23 Feb 2017 07:00
Singapore and U.K. AIM Market-listed Global Invacom Group Announces FY2016 Results
· | Revenue US$127.3 million (FY2015: US$129.1 million) including first full-year contributions from U.S. subsidiary Global Skyware |
· | Gross profit improved 4.5% to US$26.0 million (FY2015: US$24.9 million) |
· | Gross profit margin improved to 20.4% (FY2015: 19.3%) |
· | Loss after tax US$2.7 million following restructuring of Chinese manufacturing facilities (2015: US$1.1 million loss) |
Singapore, 23 February 2017 - Global Invacom Group Limited ("Global Invacom" or "the Group"), a satellite communications ("Sat Comms") equipment provider listed on the Singapore Exchange and the U.K. AIM Market, today announces its results for the twelve months ended 31 December 2016 ("FY2016").
The Group generated revenue of US$127.3 million for FY2016 (FY2015: US$129.1 million) on maiden full-year contributions from U.S. subsidiary, Satellite Acquisition Corporation (trading as "Global Skyware"), which designs and manufactures antennas for Broadband, Satellite and Very Small Aperture Terminals covering C-band, Ku-band and Ka-band frequency platforms. Global Invacom completed the acquisition of Global Skyware on 24 August 2015.
FY2016 revenue from America increased 11.1% to US$84.5 million, representing 66.4% of global revenue. This was offset by lower revenue from Europe, Asia and the Rest of the World of US$3.0 million (-8.8%), US$5.7 million (-41.2%) and US$1.5 million (-28.4%), respectively.
The Group's revenue in the first half of FY2016 ("1H FY2016") was affected by major customers continuing their destocking actions of the previous financial year, driven by a technological change that usually occurs every decade, although orders had resumed in 2H FY2015.
Gross profit for FY2016 improved 4.5% to US$26.0 million from US$24.9 million in FY2015. More importantly, gross profit margin improved to 20.4% in FY2016 from 19.3% in FY2015 due to a favourable sales mix of products, improved efficiencies and tighter factory cost control.
Administrative expenses declined 9.0% to US$26.4 million in FY2016 from US$29.0 million in FY2015. The FY2016 expenses include costs related to the consolidation of the Group's China activities under the Group's wholly owned Shanghai subsidiary, as announced on 22 December 2016. The expenses included one-off labour compensation of US$2.3 million for employees of the Shenzhen subsidiary, which has since ceased operation.
In line with its performance guidance announced on 22 December 2016, the Group recorded a net loss of US$2.7 million for FY2016 (FY2015: net loss of US$1.1 million). Loss per share on a fully diluted basis was 1.00 U.S. cent in FY2016, while net asset value per share was 19.26 U.S. cents as at 31 December 2016.
Cash and cash equivalents as at 31 December 2016 stood at US$7.9 million. Net cash generated from operating activities was US$3.2 million compared to US$0.5 million used in operating activities for FY2015; offset by the purchase of property, plant and equipment and the repayment of shareholder loans.
For the three months ended 31 December 2016 ("Q4 FY2016"), the Group recorded revenue of US$31.0 million, down from US$42.9 million a year earlier. The difference was largely driven by an unexpectedly high demand for product from one of the Group's largest customers in Q4 FY2015 which was not repeated in FY2016, and the delay in the launch of a new satellite to 2017.
The Group generated a net loss of US$3.0 million for Q4 FY2016 compared to a net profit of US$4.4 million for Q4 FY2015. Excluding the Q4 FY2015 one-off upside release of a US$5.0 million contingent consideration payable related to the Global Skyware acquisition, and reversing the Shenzhen compensation payment and impairment in FY2016, the Group's net loss would have narrowed to US$0.5 million in Q4 FY2016, compared to a similar loss after tax of US$0.6 million in Q4 FY2015.
The Group has completed the first phase of research and development for next-generation Low Noise Block ("LNB") products that support digital channel stacking switch ("DCSS") technology, and commenced supplying these products to its largest customer in Q4 FY2016. The Group expects to continue development and roll out DCSS-generation LNBs for other customers and territories during the financial year ending 31 December 2017.
Recent political changes around the world may have an impact on international trade and the Group is monitoring these developments and investigating ways to mitigate any impact on its activities.
Mr Tony Taylor, Executive Chairman of Global Invacom, said: "As part of our continued pursuit of global leadership in the research and production of Sat Comms equipment, we spent much of FY2016 focused on strengthening our global manufacturing supply chain. We will continue investing in manufacturing automation and product innovation to streamline cost efficiencies and generate long-term value for our shareholders."
"While the consolidation of our China operations has affected our bottom line in the year under review, this will yield long-term benefits as we integrate the products from the Shenzhen subsidiary - which has since ceased operation - into the Shanghai subsidiary's strategic location and superior facilities, giving a larger revenue base over which to spread the manufacturing overheads," he added.
**End of Press Release**
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
For media queries, please contact
Matthew Garner
Chief Financial Officer
Global Invacom Group Limited
8 Temasek Boulevard #20-03 Suntec Tower Three Singapore 038988 +65 6884 3423 | Freeman House John Roberts Business Park Canterbury CT5 3BJ +44 203 053 3523 |
On behalf of Global Invacom Group Limited:
finnCap Ltd (Nominated Adviser and Joint Broker)
Christopher Raggett/Simon Hicks (Corporate Finance)
Rhys Williams (Corporate Broking and Sales)
+44 207 220 0500
Mirabaud Securities LLP (Joint Broker)
Peter Krens (Equity Capital Markets)
+44 207 878 3362
Bell Pottinger LLP (UK Financial PR)
David Rydell / Joanna Davidson
+44 203203 772 2500
WeR1 Consultants Pte Ltd (Singapore Financial PR)
Grace Yew, graceyew@wer1.net
Wendy Sim, wendysim@wer1.net
+65 6737 4844
About Global Invacom Group Limited
Global Invacom Group Limited ("Global Invacom") is listed on the Singapore Exchange Securities Trading Limited Mainboard ("SGX-ST") and its shares are admitted to trading on the AIM Market of the London Stock Exchange in the U.K.
