29 Jul 2015 07:00
GLOBAL INVACOM GROUP LIMITED
PERFORMANCE GUIDANCE FOR THE HALF YEAR ENDED 30 JUNE 2015
The Board of Directors (the "Board") of Global Invacom Group Limited (the "Company", together with its subsidiaries, the "Group") wishes to provide a performance guidance for the six months ended 30 June 2015 ("1H FY2015") following a preliminary review and assessment by the Board of the projected financial statements of the Group.
The Group expects to report a net loss between US$2.5 million and US$3.0 million for 1H FY2015 due primarily to the following:
i. Delay in sales to major customers in the U.S., U.K. and Asia. Three of the Group's major customers either destocked or altered their procurement procedures during the period. Most of the orders have restarted from July 2015 and will contribute to the financial performance of the Group in the second half of 2015 ("2H FY2015"); and
ii. Gross margins were affected due to the reclassification of export taxes for certain products that the Group is contesting, the weakening Malaysian Ringgit against the strengthening US dollar affecting the Group's Malaysia operations and the lack of availability of good semi-conductor devices which delayed production and incurred additional logistics costs.
In addition to the above factors, the Group incurred other one-off expenses:
a. The costs of defending an ongoing legal dispute with a supplier of its U.K. subsidiary that the Group is strongly defending. The Group made a US$0.4 million provision in its 2014 accounts in respect of this dispute; and
b. Restructuring of its U.K. and Shanghai facilities in order to streamline internal efficiencies. The Group anticipates that these will translate into operational cost efficiencies in 2H FY2015.
Further details of the Group's performance will be disclosed when the Company announces its financial results for 1H FY2015 on or around 14 August 2015.
BY ORDER OF THE BOARD
Anthony Brian Taylor
Executive Chairman
29 July 2015
For media queries, please contact
Global Invacom Group Limited
Matthew Garner (Chief Financial Officer)
8 Temasek Boulevard
#20-03 Suntec Tower Three
Singapore 038988
+65 6884 3423
WeR1 Consultants Pte Ltd (Singapore Financial PR)
Sheryl Sim, sheryl@wer1.net
Ian Lau, ianlau@wer1.net
+65 6737 4844
finnCap Ltd (Nominated Adviser and Joint Broker)
Christopher Raggett/Simon Hicks (Corporate Finance)
Rhys Williams (Corporate Broking)
+44 20 7220 0500
Mirabaud Securities LLP (Joint Broker)
Peter Krens (Equity Capital Markets)
+44 20 7878 3362
Bell Pottinger LLP (UK Financial PR)
David Rydell/Lucy Stewart/David Bass
+44 20 3772 2575
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 six manufacturing plants across China, Malaysia and the U.K., providing a full range of dish antennas, LNB receivers, transmitters, switches and video distribution components and electronics manufacturing services in satellite communications, TV peripherals, computer peripherals, medical, and consumer electronics industries. Its customers include satellite broadcasters such as BSkyB of the U.K. and DISH Network of the U.S.A..
For more information please visit: www.globalinvacom.com