LONDON (Alliance News) - Global Invacom Group Ltd on Friday said its profit declined significantly in the first half of 2018, hit by a slowdown in US orders and project delays.
The satellite communications equipment provider reported pretax profit of USD796,000 for the six months to the end of June, down by more than half compared to the USD1.9 million profit posted a year earlier, as revenue fell 3.5% to USD55.4 million from USD57.4 million.
Administrative expenses rose 2.9% to USD10.6 million from USD10.3 million a year before, reflecting higher spent on research & development of new initiatives and projects.
Global Invacom also booked a one-off write-back of USD600,000 following the closure of the non-core subcontracting site in the first half of 2017.
The result was hurt by slowdown in orders from key customers in the US and delays in projects involving very small aperture terminals, the company said.
Geographically, Global Invacom revenue increased 37% in Europe, although this was offset by reductions in the US, Asia and Rest of the World by 8.5%, 17% and 55%, respectively.
Looking forward, the company said it expects to roll out more advanced satellite broadcasting products in Europe to meet growing demand.
"The satellite ground equipment sector is undergoing a once-in-a-decade technological shift, and the company is very well placed to benefit," said Executive Chairman Tony Taylor.
"We have laid strong foundations in the first half of the year which will allow the group to build momentum through the second half of 2018 and beyond," added Taylor.
Shares in Global Invacom were untraded on Friday, last quoted at 6.00 pence each.