TIDMGINV
RNS Number : 7106V
Global Invacom Group Limited
12 August 2022
Global Invacom Group Limited
("Global Invacom", the "Company" or the "Group")
Results for the six months ended 30 June 2022
Singapore/London, 12 August 2022 - Global Invacom Group Limited
(SGX: QS9) (AIM: GINV), the global provider of satellite
communications equipment and electronics, is pleased to announce
its financial results for the six months ended 30 June 2022 ("1H
FY2022").
Key financial highlights:
-- Revenue for 1H FY2022 of US$37.4m (1H FY2021: US$40.4m)
-- Gross Profit for 1H FY2022 of US$7.4m (1H FY2021: US$8.8m)
-- Net loss for 1H FY2022 of US$3.3m (1H FY2021: US$1.2m net loss)
-- Cash and cash equivalents as at 30 June 2022 of US$10.0m (31 December 2021: US$10.8m)
Key operational highlights:
-- Shortage of semiconductors globally, alongside material
availability, price increases and labour challenges, continues to
impact the Company's ability to satisfy existing orders and has
impacted revenue growth in the period
-- The Group has embarked on a business review exercise, to
better manage our operations, and to improve the performance of the
Group
-- The Group's partnership with Methera Global Communications
Limited ("Methera") and its subcontractors, announced in October
2021, is progressing well
-- In the first half of 2022, launched latest Supervisory
Control and Data Acquisition ("SCADA") products for hubs and remote
locations
-- In May 2022, launched innovative Mini-Global Navigation
Satellite System repeater kit, increasing the Group's footprint in
the commercial, military and aviation markets
Global Invacom remains well positioned to capitalise on the
expected growth opportunities in the Data Over Satellite ("DOS")
market, as well as the normalisation of remote working, with
individuals and workforces around the globe now increasingly
dependent on reliable connectivity for their daily lives.
The Group delivered sales of US$37.4 million in the first half
of the year, versus US$40.4 million in 1H FY2021. This decrease was
due to the shortage of semiconductors globally which continues to
impact the Company's ability to satisfy existing orders and
generate associated additional revenue as well as the delay in the
launch of Jupiter 3. Furthermore, the Group continues to be
impacted by cost price increases, compounded by labour challenges
as well as business challenges faced by our customers.
The Group continues to assess its cost base to streamline
certain core functions and continues to reduce administrative
costs, whilst not impacting its offering to customers.
Research and development continue to be an area of importance
for management with ongoing focus on product development,
underpinning Global Invacom's market-leading position in the
satellite communications equipment and electronics sector.
DOS remains a key product category for Global Invacom, with the
accelerated demand for dependable and affordable DOS devices across
a wide range of industries, including the healthcare and defence
sectors, showing no signs of abating. Consequently, the Group
introduced new SCADA products for hubs and remote locations which
continue Global Invacom's legacy of developing world-leading
satellite communications ground equipment. New products launched
include antennas and Very-small-aperture Terminal ("VSAT")
transceivers, alongside advanced Radio Frequency ("RF") equipment
designed and manufactured by Global Skyware.
These new equipment bundles create a straightforward set up to
receive and transmit signals for a full private networking
solution, capable of reaching any SCADA and Machine-to-machine
("M2M") Telemetry site. It is compatible with both Internet
Protocol ("IP") and legacy serial devices, and operates
independently from terrestrial communications systems, thus
providing dedicated and secure data communications for
mission-critical traffic.
In addition to the development of new satellite communications
ground equipment bundles, Global Invacom's subsidiary OnePath
Networks Limited, trading as Global Foxcom, broadened its range of
Satcom Repeater solutions with the launch of its innovative
Mini-Global Navigation Satellite System ("GNSS") repeater kit,
increasing its footprint in the commercial, military and aviation
markets.
The Group's partnership with Methera and its subcontractors,
announced in October 2021, is progressing well, and Global Invacom
remains on track to deliver Ka-band user terminals to market in
2024 to help meet the fast-growing demand for connectivity to
non-geostationary satellite orbit constellations, leveraging
funding awarded by the European Space Agency.
Given the market challenges that the Group has faced over the
past two years and what may become "new normals", the Group has
embarked on a business review exercise, to better manage our
operations, and to improve the performance of the Group.