Global Invacom is a fully integrated satellite equipment provider with seven manufacturing plants across China, Israel, Malaysia, U.K. and the U.S. Its customers include satellite broadcasters such as BSkyB of the U.K. and Dish Network of the U.S.A.
On 24 August 2015, Global Invacom completed the acquisition of Global Skyware, a leading U.S.-based designer and supplier of satellite antennas products and services for C-band, Ku-band and Ka-band frequency platforms, positioning itself as the world's only full-service outdoor unit supplier.
Global Invacom provides a full range of dish antennas, LNB receivers, transmitters, switches and video distribution components and electronics manufacturing services in satellite communications as well as manufacturing services in TV peripherals, computer peripherals, medical, and consumer electronics industries.
For more information, please refer to www.globalinvacom.com
FINANCIAL STATEMENT ANNOUNCEMENT FOR Q4 AND YEAR ENDED 31 DECEMBER 2016
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS
1(a) A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.
Consolidated Statement of Comprehensive Income for Q4 and the year ended 31 December 2016. These figures have not been audited.
| Group | Group | ||||||
Q4 FY2016 | Q4 FY2015 | Increase/(Decrease) | FY2016 | FY2015 | Increase/ (Decrease) | ||
US$'000 | US$'000 | % | US$'000 | US$'000 | % | ||
Revenue | 30,965 | 42,945 | (27.9) | 127,308 | 129,107 | (1.4) | |
Cost of sales | (25,155) | (35,471) | (29.1) | (101,283) | (104,210) | (2.8) | |
Gross profit | 5,810 | 7,474 | (22.3) | 26,025 | 24,897 | 4.5 | |
Other income | 358 | 4,982 | (92.8) | 375 | 5,175 | (92.8) | |
Distribution costs | (76) | (319) | (76.2) | (308) | (592) | (48.0) | |
Administrative expenses | (7,869) | (6,674) | 17.9 | (26,395) | (28,996) | (9.0) | |
Other operating expenses | (602) | (1,497) | (59.8) | (689) | (1,538) | (55.2) | |
Finance income | 4 | 2 | 100.0 | 17 | 17 | - | |
Finance costs | (21) | (162) | (87.0) | (572) | (256) | 123.4 | |
(Loss)/Profit before income tax(i) | (2,396) | 3,806 | N.M. | (1,547) | (1,293) | 19.6 | |
|
|
| |||||
Income tax (expense)/credit | (576) | 617 | N.M. | (1,156) | 165 | N.M. | |
(Loss)/Profit after income tax attributable to equity holders of the Company |
(2,972) |
4,423 |
N.M. |
(2,703) |
(1,128) |
139.6 | |
Other comprehensive income/(loss): | |||||||
Items that may be reclassified subsequently to profit or loss |
|
| |||||
Exchange differences on translation of foreign subsidiaries | 64 | 74 | (13.5) | 295 | (921) | N.M. | |
Items that may not be reclassified subsequently to profit or loss | - | - | - | - |
- |
- | |
Other comprehensive income/(loss) for the period, net of tax | 64 | 74 | (13.5) | 295 | (921) |
N.M. | |
Total comprehensive (loss)/income for the period attributable to equity holders of the Company | (2,908) | 4,497 |
N.M. | (2,408) | (2,049) |
17.5 |
N.M.: Not Meaningful
Note:
(i) Profit/(Loss) before income tax was determined after (charging)/crediting the following:
Group | Group | ||||||
Q4 FY2016 | Q4 FY2015 | Increase/(Decrease) | FY2016 | FY2015 | Increase/ (Decrease) | ||
US$'000 | US$'000 | % | US$'000 | US$'000 | % | ||
Interest income | 4 | 2 | 100.0 | 17 | 17 | - | |
Write-back of contingent consideration payable | - | 5,000 | (100.0) | - | 5,000 | (100.0) | |
Interest expense | (21) | (162) | (87.0) | (572) | (256) | 123.4 | |
Depreciation of property, plant and equipment | (603) | (525) | 14.9 | (2,478) | (1,919) | 29.1 | |
Loss on disposal of property, plant and equipment | (7) | (17) | (58.8) | (7) | (58) | (87.9) | |
Impairment of property, plant and equipment | (139) | - | N.M. | (139) | - | N.M. | |
Write-back/(Allowance) for inventory obsolescence | 28 | (159) | N.M. | (455) | (449) | 1.3 | |
Write-back/(Allowance) of impairment of trade receivables | 355 | (359) | N.M. | 355 | (359) | N.M. | |
Write-off of trade receivables | (363) | - | N.M. | (363) | - | N.M. | |
Amortisation of intangible assets | (198) | (126) | 57.1 | (314) | (431) | (27.1) | |
Impairment of intangible assets | - | (1,121) | (100.0) | - | (1,121) | (100.0) | |
(Loss)/Gain on foreign exchange | (93) | (17) | 447.1 | (180) | 154 | N.M. | |
Operating lease expense | (468) | (761) | (38.5) | (2,969) | (1,973) | 50.5 | |
Research and development expense | (475) | (482) | (1.5) | (1,652) | (1,082) | 52.7 | |
Restructuring costs | (2,316) | - | N.M. | (2,316) | - | N.M. | |
1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
| Group | Company | ||||
31 Dec 2016 | 31 Dec 2015 | 31 Dec 2016 | 31 Dec 2015 | |||
US$'000 | US$'000 | US$'000 | US$'000 | |||
ASSETS | ||||||
Non-current Assets | ||||||
Property, plant and equipment | 13,177 | 13,896 | 4 | 1 | ||
Investments in subsidiaries | - | - | 53,415 | 53,155 | ||
Goodwill | 9,352 | 9,352 | - | - | ||
Intangible assets | 2,828 | 3,069 | - | - | ||
Available-for-sale financial assets | 8 | 8 | - | - | ||
Deferred tax assets | 355 | 723 | - | - | ||
Other receivables and prepayments | 55 | 56 | - | 8,262 | ||
25,775 | 27,104 | 53,419 | 61,418 | |||
Current Assets | ||||||
Due from subsidiaries | - | - | 867 | 139 | ||
Inventories | 28,841 | 27,859 | - | - | ||
Trade receivables | 16,934 | 21,306 | - | - | ||
Other receivables and prepayments | 3,110 | 3,973 | 11,202 | 5,705 | ||
Tax receivables | 1,002 | 431 | - | - | ||
Cash and cash equivalents | 7,942 | 8,866 | 1,251 | 1,637 | ||
57,829 | 62,435 | 13,320 | 7,481 | |||
Total assets | 83,604 | 89,539 | 66,739 | 68,899 | ||
EQUITY AND LIABILITIES | ||||||
Equity | ||||||
Share capital | 60,423 | 60,423 | 74,240 | 74,240 | ||
Treasury shares | (1,656) | (1,656) | (1,656) | (1,656) | ||
