LONDON (Alliance News) - Singapore-based satellite-equipment company Global Invacom Group Ltd on Thursday reported a fall in pretax profit for 2014 as higher costs and weaker margins dragged on a rise in revenue.
Pretax profit for the year to the end of December was USD5.1 million, down from USD8 million last year.
Revenue for the year increased to USD134.1 million from USD115.8 million but gross profit was held back by a weakening in gross profit margin in the year to 23.7% from 25.2%. Pretax profit also was damped by a rise in administrative expenses over the year, up to USD25.5 million from USD20.5 million.
The margin was hit by a higher proportion of lower-margin sales and de-stocking of inventory for a major customer in the fourth quarter, ahead of the roll out of new technology in 2015, Global Invacom said.
Despite the squeezed profit, the company declared a dividend of 0.525 Singapore cents per share for the year.
Shares in Global Invacom were down 5.2% to 18.486 pence Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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