Final Results

RNS Number : 5316E
Global Invacom Group Limited
28 February 2020
 

Global Invacom Group Limited

("Global Invacom", the "Group" or the "Group")

 

Final results for the year ended 31 December 2019

 

Singapore/London, 28 February 2020 - Global Invacom (SGX: QS9) (AIM: GINV), the global provider of satellite communications equipment and electronics, is pleased to announce its financial results for the year ended 31 December 2019 ("FY2019") and the three months ended 31 December 2019 ("Q4 FY2019").

 

Key financial highlights:

 

· Revenue for FY2019 increased 10.0% to US$134.5 million (FY2018: US$122.3 million)

· Adjusted gross profit (before exceptional items) increased by 11.8% to US$28.2 million (FY2018: US25.2 million). Actual gross profit of US$24.1 million includes US$4.1 million impairment costs related to the closure of the Group's Shanghai manufacturing facility. 

· Strong cash generation as net cash at 31 December 2019 increases US$3.6 million

· Adjusted net profit (before exceptional items) increased by 158.3% to US$4.0 million (FY2018: US$1.5 million). Actual net loss of US$12.3 million includes US$16.3 million costs relating to the closure of the Shanghai manufacturing facility and the impairment of goodwill and loans.

 

Key operational highlights:

 

· Announced a complete review of the Group. As a result of the review, the Group will focus on the following strategic initiatives:

o  Continued drive in product development across both Data Over Satellite ("DOS") and Direct to Home ("DTH") markets although focus on DOS

o  Completion of the Shanghai manufacturing operations' relocation to a third-party subcontract manufacturer in the Philippines by the end of June 2020; 80% complete to date

o  R etention of key procurement and quality assurance personnel for the Group in China

 

Global Invacom's core operations focus on two key end markets: Direct to home ("DTH") and Data Over Satellite ("DOS").

 

DTH continues to play a central role in delivering satellite broadcast services, despite an increase in Over-The-Top services ("OTT"). As such, the Group believes DTH sales will continue to provide a profitable foundation for the business.

 

More importantly, the Group is seeing a strong increase in demand for its DOS technology and services as consumer appetite for constant connectivity increases unabated. With increasing data consumption across all geographies and with existing physical infrastructure incapable of responding to, and servicing, this demand, it is anticipated that service providers will continue to adopt satellite solutions to fill the insatiable demands for data growth.

 

The Group also now offers integrated antenna and electronics solutions for Medium Earth Orbit ("MEO") and Low Earth Orbit ("LEO") satellites, and is seeking to leverage its existing customer base and engage with new customers in order to become a key industry partner for operators seeking to launch satellites into these orbits.

 

The DOS market continues to grow unabated as demand for constant connectivity from end consumers grows. According to a report from Statista published in September 2019, global mobile data traffic is projected to increase nearly sevenfold between 2017 and 2022[1]. Existing physical infrastructure is not capable of satisfying this demand, and the speed and scope of the task to provide connectivity to all has seen operators seek satellite solutions, which are more economically viable and capable of providing coverage across an extensive geography.

 

Despite the rise of OTT media services, the demand for DTH connectivity continues. With a limited peer group, Global Invacom continues to focus on product innovation, and believes it will benefit from manufacturing efficiencies following the move from Shanghai to the Philippines.

 

Global Invacom boasts an enviable customer list which includes a number of the leading DTH providers worldwide, such as Sky in the UK and Dish Network in the United States ("US"), as well as leading, worldwide DOS providers such as Hughes Network Systems, Viasat, Gilat and ST Electronics. The Group believes continued demand for DTH products from this blue-chip customer base will remain a good revenue stream for the Group going forward with DOS products bringing strong growth.

 

In June 2019, Global Invacom completed the acquisition of Apexsat Pte Ltd ("Apexsat"), a group specialising in the design and manufacture of steerable earth station solutions and motorised and transportable antenna systems including systems capable of acquiring and retaining LEO and MEO satellites and drone tracking. The acquisition of Apexsat has enabled the Group to leverage its existing customer base, and to offer products for the LEO and MEO satellite communication constellations markets.

 

The Group has experienced continued increased pressure on wages and production costs in China, with the average cost per employee rising 89% between FY2012 and FY2019 added to an overall production cost increase exasperated by tariffs imposed by the US. The relocation of the manufacturing facility to the Philippines will help protect margins on the affected products.

 

As a result of the transition to the Philippines, Global Invacom will incur one-off charges closing the Global Invacom owned facility in Shanghai. These non-recurring charges of US$10.6 million have been recognised in FY2019.

 

Following from the review, the Group has also recognised a further US$5.5 million impairment from the impairment of goodwill and loans. 

 

Alongside Global Invacom's existing product set compromising hardware and electronics for satellite antenna products - the Group continues to drive research and development of new products throughout its teams in UK, US, Malaysia, Indonesia, Germany and Israel.

