1 Mar 2019 09:15
Global Invacom Records Eighth Consecutive Quarter of Profitability in Q4 FY2018
Singapore/London, 1 March 2019 - Global Invacom (SGX:QS9) (AIM:GINV), the global provider of satellite communications, is pleased to announce its results for the full year ended 31 December 2018 ("FY2018") and the three months ended 31 December 2018 ("Q4 FY2018").
The Group recorded their eighth consecutive quarter of net profit attributable to shareholders of US$0.9 million, a 14.2% increase from the three months ended 31 December 2017 ("Q4 FY2017"), lifted by higher revenue which grew 22.2% to US$36.4 million in Q4 FY2018. Revenue for the full year of FY2018 increased by US$6.6 million or 5.7% to US$122.3 million from US$115.7 million in the prior year ("FY2017"). The rise in revenue, particularly for Q4 FY2018, was mainly due to the supply of new designs for key products to some of the Group's major customers.
Gross profit ("GP") saw an 18.2% increase to US$7.4 million from US$6.3 million in the previous corresponding quarter. Gross profit margin dipped slightly by 0.7 percentage points from 21.1% to 20.4% in the same period.
In Q4 FY2018, the Group recorded higher volume of shipments for its recently launched Western Arc Slimline Low Noise Block (LNB) to a major U.S. customer. The Group will remain the sole supplier to this customer until end of Q1 FY2019. Reflecting confidence in the Group's product quality and capabilities, shipments of the Eastern Arc model have also commenced from Q1 FY2019 to this same customer.
Data over satellite continues to be important for the Group, having made shipments of its new 90 cm satellite antenna throughout FY2018, as sole supplier, to another U.S. customer. Shipments on a non-exclusive basis are expected to continue throughout FY2019 and beyond.
In addition, one of the Group's existing customers, a major global VSAT integrator, which has been purchasing antennas from the Group, has now added new orders for data over satellite transceiver electronics resulting from the Skyware Technologies purchase in Q3 FY2018.
Mr. Tony Taylor, Executive Chairman of Global Invacom, commented, "Notwithstanding the slower pace of the transition to DCSS products, growth of the satellite communications equipment market will continue. With the emerging trends of the Internet of Things, 5G and autonomous vehicles, satellite communications technology will continue to be a vital part of modern society, and we are in a good position to capitalise on the growing demand in this market.
"We will continue to build on our foundation as the leading global manufacturer of satellite equipment by developing new and innovative products that address the customer's needs," he added.
On a geographical basis, FY2018 revenue increased in the U.S. and Europe by US$4.8 million (+5.9%) and US$3.3 million (+14.0%), respectively, which were offset by decreases in Asia and Rest of the World by US$1.4 million (-20.7%) and US$0.1 million (-3.2%), respectively.
The Group's GP for FY2018 rose to US$25.2 million from US$24.2 million last year ("FY2017"). However, GP margin decreased by 0.3 percentage points from 20.9% to 20.6% for FY2018 due to cost of sales outpacing revenue growth.
Global Invacom's U.S. operations faced supply chain issues in Q4 FY2018 which impacted profitability. Had it not been for these issues, GP for Q4 FY2018 would have been higher for Global Skyware which, nonetheless, closed off FY2018 with a second year of profitability, following a turnaround that resulted from changes to operations since FY2016.
The Group's continuing emphasis on product development through R&D spending contributed to the 9.4% increase in administrative expenses for FY2018 to US$22.9 million from US$21.0 million in FY2017.
Earnings per share on a fully diluted basis declined to 0.57 US cent for FY2018 (FY2017: 1.08 US cents). Net asset value per share increased to 20.84 US cents as at 31 December 2018 from 20.42 US cents as at 31 December 2017. The Group's cash and cash equivalents amounted to US$8.4 million as at 31 December 2018.
The Group had announced in Q4 FY2018 a proposal to acquire Tactilis Sdn. Bhd., a manufacturer and distributor of biometric system-on-card solutions which, if completed, will constitute a reverse takeover. Subsequent to the end of the review period, the Group appointed a Financial Adviser. The Group will provide further updates on this transaction in due course.
**End of Press Release**
For further information, please contact:
Global Invacom Group Limited | www.globalinvacom.com |
Matthew Garner, Chief Financial Officer | Tel: +65 6431 0782 Tel: +44 203 053 3523 |
|
|
finnCap Ltd (Nominated Adviser and Joint Broker) | www.finncap.com |
Christopher Raggett / Matthew Radley (Corporate Finance) | Tel: +44 207 220 0500 |
|
|
Mirabaud Securities LLP (Joint Broker) | www.mirabaud.com |
Peter Krens (Equity Capital Markets) | Tel: +44 207 878 3362 |
|
|
WeR1 Consultants Pte Ltd (Singapore Investor Relations) | www.wer1.net |
Lai Kwok Kin | Tel: +65 6737 4844 |
ginv@wer1.net |
|
|
|
Vigo Communications (UK Media & Investor Relations) | www.vigocomms.com |
Jeremy Garcia / Fiona Henson / Charlie Neish | Tel: +44 207 390 0238 |
ginv@vigocomms.com |
|
About Global Invacom Group Limited
Global Invacom is a fully integrated satellite equipment provider with six manufacturing plants across China, Israel, Malaysia, UK and the US. Its customers include satellite broadcasters such as BSkyB of the UK and Dish Network of the USA and Data over Satellite providers including Hughes Network Systems, Viasat and Gilat Satellite Networks.