Reserves | (6,453) | (4,305) | (12,929) | (11,202) | ||
Total equity | 52,314 | 54,462 | 59,655 | 61,382 | ||
Non-current Liabilities | ||||||
Other payables | 1,222 | 1,333 | - | - | ||
Deferred tax liabilities | 681 | 171 | - | - | ||
1,903 | 1,504 |
| - | - | ||
Current Liabilities | ||||||
Due to subsidiaries | - | - | 6,820 | 4,653 | ||
Trade payables | 16,602 | 19,392 | - | - | ||
Other payables | 6,323 | 8,524 | 196 | 2,779 | ||
Borrowings | 6,108 | 5,348 | - | - | ||
Provision for income tax | 354 | 309 |
| 68 | 85 | |
29,387 | 33,573 | 7,084 | 7,517 | |||
Total liabilities | 31,290 | 35,077 | 7,084 | 7,517 | ||
Total equity and liabilities | 83,604 | 89,539 | 66,739 | 68,899 | ||
1(b)(ii) Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 31 Dec 2016 | As at 31 Dec 2015 | ||||
Secured | Unsecured | Secured | Unsecured | ||
US$'000 | US$'000 | US$'000 | US$'000 | ||
6,108 | - | 5,348 | - | ||
Amount repayable after one year
As at 31 Dec 2016 | As at 31 Dec 2015 | ||||
Secured | Unsecured | Secured | Unsecured | ||
US$'000 | US$'000 | US$'000 | US$'000 | ||
- | - | - | - | ||
Details of any collateral
The loans of US$6,108,000 were secured over the subsidiaries' bank deposit of US$200,000, cash collateral of US$1,000,000 and corporate guarantees provided by the Company.
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
| Group | Group | |||||
Q4 FY2016 | Q4 FY2015 | FY2016 | FY2015 | |||
US$'000 | US$'000 | US$'000 | US$'000 | |||
Cash Flows from Operating Activities | ||||||
(Loss)/Profit before income tax | (2,396) | 3,806 | (1,547) | (1,293) | ||
Adjustments for: | ||||||
Depreciation of property, plant and equipment | 603 | 525 | 2,478 | 1,919 | ||
Amortisation of intangible assets | 198 | 126 | 314 | 431 | ||
Loss on disposal of property, plant and equipment | 7 | 17 | 7 | 58 | ||
Impairment of property, plant and equipment | 139 | - | 139 | - | ||
(Write-back)/Allowance for inventory obsolescence | (28) | 159 | 455 | 449 | ||
(Write-back)/Impairment of allowance for trade receivables | (355) | 359 | (355) | 359 | ||
Write-off of trade receivables | 363 | - | 363 | - | ||
Provision for litigation | 241 | - | 241 | - | ||
Unrealised exchange loss | 210 | 676 | 140 | 221 | ||
Interest income | (4) | (2) | (17) | (17) | ||
Interest expense | 21 | 162 | 572 | 256 | ||
Share-based payments | 42 | 88 | 260 | 222 | ||
Write-back of contingent consideration payable | - | (5,000) | - | (5,000) | ||
Impairment of intangible assets | - | 1,121 | - | 1,121 | ||
Operating cash flow before working capital changes | (959) | 2,037 | 3,050 | (1,274) | ||
Changes in working capital: | ||||||
Inventories | 365 | 5,004 | (1,437) | 5,584 | ||
Trade receivables | 743 | 74 | 4,224 | 409 | ||
Other receivables and prepayments | 341 | (92) | 857 | (757) | ||
Trade and other payables | (1,543) | (4,857) | (2,011) | (3,234) | ||
Cash (used in)/generated from operating activities | (1,053) | 2,166 | 4,683 | 728 | ||
Interest paid | (128) | (162) | (662) | (256) | ||
Income tax paid | (312) | (319) | (825) | (986) | ||
Net cash (used in)/generated from operating activities | (1,493) | 1,685 | 3,196 | (514) | ||
Cash Flows from Investing Activities | ||||||
Interest received | 10 | 2 | 23 | 17 | ||
Purchase of property, plant and equipment | (517) | (402) | (1,888) | (737) | ||
Proceeds from disposal of property, plant and equipment | - | - | - | 6 | ||
Increase in capitalised development cost | - | (1) | - | (280) | ||
Acquisition of subsidiary, net of cash acquired | - | - | - | 501 | ||
Cash consideration paid for reverse acquisition | - | - | - | (5,500) | ||
Decrease/(Increase) in restricted cash | 213 | (6) | 218 | (771) | ||
Net cash used in investing activities | (294) | (407) | (1,647) | (6,764) | ||
| Group | Group | ||||||
Q4 FY2016 | Q4 FY2015 | FY2016 | FY2015 | ||||
US$'000 | US$'000 | US$'000 | US$'000 | ||||
Cash Flows from Financing Activities | |||||||
Proceeds from borrowings | 10,022 | 13,849 | 45,225 | 21,252 | |||
Repayment of borrowings | (11,396) | (15,157) | (44,465) | (21,321) | |||
Proceeds from shareholders' loan | - | - | - | 2,850 | |||
Repayment of shareholders' loan | - | - | (2,850) | - | |||
Purchase of treasury shares | - | - | - | (8,829) | |||
Sale of treasury shares | - | - | - | 2,361 | |||
Dividends paid | - | - | - | (1,078) | |||
Net cash used in financing activities | (1,374) | (1,308) | (2,090) | (4,765) | |||
Net decrease in cash and cash equivalents | (3,161) | (30) | (541) | (12,043) |
| ||
Cash and cash equivalents at the beginning of the period | 10,044 | 7,788 | 7,448 | 20,555 |
| ||
Effect of foreign exchange rate changes on the balance of cash held in foreign currencies | (141) | (310) | (165) | (1,064) |
| ||
Cash and cash equivalents at the end of the period(i) | 6,742 | 7,448 | 6,742 | 7,448 |
| ||
Note:
(i) For the purpose of presentation in the consolidated statement of cash flows, the consolidated cash and cash equivalents comprise the following:
Q4 FY2016 | Q4 FY2015 | FY2016 | FY2015 | ||
US$'000 | US$'000 | US$'000 | US$'000 | ||
Cash and bank balances | 7,500 | 8,397 | 7,500 | 8,397 | |
Fixed deposits | 442 | 469 | 442 | 469 | |
7,942 | 8,866 | 7,942 | 8,866 | ||
Less: Restricted cash* | (1,200) | (1,418) | (1,200) | (1,418) | |
Cash and cash equivalents per the consolidated statement of cash flows |
6,742 |
7,448 |
6,742 |
7,448 |
* Restricted cash includes cash collateral amounted to US$1,000,000 (FY2015: US$1,000,000) and fixed deposits amounted to US$200,000 (FY2015: US$400,000) pledged with the banks for facilities and loans granted to the Group. As at 31 December 2016, the Group had utilised US$6,108,000 of the facilities and loans granted.
