balance as 
  at 31 
  December 
  2021                    60,423              (1,656)            (10,150)                           6                725             (5,109)                (1,084)                  4,229               47,384                   (19)            47,365 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 
 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 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 Profit/(Loss) 
  for the 
  period                           -                    -                    -                      -                    -                     -                       -             2,269                 2,269                    (2)             2,267 
 Other 
 comprehensive 
 income: 
 Exchange 
  differences 
  on 
  translating 
  foreign 
  operations        -                    -                    -                    -                      -                    -                     358                     -                  358                   -                     358 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 Total other 
  comprehensive 
  income/(loss) 
  for the 
  period            -                    -                    -                    -                      -                    -                     358                     2,269              2,627                 (2)                   2,625 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 Balance as 
  at 31 
  December 
  2020                    60,423              (1,656)            (10,150)                           6                725             (5,109)                   (964)                 3,668               46,943                   (16)            46,927 
                 -------------------  -------------------  -------------------  ---------------------  -------------------  --------------------  ----------------------  -----------------  --------------------  --------------------  ----------------- 
 
   C.     Condensed Interim Statements of Changes in Equity (cont'd) 
 
                                                                                                                                  Foreign 
                                                                                Share                                             currency 
                            Share                   Treasury                   options                   Capital                translation                Accumulated 
     Company               capital                   shares                    reserve                   reserve                  reserve                    losses                     Total 
                          US$'000                   US$'000                   US$'000                   US$'000                   US$'000                   US$'000                   US$'000 
 
 Balance as at 
  1 January 
  2021                         74,240                  (1,656)                          725                (4,481)                    (2,506)                 (22,040)                    44,282 
 Loss for the 
  period                                -                         -                         -                         -                         -                  (139)                    (139) 
 Other 
 comprehensive 
 loss: 
 Exchange                               -                         -                         -                         -                         -                         -                         - 
 differences 
 on translating 
 foreign 
 operations 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 Total other 
  comprehensive 
  loss for the 
  period                                -                         -                         -                         -                         -                  (139)                    (139) 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 Balance as at 
  30 June 2021                 74,240                  (1,656)                          725                (4,481)                    (2,506)                 (22,179)                    44,143 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 Loss for the 
  period                                -                         -                         -                         -                         -               (2,021)                  (2,021) 
 Other 
 comprehensive 
 loss: 
 Exchange                               -                         -                         -                         -                         -                         -                         - 
 differences 
 on translating 
 foreign 
 operations 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 Total other 
  comprehensive 
  loss for the 
  period                                -                         -                         -                         -                         -               (2,021)                  (2,021) 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 Balance as at 
  31 December 
  2021                         74,240                  (1,656)                          725                (4,481)                    (2,506)                 (24,200)                    42,122 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 
 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 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 Loss for the 
  period                                -                         -                         -                         -                         -               (1,058)                  (1,058) 
 Other 
 comprehensive 
 loss: 
 Exchange                               -                         -                         -                         -                         -                         -                         - 
 differences 
 on translating 
 foreign 
 operations 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 Total other 
  comprehensive 
  loss for the 
  period                                -                         -                         -                         -                         -               (1,058)                  (1,058) 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 Balance as at 
  31 December 
  2020                         74,240                  (1,656)                          725                (4,481)                    (2,506)                 (22,040)                    44,282 
                 ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------  ------------------------ 
 