 

Apart from the economic uncertainty as a result of the ongoing trade tensions between the US and China, the Group is also mindful of the COVID-19 outbreak which has disrupted many businesses operating in China and the risk around its supply chain of components. The Group has established a core team of approximately 30 supply chain specialists located in Shanghai to source such products. This team is closely monitoring the situation to ensure stable supplies to the Philippines and US although we believe it is too soon to comment on its long-term impact for the business. 

 

Tony Taylor, Executive Chairman of Global Invacom, commented:

 

"We are delighted with the progress we have made in 2019 and believe the decisive actions taken by management to restructure the business will ensure that the Group is well placed to capitalise on a number of growth opportunities. Our transition to the Philippines which will continue over the course of the first six months of 2020 will help protect our overall margins, now unencumbered by tariffs and increasing production costs in China.

 

The demand for satellite communications solutions continues to gain momentum as operators strive to put in place infrastructure that is capable of responding to the ever-increasing demand for connectivity and data regardless of location. The Group continues to be uniquely positioned to supply antenna and electronics products, and with our blue-chip customer base and industry reputation, we feel we are very well placed going in to 2020 to drive further growth."

 

Revenue for the 12 months ended 31 December 2019 increased 10.0% to US$134.5 million from US$122.3 million the previous year. Revenue of US$30.1 million for the quarter ended 31 December 2019 was 17.3% lower than the corresponding quarter in 2018 when the Group received strong demand from two of its major customers.

 

Geographically, Group revenue for FY2019 increased in America, Europe and Rest of the World ("RoW") by US$7.8 million (+9.1%), US$4.2 million (+15.5%) and US$1.3 million (+30.3%), respectively, offset by reductions in Asia by US$1.1 million (-20.7%). Revenue for Q4 FY2019 increased in Europe and Asia by US$1.6 million (+22.4%) and US$0.9 million (+110.6%), respectively but declined in America and RoW by US$7.0 million (-26.8%) and US$1.8 million (-77.3%), respectively, compared to the prior year.

 

The increase in revenue alongside product mix resulted in an adjusted 11.8% increase in gross profit for FY2019 to US$28.2 million, excluding the Shanghai facility impairments, compared with FY2018 of US$25.2 million.

 

In the year ended 31 December 2019, the Group recorded a net loss of US$12.3 million (FY2018: US$1.5 million net profit), as a result of one-off costs for the Shanghai planned closure and transition of manufacturing to the Philippines. Reversing these costs would give the Group a net profit of US$4.0 million.

 

Administrative expenses increased to US$27.4 million in FY2019 from US$22.9 million in FY2018, due to the inclusion of salaries and related costs from the acquisition of Skyware Technologies in September 2018, along with US$4.2 million for the closure of the Shanghai manufacturing facility and a small-scale restructuring in one of its UK facilities. Other operating expenses also reflected US$8.0 million inone-off costs relating to the closure of the Shanghai manufacturing facility and the impairment of goodwill and loans.

 

The Group recorded a net increase in cash and cash equivalents amounting to US$0.8 million in FY2019 bringing cash and cash equivalents per the consolidated statement of cash flows to US$8.9 million as at 31 December 2019. Overall net cash in the Group, combining cash and cash equivalents against borrowings, improved by US$3.6 million in FY2019.

 

 

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

Jordan Teo / Ryan del Agua

Tel: +65 6737 4844

ginv@wer1.net 

 

 

 

Vigo Communications (UK Media & Investor Relations)

www.vigocomms.com

Jeremy Garcia / Fiona Henson / Charlie Neish / Fiona Norman

Tel: +44 207 390 0233

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 US 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 Group 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 2019

 

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 2019. These figures have not been audited.

 

Group
 
Group

 

Q4

FY2019

Q4 FY2018

Increase/
(Decrease)

 

FY2019

FY2018

Increase/

(Decrease)

US$'000

US$'000

%

 

US$'000

US$'000

%

 

 

 

 

 

 

 

 

Revenue

  30,068

  36,366

  (17.3)

 

134,509

  122,292

  10.0

 

 

 

 

 

 

 

 

Cost of sales

(27,295)

(28,963)

  (5.8)

 

(110,443)

  (97,104)

  13.7

 

 

 

 

 

 

 

 

Gross profit

  2,773

  7,403

  (62.5)

 

  24,066

  25,188

  (4.5)

 

 

 

 

 

 

 

 

Other income

  223

  482

  (53.7)

 

  244

  569

  (57.1)

Distribution costs

  (71)

  (69)

  2.9

 

  (292)

  (322)

  (9.3)

Administrative expenses

  (9,427)

  (6,514)

  44.7

 

(27,429)

  (22,913)

  19.7

Other operating expenses

  (8,200)

  (21)

  N.M.

 

  (8,216)

  (14)

  N.M.

Finance income

  75

  46

  63.0

 

  230

  96

  139.6

Finance costs

  (344)

  (146)

  135.6

 

  (1,146)

  (523)

  119.1

 

 

 

 

 

 

 

 

(Loss)/Profit before income tax(i)

(14,971)

  1,181

  N.M.

