REG - Global Invacom Group - Final Results
25/02/2022 07:00
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RNS Number : 7750C Global Invacom Group Limited 25 February 2022
Global Invacom Group Limited
("Global Invacom", the "Company" or the "Group")
Final Results for the year ended 31 December 2021
Singapore/London, 25 February 2022 - Global Invacom (SGX: QS9) (AIM: GINV),
the global provider of satellite communications equipment and electronics,
announces its unaudited financial results for the year ended 31 December 2021
("FY2021").
Notwithstanding the continued impact of the COVID-19 pandemic on global trade,
the Group is pleased to report a profit for the year.
Key financial highlights:
· Revenue for FY2021 decreased 19.9% to US$82.5 million (FY2020:
US$103.1 million)
· Gross profit decreased to US$16.6 million (FY2020: US$25.7 million)
· Net profit decreased to US$0.6 million (FY2020: US$2.6 million)
Key operational highlights:
· Ongoing demand for high-tech and reliable Data over Satellite ("DOS")
and Direct to Home ("DTH") devices from stable sectors including the defence
and healthcare industries
· Launched new products across all segments, bolstering the Group's
portfolio and generating additional cross sell opportunities
· Granted European Space Agency funding to develop a Ka-band user
terminal and a larger enterprise solution in partnership with Methera Global
Communications Limited
· Successful and effective transition of R&D and office staff to
remote working, however lingering global supply chain disruption continues to
cause delays in delivering forward sales
· Current year likely impacted by broader macro headwinds including
ongoing inflationary pressure across international shipping, wages
(particularly in the U.S.) and raw materials (including steel)
The combination of ongoing COVID-19 restrictions and the well documented
global supply chain issues were key features in forming the broader trading
conditions for the Group throughout 2021. Management believes that, whilst
demand for the Company's products will remain robust, economic headwinds,
including supply shortages within the semiconductor sector, and ongoing
inflationary pressure across international shipping, wages (particularly in
the U.S.) and raw materials (including steel), will likely impact the
performance of the business in the current financial year.
As with the prior year, and given the global nature of Global Invacom's
business, the health and safety of all our staff, partners, suppliers and
customers continues to be of paramount importance. Faced with these
challenges, the commitment of Global Invacom's global workforce who have
overcome considerable obstacles to support the business throughout the year is
laudable.
Despite a reduction in customer activity, Global Invacom remained profitable
for the year ended 31 December 2021, facilitated by the implementation of
pragmatic cost-saving initiatives, including a reduction in marketing activity
and various government grants, to mitigate the impact of the COVID-19
pandemic. The Group's prudent transition of R&D employees and office staff
to remote working from 2020 have enabled our international network of teams to
function efficiently throughout 2021.
During 2021, the Group focused on launching a range of innovative devices to
augment its product offering across all key categories. New additions to
Global Invacom's portfolio include the Optical to Optical ("O2O") converter, a
Fibre to the Home ("FTTH") device designed to increase the number of
subscribers that can be connected to a single dish, and Ku-Band and C-Band
VSAT Radio Frequency ("RF") Block Up Converters, two new DOS products that
consolidate the Group's unique position as a leading manufacturer and supplier
of VSAT RF electronics, antennas and feeds.
The Group continues to ensure new products function seamlessly with existing
Global Invacom devices, providing an upgraded service whilst simultaneously
generating valuable cross selling opportunities. As the satellite
communications industry continues to evolve and new technologies emerge, the
Group is focused on leveraging its R&D capabilities to future-proof new
devices. With teams based in hubs across the globe, Global Invacom's employees
can rapidly respond to regulatory updates in regional markets to ensure the
Group continues to develop cutting-edge competitive products.
A key long-term partnership with Methera Global Communications Limited
("Methera") and its subcontractors was announced in October 2021, where, under
the Advanced Research in Telecommunications Systems programme, the Group was
awarded European Space Agency funding to contribute towards the development of
a low-cost Ka-band user terminal and a larger enterprise solution for use with
DOS. The Company aims to deliver terminals to market in 2024 to meet the surge
in demand for connectivity to non-geostationary satellite orbit ("NGSO")
constellations. Significantly, Global Invacom is responsible for designing and
manufacturing the fully integrated user terminal which aims to give remote and
under-connected communities across the globe access to affordable satellite
broadband by offering service providers and operators constellations.
More generally, O3b mPOWER plan to launch their O3b mPOWER communications
system during 2022, which comprises of an initial constellation of 11
high-performance satellites, intelligent software and extensive ground
infrastructure. Hughes, the global provider of high-speed satellite internet
service, also indicated that their much-anticipated GEO satellite Jupiter
system is currently scheduled to be launched during Q4 2022.