Global Invacom provides a full range of antennas, LNB receivers, transceivers, fibre distribution equipment, transmitters, switches and video distribution components and electronics manufacturing services in satellite communications as well as manufacturing services in military, medical, and consumer electronics industries. Following the acquisition in 2015 of Global Skyware, a leading US‐based designer and supplier of satellite antennas products and services, the Company became the world's only full‐service outdoor unit supplier.
Global Invacom is listed on the Mainboard of the Singapore Exchange Securities Trading Limited and its shares are admitted to trading on the AIM Market of the London Stock Exchange.
For more information, please refer to www.globalinvacom.com
FINANCIAL STATEMENT ANNOUNCEMENT FOR Q4 AND YEAR ENDED 31 DECEMBER 2018
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 2018. These figures have not been audited.
| Group | Group | |||||
| Q4 FY2018 | Q4 FY2017 | Increase/(Decrease) |
| FY2018 | FY2017 | Increase/ (Decrease) |
| US$'000 | US$'000 | % |
| US$'000 | US$'000 | % |
|
|
|
|
|
|
|
|
Revenue | 36,366 | 29,757 | 22.2 |
| 122,292 | 115,706 | 5.7 |
|
|
|
|
|
|
|
|
Cost of sales | (28,963) | (23,493) | 23.3 |
| (97,104) | (91,515) | 6.1 |
|
|
|
|
|
|
|
|
Gross profit | 7,403 | 6,264 | 18.2 |
| 25,188 | 24,191 | 4.1 |
|
|
|
|
|
|
|
|
Other income | 482 | 335 | 43.9 |
| 569 | 1,335 | (57.4) |
Distribution costs | (69) | (27) | 155.6 |
| (322) | (290) | 11.0 |
Administrative expenses | (6,514) | (5,405) | 20.5 |
| (22,913) | (20,950) | 9.4 |
Other operating expenses | (21) | (47) | (55.3) |
| (14) | (139) | (89.9) |
Finance income | 46 | 16 | 187.5 |
| 96 | 30 | 220.0 |
Finance costs | (146) | (165) | (11.5) |
| (523) | (483) | 8.3 |
|
|
|
|
|
|
|
|
Profit before income tax(i) | 1,181 | 971 | 21.6 |
| 2,081 | 3,694 | (43.7) |
|
|
|
|
|
|
|
|
Income tax expense | (286) | (187) | 52.9 |
| (545) | (745) | (26.8) |
Profit after income tax attributable to equity holders of the Company |
895 |
784 |
14.2 |
|
1,536 |
2,949 |
(47.9) |
|
|
|
|
|
|
|
|
Other comprehensive (loss)/income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
- Exchange differences on translation of foreign subsidiaries | (483) | (38) | N.M. |
| (417) | 114 | N.M. |
Other comprehensive (loss)/income for the period, net of tax | (483) | (38) | N.M. |
| (417) | 114 | N.M. |
Total comprehensive income for the period attributable to equity holders of the Company | 412 | 746 |
(44.8) |
| 1,119 | 3,063 |
(63.5) |
N.M.: Not Meaningful
Note:
(i) Profit before income tax was determined after (charging)/crediting the following:
| Group |
| Group | ||||
| Q4 FY2018 | Q4 FY2017 | Increase/(Decrease) |
| FY2018 | FY2017 | Increase/ (Decrease) |
| US$'000 | US$'000 | % |
| US$'000 | US$'000 | % |
|
|
|
|
|
|
|
|
Interest income | 46 | 16 | 187.5 |
| 96 | 30 | 220.0 |
Interest expense | (146) | (165) | (11.5) |
| (523) | (483) | 8.3 |
(Loss)/Gain on foreign exchange | (21) | 325 | N.M. |
| (9) | 599 | N.M. |
Gain on bargain purchase | 482 | - | N.M. |
| 482 | - | N.M. |
Write-back of payables | - | - | N.M. |
| 73 | 578 | (87.4) |
Gain/(Loss) on disposal of property, plant and equipment | - | 7 | (100.0) |