Tony Taylor, Executive Chairman of Global Invacom,
commented:
"Trading across the first six months of the year has not been
without its challenges, as we continue to adjust to the ongoing
shortages for semiconductors globally, alongside inflationary
pressures across our business. These factors are not unique to our
business, and we continue to drive the Company forward, which for
us means an unrivalled commitment to our customers to remain at the
cutting edge of innovation and product development.
Whilst we are fully aware the broader macro picture will take
time to improve, Global Invacom remains well placed to capitalise
on the growing demand for satellite communications services
globally."
For further information, please visit www.globalinvacom.com or
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 / Richard Johnson / David Tel: +44 20 7409
Asquith 3494
Vigo Consulting (UK Media & Investor www.vigoconsulting.com
Relations)
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
GLOBAL INVACOM GROUP LIMITED
(Incorporated in Singapore)
(Company Registration Number 200202428H)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the Six Months Ended 30 June 2022
A. Condensed Interim Consolidated Statement of Comprehensive Income
Group
-----------------------------------------------------------------------------------
1H 1H Increase/
FY2022 FY2021 (Decrease)
US$'000 US$'000 %
Revenue 37,420 40,439 (7.5)
Cost of sales (30,051) (31,653) (5.1)
Gross profit 7,369 8,786 (16.1)
Other income 37 1,478 (97.5)
Distribution costs (156) (137) 13.9
Administrative expenses (8,106) (8,460) (4.2)
Research and development expenses (1,969) (2,417) (18.5)
Other operating expenses (257) (52) 394.2
Finance income - 30 (100.0)
Finance costs (171) (352) (51.4)
Loss before income tax (3,253) (1,124) 189.4
Income tax expense (39) (54) (27.8)
--------------------------- --------------------------- -------------------------
Loss for the period (3,292) (1,178) 179.5
--------------------------- --------------------------- -------------------------
Other comprehensive (loss)/income:
Items that may be reclassified
subsequently to profit or loss
* Exchange differences on translation of foreign
subsidiaries (19) 325 N.M.
Other comprehensive (loss)/income
for the period, net of tax (19) 325 N.M.
--------------------------- --------------------------- -------------------------
Total comprehensive loss for
the period (3,311) (853) 97.1
--------------------------- --------------------------- -------------------------
Loss for the period attributable
to:
Equity holders of the Company (3,289) (1,177) 179.4
Non-controlling interests (3) (1) 200.0
(3,292) (1,178) 179.5
----------------- ------------------- ------------
Total comprehensive loss for
the period attributable to:
Equity holders of the Company (3,308) (852) 288.2
Non-controlling interests (3) (1) 200.0
(3,311) (853) 97.1
----------------- ------------------- ------------
N.M.: Not Meaningful
B. Condensed Interim Statements of Financial Position
Group Company
------------------------------------------- -----------------------------------------
30 Jun 31 Dec 30 Jun 31 Dec
2022 2021 2022 2021
US$'000 US$'000 US$'000 US$'000
ASSETS
Non-current Assets
Property, plant and
equipment 7,495 8,126 - 20
Right-of-use assets 3,608 4,396 104 39
Investments in
subsidiaries - - 25,375 25,375
Goodwill 6,092 6,092 - -
Intangible assets 1,553 1,698 - -
Deferred tax assets 1,780 1,780 - -
Other receivables and
prepayments 54 54 11,297 11,032
20,582 22,146 36,776 36,466
-------------------- --------------------- -------------------- -------------------
Current Assets
Due from subsidiaries - - 3,201 3,265
Inventories 25,172 25,764 - -
Trade receivables 9,612 13,772 - -
Other receivables and
prepayments 5,602 5,302 2,098 2,588
Tax receivables 218 169 - -
Cash and cash equivalents 10,000 10,771 325 155
-------------------- --------------------- -------------------- -------------------
50,604 55,778 5,624 6,008
-------------------- --------------------- -------------------- -------------------
Total assets 71,186 77,924 42,400 42,474
-------------------- --------------------- -------------------- -------------------
EQUITY AND LIABILITIES
Equity
Share capital 60,423 60,423 74,240 74,240
Treasury shares (1,656) (1,656) (1,656) (1,656)
Reserves (14,691) (11,383) (30,706) (30,462)
-------------------- --------------------- -------------------- -------------------
Equity attributable
to owners of the Company 44,076 47,384 41,878 42,122
Non-controlling interests (22) (19) - -
-------------------- --------------------- -------------------- -------------------
Total equity 44,054 47,365 41,878 42,122
-------------------- --------------------- -------------------- -------------------
Non-current Liabilities
Other payables 152 152 - -
Lease liabilities 2,907 3,088 - -