   D.     Condensed Interim Consolidated Statement of Cash Flows 
 
 
                                                         Group                                 Group 
                                         ------------------------------------  ------------------------------------- 
                                              2H FY2021          2H FY2020           FY2021              FY2020 
                                               US$'000            US$'000            US$'000            US$'000 
 Cash Flows from Operating Activities 
 Profit/(Loss) before income tax                 1,096                  2,580             (28)            3,124 
 Adjustments for: 
  Depreciation of property, plant and 
   equipment                                        760                 1,261          1,903              2,649 
  Amortisation of intangible assets                 325                   343             591                789 
  Depreciation of right-of-use assets               868                 1,188          1,864              2,264 
  Gain on disposal of property, plant 
   and equipment                                          -             (424)        (1,143)              (424) 
  Write-back of inventory obsolescence, 
   net                                           (736)                (3,229)           (738)          (3,210) 
  Impairment loss on trade receivables                    -                35                   -            309 
  Impairment loss on other financial 
   assets                                                8                  -                   8                  - 
  Unrealised exchange loss                            60                  368             184                315 
  Interest income                                         -               (1)               (1)              (22) 
  Interest expense                                  196                   333             519                762 
  Inventory written off                                   -             2,663                   -         2,663 
  Bad debts written back                         (113)                      -             (96)                     - 
  Loss/(Gain) on lease modifications                144                     -              (63)                    - 
  Write-back of payables                         (880)                      -           (880)                      - 
  Waiver of loan                                          -           (1,472)                   -      (1,472) 
 Operating cash flow before working 
  capital changes                                1,728                  3,645          2,120              7,747 
 Changes in working capital: 
  Inventories                                       686                   782          1,790              (474) 
  Trade receivables                           (2,978)                   9,170       (5,680)               8,846 
  Other receivables and prepayments              (390)                   (70)                   3         (465) 
  Trade and other payables                       3,777                (2,432)          1,382           (5,188) 
                                         ------------------  ----------------  ------------------  ----------------- 
 Cash generated from/(used in) 
  operating activities                           2,823           11,095                 (385)          10,466 
  Interest paid                                     (34)                (338)           (150)             (398) 
  Income tax paid                                         -             (480)               (2)           (480) 
 Net cash generated from/(used in) 
  operating activities                           2,789                 10,277           (537)             9,588 
                                         ------------------  ----------------  ------------------  ----------------- 
 
 Cash Flows from Investing Activities 
  Interest received                                      1                  1                   1              22 
  Purchase of property, plant and 
   equipment                                     (384)                (1,010)       (1,063)            (1,976) 
  Proceeds from disposal of property, 
   plant and equipment                              203                   479             784                479 
 Net cash used in investing activities           (180)                  (530)           (278)          (1,475) 
                                         ------------------  ----------------  ------------------  ----------------- 
 
 Cash Flows from Financing Activities 
  Proceeds from borrowings                    17,738                   21,578        34,764            44,816 
  Repayment of borrowings                   (17,817)                 (26,484)     (32,527)           (48,390) 
  Principal repayment of lease 
   liabilities                                (1,202)                 (1,108)       (1,942)            (2,217) 
 Net cash (used in)/generated from 
  financing activities                        (1,281)                 (6,014)             295          (5,791) 
                                         ------------------  ----------------  ------------------  ----------------- 
 
 Net increase/(decrease) in cash and 
  cash equivalents                               1,328                  3,733           (520)             2,322 
 Cash and cash equivalents at the 
  beginning of the period/year                   9,435                  7,478        11,273               8,912 
 Effect of foreign exchange rate 
  changes on the balance of cash held 
  in foreign currencies                                  8                 62                  18              39 
                                         ------------------  ----------------  ------------------  ----------------- 
 Cash and cash equivalents at the end 
  of the period/year                          10,771             11,273              10,771            11,273 
                                         ------------------  ----------------  ------------------  ----------------- 
 
 
   E.      Notes to the Condensed Interim Consolidated Financial Statements 
   1.      General Information 

Global Invacom Group Limited (the "Company") is a public limited company incorporated and domiciled in Singapore and is listed on the Mainboard of the Singapore Exchange Securities Trading Limited ("SGX-ST"). The Company is also listed on the AIM Market of the London Stock Exchange ("AIM") in the United Kingdom (UK). These condensed interim consolidated financial statements as at and for the six months and full year ended 31 December 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 and full year ended 31 December 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 
   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   2.      Basis of Preparation (cont'd) 
   2.2    Use of judgements and estimates (cont'd) 

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next interim period are included in the following notes:

   --      Note 10 - impairment test of goodwill: key assumptions underlying recoverable amounts 
   --      Note 11 - useful lives of property, plant and equipment 
   3.      Seasonal Operations 

The Group's businesses are not affected significantly by seasonal or cyclical factors during the six months and full year ended 31 December 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 
 FY2021 
 Revenue                                   82,541         -    82,541 
                                         ========  ========  ======== 
 
