REG - Global Invacom Group - 3rd Quarter Results <Origin Href="QuoteRef">GLOB.SI</Origin> - Part 2

Global InvacomAnnouncement

09/11/2017 07:01

- Part 2: For the preceding part double click  ID:nRSI9133Va 

trade supplier payments particularly by the Group's
operations in the United States. This was achieved by restructuring our loan
facilities and taking on new borrowings which have increased by US$2.6 million
to US$8.7 million, resulting in an increase of US$0.9 million in cash and cash
equivalents to US$8.9 million as at 30 September 2017. Net tax receivables
decreased by US$0.9 million to net tax payables of US$0.3 million as at 30
September 2017. 
 
The Group's net asset value stood at US$54.7 million as at 30 September 2017,
compared to US$52.3 million as at 31 December 2016. 
 
Review of Cash Flows 
 
Net cash used in operating activities in Q3 FY2017 was US$1.0 million,
comprising cash inflow from operating activities before working capital
changes of US$1.8 million and net working capital outflow of US$2.8 million. 
 
Net cash used in operating activities in the 9M FY2017 was US$0.5 million,
comprising cash inflow from operating activities before working capital
changes of US$4.8 million, net working capital outflow of US$5.0 million and
payment of interest and income tax expense of US$0.3 million. 
 
Net cash used in investing activities was US$0.3 million in Q3 FY2017 and
US$0.1 million in the 9M FY2017. This was mainly attributable to the purchase
of machinery and equipment and offset by a decrease in restricted cash in Q3
FY2017. 
 
Net cash generated from financing activities was US$0.2 million in Q3 FY2017
and US$2.6 million in the 9M FY2017, arising mainly from the additional
proceeds from borrowings. 
 
Overall, the Group recorded a net decrease in cash and cash equivalents of
US$1.1 million in Q3 FY2017 against an increase of US$2.1 million in the 9M
FY2017, bringing cash and cash equivalents per the consolidated statement of
cash flows to US$8.9 million as at 30 September 2017. 
 
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. 
 
According to the Satellite Industry Association*, yearly growth in the global
satellite industry was steady at 2% in 2016, with the satellite services
section supported by demand in emerging markets for both Satellite TV and
Satellite Broadband. As more satellites are launched to support data services,
particularly in developing markets, the Group anticipates increased demand for
VSAT products and services. The Group will leverage on its value proposition
as a global leader in this sector, taking into account its strong research and
development capabilities, established ties with major customers and global
manufacturing footprint. 
 
The Group will continue to monitor developments in the global economic and
political landscape that may affect international trade, but overall remains
confident in the outlook for the satellite communications sector. 
 
Global broadcasters are continuing to transition clients to the new Digital
Channel Stacking Switch-related ("DCSS") technology, which allows up to 32
streams from a single Low Noise Block ("LNB"), with the Group's growing suite
of DCSS products offering a combined competitive edge. The Group commenced
supply of a new triple-feed DCSS LNB to the western U.S. region in September
2017 following approval from its customer, a major U.S. broadcaster. It is one
of two exclusive suppliers of this product for this key client, underscoring
its position as a leading supplier of cutting-edge satellite communications
equipment. The Group expects to deploy more DCSS-generation technology across
its LNBs, including those in design and pending approval, for other customers
and territories. 
 
The Group's extensive restructuring efforts in the last two years have
streamlined its supply chain through strengthening quality and cost controls.
The U.S. site in particular has shown improved operational efficiencies
bringing its first profitable quarters in over ten years. Further, the Group's
decision to consolidate its subsidiaries in the People's Republic of China
("PRC") at the end of FY2016, has helped to protect its margins for the
financial year to date. With the cessation of its contract manufacturing
activities in the PRC, the Group will focus on its core segment of
manufacturing satellite-related products, utilising its strong research and
development expertise in both fields of electronics and antenna design, to
provide new and existing customers with solutions and cost-effective
alternatives to enhance margin for the Group. 
 
The Group will continue to deploy innovative new products, work on
ground-breaking technologies and tap promising opportunities worldwide. In the
quarter under review, it successfully live-tested breakthrough technology
permitting live HD large-scale event video streaming over WiFi. 
 
*Source: The Satellite Industry Association's 2017 State of the Satellite
Industry Report 
 
11.           Dividend 
 
(a)   Current Financial Period Reported On 
 
Any dividend declared for the current financial period reported on? 
 
None. 
 
(b)   Corresponding Period of the Immediately Preceding Financial Year 
 
Any dividend declared for the corresponding period of the immediately
preceding financial year? 
 
None. 
 
(c)    Date payable 
 
Not applicable. 
 
(d)   Books closure date 
 
Not applicable. 
 
12.           If no dividend has been declared/recommended, a statement to
that effect. 
 
No dividend has been declared or recommended for the nine months ended 30
September 2017. 
 
13.           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 nine months ended 30 September 2017. 
 
14.           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. 
 
CONFIRMATION BY THE BOARD OF DIRECTORS (THE "BOARD") PURSUANT TO RULE 705(5)
OF THE LISTING MANUAL 
 
We do hereby confirm, for and on behalf of the Board of Global Invacom Group
Limited (the "Company"), that to the best of our knowledge, nothing has come
to the attention of the Board of the Company which may render the financial
results for the nine months ended 30 September 2017 to be false or misleading
in any material aspect. 
 
On behalf of the Board 
 
Anthony Brian Taylor                                                          
                  Matthew Jonathan Garner 
 
Director                                                                      
                            Director 
 
BY ORDER OF THE BOARD 
 
Anthony Brian Taylor 
 
Executive Chairman 
 
9 November 2017 
 
The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014. 
 
This information is provided by RNS
The company news service from the London Stock Exchange