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Group |
Share capital |
Treasury shares |
Merger reserves |
Capital redemption reserves |
Share options reserve |
Capital reserve | Foreign currency translation reserve |
Retained profits |
Total |
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
Balance as at 1 Jan 2016 | 60,423 | (1,656) | (10,150) | 6 | 353 | (3,786) | (1,281) | 10,553 | 54,462 |
Share-based payments | - | - | - | - | 87 | - | - | - | 87 |
Loss for the period | - | - | - | - | - | - | - | (654) | (654) |
Other comprehensive income: | |||||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
578 |
- |
578 |
Total other comprehensive income/(loss) for the period |
- |
- |
- |
- |
- |
- |
578 |
(654) |
(76) |
Balance as at 31 Mar 2016 | 60,423 | (1,656) | (10,150) | 6 | 440 | (3,786) | (703) | 9,899 | 54,473 |
Share-based payments | - | - | - | - | 86 | - | - | - | 86 |
Profit for the period | - | - | - | - | - | - | - | 225 | 225 |
Other comprehensive loss: | |||||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
(99) |
- |
(99) |
Total other comprehensive (loss)/income for the period |
- |
- |
- |
- |
- |
- |
(99) |
225 |
126 |
Balance as at 30 Jun 2016 | 60,423 | (1,656) | (10,150) | 6 | 526 | (3,786) | (802) | 10,124 | 54,685 |
Share-based payments | - | - | - | - | 45 | - | - | - | 45 |
Transfer to capital reserve in accordance with statutory requirements |
- |
- |
- |
- |
- |
91 |
- |
(91) |
- |
Profit for the period | - | - | - | - | - | - | - | 698 | 698 |
Other comprehensive loss: | |||||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
(248) |
- |
(248) |
Total other comprehensive (loss)/income for the period |
- |
- |
- |
- |
- |
- |
(248) |
698 |
450 |
Balance as at 30 Sep 2016 | 60,423 | (1,656) | (10,150) | 6 | 571 | (3,695) | (1,050) | 10,731 | 55,180 |
Share-based payments | - | - | - | - | 42 | - | - | - | 42 |
Loss for the period | - | - | - | - | - | - | - | (2,972) | (2,972) |
Other comprehensive income: | |||||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
64 |
- |
64 |
Total other comprehensive income/(loss) for the period |
- |
- |
- |
- |
- |
- |
64 |
(2,972) |
(2,908) |
Balance as at 31 Dec 2016 | 60,423 | (1,656) | (10,150) | 6 | 613 | (3,695) | (986) | 7,759 | 52,314 |
Group |
Share capital |
Treasury shares |
Merger reserves |
Capital redemption reserves |
Share options reserve |
Capital reserve | Foreign currency translation reserve |
Retained profits |
Total |
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
Balance as at 1 Jan 2015 | 60,423 | (3,421) | (10,150) | 6 | 131 | 642 | (360) | 12,812 | 60,083 |
Purchase of treasury shares | - | (3,424) | - | - | - | - | - | - | (3,424) |
Share-based payments | - | - | - | - | 22 | - | - | - | 22 |
Loss for the period | - | - | - | - | - | - | - | (933) | (933) |
Other comprehensive income: | |||||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
168 |
- |
168 |
Total other comprehensive income/(loss) for the period |
- |
- |
- |
- |
- |
- |
168 |
(933) |
(765) |
Balance as at 31 Mar 2015 | 60,423 | (6,845) | (10,150) | 6 | 153 | 642 | (192) | 11,879 | 55,916 |
Purchase of treasury shares | - | (3,749) | - | - | - | - | - | - | (3,749) |
Sale of treasury shares | - | 2,777 | - | - | - | (416) | - | - | 2,361 |
Share-based payments | - | - | - | - | 24 | - | - | - | 24 |
Payment of dividends | - | - | - | - | - | - | - | (1,078) | (1,078) |
Transfer to capital reserve in accordance with statutory requirements |
- |
- |
- |
- |
- |
53 |
- |
(53) |
- |
Loss for the period | - | - | - | - | - | - | - | (1,907) | (1,907) |
Other comprehensive loss: | |||||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
(222) |
- |
(222) |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
- |
(222) |
(1,907) |
(2,129) |
Balance as at 30 Jun 2015 | 60,423 | (7,817) | (10,150) | 6 | 177 | 279 | (414) | 8,841 | 51,345 |
Purchase of treasury shares | - | (1,656) | - | - | - | - | - | - | (1,656) |
Issuance of treasury shares | - | 7,817 | - | - | - | (4,065) | - | - | 3,752 |
Share-based payments | - | - | - | - | 88 | - | - | - | 88 |
Loss for the period | - | - | - | - | - | - | - | (2,711) | (2,711) |
Other comprehensive loss: | |||||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
(941) |
- |
(941) |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
- |
(941) |
(2,711) |
(3,652) |
Balance as at 30 Sep 2015 | 60,423 | (1,656) | (10,150) | 6 | 265 | (3,786) | (1,355) | 6,130 | 49,877 |
Share-based payments | - | - | - | - | 88 | - | - | - | 88 |
Profit for the period | - | - | - | - | - | - | - | 4,423 | 4,423 |
Other comprehensive income: | |||||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
74 |
- |
74 |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
- |
74 |
4,423 |
4,497 |