Globally, the normalisation of remote working across an array of sectors is a
development which will benefit the Group in the medium-to-long-term,
accelerating the demand for fast and reliable connectivity from businesses and
consumers, as strong domestic connectivity has become essential for both work
and leisure. The underlying versatility of the Group, a designer,
manufacturer, and provider of satellite communications solutions, was integral
to securing the partnership with Methera and will continue to provide Global
Invacom with opportunities to serve the growing DOS market as well as the
sizeable demand for DTH products.
Board Composition
In July 2021, the Group appointed Gordon Blaikie as an Executive Director to
replace Malcolm Burrell who stepped down from his roles of Executive Director
and Chief Technical Officer as part of his retirement plan. Mr Blaikie has
worked with Global Invacom for 10 years progressing to become the Group's
Chief Operating Officer, a role he remains in alongside his new position as
Executive Director of the Company. Mr Blaikie has supervised the manufacturing
entities and sales functions of the Group and regularly worked closely with
the Board and senior management team to streamline and enhance the Group's
operating performance. Mr Burrell remains the Group's Chief Risk Officer,
overseeing the risk and sustainability management of the Group.
Concurrently, Derek Grice was appointed as the Group's new Chief Technical
Officer. Mr Grice is leveraging his 35+ years of satellite product development
experience and DOS market knowhow to oversee the development of new
technologies and products for current and future market opportunities being
addressed by the Company, as well as manage stakeholder relationships,
effectively communicating technology advances and innovations.
Outlook
Whilst the Company continues to see strong demand for its products, the
current financial year remains challenging. Although the impact of the Covid
pandemic is easing, management remains vigilant as to the financial impact of
any potential future lockdowns. Elsewhere, supply shortages within the
semiconductor sector, and ongoing inflationary pressure across international
shipping, wages (particularly in the U.S.) and raw materials (including
steel), will likely impact the performance of the business in the current
financial year.
Financial Review
The Group's revenue for the year ended 31 December 2021 ("FY2021") decreased
by 19.9% to US$82.5 million from US$103.1 million in the prior year
("FY2020"). Revenue for the second half year ended 31 December 2021 ("2H
FY2021") was US$42.1 million against US$50.3 million in the prior year ("2H
FY2020"). The ongoing COVID-19 pandemic impacted the Group globally, as there
have been a reduction in orders from our customers. It has also impacted the
Group's production facilities around the world as working practices were
adapted to comply with regional variations on social distancing guidelines
during the pandemic.
Geographically, Group revenue for FY2021 decreased in America by US$22.8
million (-32.9%) and increased in Europe, Asia and Rest of the World ("RoW")
by US$0.5 million (+2.0%), US$0.5 million (+11.9%) and US$1.3 million
(+22.5%), respectively. Revenue for 2H FY2021 decreased in America and RoW by
US$10.1 million (-30.2%) and US$0.9 million (-32.3%), respectively,
compensated by an increase in Europe and Asia by US$1.5 million (+13.0%) and
US$1.3 million (+59.8%), respectively, compared to the prior year.
The decrease in revenue resulted in a 35.6% decrease in gross profit from
US$25.7 million in FY2020 to US$16.6 million in FY2021. Gross profit margin
has decreased by 4.8 percentage points from 24.9% to 20.1%, mainly
attributable to higher materials costs and the supply chain constraints that
continue to cause disruptions to the Group.
Similarly, gross profit decreased from US$13.4 million in 2H FY2020 to US$7.8
million in 2H FY2021. Gross profit margin has decreased by 8.2 percentage
points from 26.6% to 18.4%.
Administrative expenses, together with research and development expenses, for
FY2021 decreased 9.0% to US$20.9 million compared to US$23.0 million in
FY2020, representing 22.3% and 25.3% of revenue, respectively. The ongoing
cost control measures across the Group, including a reduction in travelling
and marketing activity, have resulted in lower administrative expenses being
incurred. For 2H FY2021, administrative and research and development expenses
decreased 16.1% to US$10.0 million compared to US$12.0 million in the previous
year, representing 23.8% of revenue for both periods.
In 2H FY2021, the UK Group received research and development tax credits from
the UK government and, coupled with deferred taxes, resulted in the Group
recording a net profit of US$1.7 million compared to US$2.3 million in the
prior year, representing a margin of 4.1% and 4.5%, respectively. For FY2021,
the Group recorded a net profit of US$0.6 million, compared to US$2.6 million
the prior year, representing a margin of 0.7% and 2.5%, respectively.
The Group recorded a net increase in cash and cash equivalents amounting to
US$1.3 million and net decrease amounting to US$0.5 million in 2H FY2021 and
FY2021, respectively, bringing cash and cash equivalents per the consolidated
statement of cash flows to US$10.8 million as at 31 December 2021.