Deferred tax liabilities 646 646 - -
3,705 3,886 - -
-------------------- --------------------- -------------------- -------------------
Current Liabilities
Due to subsidiaries - - - 1
Trade payables 12,089 14,479 - -
Other payables 4,555 4,447 422 313
Borrowings 5,714 6,120 - -
Lease liabilities 1,069 1,627 100 38
23,427 26,673 522 352
-------------------- --------------------- -------------------- -------------------
Total liabilities 27,132 30,559 522 352
-------------------- --------------------- -------------------- -------------------
Total equity and
liabilities 71,186 77,924 42,400 42,474
-------------------- --------------------- -------------------- -------------------
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
2022 60,423 (1,656) (10,150) 6 725 (5,109) (1,084) 4,229 47,384 (19) 47,365
Loss for the
period - - - - - - - (3,289) (3,289) (3) (3,292)
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - (19) - (19) - (19)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ----------------- ------------------ -------------------- ---------------
Total other
comprehensive
loss for the
period - - - - - - (19) (3,289) (3,308) (3) (3,311)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ----------------- ------------------ -------------------- ---------------
Balance as
at 30 June
2022 60,423 (1,656) (10,150) 6 725 (5,109) (1,103) 940 44,076 (22) 44,054
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ----------------- ------------------ -------------------- ---------------
Balance as
at 1 January
2021 60,423 (1,656) (10,150) 6 725 (5,109) (964) 3,668 46,943 (16) 46,927
Loss for the
period - - - - - - - (1,177) (1,177) (1) (1,178)
Other
comprehensive
loss:
Exchange
differences
on
translating
foreign
operations - - - - - - 325 - 325 - 325
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ----------------- ------------------ -------------------- ---------------
Total other
comprehensive
income/(loss)
for the
period - - - - - - 325 (1,177) (852) (1) (853)
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ----------------- ------------------ -------------------- ---------------
Balance as
at 30 June
2021 60,423 (1,656) (10,150) 6 725 (5,109) (639) 2,491 46,091 (17) 46,074
------------------- ------------------- ------------------- --------------------- ------------------- -------------------- ---------------------- ----------------- ------------------ -------------------- ---------------
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$'000
Balance as at
1 January
2022 74,240 (1,656) 725 (4,481) (2,506) (24,200) 42,122
Loss for the
period - - - - - (244) (244)
Other
comprehensive
loss:
Exchange - - - - - - -
differences
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Total other
comprehensive
loss for the
period - - - - - (244) (244)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Balance as at
30 June 2022 74,240 (1,656) 725 (4,481) (2,506) (24,444) 41,878
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Balance as at
1 January
2021 74,240 (1,656) 725 (4,481) (2,506) (22,040) 44,282
Loss for the
period - - - - - (139) (139)
Other
comprehensive
loss:
Exchange - - - - - - -
differences
on translating
foreign
operations
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Total other
comprehensive
loss for the
period - - - - - (139) (139)
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Balance as at
30 June 2021 74,240 (1,656) 725 (4,481) (2,506) (22,179) 44,143
------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------
D. Condensed Interim Consolidated Statement of Cash Flows
Group
-----------------------------------------
1H 1H
FY2022 FY2021
US$'000 US$'000
Cash Flows from Operating Activities
Loss before income tax (3,253) (1,124)
Adjustments for:
Depreciation of property, plant and equipment 895 1,143
Amortisation of intangible assets 141 266
Depreciation of right-of-use assets 847 996
Gain on disposal of property, plant and equipment (5) (1,143)
Allowance/(Write-back) for inventory obsolescence 255 (2)
Impairment loss of trade receivables 175 -
Bad debts written off - 17
Unrealised exchange (gain)/loss (67) 124
Interest income - (30)
Interest expense 171 352
Gain on lease modifications - (207)
Operating cash flow before working capital changes (841) 392
Changes in working capital:
Inventories 337 1,104
Trade receivables 3,944 (2,702)
Other receivables and prepayments (340) 422
Trade and other payables (2,016) (2,424)
-------------------- -------------------
Cash generated from/(used in) operating activities 1,084 (3,208)
Interest paid (196) (116)
Income tax paid (122) (2)
Net cash generated from/(used in) operating activities 766 (3,326)
-------------------- -------------------
Cash Flows from Investing Activities
Purchase of property, plant and equipment (251) (679)
Proceeds from disposal of property, plant and equipment 5 581