 

(12,543)

  2,081

  N.M.

 

 

 

 

 

 

 

 

Income tax credit/(expense)

  870

  (286)

  N.M.

 

  254

  (545)

  N.M.

 

(Loss)/Profit after income tax

 

(14,101)

 

  895

 

  N.M.

 

 

(12,289)

 

  1,536

 

  N.M.

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss

 

 

 

 

 

 

 

-  Exchange differences on translation of foreign subsidiaries

  325

  (483)

  N.M.

 

  72

  (417)

  N.M.

 

Other comprehensive income/(loss) for the period, net of tax

  325

  (483)

  N.M.

 

  72

  (417)

  N.M.

 

Total comprehensive (loss)/income

(13,776)

 412

 N.M.

 

(12,217)

 1,119

 N.M.

 

Loss for the year attributable to:

 

 

 

 

 

 

 

Owners of the Company

(14,092)

  895

  N.M.

 

(12,278)

  1,536

  N.M.

Non-controlling interests

  (9)

  -

  N.M.

 

  (11)

  -

  N.M.

 

 

(14,101)

  895

  N.M.

 

(12,289)

  1,536

  N.M.

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income attributable to:

 

 

 

 

 

 

 

Owners of the Company

(13,767)

  412

  N.M.

 

(12,206)

  1,119

  N.M.

Non-controlling interests

  (9)

  -

  N.M.

 

  (11)

  -

  N.M.

N.M.:  Not Meaningful

 

Note:

 

(i)  Profit before income tax was determined after (charging)/crediting the following:

 

 

 

 

 

Group

 

Group

 

Q4

FY2019

Q4

FY2018

Increase/
(Decrease)

 

FY2019

FY2018

Increase/

(Decrease)

US$'000

US$'000

%

 

US$'000

US$'000

%

 

 

 

 

 

 

 

 

Interest income

  75

  46

  63.0

 

  230

  96

  139.6

Interest expense

  (344)

  (146)

  135.6

 

(1,146)

  (523)

  119.1

Gain on bargain purchase

 -

 482

(100.0)

 

 -

 482

  (100.0)

Write-back of payables

 -

 -

  -

 

  74

 73

  1.4

Gain/(Loss) on disposal of property, plant and equipment

 3

 -

  N.M.

 

  20

 (5)

 N.M.

Gain on disposal of subsidiary

   4

 -

  N.M.

 

 4

   -

   N.M.

Loss on foreign exchange

 (37)

 (21)

  76.2

 

  (214)

  (9)

  N.M.

Impairment of property, plant and equipment

  (2,185)

 -

  N.M.

 

(2,185)

 -

  N.M.

Depreciation of property, plant and equipment

  (852)

  (791)

  7.7

 

(3,283)

  (2,890)

  13.6

Amortisation of intangible assets

  (230)

  (146)

  57.5

 

  (920)

  (673)

 36.7

Impairment of intangible assets

 -

 (93)

(100.0)

 

  -

  (93)

  (100.0) 

Depreciation of right-of-use assets

  (673)

 -

  N.M.

 

(2,404)

 -

  N.M.

(Allowance)/Write-back for inventory obsolescence, net

  (2,931)

  706

 N.M. 

 

(2,816)

  412

  N.M.

Inventory written off

  (1,256)

  -

  N.M. 

 

(1,256)

  -

  N.M.

Impairment of receivables

  (357)

  -

  N.M. 

 

  (357)

  -

  N.M.

Impairment of loans

  (2,181)

 -

  N.M. 

 

(2,181)

 -

  N.M.

Bad debts written off

 -

 -

  -

 

  (16)

 -

  N.M.

Research and development expense

  (159)

  (665)

  (76.1)

 

(1,671)

  (2,805)

  (40.4) 

Impairment of goodwill

  (3,260)

 -

 N.M. 

 

(3,260)

 -

  N.M.

Restructuring costs

  (4,188)

 -

  N.M. 

 

(4,188)

 -

  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 2019

31 Dec 2018

 

31 Dec 2019

31 Dec 2018

 

US$'000

US$'000

 

US$'000

US$'000

ASSETS

 

 

 

 

 

 

Non-current Assets

 

 

 

 

 

 

Property, plant and equipment

 

  10,254

  12,606

 

  168

  85

Right-of-use assets

 

  7,533

  -

 

  144

  -

Investments in subsidiaries

 

  -

  -

 

  27,586

  44,892

Goodwill

 

  6,092

  9,352

 

  -

  -

Intangible assets

 

  3,104

  3,656

 

  -

  -

Other financial assets

 

  8

  1,519

 

  -

  1,511

Deferred tax assets

 

  975

  109

 

  -

  -

Other receivables and prepayments

 

  54

  55

 

  10,100

  9,608

 

 

  28,020

  27,297

 

  37,998

  56,096

Current Assets

 

 

 

 

 