Tony Taylor, Executive Chairman of Global Invacom, commented:
"2021 was another challenging year for Global Invacom, but, despite broader
macro-economic headwinds impacting our markets, the Group delivered another
profitable performance, underpinning the resilience of our business.
The Group's new products and R&D efforts, alongside our partnership with
Methera, demonstrate our ambitions, and we anticipate that significant further
commercial opportunities will be generated over the medium term.
The Board and management would like to thank our dedicated team who continue
to work tirelessly to help the Group across all key operations."
For further information, please contact:
Global Invacom Group Limited www.globalinvacom.com (http://www.globalinvacom.com)
Tony Taylor, Executive Chairman via Vigo Consulting
Strand Hanson Limited (Nominated Adviser and Broker) www.strandhanson.co.uk (http://www.strandhanson.co.uk)
James Harris / Rob Patrick Tel: +44 20 7409 3494
Vigo Consulting (UK Media & Investor Relations) www.vigoconsulting.com (http://www.vigoconsulting.com)
Jeremy Garcia / Kendall Hill Tel: +44 20 7390 0238
ginv@vigoconsulting.com (mailto:ginv@vigoconsulting.com)
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
U.S. 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
(http://www.globalinvacom.com/)
About Methera Global Communications Limited
Based in Oxfordshire, UK, Methera owns a unique constellation of medium earth
orbit ("MEO") satellites that enable customers to deliver ultrafast and
superfast broadband satellite services to underserved areas of the world.
Methera's applications enable the delivery of fibre speeds to areas of the
world where it is uneconomic or impracticable to build fibre networks, with
its customer base ranging from governments and telecoms companies to internet
services providers.
GLOBAL INVACOM GROUP LIMITED
(Incorporated in Singapore)
(Company Registration Number 200202428H)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the Six Months and Full Year Ended 31 December 2021
Table of Contents Page
A. Condensed Interim Consolidated Statement of Comprehensive Income 2
B. Condensed Interim Statements of Financial Position 3
C. Condensed Interim Statements of Changes in Equity 4
D. Condensed Interim Consolidated Statement of Cash Flows 6
E. Notes to the Condensed Interim Consolidated Financial Statements 7
F. Other Information Required by Listing Rule Appendix 7.2 17
A. Condensed Interim Consolidated Statement of Comprehensive Income
Group Group
2H 2H FY2020 Increase/ FY2021 FY2020 Increase/
(Decrease)
FY2021 (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Revenue 42,102 50,285 (16.3) 82,541 103,058 (19.9)
Cost of sales (34,338) (36,930) (7.0) (65,991) (77,353) (14.7)
Gross profit 7,764 13,355 (41.9) 16,550 25,705 (35.6)
Other income 4,007 2,099 90.9 5,485 2,224 146.6
Distribution costs (231) (67) 244.8 (368) (182) 102.2
Administrative expenses (7,458) (9,410) (20.7) (15,918) (18,020) (11.7)
Research and development expenses (2,579) (2,549) 1.2 (4,996) (4,969) 0.5
Other operating expenses (211) (516) (59.1) (263) (894) (70.6)
Finance income - 1 (100.0) 1 22 (95.5)
Finance costs (196) (333) (41.1) (519) (762) (31.9)
Profit/(Loss) before income tax 1,096 2,580 (57.5) (28) 3,124 N.M.
Income tax credit/(expense) 640 (313) N.M. 586 (515) N.M.
Profit for the period/year 1,736 2,267 (23.4) 558 2,609 (78.6)
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to profit or loss
- Exchange differences on translation of foreign subsidiaries (445) 358 N.M. (120) 253 N.M.
(445) 358 N.M. (120) 253 N.M.