Net cash used in investing activities (246) (98)
-------------------- -------------------
Cash Flows from Financing Activities
Proceeds from borrowings 17,177 17,026
Repayment of borrowings (17,583) (14,710)
Principal payment of lease liabilities (877) (740)
Net cash (used in)/generated from financing activities (1,283) 1,576
-------------------- -------------------
Net decrease in cash and cash equivalents (763) (1,848)
Cash and cash equivalents at the beginning of the period 10,771 11,273
Effect of foreign exchange rate changes on the balance of cash held in
foreign currencies (8) 10
-------------------- -------------------
Cash and cash equivalents at the end of the period 10,000 9,435
-------------------- -------------------
E. Notes to the Condensed Interim Consolidated Financial Statements
1. General Information
Global Invacom Group Limited (the "Company") is a public limited
company incorporated and domiciled in Singapore and is listed on
the Mainboard of the Singapore Exchange Securities Trading Limited
("SGX-ST"). The Company is also listed on the AIM Market of the
London Stock Exchange ("AIM") in the United Kingdom (UK). These
condensed interim consolidated financial statements as at and for
the six months ended 30 June 2022 comprise the Company and its
subsidiaries (the "Group"). The principal activity of the Company
is that of an investment holding company.
The principal activities of the Group are design, manufacture
and supply of a full range of satellite ground equipment, including
antennas, LNB receivers, transceivers, fibre distribution
equipment, transmitters, switches and video distribution
components.
2. Basis of Preparation
The condensed interim financial statements for the six months
ended 30 June 2022 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 2021.
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 2021, 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
2022. 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
2021.
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 ended 30 June
2022.
4. Segment and Revenue Information
The Group is organised into the following main business
segments:
-- Satellite C ommunications ("Sat Comms"); and
-- Contract Manufacturing ("CM")
These operating segments are reported in a manner consistent
with internal reporting provided to the executive directors who are
responsible for allocating resources and assessing performance of
the operating segments.
4.1 Reportable segments
Sat
Comms CM Group
US$'000 US$'000 US$'000
1H FY2022
Revenue 37,420 - 37,420
======== ======== ========
Operating loss (2,999) (83) (3,082)
======== ========
Finance costs (171)
Income tax expense (39)
--------
Loss for the period (3,292)
========
Amortisation of intangible assets 141 -
Depreciation of property, plant
and equipment 895 -
Depreciation of right-of-use assets 847 -
Addition to property, plant and
equipment 251 -
Impairment loss on trade receivables 175 -
Allowance for inventory obsolescence,
net 255 -
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$'000
Assets and liabilities
Segment assets 67,324 1,262 68,586
Unallocated assets
- Other receivables 63
- Deferred tax assets 1,780
- Cash and cash equivalents 325
- Tax receivables 218
- Right-of-use assets 214
--------
Total assets 71,186
========
Segment liabilities 20,179 - 20,179
Unallocated liabilities
- Other payables 493
- Deferred tax liabilities 646
- Borrowings 5,714
- Lease liabilities 100
--------
Total liabilities 27,132
========
1H FY2021
Revenue 40,439 - 40,439
======= ===== ========
Operating loss (785) (17) (802)
======= =====
Finance income 30
Finance costs (352)
Income tax expense (54)
--------
Loss for the period (1,178)
========
Amortisation of intangible assets 266 - 266
Depreciation of property, plant
and equipment 1,143 - 1,143
Depreciation of right-of-use assets 996 - 996
Addition to property, plant and
equipment 679 - 679
Bad debts written off - 17 17
Gain on lease modifications (207) - (207)
Write-back of inventory obsolescence,
net (2) - (2)
------- ----- --------
Assets and liabilities
Segment assets 70,826 1,825 72,651
Unallocated assets
* Non-current assets 46
* Other receivables 85
* Deferred tax assets 1,363
* Cash and cash equivalents 500
* Tax receivables 1
* Right-of-use assets 105
-------
Total assets 74,751
=======
Segment liabilities 19,581 1,570 21,151
Unallocated liabilities
* Other payables 334
* Provision for income tax 255
* Deferred tax liabilities 634
* Borrowings 6,199
* Lease liabilities 104
-------
Total liabilities 28,677
=======
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
4. Segment and Revenue Information (cont'd)
4.2 Disaggregation of revenue
The Group's revenue is disaggregated by principal geographical
areas, major product lines and timing of revenue recognition.