Balance as at 31 Dec 2015 | 60,423 | (1,656) | (10,150) | 6 | 353 | (3,786) | (1,281) | 10,553 | 54,462 |
Company |
Share capital |
Treasury shares |
Share options reserve |
Capital reserve | Foreign currency translation reserve |
Accumulated losses |
Total |
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
Balance as at 1 Jan 2016 | 74,240 | (1,656) | 353 | (4,481) | (2,067) | (5,007) | 61,382 |
Share-based payments | - | - | 87 | - | - | - | 87 |
Loss for the period | - | - | - | - | - | (527) | (527) |
Other comprehensive loss: | |||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(527) |
(527) |
Balance as at 31 Mar 2016 | 74,240 | (1,656) | 440 | (4,481) | (2,067) | (5,534) | 60,942 |
Share-based payments | - | - | 86 | - | - | - | 86 |
Loss for the period | - | - | - | - | - | (996) | (996) |
Other comprehensive loss: | |||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(996) |
(996) |
Balance as at 30 Jun 2016 | 74,240 | (1,656) | 526 | (4,481) | (2,067) | (6,530) | 60,032 |
Share-based payments | - | - | 45 | - | - | - | 45 |
Profit for the period | - | - | - | - | - | 50 | 50 |
Other comprehensive income: | |||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
50 |
50 |
Balance as at 30 Sep 2016 | 74,240 | (1,656) | 571 | (4,481) | (2,067) | (6,480) | 60,127 |
Share-based payments | - | - | 42 | - | - | - | 42 |
Loss for the period | - | - | - | - | - | (514) | (514) |
Other comprehensive loss: | |||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(514) |
(514) |
Balance as at 31 Dec 2016 | 74,240 | (1,656) | 613 | (4,481) | (2,067) | (6,994) | 59,655 |
Company |
Share capital |
Treasury shares |
Share options reserve |
Capital reserve | Foreign currency translation reserve |
Accumulated losses |
Total |
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
Balance as at 1 Jan 2015 | 74,240 | (3,421) | 131 | - | 1,714 | (11,046) | 61,618 |
Purchase of treasury shares | - | (3,424) | - | - | - | - | (3,424) |
Share-based payments | - | - | 22 | - | - | - | 22 |
Loss for the period | - | - | - | - | - | (294) | (294) |
Other comprehensive loss: | |||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
(2,296) |
- |
(2,296) |
Total other comprehensive loss for the period |
- |
- |
- |
- |
(2,296) |
(294) |
(2,590) |
Balance as at 31 Mar 2015 | 74,240 | (6,845) | 153 | - | (582) | (11,340) | 55,626 |
Purchase of treasury shares | - | (3,749) | - | - | - | - | (3,749) |
Sale of treasury shares | - | 2,777 | - | (416) | - | - | 2,361 |
Share-based payments | - | - | 24 | - | - | - | 24 |
Payment of dividends | - | - | - | - | - | (1,078) | (1,078) |
Profit for the period | - | - | - | - | - | 3,156 | 3,156 |
Other comprehensive income: | |||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
1,318 |
- |
1,318 |
Total other comprehensive income for the period |
- |
- |
- |
- |
1,318 |
3,156 |
4,474 |
Balance as at 30 Jun 2015 | 74,240 | (7,817) | 177 | (416) | 736 | (9,262) | 57,658 |
Purchase of treasury shares | - | (1,656) | - | - | - | - | (1,656) |
Issuance of treasury shares | - | 7,817 | - | (4,065) | - | - | 3,752 |
Share-based payments | - | - | 89 | - | - | - | 89 |
Loss for the period | - | - | - | - | - | (249) | (249) |
Other comprehensive loss: | |||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
(3,198) |
- |
(3,198) |
Total other comprehensive loss for the period |
- |
- |
- |
- |
(3,198) |
(249) |
(3,447) |
Balance as at 30 Sep 2015 | 74,240 | (1,656) | 266 | (4,481) | (2,462) | (9,511) | 56,396 |
Share-based payments | - | - | 87 | - | - | - | 87 |
Profit for the period | - | - | - | - | - | 4,504 | 4,504 |
Other comprehensive income: | |||||||
Exchange differences on translating foreign operations |
- |
- |
- |
- |
395 |
- |
395 |
Total other comprehensive income for the period |
- |
- |
- |
- |
395 |
4,504 |
4,899 |
Balance as at 31 Dec 2015 | 74,240 | (1,656) | 353 | (4,481) | (2,067) | (5,007) | 61,382 |
1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on.
State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.
FY2016 | No. of shares | US$'000 |
Balance as at 1 Jan 2016 and 31 Dec 2016 | 271,662,227 | 72,584 |
FY2015 | No. of shares | US$'000 |
Balance as at 1 Jan 2015 | 269,059,299 | 70,819 |
Purchase of treasury shares | (11,610,000) | (3,424) |
Balance as at 31 Mar 2015 | 257,449,299 | 67,395 |
Purchase of treasury shares | (15,004,900) | (3,749) |
Sale of treasury shares | 12,000,000 | 2,777 |
Balance as at 30 Jun 2015 | 254,444,399 | 66,423 |
Purchase of treasury shares | (10,740,000) | (1,656) |
Issuance of treasury shares pursuant to the acquisition of the entire equity interest in Satellite Acquisition Corporation | 27,957,828 | 7,817 |
Balance as at 30 Sep 2015 and 31 Dec 2015 | 271,662,227 | 72,584 |
There were 10,740,072 treasury shares held by the Company as at 31 December 2016 and 31 December 2015.
