REG - Global Invacom Group - Response to Full Year Results Queries from SGX-ST

Global InvacomAnnouncement

14/03/2023 09:30

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RNS Number : 8925S  Global Invacom Group Limited  14 March 2023

 

 

 

GLOBAL INVACOM GROUP LIMITED

(Incorporated in the Republic of Singapore)

(Company Registration No. 200202428H)

 

 

RESPONSE TO QUERIES FROM SINGAPORE EXCHANGE SECURITIES TRADING LIMITED
("SGX-ST") ON THE FULL YEAR RESULTS FOR FY2022

 

 

The Board of Directors (the "Board") of GLOBAL INVACOM GROUP LIMITED (the
"Company") refers to the following queries raised by the SGX-ST on 10 March
2023 and would like to provide additional information in relation to the
Company's full year results for the financial year ended 31 December 2022
("FY2022"), as follows:

SGX-ST's Query 1:

 

Please disclose:

 

(i)       the nature of the non-current receivables; and

 

Company's response to Query 1(i):

The non-current receivables of US$54,000 are deposits for electricity and
water for the Group's subsidiary in the United States.

(ii)      the Board's assessment of the recoverability of the non-current
other receivables and prepayments.

Company's response to Query 1(ii):

 

The Board is of the opinion that the non-current other receivables and
prepayments are recoverable.

SGX-ST's Query 2:

 

It is disclosed on page 17 of the unaudited financial statements that the
impairment charge in 2H FY2022 and FY2022 was attributed to a goodwill
impairment of US$5.2 million, which is non-cash in nature, related to the
performance of the Group's US subsidiary.  The requirement to recognise this
charge has arisen due to the sustained loss making position of the Group's US
subsidiary.  In this regard, please disclose the following information:

 

(i)       how the amount of impairment was determined;

 

(ii)      whether any valuation was conducted; the value placed on the
relevant assets; the basis and the date of such valuation;

 

 

Company's response to Queries 2(i) & 2(ii):

 

The Group has goodwill of US$5.2 million allocated to the United States
subsidiary cash-generating units ("CGUs") as at 31 December 2022.

 

These CGUs are tested for impairment annually. Management applies the value in
use method to determine the recoverable amount of each CGU. Any shortfall of
the recoverable amounts against the carrying amounts are recognised as an
impairment loss. The recoverable amount is determined based on estimates of
forecasted revenue, growth rates, profit margins and discount rates.

 

(iii)     the Board's confirmation as to whether it is satisfied with the
reasonableness of the methodologies used to determine amount of impairment.

Company's response to Query 2(iii):

The Board is satisfied with the reasonableness of the methodologies used to
determine the amount of impairment.

 

 

SGX-ST's Query 3:

 

Please explain why no interest income was recorded during the financial period
ended 31 December 2022 when the Company has significant cash and bank balance
amounting to US$9,244,000.

Company's response to Query 3:

 

The majority of the Group's cash and cash balances are in the United Kingdom
bearing either zero or very low interest, resulting in interest income of less
than US$100 which is below the reporting threshold.

 

 

SGX-ST's Query 4:

 

Please provide information on the Group's inventory turnover days.

Company's response to Query 4:

 

The Group's inventory turnover days are as follows:

 

                          FY2022    FY2021

 Inventory turnover days  150 days  145 days

 

 

SGX-ST's Query 5:

 

Please disclose a breakdown of other payables amounting to US$3,109,000 and
US$4,447,000 as at 31 December 2022 and 31 December 2021 respectively.  For
other payables, please disclose the nature of these other payables and whether
the counterparties are related parties.

 

 

Company's response to Query 5:

 

The nature of other payables are as follows:

 

                              FY2022                     FY2021
                              US$'000                    US$'000

 Accrued operating expenses             1,574                      2,409
 Provision for warranty                    148                        235
 Customers advances received               781                     1,085
 GST/VAT payables                            84                       177
 Other creditors                           522                        693
                                        3,109                      4,599

 

No counterparties are related parties.

 

 

SGX-ST's Query 6:

 

Please confirm if there are any outstanding convertibles and if yes, the
number shares that may be issued on conversion of the outstanding
convertibles.

 

Company's response to Query 6:

 

There are no outstanding convertibles.

BY ORDER OF THE BOARD

 

 

Gordon Blaikie

Interim Chief Executive Officer

 

 

14 March 2023

 

 

For further information, please contact:

 

 Global Invacom Group Limited                              www.globalinvacom.com (http://www.globalinvacom.com/)
 Gordon Blaikie, Interim Chief Executive Officer           via Vigo Consulting

 Strand Hanson Limited (Nominated Adviser and Broker)      www.strandhanson.co.uk (http://www.strandhanson.co.uk/)
 James Harris / Richard Johnson / David Asquith            Tel: +44 20 7409 3494

 Vigo Consulting (UK Media & Investor Relations)           www.vigoconsulting.com (http://www.vigoconsulting.com/)
 Jeremy Garcia / Fiona Hetherington / Kendall Hill         Tel: +44 20 7390 0238
 ginv@vigoconsulting.com (mailto:ginv@vigoconsulting.com)

 

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