Group
1H 1H
FY2022 FY2021
US$'000 US$'000
Principal geographical market
America
- Sale of goods 17,395 23,165
-------- --------
Europe
- Sale of goods 11,488 10,997
-------- --------
Asia
- Sale of goods 1,219 1,209
-------- --------
Rest of the World
- Sale of goods 7,318 5,068
-------- --------
Total 37,420 40,439
======== ========
Major product lines
Sale of goods 37,420 40,439
======== ========
The Group recognises revenue from sale of goods at a point in
time, when the Group satisfies a performance obligation and the
customers obtain control of the goods.
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
5. Financial Assets and Financial Liabilities (cont'd)
5.1 Significant items
Group
1H 1H
FY2022 FY2021
US$'000 US$'000
Interest income - 30
Interest expense (171) (352)
Gain on disposal of property, plant and
equipment 5 1,143
Gain on lease modifications - 207
Gain/(Loss) on foreign exchange 30 (34)
Impairment loss on trade receivables (175) -
Bad debts written off - (17)
(Allowance)/Write-back of inventory obsolescence (255) 2
Depreciation of property, plant and equipment (895) (1,143)
Depreciation of right-of-use assets (847) (996)
Amortisation of intangible assets (141) (266)
5.2 Related party transactions
There are no material related party transactions apart from
those disclosed elsewhere in the condensed interim financial
statements.
6. Taxation
The Group calculates the period income tax expense using the tax
rate that would be applicable to the expected total annual
earnings.
7. Earnings Per Share
Earnings per ordinary share of the Group, after deducting any provision for preference Group
dividends
1H 1H
FY2022 FY2021
US$ US$
-------------- -------------
(a) Based on weighted average number of ordinary shares on issue; and (1.21) cents (0.43) cent
(b) On a fully diluted basis (1.21) cents* (0.43) cent*
Weighted average number of ordinary shares used in computation of basic earnings per
share 271,662,227 271,662,227
Weighted average number of ordinary shares used in computation of diluted earnings per
share 271,662,227 271,662,227
-------------- -------------
* Diluted earnings per share are the same as the basic earnings
per share because the potential ordinary shares to be converted are
anti-dilutive as the effect of the share conversion would be to
increase the earnings per share.
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
8. Net Asset Value
Group Company
30 Jun 2022 31 Dec 2021 30 Jun 2022 31 Dec 2021
US$ US$ US$ US$
------------ ------------ ------------ ------------
Net asset value per ordinary share based on issued share 16.22 cents 17.44 cents 15.42 cents 15.51 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
2022
Cost
Balance at 1 January
and 30 June 16 2,674 4,834 7,524
Amortisation and impairment
Balance at 1 January 16 1,043 4,767 5,826
Amortisation charge - 74 67 141
Currency realignment - 4 - 4
-------- ------------- ------------- --------
Balance at 30 June 16 1,121 4,834 5,971
-------- ------------- ------------- --------
Net book value
Balance at 30 June - 1,553 - 1,553
======== ============= ============= ========
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
======== ============= ============= ========
10. Goodwill
Group
30 June 2022 31 December
2021
US$'000 US$'000
Cost
Balance at the beginning and end
of the period 9,352 9,352
============= ============
Allowance for impairment loss
Balance at the beginning and end
of the period 3,260 3,260
Net carrying amount 6,092 6,092
============= ============
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
11. Goodwill (cont'd)
11.1 Allocation of goodwill
Goodwill has been allocated to the Group's cash generating unit
("CGU") identified according to the business segment as
follows:
Group
30 June 2022 31 December
2021
US$'000 US$'000
Satellite Communications
- OnePath Networks Limited ("OPN")
- Israel 893 893
- Satellite Acquisition Corporation
("SAC") - United States of America 5,199 5,199
------------- ------------
6,092 6,092
============= ============
12. Property, Plant and Equipment
Furniture,
Machinery fittings
Freehold & & Motor
property equipment equipment vehicles Renovations Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Group
2022
Cost
