LONDON (Alliance News) - Satellite equipment company Global Invacom Group Ltd shares fell in early trade Wednesday after it said it expects to swing to a net loss in the first half.
The Singapore-based company said it expects to post a net loss of USD2.5 million to USD3.0 million for the six months to the end of June, compared to the USD4.3 million profit it posted a year earlier.
The loss has been driven by delays to sales to major customers in the UK, US and Asia and by an impact on its gross margin due to the reclassification of export taxes on certain products, a weaker Malaysian ringgit against the dollar and operational issues.
The company also will book one-off charges related to a legal dispute in the UK and related to the restructuring of its UK and Shanghai facilities.
Global Invacom shares were down 21% to 13.225 pence on Wednesday, one of the worst performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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