 Operating profit/(loss)                      507      (17)       490 
                                         ========  ======== 
 Finance income                                                     1 
 Finance costs                                                  (519) 
 Income tax credit                                                586 
                                                             -------- 
 Profit for the year                                              558 
                                                             ======== 
 
 Amortisation of intangible assets            591         -       591 
 Depreciation of property, plant 
  and equipment                             1,903         -     1,903 
 Depreciation of right-of-use assets        1,864         -     1,864 
 Addition to property, plant and 
  equipment                                 1,063         -     1,063 
 Impairment loss on other financial 
  assets                                        8         -         8 
 Bad debts written (back)/off               (113)        17      (96) 
 Gain on lease modifications                 (63)         -      (63) 
 Write-back of inventory obsolescence, 
  net                                       (738)         -     (738) 
                                         --------  --------  -------- 
 
   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   4.      Segment and Revenue Information (cont'd) 
   4.1    Reportable segments (cont'd) 
 
                                  Sat 
                                 Comms       CM       Group 
                                US$'000   US$'000   US$'000 
 Assets and liabilities 
 Segment assets                  74,109     1,573    75,682 
 Unallocated assets 
 - Non-current assets                                    20 
 - Other receivables                                     79 
 - Deferred tax assets                                1,780 
 - Cash and cash equivalents                            155 
 - Tax receivables                                      169 
 - Right-of-use assets                                   39 
                                                   -------- 
 Total assets                                        77,924 
                                                   ======== 
 
 Segment liabilities             23,393         -    23,393 
 Unallocated liabilities 
 - Other payables                                       362 
 - Deferred tax liabilities                             646 
 - Borrowings                                         6,120 
 - Lease liabilities                                     38 
                                                   -------- 
 Total liabilities                                   30,559 
                                                   ======== 
 
 
 
 FY2020 
 Revenue                                  101,458   1,600   103,058 
                                         ========  ======  ======== 
 
 Operating profit/(loss)                    3,885    (21)     3,864 
                                         ========  ====== 
 Finance income                                                  22 
 Finance costs                                                (762) 
 Income tax expense                                           (515) 
                                                           -------- 
 Profit for the year                                          2,609 
                                                           ======== 
 
 Amortisation of intangible assets            789       -       789 
 Depreciation of property, plant 
  and equipment                             2,648       1     2,649 
 Depreciation of right-of-use assets        2,122     142     2,264 
 Addition to property, plant and 
  equipment                                 1,976       -     1,976 
 Impairment loss on trade receivables         296      13       309 
 Restructuring costs                          510       -       510 
 Reinstatement costs                          219      80       299 
 Inventories written off                    1,947     716     2,663 
 Write-back of inventory obsolescence, 
  net                                     (2,484)   (726)   (3,210) 
 Waiver of loan                           (1,472)       -   (1,472) 
                                         --------  ------  -------- 
 
 
 Assets and liabilities 
 Segment assets                 73,953   561   74,514 
 Unallocated assets 
 - Non-current assets                              82 
 - Other receivables                               98 
 - Deferred tax assets                          1,363 
 - Cash and cash equivalents                      150 
 - Right-of-use assets                            162 
                                              ------- 
 Total assets                                  76,369 
                                              ======= 
 
 Segment liabilities            23,702   688   24,390 
 Unallocated liabilities 
 - Other payables                                 367 
 - Provision for income tax                         1 
 - Deferred tax liabilities                       634 
 - Borrowings                                   3,883 
 - Lease liabilities                              167 
                                              ------- 
 Total liabilities                             29,442 
                                              ======= 
 
   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   4.      Segment and Revenue Information (cont'd) 
   4.2    Disaggregation of revenue 

The Group's revenue is disaggregated by principal geographical areas, major product lines and timing of revenue recognition.