Balance at 1 January 2,871 17,907 7,813 40 1,438 30,069
Currency realignment - 3 (2) - (1) -
Additions - 240 11 - - 251
Disposals - (159) (2) - - (161)
Balance at 30
June 2,871 17,991 7,820 40 1,437 30,159
--------- ---------- ----------- --------- ------------ --------
Accumulated
Depreciation
Balance at 1 January 960 12,523 7,244 40 1,176 21,943
Currency realignment - (10) (2) - (1) (13)
Depreciation charge - 873 21 - 1 895
Disposals - (159) (2) - - (161)
Balance at 30
June 960 13,227 7,261 40 1,176 22,664
--------- ---------- ----------- --------- ------------ --------
Net book value
Balance at 30
June 1,911 4,764 559 - 261 7,495
========= ========== =========== ========= ============ ========
2021
Cost
Balance at 1 January 2,883 17,639 7,649 40 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 7,813 40 1,438 30,069
--------- ---------- ----------- --------- ------------ --------
Accumulated
Depreciation
Balance at 1 January 928 11,187 6,969 40 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 7,244 40 1,176 21,943
--------- ---------- ----------- --------- ------------ --------
Net book value
Balance at 31
December 1,911 5,384 569 - 262 8,126
========= ========== =========== ========= ============ ========
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
12. Property, Plant and Equipment (cont'd)
Furniture,
fittings
&
equipment Renovations Total
US$'000 US$'000 US$'000
Company
2022
Cost
Balance at 1 January and 30 June 211 80 291
Accumulated depreciation
Balance at 1 January 192 79 271
Depreciation charge 19 1 20
Balance at 30 June 211 80 291
----------- ------------ --------
Net book value
Balance at 30 June - - -
=========== ============ ========
2021
Cost
Balance at 1 January and 31 December 211 80 291
----------- ------------ --------
Accumulated depreciation
Balance at 1 January 137 72 209
Depreciation charge 55 7 62
Balance at 31 December 192 79 271
----------- ------------ --------
Net book value
Balance at 31 December 19 1 20
=========== ============ ========
13. Investment in Subsidiaries
Company
30 Jun 31 Dec
2022 2021
US$'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) (16,014)
25,375 25,375
========= =========
Movement in the allowance for impairment
loss are as follows:
At the beginning of the period 16,014 14,287
Impairment loss recognised during the period - 1,727
--------- ---------
At the end of the period 16,014 16,014
========= =========
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
13. Investment in Subsidiaries (cont'd)
Allowance for impairment loss
(i) Global Invacom Manufacturing Pte Ltd ("GIMPL")
As at 30 June 2022 and 31 December 2021, an allowance for
impairment loss of US$8,648,000 was made on the cost of investment
in GIMPL, as the allocated CGU, to which the investment relates to,
was incurring losses from operations due to the restructuring costs
incurred. The recoverable amount was based on management's estimate
of the fair value less costs to sell, with reference to the fair
value of the net assets of GIMPL, which is considered to be Level 3
in the fair value hierarchy.
(ii) Global Invacom Holdings Limited and its subsidiaries ("GIHL Group")
As at 30 June 2022 and 31 December 2021, an allowance for
impairment loss of US$7,366,000 was made on the cost of investment
in GIHL Group, as the allocated CGU, to which the investment
relates to, was incurring losses from operations. The recoverable
amount was based on management's estimate of the fair value less
costs to sell, with reference to the fair value of the net assets
of GIHL Group, which is considered to be Level 3 in the fair value
hierarchy.
14. Borrowings
Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 30 Jun 2022 As at 31 Dec 2021
Secured Unsecured Secured Unsecured
--------- -------- ---------
US$'000 US$'000 US$'000 US$'000
--------- -------- ---------
5,714 - 6,120 -
--------- -------- ---------
Amount repayable after one year
As at 30 Jun 2022 As at 31 Dec 2021
Secured Unsecured Secured Unsecured
--------- -------- ---------
US$'000 US$'000 US$'000 US$'000
--------- -------- ---------
- - - -
--------- -------- ---------
The revolving credit loans of US$5,714,000 were secured over the
assets of the subsidiaries and corporate guarantees provided by the
Company and the subsidiaries.