| (5) | (6) | (16.7) |
Impairment of property, plant and equipment | - | - | - |
| - | (86) | (100.0) |
Depreciation of property, plant and equipment | (791) | (693) | 14.1 |
| (2,890) | (2,563) | 12.8 |
Amortisation of intangible assets | (146) | (154) | (5.2) |
| (673) | (628) | 7.2 |
Impairment of intangible assets | (93) | - | N.M. |
| (93) | - | N.M. |
Write-back for inventory obsolescence, net | 706 | 160 | 341.3 |
| 412 | 351 | 17.4 |
(Allowance)/Write-back for impairment of trade receivables, net | - | (46) | (100.0) |
| - | (46) | (100.0) |
Operating lease expense | (706) | (595) | 18.7 |
| (3,212) | (2,857) | 12.4 |
Research and development expense | (665) | (453) | 46.8 |
| (2,805) | (1,646) | 70.4 |
|
|
|
|
|
|
|
|
1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
|
| Group |
| Company | ||
| 31 Dec 2018 | 31 Dec 2017 |
| 31 Dec 2018 | 31 Dec 2017 | |
| US$'000 | US$'000 |
| US$'000 | US$'000 | |
ASSETS |
|
|
|
|
|
|
Non-current Assets |
|
|
|
|
|
|
Property, plant and equipment |
| 12,606 | 12,393 |
| 85 | 7 |
Investments in subsidiaries |
| - | - |
| 44,892 | 44,874 |
Goodwill |
| 9,352 | 9,352 |
| - | - |
Intangible assets |
| 3,656 | 2,172 |
| - | - |
Equity instruments |
| 8 | 8 |
| - | - |
Deferred tax assets |
| 109 | 198 |
| - | - |
Other receivables and prepayments |
| 1,566 | 55 |
| 11,119 | 9,154 |
|
| 27,297 | 24,178 |
| 56,096 | 54,035 |
Current Assets |
|
|
|
|
|
|
Due from subsidiaries |
| - | - |
| 939 | 1,895 |
Inventories |
| 31,625 | 29,022 |
| - | - |
Trade receivables |
| 24,874 | 19,268 |
| - | - |
Other receivables and prepayments |
| 1,900 | 3,361 |
| 3,433 | 5,263 |
Tax receivables |
| 15 | 11 |
| - | - |
Cash and cash equivalents |
| 8,381 | 7,152 |
| 526 | 733 |
|
| 66,795 | 58,814 |
| 4,898 | 7,891 |
Total assets |
| 94,092 | 82,992 |
| 60,994 | 61,926 |
|
|
|
|
|
|
|
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 |
| (2,161) | (3,297) |
| (13,988) | (13,320) |
Total equity |
| 56,606 | 55,470 |
| 58,596 | 59,264 |
|
|
|
|
|
|
|
Non-current Liabilities |
|
|
|
|
|
|
Other payables |
| 104 | 111 |
| - | - |
Deferred tax liabilities |
| 406 | 489 |
| - | - |
|
| 510 | 600 | | - | - |
Current Liabilities |
|
|
|
|
|
|
Due to subsidiaries |
| - | - |
| 2,109 | 2,140 |
Trade payables |
| 19,381 | 12,206 |
| - | - |
Other payables |
| 5,326 | 6,528 |
| 221 | 454 |
Borrowings |
| 11,974 | 8,025 |
| - | - |
Provision for income tax |
| 295 | 163 | | 68 | 68 |
|
| 36,976 | 26,922 |
| 2,398 | 2,662 |
|
|
|
|
|
|
|
Total liabilities |
| 37,486 | 27,522 |
| 2,398 | 2,662 |
|
|
|
|
|
|
|
Total equity and liabilities |
| 94,092 | 82,992 |
| 60,994 | 61,926 |
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 2018 | As at 31 Dec 2017 |
| |||
Secured | Unsecured | Secured | Unsecured |
|
|
US$'000 | US$'000 | US$'000 | US$'000 |
|
|
11,974 | - | 8,025 | - |
|
|
Amount repayable after one year
As at 31 Dec 2018 | As at 31 Dec 2017 |
| |||
Secured | Unsecured | Secured | Unsecured |
|
|
US$'000 | US$'000 | US$'000 | US$'000 |
|
|
- | - | - | - |
|
|
Details of any collateral
The revolving credit loans of US$11,974,000 were secured over the assets of the subsidiaries and corporate guarantees provided by the Company and the subsidiaries.