 
                                 Group               Group 
                             2H        2H 
                            FY2021    FY2020   FY2021     FY2020 
                           US$'000   US$'000   US$'000   US$'000 
 Principal geographical 
  market 
 America 
  - Sale of goods           23,295    33,384    46,460    69,246 
                          --------  --------  --------  -------- 
 
 Europe 
  - Sale of goods           13,364    11,825    24,361    23,884 
                          --------  --------  --------  -------- 
 
 Asia 
  - Sale of goods            3,483     2,179     4,692     4,193 
                          --------  --------  --------  -------- 
 
 Rest of the World 
  - Sale of goods            1,960     2,897     7,028     5,735 
                          --------  --------  --------  -------- 
 
 
 Total                      42,102    50,285    82,541   103,058 
                          ========  ========  ========  ======== 
 
 Major product lines 
 Sale of goods              42,102    50,285    82,541   103,058 
                          ========  ========  ========  ======== 
 
 

The Group recognises revenue from sale of goods at a point in time, when the Group satisfies a performance obligation and the customers obtain control of the goods.

   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   5.      Financial Assets and Financial Liabilities 
   5.1    Significant items 
 
                                               Group               Group 
                                           2H        2H 
                                          FY2021    FY2020   FY2021     FY2020 
                                         US$'000   US$'000   US$'000   US$'000 
 
 Interest income                               -         1         1        22 
 Interest expense                          (196)     (333)     (519)     (762) 
 Write-back of payables                      880         -       880         - 
 Waiver of loan                                -     1,472         -     1,472 
 Gain on disposal of property, 
  plant and equipment                          -       424     1,143       424 
 (Loss)/Gain on lease modifications        (274)         -        67         - 
 Impairment loss on trade receivables          -      (35)         -     (309) 
 Impairment loss on other financial 
  assets                                     (8)         -       (8)         - 
 Loss on foreign exchange                  (177)     (182)     (193)     (284) 
 Bad debts written back                      113         -        96         - 
 Inventory written off                         -   (2,663)         -   (2,663) 
 Write-back of inventory obsolescence        736     3,229       738     3,210 
 Depreciation of property, 
  plant and equipment                      (760)   (1,261)   (1,903)   (2,649) 
 Depreciation of right-of-use 
  assets                                   (868)   (1,188)   (1,864)   (2,264) 
 Amortisation of intangible 
  assets                                   (325)     (343)     (591)     (789) 
 Restructuring costs                           -     (510)         -     (510) 
 Reinstatement costs                           -     (299)         -     (299) 
 Operating lease expense                    (19)      (15)      (19)      (15) 
 
 
   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             Group                       Group 
 provision for preference dividends 
                                                                     2H            2H 
                                                                    FY2021        FY2020       FY2021        FY2020 
                                                                     US$           US$           US$           US$ 
                                                                ------------  ------------  ------------  ------------ 
 (a) Based on weighted average number of ordinary shares on       0.64 cent     0.84 cent     0.21 cent     0.96 cent 
 issue; and 
 (b) On a fully diluted basis                                    0.64 cent*    0.84 cent*    0.21 cent*    0.96 cent* 
 Weighted average number of ordinary shares used in 
  computation of basic earnings per share                        271,662,227   271,662,227   271,662,227   271,662,227 
 Weighted average number of ordinary shares used in 
  computation of diluted earnings per share                      271,662,227   271,662,227   271,662,227   271,662,227 
                                                                ------------  ------------  ------------  ------------ 
 

* Diluted earnings per share are the same as the basic earnings per share because the potential ordinary shares to be converted are anti-dilutive as the effect of the share conversion would be to increase the earnings per share.

   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   8.      Net Asset Value 
 
                                                                           Group                      Company 
                                                                 31 Dec 2021   31 Dec 2020   31 Dec 2021   31 Dec 2020 
                                                                     US$           US$           US$           US$ 
                                                                ------------  ------------  ------------  ------------ 
 Net asset value per ordinary share based on issued share        17.44 cents   17.28 cents   15.51 cents   16.30 cents 
 capital 
 Total number of issued shares                                   271,662,227   271,662,227   271,662,227   271,662,227 
                                                                ------------  ------------  ------------  ------------ 
 
   9.      Intangible Assets 
 
                                          Intellectual   Capitalised 
                                Trading     property      development 
                                  name       rights          costs       Total 
                                US$'000     US$'000        US$'000      US$'000 
 Group 
 2021 
 Cost 
 Balance at 1 January 
  and 31 December                    16          2,674          4,834     7,524 
 