1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.
31 Dec 2016 | 31 Dec 2015 | |
Total number of issued shares excluding treasury shares | 271,662,227 | 271,662,227 |
1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
FY2016 | No. of shares | US$'000 |
Balance as at 1 Jan 2016 and 31 Dec 2016 | 10,740,072 | 1,656 |
2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.
These figures have not been audited or reviewed.
3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter).
Not applicable.
4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
The accounting policies and methods of computation have been applied consistently for the current financial year ended 31 December 2016 as those used in the audited financial statements for the year ended 31 December 2015, except for the adoption of the new or revised International Financial Reporting Standards ("IFRS") applicable for the financial period beginning 1 January 2016.
5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.
The Group has adopted all of the new or revised IFRS that are effective for the financial period beginning 1 January 2016 and are relevant to its operations. The adoption of these IFRS does not have financial impact on the Group's financial position or results.
6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.
Earnings per ordinary share of the Group, after deducting any provision for preference dividends | Group | Group | ||
Q4 FY2016 US$ | Q4 FY2015 US$ | FY2016 US$ | FY2015 US$ | |
(a) Based on weighted average number of ordinary shares on issue; and | (1.09) cents | 1.68 cents | (1.00) cent | (0.43) cent |
(b) On a fully diluted basis | (1.09) cents | 1.68 cents | (1.00) cent | (0.43) cent |
Weighted average number of ordinary shares used in computation of basic earnings per share | 271,482,055 | 262,586,638 | 271,482,055 | 262,586,638 |
Weighted average number of ordinary shares used in computation of diluted earnings per share | 272,078,632 | 262,586,638 | 271,724,745 | 263,148,798 |
7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the:
(a) current financial period reported on; and
(b) immediately preceding financial year.
Group | Company | |||
31 Dec 2016 US$ | 31 Dec 2015 US$ | 31 Dec 2016 US$ | 31 Dec 2015 US$ | |
Net asset value ("NAV") per ordinary share based on issued share capital
| 19.26 cents | 20.05 cents | 21.96 cents | 22.59 cents |
Total number of issued shares | 271,662,227 | 271,662,227 | 271,662,227 | 271,662,227 |
8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:
(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.
Review of Financial Performance
Revenue
The Group's revenue was US$31.0 million in Q4 FY2016, US$11.9 million lower than US$42.9 million in Q4 FY2015. This includes reductions in revenue to a key customer of US$9.1 million and in its Contract Manufacturing segment of US$2.6 million. The Group's revenue for the full year ended 31 December 2016 decreased 1.4% to US$127.3 million from US$129.1 million a year ago and included a full year of revenue contribution from Satellite Acquisition Corporation (trading as "Global Skyware") of US$42.4 million against one quarter in FY2015 at US$17.5 million.
By geography, revenue for Q4 FY2016 from all regions declined, with America, Europe, Asia and Rest of the World ("RoW") regions decreasing by US$7.5 million (-27.4%), US$2.1 million (-23.0%), US$1.2 million (-30.0%) and US$1.1 million (-53.6%), respectively, against that in Q4 FY2015. On a full year basis, decline in revenue for FY2016 was mainly attributable to the regions in Europe, Asia and RoW by US$3.0 million (-8.8%), US$5.7 million (-41.2%) and US$1.5 million (-28.4%), respectively, offset by an increase in revenue from America by US$8.4 million (+11.1%).
Gross Profit
Gross profit decreased by US$1.7 million or 22.3% to US$5.8 million in Q4 FY2016 from US$7.5 million in Q4 FY2015 driven by the reduction in revenue volume. However, the gross profit margin ("GPM") improved to 18.8% in Q4 FY2016 from 17.4% in Q4 FY2015 as a result of favourable product mix variation and on-going Group-wide factory cost control. On a full-year basis, gross profit for FY2016 improved 4.5% to US$26.0 million from US$24.9 million in FY2015 with GPM improving to 20.4% from 19.3% for the same comparative periods.
Administrative Expenses
Administrative expenses increased significantly to US$7.9 million in Q4 FY2016 from US$6.7 million in Q4 FY2015, representing 25.4% and 15.5% of revenue, respectively. As announced on 22 December 2016, the Group is consolidating its activities in the People's Republic of China ("PRC") under its wholly-owned subsidiary, Global Invacom Manufacturing (Shanghai) Co. Ltd ("Shanghai Subsidiary") from Radiance Electronics (Shenzhen) Co. Ltd ("Shenzhen Subsidiary"), to optimise manufacturing operations and cost efficiencies. With this move, the Group has made a compensation payment of approximately US$2.3 million to the employees in its Shenzhen Subsidiary based on the Labour Law in PRC. Excluding this compensation, the administrative expenses would have reduced to US$5.6 million, representing 17.9% of revenue in Q4 FY2016 and a reduction of 16.8% against Q4 FY2015.
On a full-year basis, administrative expenses for FY2016 decreased by 9.0% to US$26.4 million from US$29.0 million in FY2015 or by 17.0% to US$24.1 million by exclusion of the compensation at the Shenzhen Subsidiary.
Profit Before Tax & Net Profit
The Group recorded a loss before tax of US$2.4 million in Q4 FY2016 compared to a profit before tax of US$3.8 million in Q4 FY2015, representing a negative margin of 7.7% compared to a positive margin of 8.9%, respectively. On a full-year basis, the Group posted a loss before tax of US$1.5 million in FY2016, a 19.6% increase from net loss of US$1.3 million in FY2015. Excluding the write-back of the contingent consideration payable of US$5.0 million in Q4 FY2015 related to the acquisition of Global Skyware and the Shenzhen Subsidiary's compensation of US$2.3 million in Q4 FY2016 will result in comparatives of a loss before tax of US$0.1 million in Q4 FY2016 against a loss before tax of US$1.2 million in Q4 FY2015, and a profit before tax of US$0.8 million in FY2016 against a loss before tax of US$6.3 million in FY2015.