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
| Group | Group | |||
Q4 FY2018 | Q4 FY2017 |
| FY2018 | FY2017 | |
| US$'000 | US$'000 |
| US$'000 | US$'000 |
Cash Flows from Operating Activities |
|
|
|
|
|
Profit before income tax | 1,181 | 971 |
| 2,081 | 3,694 |
Adjustments for: |
|
|
|
|
|
Depreciation of property, plant and equipment | 791 | 693 |
| 2,890 | 2,563 |
Amortisation of intangible assets | 146 | 154 |
| 673 | 628 |
(Gain)/Loss on disposal of property, plant and equipment | - | (7) |
| 5 | 6 |
Impairment of property, plant and equipment | - | - |
| - | 86 |
Impairment of intangible assets | 93 | - |
| 93 | - |
Write-back for inventory obsolescence, net | (706) | (160) |
| (412) | (351) |
Impairment of allowance for trade receivables | - | 46 |
| - | 46 |
Unrealised exchange loss/(gain) | 11 | (230) |
| 166 | (203) |
Interest income | (46) | (16) |
| (96) | (30) |
Interest expense | 146 | 165 |
| 523 | 483 |
Share-based payments | 3 | 8 |
| 17 | 93 |
Gain on bargain purchase | (482) | - |
| (482) | - |
Write-back of payables | - | - |
| (73) | (578) |
Operating cash flow before working capital changes | 1,137 | 1,624 |
| 5,385 | 6,437 |
Changes in working capital: |
|
|
|
|
|
Inventories | (2,134) | 2,176 |
| (2,191) | 171 |
Trade receivables | (4,085) | (1,101) |
| (5,618) | (2,242) |
Other receivables and prepayments | 87 | (1,056) |
| 1,477 | (242) |
Trade and other payables | 3,631 | (2,260) |
| 5,211 | (4,867) |
Cash (used in)/generated from operating activities | (1,364) | (617) |
| 4,264 | (743) |
Interest paid | (56) | (58) |
| (227) | (333) |
Income tax (paid)/refund | (131) | 255 |
| (271) | 205 |
Net cash (used in)/generated from operating activities | (1,551) | (420) |
| 3,766 | (871) |
|
|
|
|
|
|
Cash Flows from Investing Activities |
|
|
|
|
|
Interest received | 37 | 16 |
| 85 | 30 |
Purchase of property, plant and equipment | 839 | (593) |
| (1,533) | (1,923) |
Proceeds from disposal of property, plant and equipment | - | 23 |
| 36 | 55 |
Decrease in intangible assets | 2,250 | - |
| - | - |
Acquisition of a business | (3,500) | - |
| (3,500) | - |
Investment in convertible notes | (1,500) | - |
| (1,500) | - |
Decrease in restricted cash | - | - |
| - | 1,200 |
Net cash used in investing activities | (1,874) | (554) |
| (6,412) | (638) |
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
|
Proceeds from borrowings | 16,093 | 8,216 |
| 54,686 | 49,193 |
Repayment of borrowings | (14,088) | (8,913) |
| (50,811) | (47,276) |
Net cash generated from/(used in) financing activities | 2,005 | (697) |
| 3,875 | 1,917 |
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents | (1,420) | (1,671) |
| 1,229 | 408 |
Cash and cash equivalents at the beginning of the period | 9,772 | 8,873 |
| 7,152 | 6,742 |
Effect of foreign exchange rate changes on the balance of cash held in foreign currencies | 29 | (50) |
| - | 2 |
Cash and cash equivalents at the end of the period(i) | 8,381 | 7,152 |
| 8,381 | 7,152 |
Note:
(i) For the purpose of presentation in the consolidated statement of cash flows, the consolidated cash and cash equivalents comprise the following:
| Q4 FY2018 | Q4 FY2017 |
| FY2018 | FY2017 |
| US$'000 | US$'000 |
| US$'000 | US$'000 |
|
|
|
|
|
|
Cash and bank balances | 8,351 | 7,122 |
| 8,351 | 7,122 |
Fixed deposits | 30 | 30 |
| 30 | 30 |
| 8,381 | 7,152 |
| 8,381 | 7,152 |
Less: Restricted cash | - | - |
| - | - |
Cash and cash equivalents per the consolidated statement of cash flows |
8,381 |
7,152 |
|
8,381 |
7,152 |
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Group |
Share capital |
Treasury shares |
Merger reserves |
Capital redemption reserves |
Share options reserve |
Capital reserve | Foreign currency translation reserve |
Retained profits |
Total |
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
|
|
|
|
|
|
|
|
|
|
Balance as at 1 Jan 2018 | 60,423 | (1,656) | (10,150) | 6 | 706 | (3,695) | (872) | 10,708 | 55,470 |
Share-based payments | - | - | - | - | 8 | - | - | - | 8 |
Profit for the period | - | - | - | - | - | - | - | 326 | 326 |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
124 |
- |
124 |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
- |
124 |
326 |
450 |
Balance as at 31 Mar 2018 | 60,423 | (1,656) | (10,150) | 6 | 714 | (3,695) | (748) | 11,034 | 55,928 |
Share-based payments | - | - | - | - | 3 | - | - | - | 3 |
Profit for the period | - | - | - | - | - | - | - | 206 | 206 |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
69 |
- |
69 |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
- |
69 |
206 |
275 |
Balance as at 30 Jun 2018 | 60,423 | (1,656) | (10,150) | 6 | 717 | (3,695) | (679) | 11,240 | 56,206 |
Share-based payments | - | - | - | - | 3 | - | - | - | 3 |
Profit for the period | - | - | - | - | - | - | - | 109 | 109 |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
(127) |
- |
(127) |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
- |
(127) |
109 |
(18) |
Balance as at 30 Sep 2018 | 60,423 | (1,656) | (10,150) | 6 | 720 | (3,695) | (806) | 11,349 | 56,191 |