 

Due from subsidiaries

 

  -

  -

 

  4,105

  939

Inventories

 

  25,795

  31,625

 

  -

  -

Trade receivables

 

  19,846

  24,874

 

  -

  -

Other receivables and prepayments

 

  1,909

  1,900

 

  3,407

  3,433

Tax receivables

 

  38

  15

 

  -

  -

Cash and cash equivalents

 

  8,912

  8,381

     

  610

  526

 

 

  56,500

  66,795

     

  8,122

  4,898

 

Total assets

 

  84,520

  94,092

 

  46,120

  60,994

 

 

 

 

 

 

 

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

 

  (14,691)

  (2,161)

 

  (26,853)

  (13,988)

Equity attributable to owners of the Company

 

  44,076

  56,606

 

  45,731

  58,596

Non-controlling interests

 

  (11)

  -

 

  -

  -

Total equity

 

  44,065

  56,606

 

  45,731

  58,596

 

 

 

 

 

 

 

Non-current Liabilities

 

 

 

 

 

 

Other payables

 

  108

  104

 

  -

  -

Lease liabilities

 

  5,948

  -

 

  35

  -

Deferred tax liabilities

 

  428

  406

 

  -

  -

 

 

  6,484

  510

     

  35

  -

Current Liabilities

 

 

 

 

 

 

Due to subsidiaries

 

  -

  -

 

  -

  2,109

Trade payables

 

  12,903

  19,381

 

  -

  -

Other payables

 

  10,238

  5,326

 

  238

  221

Borrowings

 

  8,929

  11,974

 

  -

  -

Lease liabilities

 

  1,897

  -

     

  116

  -

Provision for income tax

 

  4

  295

     

  -

  68

 

 

  33,971

  36,976

 

  354

  2,398

 

 

 

 

 

 

 

Total liabilities

 

  40,455

  37,486

 

  389

  2,398

 

 

 

 

 

 

 

Total equity and liabilities

 

  84,520

  94,092

 

  46,120

  60,994

 

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 2019

As at 31 Dec 2018

 

Secured

Unsecured

Secured

Unsecured

 

 

US$'000

US$'000

US$'000

US$'000

 

 

8,929

-

11,974

-

 

 

 

Amount repayable after one year

 

As at 31 Dec 2019

As at 31 Dec 2018

 

Secured

Unsecured

Secured

Unsecured

 

 

US$'000

US$'000

US$'000

US$'000

 

 

-

-

-

-

 

 

 

Details of any collateral

 

The revolving credit loans of US$8,929,000 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 FY2019

Q4 FY2018

 

FY2019

FY2018

 

US$'000

US$'000

 

US$'000

US$'000

Cash Flows from Operating Activities

 

 

 

 

 

(Loss)/Profit before income tax

  (14,971)

  1,181

 

  (12,543)

  2,081

Adjustments for:

 

 

 

 

 

Depreciation of property, plant and equipment

  852

  791

 

  3,283

  2,890

Amortisation of intangible assets

  230

  146

 

  920

  673

Impairment of property, plant and equipment

  2,185

  93

 

  2,185

  93

(Gain)/Loss on disposal of property, plant and equipment

  (3) 

  -

 

  (20)

  5

Depreciation of right-of-use assets

  673

 -

 

  2,404

  -

Impairment of intangible assets

  -

  93

 

 -

  93

Allowance/(Write-back) for inventory obsolescence, net

  2,931

  (706)

 

  2,816

  (412)

Inventory written off

  1,256

  -

 

  1,256

  -

Bad debts written off

  -

  -

 

  16

  -

Impairment of receivables

  357

  -

 

  357

  -

Impairment of loans

  2,181

 -

 

  2,181

  -

Unrealised exchange loss

  445

  11

 

  213

  166

Interest income

  (75)

  (46)

 

  (230)

  (96)

Interest expense

  344

  146

 

  1,146

  523

Share-based payments

  -

  3

 

 2

  17

Gain on disposal of subsidiary

  (4)

 -

 

  (4)

  -

Gain on bargain purchase

  -

  (482)

 

 -

  (482)

Write-back of payables

  -

 -

 

  (74)

  (73)

Impairment of goodwill

  3,260

 -

 

  3,260

  -

Operating cash flow before working capital changes

  (339)

  1,137

 

  7,168

  5,385

Changes in working capital:

 

 

 

 

   

Inventories

  (1,833)

  (2,134)

 

  1,758

  (2,191)

Trade receivables

  1,983

  (4,085)

 

  5,016

  (5,618)

Other receivables and prepayments

  (1,139)

  87

 

  (1,130)

  1,477

Trade and other payables

  6,254

  3,631

 

  (119)

  5,211

Cash generated from/(used in) operating activities 

  4,926

  (1,364)

 

  12,693

  4,264

Interest paid

  (458)

  (56)

 

  (972)

  (227)

Income tax refund/(paid)

  (494)

  (131)

 

  (859)

  (271)