 Amortisation and impairment 
 Balance at 1 January                16            757          4,460     5,233 
 Amortisation charge                  -            284            307       591 
 Currency realignment                 -              2              -         2 
                               --------  -------------  -------------  -------- 
 Balance at 31 December              16          1,043          4,767     5,826 
                               --------  -------------  -------------  -------- 
 
 Net book value 
 Balance at 31 December               -          1,631             67     1,698 
                               ========  =============  =============  ======== 
 
 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 
                               ========  =============  =============  ======== 
 
 
   10.    Goodwill 
 
                                                Group 
                                      31 December   31 December 
                                          2021          2020 
                                        US$'000       US$'000 
  Cost 
  Balance at the beginning and end 
   of the year                              9,352         9,352 
                                     ============  ============ 
 
  Allowance for impairment loss 
  Balance at the beginning and end 
   of the year                              3,260         3,260 
 
  Net carrying amount                       6,092         6,092 
                                     ============  ============ 
 
   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   10.    Goodwill (cont'd) 

10.1 Allocation of goodwill

Goodwill has been allocated to the Group's cash generating unit ("CGU") identified according to the business segment as follows:

 
                                                   Group 
                                         31 December   31 December 
                                             2021          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 
                                        ============  ============ 
 
 
   11.    Property, Plant and Equipment 
 
                                                            Furniture, 
                                     Machinery               fittings 
                          Freehold       &        Motor          & 
                          property   equipment   vehicles   equipment    Renovations    Total 
                          US$'000     US$'000    US$'000     US$'000       US$'000     US$'000 
  Group 
  2021 
  Cost 
  Balance at 1 January       2,883      17,639         40        7,649         1,458     29,669 
  Currency realignment           -        (19)          -           12           (1)        (8) 
  Additions                      -         814          -          152            97      1,063 
  Disposals                   (12)       (527)          -            -         (116)      (655) 
  Balance at 31 
   December                  2,871      17,907         40        7,813         1,438     30,069 
                         ---------  ----------  ---------  -----------  ------------  --------- 
 
  Accumulated 
   depreciation 
  Balance at 1 January         928      11,187         40        6,969         1,135     20,259 
  Currency realignment          44         322          -            -            70        436 
  Depreciation charge            -       1,541          -          275            87      1,903 
  Disposals                   (12)       (527)          -            -         (116)      (655) 
  Balance at 31 
   December                    960      12,523         40        7,244         1,176     21,943 
                         ---------  ----------  ---------  -----------  ------------  --------- 
 
  Net book value 
  Balance at 31 
   December                  1,911       5,384          -          569           262      8,126 
                         =========  ==========  =========  ===========  ============  ========= 
 
  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 
                         =========  ==========  =========  ===========  ============  ========= 
 
   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   11.    Property, Plant and Equipment (cont'd) 
 
                                          Furniture, 
                                           fittings 
                                               & 
                                          equipment    Renovations    Total 
                                           US$'000       US$'000     US$'000 
  Company 
  2021 
  Cost 
  Balance at 1 January and 31 December           211            80       291 
 
  Accumulated depreciation 
  Balance at 1 January                           137            72       209 
  Depreciation charge                             55             7        62 
  Balance at 31 December                         192            79       271 
                                         -----------  ------------  -------- 
 
  Net book value 
  Balance at 31 December                          19             1        20 
                                         ===========  ============  ======== 
 
  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$784,000 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.

   12.    Investment in Subsidiaries 
 
                                                      Company 
                                                 31 Dec     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           (16,014)   (14,287) 
                                                  25,375     27,102 
                                               =========  ========= 
 
  Movement in the allowance for impairment 
   loss are as follows: 
 
  At the beginning of the year                    14,287     13,803 
  Impairment loss recognised during the year       1,727        484 
                                               ---------  --------- 
  At the end of the year                          16,014     14,287 
                                               =========  ========= 
 
 
   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   12.    Investment in Subsidiaries (cont'd) 

Allowance for impairment loss

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

As at 31 December 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 31 December 2021 and 31 December 2020, an allowance for impairment loss of US$7,366,000 and US$5,639,000, respectively, was made on the cost of investment in GIHL Group, as the allocated CGU, to which the investment relates to, was incurring losses from operations. The recoverable amount was based on management's estimate of the fair value less costs to sell, with reference to the fair value of the net assets of GIHL Group, which is considered to be Level 3 in the fair value hierarchy.