Share-based payments | - | - | - | - | 3 | - | - | - | 3 |
Transfer to capital reserve in accordance with statutory requirements | - | - | - |
- | - |
135 |
- |
(135) | - |
Profit for the period | - | - | - | - | - | - | - | 895 | 895 |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
(483) |
- |
(483) |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
- |
(483) |
895 |
412 |
Balance as at 31 Dec 2018 | 60,423 | (1,656) | (10,150) | 6 | 723 | (3,560) | (1,289) | 12,109 | 56,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2017 | 60,423 | (1,656) | (10,150) | 6 | 613 | (3,695) | (986) | 7,759 | 52,314 |
Share-based payments | - | - | - | - | 40 | - | - | - | 40 |
Profit for the period | - | - | - | - | - | - | - | 605 | 605 |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
(113) |
- |
(113) |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
- |
(113) |
605 |
492 |
Balance as at 31 Mar 2017 | 60,423 | (1,656) | (10,150) | 6 | 653 | (3,695) | (1,099) | 8,364 | 52,846 |
Share-based payments | - | - | - | - | 35 | - | - | - | 35 |
Profit for the period | - | - | - | - | - | - | - | 873 | 873 |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
221 |
- |
221 |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
- |
221 |
873 |
1,094 |
Balance as at 30 Jun 2017 | 60,423 | (1,656) | (10,150) | 6 | 688 | (3,695) | (878) | 9,237 | 53,975 |
Share-based payments | - | - | - | - | 10 | - | - | - | 10 |
Profit for the period | - | - | - | - | - | - | - | 687 | 687 |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
44 |
- |
44 |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
- |
44 |
687 |
731 |
Balance as at 30 Sep 2017 | 60,423 | (1,656) | (10,150) | 6 | 698 | (3,695) | (834) | 9,924 | 54,716 |
Share-based payments | - | - | - | - | 8 | - | - | - | 8 |
Profit for the period | - | - | - | - | - | - | - | 784 | 784 |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
(38) |
- |
(38) |
Total other comprehensive income for the period |
- |
- |
- |
- |
- |
- |
(38) |
784 |
746 |
Balance as at 31 Dec 2017 | 60,423 | (1,656) | (10,150) | 6 | 706 | (3,695) | (872) | 10,708 | 55,470 |
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 2018 | 74,240 | (1,656) | 706 | (4,481) | (1,927) | (7,618) | 59,264 |
Share-based payments | - | - | 7 | - | - | - | 7 |
Loss for the period | - | - | - | - | - | (234) | (234) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(234) |
(234) |
Balance as at 31 Mar 2018 | 74,240 | (1,656) | 713 | (4,481) | (1,927) | (7,852) | 59,037 |
Share-based payments | - | - | 4 | - | - | - | 4 |
Loss for the period | - | - | - | - | - | (240) | (240) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(240) |
(240) |
Balance as at 30 Jun 2018 | 74,240 | (1,656) | 717 | (4,481) | (1,927) | (8,092) | 58,801 |
Share-based payments | - | - | 3 | - | - | - | 3 |
Loss for the period | - | - | - | - | - | (205) | (205) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(205) |
(205) |
Balance as at 30 Sep 2018 | 74,240 | (1,656) | 720 | (4,481) | (1,927) | (8,297) | 58,599 |
Share-based payments | - | - | 3 | - | - | - | 3 |
Loss for the period | - | - | - | - | - | (6) | (6) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(6) |
(6) |
Balance as at 31 Dec 2018 | 74,240 | (1,656) | 723 | (4,481) | (1,927) | (8,303) | 58,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2017 | 74,240 | (1,656) | 613 | (4,481) | (2,067) | (6,994) | 59,655 |
Share-based payments | - | - | 38 | - | - | - | 38 |
Loss for the period | - | - | - | - | - | (85) | (85) |
Other comprehensive income: |
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
140 |
- |
140 |
Total other comprehensive income for the period |
- |
- |
- |
- |
140 |
(85) |
55 |
Balance as at 31 Mar 2017 | 74,240 | (1,656) | 651 | (4,481) | (1,927) | (7,079) | 59,748 |
Share-based payments | - | - | 37 | - | - | - | 37 |
Loss for the period | - | - | - | - | - | (56) | (56) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(56) |
(56) |
Balance as at 30 Jun 2017 | 74,240 | (1,656) | 688 | (4,481) | (1,927) | (7,135) | 59,729 |
Share-based payments | - | - | 10 | - | - | - | 10 |
Loss for the period | - | - | - | - | - | (371) | (371) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(371) |
(371) |
Balance as at 30 Sep 2017 | 74,240 | (1,656) | 698 | (4,481) | (1,927) | (7,506) | 59,368 |
Share-based payments | - | - | 8 | - | - | - | 8 |
Loss for the period | - | - | - | - | - | (112) | (112) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
- |
- |
Total other comprehensive loss for the period |
- |
- |
- |
- |
- |
(112) |
(112) |
Balance as at 31 Dec 2017 | 74,240 | (1,656) | 706 | (4,481) | (1,927) | (7,618) | 59,264 |
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.
FY2018 | No. of shares | US$'000 |
|
|
|
|
|
Balance as at 1 Jan 2018 and 31 Dec 2018 | 271,662,227 | 72,584 |
|
FY2017 | No. of shares | US$'000 |
|
|
|
|
|
Balance as at 1 Jan 2017 and 31 Dec 2017 | 271,662,227 | 72,584 |
|
|
|
| |
There were 10,740,072 treasury shares held by the Company as at 31 December 2018 and 31 December 2017 and there was no subsidiary holdings.