Net cash generated from/(used in) operating activities

  3,974

  (1,551)

 

  10,862

  3,766

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

Interest received

  23

  37

 

 59

  85

Purchase of property, plant and equipment

  (421)

  839

 

  (3,315)

  (1,533)

Proceeds from disposal of property, plant and equipment

  16

 -

 

 79

  36

Decrease in intangible assets

  -

  2,250

 

 -

  -

Payment for intangible assets

  -

 -

 

  (279)

  -

Acquisition of a business

  -

  (3,500)

 

 -

  (3,500)

Payment for financial asset, at fair value through profit or loss

  -

  (1,500)

 

  (500)

  (1,500)

Net cash used in investing activities

  (382)

  (1,874)

 

  (3,956)

  (6,412)

 

 

 

 

 

 

 

 

 

Group
 
Group

Q4 FY2019

Q4 FY2018

 

FY2019

FY2018

 

US$'000

US$'000

 

US$'000

US$'000

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

Proceeds from borrowings

  13,367

 16,093

 

  54,933

  54,686

Repayment of borrowings

  (17,318)

(14,088)

 

  (58,053)

  (50,811)

Repayment of lease liabilities

  (1,382)

 -

 

  (3,020)

  -

Capital contribution from non-controlling interests

  (32)

 -

 

 -

  -

Acquisition of non-controlling interests

  (11)

 -

 

  (11)

  -

Net cash (used in)/generated from financing activities

  (5,376)

  2,005

 

  (6,151)

  3,875

 

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

  (1,784)

  (1,420)

 

  755

  1,229

Cash and cash equivalents at the beginning of the period

  10,818

  9,772

 

  8,381

  7,152

Effect of foreign exchange rate changes on the balance of cash held in foreign currencies

  (122)

 29

 

  (224)

  -

Cash and cash equivalents at the end of the period(i)

  8,912

  8,381

 

  8,912

  8,381

 

 

 

 

 

 

Note:

 

(i)  For the purpose of presentation in the consolidated statement of cash flows, the consolidated cash and cash equivalents comprise the following:

 

 

Q4

FY2019

Q4

FY2018

 

FY2019

FY2018

 

US$'000

US$'000

 

US$'000

US$'000

 

 

 

 

 

 

Cash and bank balances

  8,882

  8,351

 

  8,882

  8,351

Fixed deposits

  30

  30

 

  30

  30

Cash and cash equivalents per the consolidated statement of cash flows

  8,912

  8,381

 

  8,912

  8,381

 


 

 

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.

 

 

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

 

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

FY2019

No. of shares

US$'000

 

 

 

 

 

Balance as at 1 Jan 2019 and 31 Dec 2019

  271,662,227

  72,584

 

 

FY2018

No. of shares

US$'000

 

 

 

 

 

Balance as at 1 Jan 2018 and 31 Dec 2018

  271,662,227

  72,584

 

 

 

 

There were 10,740,072 treasury shares held by the Company as at 31 December 2019 and 31 December 2018 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 2019

31 Dec 2018

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.

 

FY2019

No. of shares

US$'000

 

 

 

Balance as at 1 Jan 2019 and 31 Dec 2019

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.

 

FY2019

No. of shares

US$'000

 

 

 

Balance as at 1 Jan 2019 and 31 Dec 2019

-

-

 

 

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 modifications or emphasis of a matter).

 

Not applicable.

 

 

 

3A.  Where the latest financial statements are subject to an adverse opinion, qualified opinion or disclaimer of opinion: -

(a)  Updates on the efforts taken to resolve each outstanding audit issues.

(b)  Confirmation from the Board that the impact of all outstanding audit issues on the financial statements have been adequately disclosed.

 

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.

 

Except as disclosed in Note 5 below, the Group has applied the same accounting policies and methods of computation consistent with those used in the most recent audited financial statements for the year ended 31 December 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 various new and revised SFRS(I)s and IFRSs that are relevant to its operations and effective for the period beginning 1 January 2019. Except as disclosed below, the adoption of the new and revised SFRS(I)s and IFRSs has no material financial impact on the Group's financial statements.

 

SFRS(I) 16 and IFRS 16, Leases sets out a revised framework for the recognition, measurement, presentation and disclosure of leases, and replaces existing lease accounting guidance. SFRS(I) 16 and IFRS 16 requires lessees to recognise right-of-use assets and lease liabilities for all leases with a term of more than 12 months, except where the underlying asset is of low value. The right-of-use asset is depreciated and interest expense is recognised on the lease liability. The accounting requirements for lessors have not been changed substantially and continue to be based on classification as operating and finance leases. Disclosure requirements have been enhanced for both lessors and lessees.

 

The Group adopted SFRS(I) 16 and IFRS 16 on 1 January 2019 based on a permitted transition approach that does not restate comparative information, but recognised the cumulative effect of initially applying SFRS(I) 16 and IFRS 16 as an adjustment to the opening balance of retained earnings on 1 January 2019. The Group also adopted an expedient offered by SFRS(I) 16 and IFRS 16, exempting the Group from having to reassess whether pre-existing contracts contain a lease.

