(Sharecast News) - Satellite communications firm Global Invacom said on Wednesday that it expects to record a net loss for the first half of its trading year due to higher operating and material costs associated with the ongoing Covid-19 pandemic.
Global Invacom anticipates a net loss of approximately $1.2m in the first half, compared to a net profit of $300,000 at the same time a year earlier, while interim group revenues were projected to be approximately $40.4m, down from $52.8m in the first half of 2020.
The AIM-listed group said its financial performance reflected "broader macroeconomic challenges" and ongoing Covid-19 impacts.
"The much-publicised disruption to supply chains and problems with the availability of key products, including semiconductors and capacitors, continues to disrupt the group's operations," said Global Invacom.
"Furthermore, the group has also been impacted by inefficiencies within the group's supply chain, and the global transportation of products from the manufacturing facility to customer sites."
However, despite the current challenges, Global Invacom stated it was "well-placed" to capitalise on expected growth in its core DOS market and believes its products had "a key role to play" in the provision of connectivity as restrictions ease, supply chains recover and demand starts to normalise.
As of 0820 BST, Global Invacom shares were down 7.69% at 6.0p.
19 Oct 2023 15:46