1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.
| 31 Dec 2018 | 31 Dec 2017 |
Total number of issued shares excluding treasury shares | 271,662,227 | 271,662,227 |
1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
FY2018 | No. of shares | US$'000 |
|
|
|
Balance as at 1 Jan 2018 and 31 Dec 2018 | 10,740,072 | 1,656 |
1(d)(v) A statement showing all sales, transfers, cancellation and/or use of subsidiary holdings as at the end of the current financial period reported on.
FY2018 | No. of shares | US$'000 |
|
|
|
Balance as at 1 Jan 2018 and 31 Dec 2018 | - | - |
2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.
These figures have not been audited or reviewed.
3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter).
Not applicable.
4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
The accounting policies and methods of computation have been applied consistently for the current financial period ended 31 December 2018 as those used in the audited financial statements for the year ended 31 December 2017, except for the adoption of the new or revised International Financial Reporting Standards ("IFRS") applicable for the financial period beginning 1 January 2018.
5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.
The Group has adopted all of the new or revised IFRS that are effective for the financial period beginning 1 January 2018 and are relevant to its operations. The adoption of these IFRS does not have financial impact on the Group's financial position or results.
6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.
Earnings per ordinary share of the Group, after deducting any provision for preference dividends | Group | Group | ||
Q4 FY2018 US$ | Q4 FY2017 US$ | FY2018 US$ | FY2017 US$ | |
(a) Based on weighted average number of ordinary shares on issue; and | 0.33 cent | 0.29 cent | 0.57 cent | 1.09 cents |
(b) On a fully diluted basis | 0.33 cent* | 0.29 cent* | 0.57 cent* | 1.08 cents |
|
|
|
|
|
Weighted average number of ordinary shares used in computation of basic earnings per share | 271,662,227 | 271,662,227 | 271,662,227 | 271,662,227 |
Weighted average number of ordinary shares used in computation of diluted earnings per share | 271,662,227 | 224,888,356 | 271,662,227 | 271,915,839 |
* Diluted earnings per share for Q4 FY2018 and FY2018 are the same as the basic earnings per share because the potential ordinary shares to be converted are anti-dilutive as the effect of the share conversion would be to increase the earnings per share.
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 2018 US$ | 31 Dec 2017 US$ | 31 Dec 2018 US$ | 31 Dec 2017 US$ | |
Net asset value per ordinary share based on issued share capital
| 20.84 cents | 20.42 cents | 21.57 cents | 21.82 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 for the year ended 31 December 2018 ("FY2018") increased by US$6.6 million to US$122.3 million from US$115.7 million in the prior year ("FY2017"). Revenue for the quarter ended ("Q4 FY2018") amounted to US$36.4 million against US$29.8 million in the prior year quarter ("Q4 FY2017"). The increases, in particular that for Q4 FY2018, have arisen from supply of new designs for key products to some of our major customers.
Geographically, Group revenue for FY2018 increased in America and Europe by US$4.8 million (+5.9%) and US$3.3 million (+14.0%), respectively, offset by reductions in Asia and Rest of the World ("RoW") by US$1.4 million (-20.7%) and US$0.1 million (-3.2%), respectively. Revenue for Q4 FY2018 increased in America, Europe and RoW by US$5.3 million (+25.3%), US$0.2 million (+3.8%) and US$1.5 million (+175.3%), respectively but declined in Asia by US$0.4 million (-32.5%) compared to the earlier year.
Gross Profit
Gross profit margin decreased 0.3 percentage points from 20.9% to 20.6% with gross profit for FY2018 at US$25.2 million against US$24.2 million for FY2017.
For Q4 FY2018, gross profit margin decreased by 0.7 percentage points from 21.1% to 20.4% with gross profit at US$7.4 million against US$6.3 million for Q4 FY2017.
The shortage of key components continued to impact the Group where demand has outstripped supply. Our US operation experienced increased steel prices resulting from the US-China tariff imposition, and a broken tool resulted in high expediting, freight and duty costs which impacted the Group's margin by US$2.1 million during the quarter.
Other Income
Other income in Q4 FY2018 pertained to a bargain purchase price gain as a result of the acquisition of business from Skyware Technologies at the end of Q3 FY2018.
Administrative Expenses
Administrative expenses for FY2018 increased 9.4% to US$22.9 million compared to US$21.0 million in FY2017, representing 18.7% and 18.1% of revenue, respectively, with continued spending on new product introduction through research and development (Q4 FY2018 - US$0.7 million; Q4 FY2017 - US$0.5 million; FY2018 - US$2.8 million; FY2017 - US$1.6 million) being a major contributor. In Q4 FY2018, the UK tax authorities finalised an enquiry from 2010, which resulted in a P&L liability of US$254 thousand. The enquiry related to a subsidiary for a period prior to the Group acquisition so the cash to pay this liability was secured and held in escrow. Administrative expenses for Q4 FY2018 increased to US$6.5 million from US$5.4 million compared to the previous year.
Other operating expenses
Other operating expenses in Q4 FY2018 derived primarily from foreign exchange losses.