 

The Group and the Company have entered into several leasing arrangements with lessors for factory buildings and office premises. Prior to the adoption of SFRS(I) 16 and IFRS 16, the Group and the Company recognised these arrangement as operating leases and payments made under operating leases are recognised in the income statement on a straight-line basis over the period of the lease. Upon adoption of SFRS(I) 16 and IFRS 16, the Group and the Company recognised the right-of-use assets and lease liabilities. The nature of expenses related to those leases will change as SFRS(I) 16 and IFRS 16 replaces the straight-line operating lease expense with depreciation charge for right-of-use assets and interest expenses on lease liabilities. The Group does not restate the comparative information for the effect of adopting SFRS(I) 16 and IFRS 16 due to the exemption in SFRS(I) 16 and IFRS 16 but has instead recognised the effect in retained earnings and other reserves as at 1 January 2019.

 

 

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

FY2019

US$

Q4

FY2018

US$

FY2019

 US$

FY2018

US$

(a)  Based on weighted average number of ordinary shares on issue; and

(5.19) cents

0.33 cent

(4.52) cents

0.57 cent

(b)  On a fully diluted basis

(5.18) cents

0.33 cent*

(4.52) cents*

0.57 cent*

 

 

 

 

 

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

272,126,126

271,662,227

271,662,227

271,662,227

 

* Diluted earnings per share 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 2019

US$

31 Dec 2018

US$

31 Dec 2019

US$

31 Dec 2018

US$

Net asset value per ordinary share based on issued share capital

 

16.22 cents

20.84 cents

16.83 cents

21.57 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 2019 ("FY2019") increased by US$12.2 million (10.0%) to US$134.5 million from US$122.3 million in the prior year ("FY2018"), reflecting the increasing demand in the global market for the Group products. Revenue for the quarter ended 31 December 2019 ("Q4 FY2019") amounted to US$30.1 million against US$36.4 million in the prior year quarter ("Q4 FY2018") which experienced extremely high demand from two major customers.

 

Geographically, Group revenue for FY2019 increased in America, Europe and Rest of the World ("RoW") by US$7.8 million (+9.1%), US$4.2 million (+15.5%) and US$1.3 million (+30.3%), respectively, offset by reductions in Asia by US$1.1 million (-20.7%). Revenue for Q4 FY2019 increased in Europe and Asia by US$1.6 million (+22.4%) and US$0.9 million (+110.6%), respectively but declined in America and RoW by US$7.0 million (-26.8%) and US$1.8 million (-77.3%), respectively, compared to the prior year.

 

Gross Profit

 

Gross profit decreased by US$1.1 million from US$25.2 million in FY2018 to US$24.1 million in FY2019, with gross profit margin decreased by 4.6 percentage points from 20.6% to 17.9%, mainly due to the impairment costs in the Shanghai manufacturing facility following the relocation of its operations to the Philippines. Excluding these, gross profit in FY2019 would have increased by US$3.0 million to US$28.2 million, with a gross profit margin of 20.9%. Similarly, for Q4 FY2019, gross profit margin decreased from 20.4% to 9.2%, with gross profit at US$2.8 million against US$7.4 million for Q4 FY2018. Excluding the impairment costs, gross profit in Q4 FY2019 would be US$6.9 million, with a gross profit margin of 21.8%, an increase of 2.5 percentage points on Q4 FY2018.

 

Other Income

 

Other income in Q4 FY2019 and FY2019 relates primarily to government subsidies received in China, write-back of payables and gain on disposal of equipment.

 

Administrative Expenses

 

Administrative expenses for FY2019 increased 19.7% to US$27.4 million compared to US$22.9 million in FY2018, representing 20.4% and 18.7% of revenue, respectively. The increase arose from the inclusion of salaries and related costs from the acquisition of Skyware Technologies in September 2018, the compensation to be made to the employees in the Shanghai manufacturing facility following the relocation to the Philippines where the employees having been made redundant based on the Labour Law in China and a small-scale restructuring in one of the UK manufacturing facilities. If the compensation and restructuring costs were excluded, administrative expenses for FY2019 would be US$23.2 million, representing 17.3% of revenue.

 

Similarly, administrative expenses for Q4 FY2019 increased 44.7% to US$9.4 million compared to US$6.5 million in the previous quarter, representing 31.4% and 17.9% of revenue respectively. If the compensation and restructuring costs were excluded, administrative expenses for Q4 FY2019 would be US$5.5 million, representing 18.2% of revenue.

 

Other Operating Expenses

 

Other operating expenses in Q4 FY2019 relates primarily to the impairment of equipment and other receivables in the Shanghai manufacturing facility, impairment of goodwill in one of the UK manufacturing facilities, as well as the impairment of loans.