Overall, the Group posted a net loss of US$3.0 million in Q4 FY2016 compared to a net profit of US$4.4 million in Q4 FY2015, representing a negative margin of 9.6% compared to a positive margin of 10.3%, respectively and a net loss of US$2.7 million in FY2016 compared to a net loss of US$1.1 million in FY2015, representing a negative margin of 2.1% compared to a negative margin of 0.9%. During FY2016, the Group incurred one-off costs in Q4 of US$2.5 million for restructuring and impairment of the Shenzhen Subsidiary and a further US$0.8 million in respect of restructuring and legal charges. These adjustments would give a net loss in Q4 FY2016 of US$0.5 million and a net profit in FY2016 of US$0.5 million.
Review of Financial Position
Non-current assets decreased, primarily due to the depreciation of property, plant and equipment and the amortisation of intangible assets.
Net current assets decreased by US$0.4 million to US$28.5 million as at 31 December 2016 compared to US$28.9 million as at 31 December 2015. Inventories increased by US$1.0 million in preparation for orders for the next few months, and prompt collections has resulted in trade and other receivables decreased by US$5.2 million. The repayment of the shareholders' loan as well as trade suppliers has also resulted in the decrease of trade and other payables by US$5.0 million. On the other hand, borrowings increased by US$0.8 million to US$6.1 million and cash and cash equivalents decreased by US$0.9 million to US$7.9 million as at 31 December 2016. Net tax receivables increased by US$0.5 million to US$0.6 million as at 31 December 2016.
The Group's net asset value stood at US$52.3 million as at 31 December 2016, compared to US$54.5 million as at 31 December 2015.
Review of Cash Flows
Net cash used in operating activities in Q4 FY2016 was US$1.5 million, comprising cash outflow from operating activities before working capital changes of US$1.0 million, net working capital outflow of US$0.1 million and payment of interest and income tax expense of US$0.4 million.
On a full year basis, net cash generated from operating activities in FY2016 was US$3.2 million, comprising cash inflow from operating activities before working capital changes of US$3.1 million, net working capital inflow of US$1.6 million and payment of interest and income tax expense of US$1.5 million.
Net cash used in investing activities was US$0.3 million in Q4 FY2016 and US$1.6 million in FY2016. This was mainly attributable to the purchase of machinery and equipment and partially offset by a decrease in restricted cash during the year.
Net cash used in financing activities was US$1.4 million in Q4 FY2016 and US$2.1 million in FY2016, arising mainly from the repayment of borrowings and shareholders' loan.
Overall, the Group recorded a net decrease in cash and cash equivalents of US$3.2 million in Q4 FY2016 and US$0.5 million in FY2016, bringing cash and cash equivalents per the consolidated statement of cash flows to US$6.7 million as at 31 December 2016.
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
In line with the earlier performance guidance made by the Company on 22 December 2016 that due to the Group's consolidation of its manufacturing operations in the PRC, the Group expects to report a net loss for FY2016, the Group's FY2016 results have shown a net loss of US$2.7 million.
10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.
FY2016 marks the first full year of revenue contributions from the Group's United States ("US") subsidiary, Satellite Acquisition Corporation (formerly trading as "Skyware Global"), a leading manufacturer of antennas and other satellite communications ("Sat Comms") equipment. Since its acquisition on 24 August 2015, the subsidiary has been rebranded as "Global Skyware" to align the business with the Group's main brand. The Group has since introduced new manufacturing processes and technologies to boost productivity and streamline operating efficiencies which it believes will show benefits in the future.
Despite concerns surrounding Britain's exit from the European Union ("EU"), the Group remains upbeat about its Sat Comms business. The weakening of the British Pound against major currencies during the year provided short-term foreign exchange benefits for the Group as a sizeable portion of its operations are located in the United Kingdom ("UK"). The Group may also consider establishing a logistics hub in an EU country to continue tariff-free transactions via potential UK-EU Free Trade Agreements.
The Group's Sat Comms revenue and raw materials spend are largely transacted in US dollars, a currency that has strengthened since the election of US President Donald Trump. Recent political changes around the world may have an impact on international trade and the Group is monitoring these developments and investigating ways to mitigate any impact on its activities.
Following its announcement on 22 December 2016, the Group is also consolidating activities in PRC under its wholly-owned Shanghai Subsidiary, to optimise manufacturing operations and cost efficiencies. Critical equipment and customer inventory have been shifted from the Shenzhen Subsidiary to the Shanghai Subsidiary. The move will integrate the Shenzhen Subsidiary's products within the Shanghai Subsidiary's facilities and strategic location.
The Group remains mindful of the significant technological change that has swept the global satellite ground equipment industry with the introduction of new Digital Channel Stacking Switch ("DCSS") technology, which allows up to 32 continuous video streams from a single Low Noise Block ("LNB"). Having secured qualification from a key customer and commenced the supply of new DCSS LNBs in Q4 FY2016, the Group is poised to convert its prior year's expenditures in the research and development of this latest Sat Comms technology into potential revenue streams. It will continue to invest in innovation and automation to design and manufacture smarter LNBs and other satellite ground equipment.
Worldwide, the global satellite manufacturing and launch market is expected to grow at a compounded annual growth rate of 4.95% between 2016 and 2020*. The Group expects the December 2016 launch of communication satellite, EchoStar 19/Jupiter 2, to lift demand for its VSAT products, which provide low-cost connectivity for mobile/Internet usage, banking and telecommunications especially in rural areas.
While the consolidation of the Group's PRC operations has affected the bottom line for FY2016, the Board is confident that the roll out of the new DCSS products along with the expected growth of other new products and the Group's own restructuring and cost improvement measures will enable the Group to improve margins and sustain profitability in the long term.
*Source: Global Satellite Manufacturing and Launch Market 2016-2020 - TechNavio
11. Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported on?
None.
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year?
None.
(c) Date payable
Not applicable.
(d) Books closure date
Not applicable.
12. If no dividend has been declared/recommended, a statement to that effect.
No dividend has been declared or recommended for the year ended 31 December 2016.
PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)
13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year.