Profit Before Tax & Net Profit
The Group posted a profit before tax of US$2.1 million in FY2018, compared to US$3.7 million the year earlier, representing margins of 1.7% and 3.2%, respectively. For Q4 FY2018, the Group recorded US$1.2 million profit before tax compared to US$1.0 million in the prior year quarter, representing margins of 3.2% and 3.3%, respectively.
Overall, the Group posted a net profit of US$1.5 million in FY2018, compared to US$2.9 million in FY2017, representing net margins of 1.3% and 2.5%, respectively. The Group recorded a net profit of US$0.9 million in Q4 FY2018 compared to US$0.8 million the prior year quarter, representing net margins of 2.5% and 2.6%, respectively.
Review of Financial Position
Non-current assets increased by US$3.1 million to US$27.3 million as at 31 December 2018, due to the intangibles acquired in 2018 from Skyware Technologies and the convertible loans subscribed in Tactilis Sdn. Bhd.
Net current assets decreased by US$2.1 million to US$29.8 million as at 31 December 2018 compared to US$31.9 million as at 31 December 2017. Inventories and trade and other receivables increased by US$2.6 million and US$4.1 million, respectively, in preparation of the orders in 2019 and in line with the increased sales towards the end of the year. Trade and other payables increased US$6.1 million due to late quarter purchases as well as stringent payments to the trade suppliers. To ease the working capital, borrowings increased by US$3.9 million to US$12.0 million, offset by an increase in cash and cash equivalents of US$1.2 million to US$8.4 million as at 31 December 2018 compared to US$7.2 million as at 31 December 2017.
The Group's net asset value stood at US$56.6 million as at 31 December 2018, compared to US$55.5 million as at 31 December 2017.
Review of Cash Flows
In Q4 FY2018, net cash used in operating activities amounted to US$1.6 million, comprising US$1.1 million cash inflow from operating activities (before working capital changes), US$2.5 million net working capital outflow and US$0.2 million payment of interest and income tax.
In FY2018, net cash generated from operating activities amounted to US$3.8 million, comprising US$5.4 million cash inflow from operating activities (before working capital changes), US$1.1 million net working capital outflow and US$0.5 million payment of interest and income tax.
Net cash used in investing activities in Q4 FY2018 and FY2018 amounted to US$1.9 million and US$6.4 million, respectively, relating predominately to purchase of machinery, the acquisition of Skyware Technologies and investment in convertible notes in Tactilis Sdn. Bhd.
Net cash generated from financing activities amounted to US$2.0 million in Q4 FY2018 and US$3.9 million in FY2018, attributable to the net proceeds of borrowings.
Overall, the Group recorded a net decrease in cash and cash equivalents amounting to US$1.4 million in Q4 FY2018 and a net increase in cash and cash equivalents amounting to US$1.2 million in FY2018, bringing cash and cash equivalents per the consolidated statement of cash flows to US$8.4 million as at 31 December 2018.
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
No prospect statement was made.
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.
Growth of the global satellite communications equipment market is expected to continue over the coming years, underpinned by worldwide expansion in the IT and telecommunication sectors. Satellite communications continues to be an integral part of modern technology, amid the emerging trends of 5G convergence, Ultra High Definition/4K transmission, autonomous self-navigating vehicles and interconnected electronic devices.
The satellite broadcasting sector is still undergoing its technological shift towards DCSS products. However, the pace of this transition has been slower than expected. This shift is taking place amidst a greater emphasis on price competitiveness and improved product performance. In the past few years, the Group has been developing and rolling out a series of reduced form factor products to address these issues which exceed customer expectations. This new range of products provide the prospect of better margins arising from ongoing operational improvements, and the reduced form factor which should lead to a lower cost of raw materials.
During Q4 FY2018, the Group recorded higher volume of shipments for the recently launched Western Arc Slimline Low Noise Block ("LNB") to a major U.S. customer. The Group will continue to be the sole supplier for this product to this customer until the end of Q1 FY2019. Reflecting confidence in the Group's product quality and capabilities, shipments of the Eastern Arc model have also commenced to the same customer from Q1 FY2019.
Data over satellite continues to be important for the Group which made shipments of its new 90 cm satellite antenna throughout FY2018, as sole supplier, to another U.S. customer. Shipments on a non-exclusive basis are expected to continue throughout FY2019 and beyond.
In addition, one of the Group's existing customers, a major global VSAT integrator, which has been purchasing antennas from the Group, has now added new orders for data over satellite transceiver electronics resulting from the Skyware Technologies purchase in Q3 FY2018. The Group anticipates that overall VSAT shipments in FY2019 will exceed that of FY2018.
Our U.S. operations faced supply chain issues in Q4 FY2018 which impacted profitability. Had it not been for these issues, gross profit for Q4 FY2018 would have been higher for Global Skyware, which nonetheless closed off FY2018 with a second year of profitability, following a turnaround that resulted from changes to operations since FY2016.
The Group had announced in 4Q FY2018 a proposal to acquire Tactilis Sdn. Bhd., a manufacturer and distributor of biometric system-on-card solutions which, if completed, will constitute a reverse takeover. Subsequent to the end of the review period the Group appointed a Financial Adviser. The Group will provide further updates on this transaction in due course.
