LONDON (Alliance News) - Satellite communications company Global Invacom Group Ltd on Friday said its annual profit fell sharply due to higher administrative expenses and a smaller contribution from other income the year before.
Global Invacom posted a pretax profit down 44% at USD2.1 million compared to USD3.7 million in 2017.
One factor was administrative expenses, which increased 9.4% to USD22.9 million from USD21.0 million. Other income in 2018 came to USD569,000, a drop of 57% from USD1.3 million due to substantial gains on foreign exchange the year before.
Revenue increased 5.7% to USD122.3 million from USD115.7 million in 2017.
The company was enthusiastic about its future and predicted continued growth in the use of satellites.
Executive Chair Tony Taylor said: "Notwithstanding the slower pace of the transition to DCSS products, growth of the satellite communications equipment market will continue. With the emerging trends of the internet of things, 5G and autonomous vehicles, satellite communications technology will continue to be a vital part of modern society, and we are in a good position to capitalise on the growing demand in this market.
"We will continue to build on our foundation as the leading global manufacturer of satellite equipment by developing new and innovative products that address the customer's needs."
The company announced in late October its intends to acquire Tactilis Sdn Bhd, which makes and distributes a biometric card management system, for USD200 million.
The system enables identity authentication using biometric data such as fingerprints. Global Invacom said it will provide updates "in due course".
Global Invacom's shares are currently suspended as this acquisition is considered to be a reverse takeover under AIM rules.