13(a) Reportable Operating Segments
The business of the Group is organised into the following product segments:
· Satellite Communications ("Sat Comms")
· Contract Manufacturing ("CM")
For management purposes, the Group is organised into business segments based on their products as the Group's risks and rates of return are affected predominantly by differences in the products produced. Each product segment represents a strategic business unit and management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment.
Segment results represent the profit earned by each segment without allocation of finance income/costs and taxation. Segment assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprised mainly corporate assets and liabilities, borrowings and income taxes. Segment revenue includes transfers between operating segments. Such transfers are accounted for at competitive market prices charged to unaffiliated customers for similar goods. The transfers are eliminated on consolidation. No operating segments have been aggregated to form the following reportable operating segments.
FY2016 | Sat Comms | CM | Group |
| US$'000 | US$'000 | US$'000 |
| |||
Revenue | 109,869 | 17,439 | 127,308 |
Operating profit | 1,318 | (2,310) | (992) |
Finance income | 17 | ||
Finance costs | (572) | ||
Income tax expense | (1,156) | ||
Loss for the year | (2,703) | ||
Amortisation of intangible assets | 314 | - | 314 |
Depreciation of property, plant and equipment | 2,297 | 181 | 2,478 |
Addition to property, plant and equipment | 1,856 | 32 | 1,888 |
Impairment of property, plant and equipment | - | 139 | 139 |
Allowance/(Write-back) for inventory obsolescence | 794 | (339) | 455 |
Write-back of allowance of trade receivables | (20) | (335) | (355) |
Write-off of trade receivables | 28 | 335 | 363 |
Provision of liabilities | 241 | - | 241 |
Assets and liabilities | |||
Segment assets | 74,671 | 7,120 | 81,791 |
Unallocated assets | |||
- Non-current assets | 4 | ||
- Other receivables |
| 201 | |
- Tax receivables | 1,002 | ||
- Deferred tax assets | 355 | ||
- Cash and cash equivalents | 251 | ||
Total assets | 83,604 | ||
FY2016 | Sat Comms | CM | Group |
| US$'000 | US$'000 | US$'000 |
| |||
Segment liabilities | 21,170 | 2,781 | 23,951 |
Unallocated liabilities | |||
- Other payables | 196 | ||
- Borrowings | 6,108 | ||
- Provision for income tax | 354 | ||
- Deferred tax liabilities | 681 | ||
Total liabilities | 31,290 | ||
FY2015 | |||
| |||
Revenue | 101,969 | 27,138 | 129,107 |
Operating (loss)/profit | (2,141) | 1,087 | (1,054) |
Finance income | 17 | ||
Finance costs | (256) | ||
Income tax credit | 165 | ||
Loss for the year | (1,128) | ||
Amortisation of intangible assets | 431 | - | 431 |
Depreciation of property, plant and equipment | 1,632 | 287 | 1,919 |
Addition to property, plant and equipment | 690 | 47 | 737 |
Addition to intangible assets | 280 | - | 280 |
Allowance for inventory obsolescence | 196 | 253 | 449 |
Impairment of trade receivables | 20 | 339 | 359 |
Impairment of intangible assets | 1,121 | - | 1,121 |
Write-back of contingent consideration payable | (5,000) | - | (5,000) |
Assets and liabilities | |||
Segment assets | 75,243 | 12,383 | 87,626 |
Unallocated assets | |||
- Non-current assets | 5 | ||
- Other receivables |
| 117 | |
- Deferred tax assets | 723 | ||
- Cash and cash equivalents | 637 | ||
- Tax receivables | 431 | ||
Total assets | 89,539 | ||
Segment liabilities | 20,844 | 5,626 | 26,470 |
Unallocated liabilities | |||
- Other payables | 2,779 | ||
- Provision for income tax | 309 | ||
- Deferred tax liabilities | 171 | ||
- Borrowings | 5,348 | ||
Total liabilities | 35,077 |
13(b) Geographical Information
Revenue and non-current assets information based on the geographical location of customers and assets respectively are as follows:
FY2016 | America US$'000 | Europe US$'000 | Asia US$'000 | Rest of the World US$'000 | Group US$'000 |
Revenue | 84,505 | 30,745 | 8,119 | 3,939 | 127,308 |
Non-current assets | 5,500 | 12,949 | 6,854 | 109 | 25,412 |
FY2015 | America US$'000 | Europe US$'000 | Asia US$'000 | Rest of the World US$'000 | Group US$'000 |
Revenue | 76,096 | 33,706 | 13,801 | 5,504 | 129,107 |
Non-current assets | 5,298 | 13,623 | 7,332 | 120 | 26,373 |
14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.
Please refer to Note 8.
15. A breakdown of sales.
FY2016 US$'000 | FY2015 US$'000 | % increase/ (decrease) | ||
(a) | Sales reported for first half year | 64,275 | 53,970 | 19.1 |
(b) | Operating loss after income tax before deducting minority interests reported for first half year | (429) | (2,840) | (84.9) |
(c) | Sales reported for second half year | 63,033 | 75,137 | (16.1) |
(d) | Operating profit after income tax before deducting minority interests reported for second half year | (2,274) | 1,712 | N.M. |
16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year.
FY2016 US$'000 | FY2015 US$'000 | |
Ordinary | - | 1,078 |
Preference | - | - |
Total Annual Dividend | - | 1,078 |
17. If the Group has obtained a general mandate from shareholders for Interested Person Transactions ("IPTs"), the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPTs mandate has been obtained, a statement to that effect.
The Company does not have a shareholders' mandate for IPTs and there were no IPTs for the year ended 31 December 2016.
18. Confirmation that the Company has procured undertaking from all its directors and executive officers pursuant to Rule 720(1).
The Company confirms that it has procured undertakings from all its directors and executive officers under Rule 720(1) of the Listing Manual of the Singapore Exchange Securities Trading Limited.
19. Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(13) in the format below. If there are no such persons, the issuer must make an appropriate negative statement.
Neither Global Invacom Group Limited nor any of its principal subsidiaries have any person occupying a managerial position who is related to a director, chief executive officer or substantial shareholder.
BY ORDER OF THE BOARD
Anthony Brian Taylor
Executive Chairman
23 February 2017
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014