TIDMGINV
RNS Number : 4880H
Global Invacom Group Limited
24 November 2022
Global Invacom Group Limited
("Global Invacom", the "Company" or the "Group")
Trading Update for the Nine Months Ended 30 September 2022
&
Implementation of an Internal Operational Review
Singapore/London, 24 November 2022 - Global Invacom (SGX: QS9)
(AIM: GINV), the global provider of satellite communications
equipment and electronics, announces a trading update for the nine
months ended 30 September 2022 ("Q3 FY2022"), alongside the
implementation of an internal review of operations ("the
Review").
The Company continues to be impacted by the residual effects of
Covid-19 on global supply chains, which has had a profound impact
on the availability of semiconductors, alongside the much
publicised increase in both raw material and transportation costs.
This, alongside a more recent decline in demand for satellite
television products, and unforeseen delays in the completion of our
XRJ product which delivers cutting edge Ka-Band VSAT capabilities
with an integrated transceiver and receiver for land and marine
applications using low-Earth, mid-Earth and geostationary
satellites, has further impacted the Group's financial
performance.
As a result of the above headwinds, the Group expects the
financial performance of the Group to be impacted in the current
financial year as evidenced by a preliminary review of the Group's
unaudited results to the end of Q3 FY2022. In this period, which
the Company does not anticipate disclosing again going forward,
Global Invacom delivered revenues of approximately US$56.5 million
(Q3 FY2021: US$62.6 million) and an EBITDA loss of approximately
US$2.4 million (Q3 FY2021: US$1.4 million profit).
As at 30 September 2022, the Group had cash of US$10.4 million
(30 September 2021: US$10.7 million) and net cash of US$4.2 million
(30 September 2021: US$4.7 million).
Therefore, the Board has sought to reduce the Group's fixed cost
base by outsourcing the manufacturing of a range of products to a
strategic partner in the Philippines. This has enabled the Group to
reduce costs within its China operations and simplify the corporate
structure.
In addition, the Board has now implemented an operational review
of the broader business, with the aim of creating a more robust
operational platform.
Central to the Review will be for Global Invacom to potentially
deliver greater shareholder value by leveraging its global customer
base value through the development of technological solutions for
the satellite industry.
The Review will consider the operational structure and
management of the business. In addition, management will evaluate
the supply chain in order to maximise efficiencies and cost
savings, assess the Group's go-to-market strategy, alongside a
commercial assessment of both existing and new products to ensure
the Group is ideally positioned for growth.
The Group continues to work closely with a number of its key
customers and is beginning to see encouraging signs of renewed
activity. Although the lead time on these opportunities may vary,
the Board currently anticipates that they will underpin our revenue
growth in the medium term.
A presentation for investors will be available to download from
the Company's website at: https://globalinvacom.com/pages/downloads
.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic
law.
In accordance with SGX market practice, the Board of Directors
of the Company wishes to advise the shareholders and investors of
the Company to exercise caution when dealing in the shares of the
Company. In the event of any doubt, they should consult their
stockbrokers, bank managers, solicitors, accountants or other
professional advisers.
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 / Richard Johnson / Rob Tel: +44 20 7409
Patrick 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
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END
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