   13.    Borrowings 

Aggregate amount of group's borrowings and debt securities.

Amount repayable in one year or less, or on demand

 
 As at 31 Dec 2021    As at 31 Dec 2020 
Secured   Unsecured  Secured   Unsecured 
          ---------  --------  --------- 
US$'000    US$'000   US$'000    US$'000 
          ---------  --------  --------- 
 6,120        -       3,883        - 
          ---------  --------  --------- 
 

Amount repayable after one year

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

The revolving credit loans of US$6,120,000 were secured over the assets of the subsidiaries and corporate guarantees provided by the Company and the subsidiaries.

   14.    Share Capital 
 
 FY2021                                    No. of shares       US$'000 
 
 Balance as at 1 Jan 2021 and 31 Dec 
  2021                                    271,662,227             72,584 
                                       --------------------  ----------- 
 
   FY2020                                  No. of shares       US$'000 
 
 Balance as at 1 Jan 2020 and 31 Dec 
  2020                                          271,662,227       72,584 
                                       --------------------  ----------- 
 
 

There were 10,740,072 treasury shares held by the Company as at 31 December 2021 and 31 December 2020 and there was no subsidiary holdings.

   E.      Notes to the Condensed Interim Consolidated Financial Statements (cont'd) 
   14.    Share Capital (cont'd) 

Total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year:

 
                                                            31 Dec 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:

 
 FY2021                                 No. of shares   US$'000 
 
 Balance as at 1 Jan 2021 and 31 Dec 
  2021                                   10,740,072      1,656 
                                       --------------  -------- 
 
   15.    Subsequent events 

There are no known subsequent events which have led to adjustments to this set of interim financial statements.

   F.      Other Information Required by Listing Rule Appendix 7.2 
   1.      Review 

The condensed interim consolidated statement of financial position of Global Invacom Group Limited and its subsidiaries as at 31 December 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 year ended 31 December 2021 ("FY2021") decreased by 19.9% to US$82.5 million from US$103.1 million in the prior year ("FY2020"). Revenue for the second half year ended 31 December 2021 ("2H FY2021") was US$42.1 million against US$50.3 million in the prior year ("2H FY2020"). T he ongoing COVID-19 pandemic impacted the Group globally, as there have been a reduction in orders from our customers. It has also impacted the Group's production facilities around the world as our working practices were adapted to comply with regional variations on COVID-19 Work Restrictions and social distancing guidelines during the pandemic.

Geographically, Group revenue for FY2021 decreased in America by US$22.8 million (-32.9%) and increased in Europe, Asia and Rest of the World ("RoW") by US$0.5 million (+2.0%), US$0.5 million (+11.9%) and US$1.3 million (+22.5%), respectively. Revenue for 2H FY2021 decreased in America and RoW by US$10.1 million (-30.2%) and US$0.9 million (-32.3%), respectively, compensated by an increase in Europe and Asia by US$1.5 million (+13.0%) and US$1.3 million (+59.8%), respectively, compared to the prior year.

Gross Profit

The decrease in revenue resulted in a 35.6% decrease in gross profit from US$25.7 million in FY2020 to US$ 16.6 million in FY2021. Gross profit margin has decreased by 4.8 percentage points from 24.9% to 20.1 %, mainly attributable to higher materials costs and the supply chain constraints that continue to cause disruptions to the Group.

Similarly, gross profit decreased from US$13.4 million in 2H FY2020 to US$ 7.8 million in 2H FY2021. Gross profit margin has decreased by 8.2 percentage points from 26.6% to 18 .4 %.

Other Income

Other income in 2H FY2021 and FY2021 relates primarily to a grant from the US government of US$2.7 million, gain on disposal of equipment of US$1.1 million, write-back of payables of US$0.9 million and subsidy support received from various government bodies across the Group due to the COVID-19 pandemic.

