Global Invacom Group Limited Response to Shareholder AGM Questions (1261J)
25 April 2022 - 04:00PM
UK Regulatory
TIDMGINV
RNS Number : 1261J
Global Invacom Group Limited
25 April 2022
GLOBAL INVACOM GROUP LIMITED
(Incorporated in the Republic of Singapore)
(Company Registration No. 200202428H)
RESPONSE TO QUESTIONS RECEIVED FROM A SHAREHOLDER IN RELATION TO
THE ANNUAL GENERAL MEETING FOR THE FINANCIAL YEAR ENDED 31 DECEMBER
2021 ("FY2021")
The Board of Directors (the "Board") of GLOBAL INVACOM GROUP
LIMITED ("Global Invacom", the "Company", together with its
subsidiaries, the "Group") would like to provide the following
information in response to questions raised by a Shareholder in
relation to the Company's Annual General Meeting for FY2021:
Question 1:
Group revenue for FY2021 decreased in America by US$22.8 million
(-32.9%). That is very concerning and if one keeps track of space
and satellite news, most of the activity seems to be coming from
the US. What's the Group's assessment of this?
Company's Response:
Fundamentally, the United States ("US") remains a key growth
market for the Company, however, the broader market has been
impacted by the combination of COVID-19 restrictions and the well
documented global supply chain issues globally. This has been a key
feature of FY2021 and management believe that these factors will
remain prevalent in the current financial year, alongside supply
shortages within the semiconductor sector, and ongoing inflationary
pressure across international shipping, wages (particularly in the
US) and raw materials (including steel).
Generally speaking, the long-term outlook for the global
satellite market remains positive.
Question 2:
Geographically, where are the expected revenue growth areas for
FY2022? Is the demand from America expected to return?
Company's Response:
The US remains a key growth market for the Company alongside
Europe.
Question 3:
Has the Group stopped providing contract manufacturing
services?
Company's Response:
The Group has stopped providing contract manufacturing services
when its subsidiaries in China, Global Invacom Manufacturing
(Shanghai) Co Ltd, ceased operations in 2019 and all orders were
fulfilled in 2020.
Question 4:
How concerning is the reshoring of manufacturing (i.e.
manufacturing returning to US or Europe) that would affect the
Group's business?
Company's Response:
The Company has a manufacturing facility in Smithfield, North
Carolina, which has been manufacturing high quality communications
products for over 60 years. The company has two manufacturing
facilities in the UK and one in Israel and an established global
sales and support team.
Each of these facilities is focused on meeting specific customer
and product demand.
Question 5:
Note 20, the loss allowance increased from 18% to 29.5% for
receivables over 60 days. Is this an anomaly or can be described to
be within the Group's historical experience?
Company's Response:
The increase is in line with the Group's 3 years historical
average.
Question 6:
Without disclosing the identity, did the Group lose its largest
customer that had 32.8% share of revenue in 2020?
Company's Response:
We did not lose a large customer in FY2020. The loss in revenue
is a direct result of the impact of the COVID-19 pandemic on the
global economy. This was a global phenomenon and is not localised
to Global Invacom.
BY ORDER OF THE BOARD
Anthony Brian Taylor
Executive Chairman
23 April 2022
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END
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