15. Share Capital
1H FY2022 No. of shares US$'000
Balance as at 1 Jan 2022 and 30 Jun
2022 271,662,227 72,584
-------------------- -----------
1H FY2021 No. of shares US$'000
Balance as at 1 Jan 2021 and 30 Jun
2021 271,662,227 72,584
-------------------- -----------
There were 10,740,072 treasury shares held by the Company as at
30 June 2022 and 30 June 2021 and there were no subsidiary
holdings.
E. Notes to the Condensed Interim Consolidated Financial Statements (cont'd)
15. Share Capital (cont'd)
Total number of issued shares excluding treasury shares as at
the end of the current financial period and as at the end of the
immediately preceding year:
30 Jun 2022 31 Dec 2021
Total number of issued shares excluding treasury shares 271,662,227 271,662,227
------------ ------------
Total number of treasury shares as at the end of the current
financial period reported on:
1H FY2022 No. of shares US$'000
Balance as at 1 Jan 2022 and 30 Jun
2022 10,740,072 1,656
-------------- --------
16. Subsequent events
There are no known subsequent events which have led to
adjustments to this set of interim financial statements.
F. Other Information Required by Listing Rule Appendix 7.2
1. Review
The condensed consolidated statement of financial position of
Global Invacom Group Limited and its subsidiaries as at 30 June
2022 and the related condensed interim consolidated statement of
comprehensive income, condensed interim statements of financial
position, condensed interim consolidated statement of changes in
equity and condensed interim consolidated statement of cash flows
for the six-month period then ended and certain explanatory notes
have not been audited or reviewed by the auditors.
2. Review of Performance of the Group
2.1 Review of Financial Performance
Revenue
T he Group's revenue for the six months ended 30 June 2022 ("1H
FY2022") decreased by 7.5% to US$37.4 million from US$40.4 million
in the prior year ("1H FY2021"). The ongoing shortage of
semiconductors globally and the delay in the launch of Jupiter 3
continues to impact the Group's ability to satisfy existing orders
and generate associated additional revenue.
Geographically, the Group's revenue for 1H FY2022 decreased in
America by US$5.8 million (-24.9%), partially offset by an increase
in Europe, Asia and Rest of the World by US$0.5 million (+4.5%),
US$0.01 million (+0.8%) and US$2.3 million (+44.4%),
respectively.
Gross Profit
The decrease in revenue has resulted in a 16.1% decrease in
gross profit from US$8.8 million in 1H FY2021 to US$7.4 million in
1H FY2022. Gross profit margin has decreased marginally by 2 .0
percentage points from 21.7% to 19 .7 %, impacted by cost price
increases, compounded by labour shortages.
Other Income
Other income in 1H FY2022 were mainly from gains on the disposal
of equipment and foreign exchange gains. Other income in 1H FY2021
were mainly from gains on the disposal of equipment of US$1.1
million, gain on lease modifications of US$0.2 million, with the
remainder comprised subsidy support received from various
government bodies across the Group due to the pandemic.
Administrative and Research and Development Expenses
Administrative expenses, together with research and development
expenses, for 1H FY2022 decreased 7.4% to US$10.1 million compared
to US$10.9 million in 1H FY2021, representing 26.9% of revenue in
both periods. The ongoing cost control measures across the Group to
streamline certain core functions, in line with the challenging
market dynamics, have resulted in lower administrative expenses
being incurred, whilst not impacting its offering to the
customers.
Other Operating Expenses
Other operating expenses in 1H FY2022 were attributed mainly to
impairment loss on trade receivables and final liquidation fees of
a subsidiary in China.
Loss Before Tax & Net Loss
The Group posted a loss before tax of US$3.3 million in 1H
FY2022, compared to a loss before tax of US$1.1 million in 1H
FY2021.
Overall, the Group posted a net loss of US$3.3 million in 1H
FY2022, compared to a net loss of US$1.2 million in 1H FY2021.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
2. Review of Performance of the Group (cont'd)
2.2 Review of Financial Position
Non-current assets decreased by US$1.6 million to US$20.6
million as at 30 June 2022, due to the depreciation of plant and
equipment, the right-of-use assets and the amortisation of
intangible assets.