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.
Due to the operating conditions faced by the Group, no dividend has been declared or recommended for the year ended 31 December 2018.
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.
FY2018 | Sat Comms | CM | Group |
| US$'000 | US$'000 | US$'000 |
|
|
|
|
Revenue | 114,110 | 8,182 | 122,292 |
|
|
|
|
Operating profit/(loss) | 2,682 | (174) | 2,508 |
Finance income |
|
| 96 |
Finance costs |
|
| (523) |
Income tax expense |
|
| (545) |
Profit for the year |
|
| 1,536 |
|
|
|
|
Gain on bargain purchase | 482 | - | 482 |
Amortisation of intangible assets | 673 | - | 673 |
Depreciation of property, plant and equipment | 2,729 | 161 | 2,890 |
Addition to property, plant and equipment | 1,468 | 65 | 1,533 |
Impairment of intangible assets | 93 | - | 93 |
Write-back for inventory obsolescence, net | (412) | - | (412) |
|
|
|
|
Assets and liabilities |
|
|
|
Segment assets | 85,054 | 6,507 | 91,561 |
Unallocated assets |
|
|
|
- Non-current assets |
|
| 1,597 |
- Other receivables |
|
| 230 |
- Deferred tax assets |
|
| 109 |
- Cash and cash equivalents |
|
| 580 |
- Tax receivables |
|
| 15 |
Total assets |
|
| 94,092 |
|
|
|
|
FY2018 | Sat Comms | CM | Group |
| US$'000 | US$'000 | US$'000 |
|
|
|
|
Segment liabilities | 21,229 | 3,300 | 24,529 |
Unallocated liabilities |
|
|
|
- Other payables |
|
| 282 |
- Provision for income tax |
|
| 295 |
- Deferred tax liabilities |
|
| 406 |
- Borrowings |
|
| 11,974 |
Total liabilities |
|
| 37,486 |
FY2017 |
|
|
|
|
|
|
|
Revenue | 109,314 | 6,392 | 115,706 |
|
|
|
|
Operating profit | 3,494 | 653 | 4,147 |
Finance income |
|
| 30 |
Finance costs |
|
| (483) |
Income tax expense |
|
| (745) |
Profit for the year |
|
| 2,949 |
|
|
|
|
Amortisation of intangible assets | 628 | - | 628 |
Depreciation of property, plant and equipment | 2,479 | 84 | 2,563 |
Addition to property, plant and equipment | 1,816 | 107 | 1,923 |
Impairment of property, plant and equipment | - | 86 | 86 |
Write-back for inventory obsolescence, net | (351) | - | (351) |
Allowance for impairment of trade receivables, net | 46 | - | 46 |
|
|
|
|
Assets and liabilities |
|
|
|
Segment assets | 73,930 | 7,857 | 81,787 |
Unallocated assets |
|
|
|
- Non-current assets |
|
| 9 |
- Other receivables |
|
| 254 |
- Deferred tax assets |
|
| 198 |
- Cash and cash equivalents |
|
| 733 |
- Tax receivables |
|
| 11 |
Total assets |
|
| 82,992 |
|
|
|
|
Segment liabilities | 16,641 | 1,711 | 18,352 |
Unallocated liabilities |
|
|
|
- Other payables |
|
| 493 |
- Provision for income tax |
|
| 163 |
- Deferred tax liabilities |
|
| 489 |
- Borrowings |
|
| 8,025 |
Total liabilities |
|
| 27,522 |
13(b) Geographical Information
Revenue and non-current assets information based on the geographical location of customers and assets respectively are as follows:
FY2018 | America US$'000 | Europe US$'000 | Asia US$'000 | Rest of the World US$'000 | Group US$'000 |
Revenue | 85,831 | 27,006 | 5,210 | 4,245 | 122,292 |
Non-current assets | 4,689 | 16,562 | 5,818 | 111 | 27,180 |
FY2017 | America US$'000 | Europe US$'000 | Asia US$'000 | Rest of the World US$'000 | Group US$'000 |
Revenue | 81,066 | 23,687 | 6,569 | 4,384 | 115,706 |
Non-current assets | 5,256 | 15,941 | 2,661 | 114 | 23,972 |
14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.
Please refer to Note 8.
15. A breakdown of sales.
|
| FY2018 US$'000 | FY2017 US$'000 | % increase/ (decrease) |
(a) | Sales reported for first half year | 55,396 | 57,424 | (3.5) |
(b) | Operating profit after income tax before deducting minority interests reported for first half year | 532 | 1,478 | (64.0) |
(c) | Sales reported for second half year | 66,896 | 58,282 | 14.8 |
(d) | Operating profit after income tax before deducting minority interests reported for second half year | 1,004 | 1,471 | (31.7) |
16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year.
| FY2018 US$'000 | FY2017 US$'000 |
Ordinary | - | - |
Preference | - | - |
Total Annual Dividend | - | - |
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 2018.
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
1 March 2019
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.