 

Profit Before Tax & Net Profit

 

The Group posted a loss before tax of US$12.5 million in FY2019, compared to a profit before tax of US$2.1 million the prior year, representing a negative margin of 9.3% and a margin of 1.7%, respectively. For Q4 FY2019, the Group recorded US$15.0 million loss before tax compared to a profit before tax of US$1.2 million in the prior year quarter, representing a negative margin of 49.8% and a margin of 3.2%, respectively. Excluding the one-off cost in the Shanghai manufacturing facility, impairment of goodwill and loans, the Group would have posted a profit before tax of US$3.7 million and US$1.1 million for FY2019 and Q4 FY2019, representing a margin of 2.8% and 3.5%, respectively.

 

With the recognition of a US$1.0 million deferred tax asset gain in the US manufacturing facility, the Group posted a net loss of US$12.3 million in FY2019, compared to a net profit of US$1.5 million the prior year, representing a negative margin of 9.1% and a margin of 1.3%, respectively. For Q4 FY2019, the Group recorded a net loss of US$14.1 million compared to a net profit of US$0.9 million in the prior year quarter, representing a negative margin of 46.9% and a margin of 2.5%, respectively. Excluding the one-off costs, the Group would have posted a net profit before tax of US$4.0 million and US$1.9 million for FY2019 and Q4 FY2019, representing a margin of 3.0% and 6.4%, respectively

 

Review of Financial Position

 

Non-current assets increased by US$0.7 million to US$28.0 million as at 31 December 2019, primarily due to the adoption of SFRS(I) 16 on leases, the acquisition of Apexsat Pte Ltd ("Apexsat") and the recognition of deferred tax assets, offset against the impairment of equipment, goodwill and loans.

 

Net current assets decreased by US$0.7 million to US$22.5 million as at 31 December 2019 compared to US$29.8 million as at 31 December 2018. Inventories, trade and other receivables and trade payables decreased by US$5.8 million, US$5.0 million and US$6.5 million respectively, with better procurement control, faster collection and continuing payment to suppliers, together with inventory impairment from the relocation of the Shanghai manufacturing facility, offset by an increase in other payables of US$5.3 million including the compensation costs in Shanghai. Repayment of loans reduced the borrowings by US$3.0 million to US$8.9 million and cash and cash equivalents increased by US$0.5 million to US$8.9 million as at 31 December 2019 compared to US$8.4 million as at 31 December 2018. Provision for income tax decreased by US$0.3 million and the adoption of SFRS(I) 16 on leases increased the current portion of lease liabilities by US$1.9 million.

 

Similarly, the non-current portion of the lease liabilities increased to US$5.9 million.

 

The Group's net asset value stood at US$44.1 million as at 31 December 2019, compared to US$56.6 million as at 31 December 2018.

 

Review of Cash Flows

 

In Q4 FY2019, net cash generated from operating activities amounted to US$4.0 million, comprising US$0.4 million cash outflow used in operating activities (before working capital changes), US$5.3 million net working capital inflow and US$0.9 million payment of interest and income tax.

 

In FY2019, net cash generated from operating activities amounted to US$10.9 million, comprising US$7.2 million cash inflow from operating activities (before working capital changes), US$5.5 million net working capital inflow and US$1.8 million payment of interest and income tax.

 

Net cash used in investing activities in Q4 FY2019 and FY2019 amounted to US$0.4 million and US$4.0 million, respectively, relating predominately to purchase of machinery and equipment, payment for Apexsat and the investment in convertible notes.

 

Net cash used in financing activities in Q4 FY2019 and FY2019 amounted to US$5.4 million and US$6.1 million, respectively, attributable to the net proceeds of borrowings and repayment of lease liabilities.

 

The Group recorded a net decrease in cash and cash equivalents amounting to US$1.8 million and a net increase of US$0.8 million in Q4 FY2019 and FY2019, respectively, bringing cash and cash equivalents per the consolidated statement of cash flows to US$8.9 million as at 31 December 2019.

 

Overall net cash in the Group, combining cash and cash equivalents against borrowings, improved by US$3.6 million in FY2019.

 

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.

 

The Group has seen the Direct to Home ("DTH") sector continue to provide a solid foundation to support the future growth of the Group. It is also expanding its range of Data Over Satellite ("DOS") products to capitalise on the huge growth opportunity in this market through accelerated product development and R&D efforts.

 

The global satellite communications equipment market generated revenues of US$22 billion in 2018 and is expected to grow to over US$53 billion in 2027 according to a recent report by Research and Markets[2] with the VSAT/DOS market accounting for US$12.3 billion of this total in 2022. Furthermore, there has been a recent drive to launch satellites into Low Earth Orbit ("LEO") and Medium Earth Orbit ("MEO"), with satellite launches and related initiatives by SpaceX (led by Elon Musk) and Blue Origin (led by Jeff Bezos). In anticipation of this trend, the Group acquired the assets and intellectual property of Apexsat in June 2019, giving it the capability to manufacture products for the satellite communications constellation market with tracking DOS systems.

