LONDON (Alliance News) - Satellite communications equipment provider Global Invacom Group Ltd on Tuesday said it does not believe the UK's decision to leave the European Union will have a significant short-term impact on the satellite communications market.
Global Invacom said the fall in sterling which has accompanied the Brexit vote is expected to provide a translational benefit to its near- and medium-term results. The company incurs a significant portion of costs in sterling but nearly all its satellite communications equipment revenue is denominated in dollars, meaning it should benefit from sterling weakness.
The company said depending on the outcome of the UK's talks with the EU on its exit, it may consider establishing a logistics hub in an EU country in order to continue tariff-free transactions under a possible free trade agreement between the UK and EU.
"The group will continue to assess the implications following the outcome of the British referendum and will keep shareholders informed of any material developments that could impact the business," Global Invacom added.
Shares in Global Invacom were untraded on Tuesday, having last traded at 8.85 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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