Administrative and Research and Development Expenses

Administrative expenses, together with research and development expenses, for FY2021 decreased 9.0% to US$20.9 million compared to US$23.0 million in FY2020, representing 25.3% and 22.3% of revenue, respectively. The ongoing cost control measures across the Group, including a reduction in travelling and marketing activity, have resulted in lower administrative expenses being incurred. For 2H FY2021, administrative and research and development expenses, decreased 16.1% to US$ 10.0 million compared to US$12.0 million in the previous year, representing 23.8% of revenue for both periods.

Other Operating Expenses

Other operating expenses in 2H FY2021 and FY2021 were attributed mainly to foreign exchange losses.

   F.      Other Information Required by Listing Rule Appendix 7.2 (cont'd) 
   2.      Review of Performance of the Group (cont'd) 
   2.1    Review of Financial Performance (cont'd) 

Profit Before Tax & Net Profit

The Group posted a loss before tax of US$28,000 in FY2021, compared to a profit before tax of US$3.1 million the prior year, representing a negative margin of 0.03% and a margin of 3.0%, respectively. For 2H FY2021, the Group recorded US$1.1 million profit before tax compared to US$2.6 million in the prior year, representing a margin of 2.6% and 5.1%, respectively.

In 2H FY2021, the UK Group received research and development tax credits from the UK government and, coupled with deferred taxes, resulted in the Group recording a net profit of US$1.7 million compared to US$2.3 million in the prior year, representing a margin of 4.1% and 4.5%, respectively. For FY2021, the Group recorded a net profit of US$0.6 million, compared to US$2.6 million the prior year, representing a margin of 0.7% and 2.5%, respectively.

   2.2    Review of Financial Position 

Non-current assets decreased by US$3.4 million to US$22.1 million as at 31 December 2021, due to the depreciation of plant and equipment, the right-of-use assets and the amortisation of intangible assets, offset by the increase in deferred tax assets.

Net current assets increased by US$2.1 million to US$29.1 million as at 31 December 2021 compared to US$27.0 million as at 31 December 2020. Trade and other receivables increased by US$6.3 million due to slower collections, whilst trade and other payables increased by US$0.8 million with controlled payments to suppliers, offset by a decrease in inventories of US$1.1 million. Tax receivables was US$0.2 million as at 31 December 2021.

Cash and cash equivalents decreased by US$0.5 million to US$10.8 million as at 31 December 2021 from US$11.3 million at 31 December 2020, and borrowings increased by US$2.2 million to US$6.1 million as at 31 December 2021 from US$3.9 million as at 31 December 2020. The repayment of leases has resulted in a decrease of US$0.2 million in the current portion of lease liabilities.

With the repayment of leases, the non-current portion of the lease liabilities decreased by US$1.8 million to US$3.1 million as at 31 December 2021.

The Group's net asset value stood at US$47.4 million as at 31 December 2021, compared to US$46.9 million as at 31 December 2020.

   2.3    Review of Cash Flows 

In 2H FY2021, net cash generated from operating activities was US$2.8 million, comprising US$1.8 million cash inflow from operating activities (before working capital changes), US$1.1 million net working capital inflow and US$0.1 million payment of interest.

In FY2021, net cash used in operating activities was US$0.5 million, comprising US$$2.1 million cash inflow from operating activities (before working capital changes), US$2.5 million net working capital outflow and US$0.1 million payment of interest and income tax.

Net cash used in investing activities in 2H FY2021 and FY2021 amounted to US$0.2 million and US$0.3 million, respectively, relating predominately to the purchase of machinery and equipment, offset against proceeds from the disposal of property, plant and equipment.

Net cash used in financing activities in 2H FY2021 was US$1.3 million and net cash generated from financing activities in FY2021 was US$0.3 million, attributable to the net proceeds of borrowings and repayment of lease liabilities.

The Group recorded a net in crease in cash and cash equivalents amounting to US$1.3 million, and net decrease amounting to US$0.5 million in 2H FY2021 and FY2021, respectively, bringing cash and cash equivalents per the consolidated statement of cash flows to US$10.8 million as at 31 December 2021.

   F.      Other Information Required by Listing Rule Appendix 7.2 (cont'd) 

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

No prospect statement was made.

