4 Aug 2021 07:00
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
Global Invacom Group Limited
("Global Invacom", the "Company" or the "Group")
Trading Update
Singapore/London, 4 August 2021 - Global Invacom (SGX: QS9) (AIM: GINV), the global provider of satellite communications equipment and electronics, announces that based on a preliminary review of the Group's unaudited financial statements for the half year ended 30 June 2021 ("1H FY2021"), the Group expects to record a net loss after tax for 1H FY2021.
The expected net loss for 1H FY2021 is mainly attributable to higher operating costs and higher material costs arising from the ongoing global COVID-19 pandemic. The information available indicates that the Group expects to report a net loss of approximately US$1.2 million in 1H FY2021 against a net profit of US$0.3 million in 1H FY2020. Group revenue in 1H FY2021 is expected to be approximately US$40.4 million versus US$52.8 million in 1H FY2020.
The financial performance of the Group in 1H FY2021 reflects broader macroeconomic challenges and ongoing COVID-19 challenges. The much-publicised disruption to supply chains and problems with the availability of key products, including semi-conductors and capacitors, continues to disrupt the Group's operations. Furthermore, the Group has also been impacted by inefficiencies within the Group's supply chain, and the global transportation of products from the manufacturing facility to customer sites.
The Group is undertaking a further restructuring across the Group to reduce its cost base, removing excess headcount in non-core functions and reducing administrative costs.
Further details of the Group's financial performance will be set out in the Company's unaudited financial statements for 1H FY2021, which will be announced no later than 14 August 2021.
Despite the current challenges, the Group is well-placed to capitalise on the expected growth in the Group's core DOS market driven by ongoing demand for providers seeking to satisfy the continued growth in demand for data and connectivity. The Group believes Global Invacom's products have a key role to play in the provision of this connectivity as restrictions ease across territories, supply chains recover and demand starts to normalise.
For further information, please contact:
Global Invacom Group Limited | www.globalinvacom.com |
Tony Taylor, Executive Chairman | via Vigo Consulting |
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Strand Hanson Limited (Nominated Adviser and Broker) | www.strandhanson.co.uk |
James Harris / Rob Patrick | Tel: +44 20 7409 3494 |
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Vigo Consulting (UK Media & Investor Relations) | www.vigoconsulting.com |
Jeremy Garcia / Fiona Hetherington / Kendall Hill | Tel: +44 207 390 0233 |
ginv@vigoconsulting.com |
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About Global Invacom Group Limited
Global Invacom is a fully integrated satellite equipment provider with sites across Singapore, China, Indonesia, Philippines, Malaysia, Israel, UK and the US. Its customers include satellite broadcasters such as Sky Group 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 satellite ground equipment including antennas, LNB receivers, transceivers, fibre distribution equipment, transmitters, switches, and video distribution components, as well as manufacturing services for the defence and healthcare sectors. The Group is 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.