Net current assets decreased by US$1.9 million to US$27.2
million as at 30 June 2022 compared to US$29.1 million as at 31
December 2021. Inventories, trade and other receivables and trade
and other payables decreased by US$0.6 million, US$3.9 million and
US$2.3 million respectively, with the decrease in sales. Tax
receivables increased by US$0.1 million to US$0.2 million.
Cash and cash equivalents decreased by US$0.8 million to US$10.0
million as at 30 June 2022 from US$10.8 million at 31 December 2021
and borrowings decreased by US$0.4 million to US$5.7 million as at
30 June 2022 from US$6.1 million as at 31 December 2021.
Repayment of leases has resulted in a decrease of US$0.6 million
in the current portion of lease liabilities and US$0.2 million in
the non-current portion of lease liabilities.
The Group's net asset value stood at US$44.1 million as at 30
June 2022, compared to US$47.4 million as at 31 December 2021.
2.3 Review of Cash Flows
In 1H FY2022, net cash generated from operating activities
amounted to US$0.8 million, comprising US$0.8 million cash outflow
from operating activities (before working capital changes), US$1.9
million net working capital inflow and US$0.3 million payment of
interest and income tax.
Net cash used in investing activities in 1H FY2022 amounted to
US$0.3 million, mainly due to the purchase of machinery and
equipment, set off against the proceeds from the disposal of
machinery and equipment.
Net cash used in financing activities amounted to US$1.3 million
in 1H FY2022, attributable to the repayment of borrowings and lease
liabilities.
Overall, the Group recorded a net decrease in cash and cash
equivalents amounting to US$0.8 million in 1H FY2022, bringing cash
and cash equivalents per the consolidated statement of cash flows
to US$10.0 million as at 30 June 2022.
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 Group's financial and operational performance in the next
reporting period and the next 12 months will continue to be
influenced by the much-publicised shortage of semiconductors
globally, which continues to impact the Company's ability to
satisfy existing orders and generate associated additional revenue.
Furthermore, the Group continues to be impacted by cost price
increases, compounded by labour challenges a s well as business
challenges faced by our customers .
As a direct consequence of the above external factors, the Group
continues to assess its cost base to streamline certain core
functions and continues to reduce administrative costs, whilst not
impacting its offering to customers.
Given the market challenges that the Group has faced over the
past two years and what may become "new normals", the Group has
embarked on a business review exercise, to better manage our
operations, and to improve the performance of the Group.
5. Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported
on?
None.
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the
immediately preceding financial year?
None.
(c) Date payable
Not applicable.
(d) Books closure date
Not applicable.
6. If no dividend has been declared/recommended, a statement to
that effect and the reason(s) for the decision.
Due to the operating conditions faced by the Group, no dividend
has been declared or recommended for the six months ended 30 June
2022.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
7. If the Group has obtained a general mandate from shareholders
for Interested Person Transactions ("IPTs"), the aggregate value of
such transactions as required under Rule 920(1)(a)(ii). If no IPTs
mandate has been obtained, a statement to that effect.
The Company does not have a shareholders' mandate for IPTs for
the six months ended 30 June 2022.
CONFIRMATION PURSUANT TO RULE 705(5) OF THE LISTING MANUAL
We do hereby confirm, for and on behalf of the Board of Global
Invacom Group Limited (the "Company"), that to the best of our
knowledge, nothing has come to the attention of the Board of the
Company which may render the financial results for the six months
ended 30 June 2022 to be false or misleading in any material
aspect.
CONFIRMATION PURSUANT TO RULE 720(1) OF THE LISTING MANUAL
Global Invacom Group Limited confirms that undertakings under
Rule 720(1) have been obtained from all its directors and executive
officers in the format set out in Appendix 7.7.
On behalf of the Board
Anthony Brian Taylor Gordon Blaikie
Executive Director Executive Director
BY ORDER OF THE BOARD
Anthony Brian Taylor
Executive Chairman
12 August 2022
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
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END
IR GIGDICSBDGDB
(END) Dow Jones Newswires
August 12, 2022 02:00 ET (06:00 GMT)
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