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

The combination of ongoing COVID-19 restrictions and the well documented global supply chain issues were key feature in forming the broader trading conditions for the Group throughout 2021. Management believes that, whilst demand for the Company's products will remain robust, economic headwinds, including supply shortages within the semiconductor sector, and ongoing inflationary pressure across international shipping, wages (particularly in the U.S.) and raw materials (including steel), will likely impact the performance of the business in the current financial year.

As with the prior year, and given the global nature of Global Invacom's business, the health and safety of all our staff, partners, suppliers and customers continues to be of paramount importance.

Despite the impact of these global headwinds on the Company's financial performance, Global Invacom remained profitable in the year, facilitated by the implementation of pragmatic cost-saving initiatives, including a reduction in marketing activity and various government grants, to mitigate the impact of the COVID-19 pandemic. The Group's prudent transition of R&D employees and office staff to remote working from 2020 have enabled our international network of teams to function efficiently throughout 2021.

During 2021, the Group focused on launching a range of innovative devices to augment its product offering across all key categories. New additions to Global Invacom's portfolio include the Optical to Optical ("O2O") converter, a Fibre to the Home ("FTTH") device designed to increase the number of subscribers that can be connected to a single dish, and Ku-Band and C-Band VSAT Radio Frequency ("RF") Block Up Converters, two new DOS products that consolidate the Group's unique position as a leading manufacturer and supplier of VSAT RF electronics, antennas and feeds.

The Group continues to ensure new products are expertly designed to work in tandem with existing Global Invacom devices, providing an upgraded service whilst simultaneously generating valuable cross selling opportunities. As the satellite communications industry continues to evolve and new technologies emerge, the Group is focused on leveraging its R&D capabilities to future-proof new devices. With teams based in hubs across the globe, Global Invacom's employees can rapidly respond to regulatory updates in regional markets to ensure the Group continues to develop cutting-edge competitive products.

More generally, O3b mPOWER plan to launch their O3b mPOWER communications system during 2022, which comprises of an initial constellation of 11 high-performance satellites, intelligent software and extensive ground infrastructure. Hughes, the global provider of high-speed satellite internet service, also indicated that their much-anticipated GEO satellite Jupiter system is currently scheduled to be launched during Q4 2022.

The Group remains well-positioned to benefit from the recovery of the global economy and the continued growth of its target DOS market. As the broader restrictions associated with the COVID-19 pandemic ease along with the well documented supply chain pressures, Global Invacom's products will continue to play a significant role in meeting the continued growth in demand for data and connectivity.

   F.      Other Information Required by Listing Rule Appendix 7.2 (cont'd) 
   5.      Dividend 
   (a)     Current Financial Period Reported On 

Any dividend declared for the current financial period reported on?

None.

   (b)     Corresponding Period of the Immediately Preceding Financial Year 

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

None.

   (c)     Date payable 

Not applicable.

   (d)     Books closure date 

Not applicable.

6. If no dividend has been declared/recommended, a statement to that effect and the reason(s) for the decision.

Due to the operating conditions faced by the Group, no dividend has been declared or recommended for the year ended 31 December 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 year ended 31 December 2021.

   8.      Confirmation Pursuant to Rule 705(5) of the Listing Manual 

We do hereby confirm, for and on behalf of the Board of Global Invacom Group Limited (the "Company"), that to the best of our knowledge, nothing has come to the attention of the Board of the Company which may render the financial results for the year ended 31 December 2021 to be false or misleading in any material aspect.

   9.      Confirmation Pursuant to Rule 720(1) of the Listing Manual 

Global Invacom Group Limited confirms that undertakings under Rule 720(1) have been obtained from all its directors and executive officers in the format set out in Appendix 7.7.

10. Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(13) in the format below. If there are no such persons, the issuer must make an appropriate negative statement.

Neither Global Invacom Group Limited nor any of its principal subsidiaries have any person occupying a managerial position who is related to a director, chief executive officer or substantial shareholder.

On behalf of the Board

Anthony Brian Taylor Gordon Blaikie

Executive Director Executive Director

BY ORDER OF THE BOARD

Anthony Brian Taylor

Executive Chairman

25 February 2022

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END

FR SEMFWLEESEFE

(END) Dow Jones Newswires

February 25, 2022 02:00 ET (07:00 GMT)

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