 

The Group seeks to capitalise on the growing opportunity within these markets, particularly within the DOS vertical. A recent report by Ericsson, predicts that by 2025, 5G networks will carry 45% of total mobile data traffic, with smartphones generating more than 95% of the mobile data traffic.[3]. With data backhaul via satellite technology being a key component to carry this additional data on the 5G networks, the Group is well placed to supply this market including through one of its main DOS electronics customers who services 35% of this market currently[4].

 

Global Invacom has established itself as an innovative partner to deliver reliable and cutting-edge products to market including supply to the largest US provider of residential satellite-based internet connections who services a 60% share of that market[5]. Global Invacom has also bolstered its capabilities through acquisitions over the past few years and is now capable of delivering integrated hardware and electronics solutions to its blue-chip DOS and DTH customers. In line with the above trend, the Group reported an increase in contribution for DOS products by 19% from FY2018 to FY2019.

 

As of end-January 2020, the Group has completed 80% of the move from the Group's Shanghai site to the Philippines and expects to complete the remaining 20% of the process by June 2020.

 

Apart from the economic uncertainty as a result of the ongoing trade tensions between the United States ("US") and China, the Group is also mindful of the COVID-19 outbreak which has disrupted many businesses operating in China. An area of concern revolves around the supply chain of components manufactured out of China. The Group has established a core team of approximately 30 supply chain specialists located in Shanghai to source such products. This team is closely monitoring the situation to ensure stable supplies to the Philippines and US although we believe it is too soon to comment on its full impact for the business.

 

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 and the reason(s) for the decision.

 

Due to the operating conditions faced by the Group, no dividend has been declared or recommended for the year ended 31 December 2019.

 

 

 

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. 

 

FY2019

Sat Comms

CM

Group

 

US$'000

US$'000

US$'000

 

 

 

 

Revenue

  129,262

  5,247

  134,509

 

 

 

 

Operating loss

  (9,359)

  (2,268)

  (11,627)

Finance income

 

 

  230

Finance costs

 

 

  (1,146)

Income tax credit

 

 

  254

Loss for the year

 

 

  (12,289)

 

 

 

 

Amortisation of intangible assets

  920

  -

  920

Depreciation of property, plant and equipment

  3,144

  139

  3,283

Addition to property, plant and equipment

  3,154

  161

  3,315

Impairment of property, plant and equipment

  1,777

  408

  2,185

Depreciation of right-of-use assets

  2,282

  122

  2,404

Addition to intangible assets

  279

  -

  279

Allowance for inventory obsolescence, net

  2,367

  449

  2,816

Write-off of inventory

  1,016

  240

  1,256

Impairment of loans

  2,181

  -

  2,181

Impairment of receivables

  308

  49

  357

Impairment of goodwill

  3,260

  -

  3,260

Restructuring costs

  3,415

  773

  4,188

 

 

 

 

Assets and liabilities

 

 

 

Segment assets

  79,817

  2,677

  82,494

Unallocated assets

 

 

 

- Non-current assets

 

 

  312

- Other receivables

 

 

  91

- Deferred tax assets

 

 

  975

- Cash and cash equivalents

 

 

  610

- Tax receivables

 

 

  38

Total assets

 

 

  84,520

 

 

FY2019

Sat Comms

CM

Group

 

US$'000

US$'000

US$'000

 

 

 

 

Segment liabilities

  28,794

  1,862

  30,656

Unallocated liabilities

 

 

 

- Other payables

 

 

  287

- Lease liabilities

 

 

  151

- Provision for income tax

 

 

  4

- Deferred tax liabilities

 

 

  428

- Borrowings

 

 

  8,929

Total liabilities

 

 

  40,455

 

 

FY2018

 

 

 

 

 

 

 

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

 

 

 

 

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

Gain on bargain purchase

  482

  -

  482

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

 

 

 

 

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

 

 

 

13(b) Geographical Information

 

Revenue and non-current assets information based on the geographical location of customers and assets respectively are as follows:

 

 

 

FY2019

America

US$'000

Europe

US$'000

Asia

US$'000

Rest of the World

US$'000

Group

US$'000

Revenue

  93,657

  31,191

  4,129

  5,532

  134,509

Non-current assets

  9,271

  15,259

  2,356

  151

  27,037

 

 

 

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

  4,307

  111

  25,669

 

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.

 

 

 

FY2019

US$'000

FY2018

US$'000

% increase/

(decrease)

(a)

Sales reported for first half year

  71,945

  55,396

  29.9

(b)

Operating profit after income tax before deducting minority interests reported for first half year

  1,586

  532

  198.1

(c)

Sales reported for second half year

  62,564

  66,896

  (6.5)

(d)

Operating profit after income tax before deducting minority interests reported for second half year

  (13,875)

  1,004

  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.

 

 

FY2019

US$'000

FY2018

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 for the year ended 31 December 2019.

 

 

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

 

 

28 February 2020

 

 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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