Other comprehensive (loss)/income for the period/year, net of tax
1,291 2,625 438 2,862
Total comprehensive income for the period/year (50.8) (84.7)
Profit for the period/year attributable to:
Equity holders of the Company 1,738 2,269 (23.4) 561 2,614 (78.5)
Non-controlling interests (2) (2) 0.0 (3) (5) (40.0)
1,736 2,267 (23.4) 558 2,609 (78.6)
Total comprehensive income/(loss) for the period/year attributable to:
Equity holders of the Company 1,293 2,627 (50.8) 441 2,867 (84.6)
Non-controlling interests (2) (2) 0.0 (3) (5) (40.0)
1,291 2,625 (50.8) 438 2,862 (84.7)
N.M.: Not Meaningful
B. Condensed Interim Statements of Financial Position
Group Company
31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020
US$'000 US$'000 US$'000 US$'000
ASSETS
Non-current Assets
Property, plant and equipment 8,126 9,410 20 82
Right-of-use assets 4,396 6,340 39 162
Investments in subsidiaries - - 25,375 27,102
Goodwill 6,092 6,092 - -
Intangible assets 1,698 2,291 - -
Other financial assets - 8 - -
Deferred tax assets 1,780 1,363 - -
Other receivables and prepayments 54 54 11,032 10,563
22,146 25,558 36,466 37,909
Current Assets
Due from subsidiaries - - 3,265 4,045
Inventories 25,764 26,816 - -
Trade receivables 16,456 10,689 - -
Other receivables and prepayments 2,618 2,033 2,588 3,513
Tax receivables 169 - - -
Cash and cash equivalents 10,771 11,273 155 150
55,778 50,811 6,008 7,708
Total assets 77,924 76,369 42,474 45,617
EQUITY AND LIABILITIES
Equity
Share capital 60,423 60,423 74,240 74,240
Treasury shares (1,656) (1,656) (1,656) (1,656)
Reserves (11,383) (11,824) (30,462) (28,302)
Equity attributable to owners of the Company 47,384 46,943 42,122 44,282
Non-controlling interests (19) (16) - -
Total equity 47,365 46,927 42,122 44,282
Non-current Liabilities
Other payables 152 124 - -
Lease liabilities 3,088 4,848 - 39
Deferred tax liabilities 646 634 - -
3,886 5,606 - 39
Current Liabilities
Due to subsidiaries - - 1 835
Trade payables 14,479 12,509 - -
Other payables 4,447 5,589 313 333
Borrowings 6,120 3,883 - -
Lease liabilities 1,627 1,854 38 128
Provision for income tax - 1 - -
26,673 23,836 352 1,296
Total liabilities 30,559 29,442 352 1,335
Total equity and liabilities 77,924 76,369 42,474 45,617
C. Condensed Interim Statements of Changes in Equity
Foreign currency translation reserve
Capital redemption reserves Share options reserve Attributable to equity holders of the Company
Share Treasury shares Merger reserves Capital reserve Retained profits Non-controlling interests Total
Group capital
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as at 1 January 2021 60,423 (1,656) (10,150) 6 725 (5,109) (964) 3,668 46,943 (16) 46,927
Loss for the period - - - - - - - (1,177) (1,177) (1) (1,178)
Other comprehensive income:
Exchange differences on translating foreign operations
- - - - - - 325 - 325 - 325
Total other comprehensive income/(loss) for the period
- - - - - - 325 (1,177) (852) (1) (853)
Balance as at 30 June 2021 60,423 (1,656) (10,150) 6 725 (5,109) (639) 2,491 46,091 (17) 46,074
Profit/(Loss) for the period - - - - - - - 1,738 1,738 (2) 1,736
Other comprehensive loss:
Exchange differences on translating foreign operations
- - - - - - (445) - (445) - (445)
Total other comprehensive (loss)/income for the period
- - - - - - (445) 1,738 1,293 (2) 1,291
Balance as at 31 December 2021 60,423 (1,656) (10,150) 6 725 (5,109) (1,084) 4,229 47,384 (19) 47,365
Balance as at 1 January 2020 60,423 (1,656) (10,150) 6 725 (5,109) (1,217) 1,054 44,076 (11) 44,065
Profit/(Loss) for the period - - - - - - - 345 345 (3) 342
Other comprehensive loss:
Exchange differences on translating foreign operations
- - - - - - (105) - (105) - (105)
Total other comprehensive (loss)/income for the period
- - - - - - (105) 345 240 (3) 237
Balance as at 30 June 2020 60,423 (1,656) (10,150) 6 725 (5,109) (1,322) 1,399 44,316 (14) 44,302
Profit/(Loss) for the period - - - - - - - 2,269 2,269 (2) 2,267
Other comprehensive income:
Exchange differences on translating foreign operations
- - - - - - 358 - 358 - 358
Total other comprehensive income/(loss) for the period
- - - - - - 358 2,269 2,627 (2) 2,625
Balance as at 31 December 2020 60,423 (1,656) (10,150) 6 725 (5,109) (964) 3,668 46,943 (16) 46,927
C. Condensed Interim Statements of Changes in Equity (cont'd)
Foreign currency translation reserve
Share options reserve
Share Treasury shares Capital reserve Accumulated losses Total
Company capital
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance as at 1 January 2021 74,240 (1,656) 725 (4,481) (2,506) (22,040) 44,282
Loss for the period - - - - - (139) (139)
Other comprehensive loss:
Exchange differences on translating foreign operations - - - - - - -
Total other comprehensive loss for the period - - - - - (139) (139)
Balance as at 30 June 2021 74,240 (1,656) 725 (4,481) (2,506) (22,179) 44,143
Loss for the period - - - - - (2,021) (2,021)
Other comprehensive loss:
Exchange differences on translating foreign operations - - - - - - -
Total other comprehensive loss for the period - - - - - (2,021) (2,021)
Balance as at 31 December 2021 74,240 (1,656) 725 (4,481) (2,506) (24,200) 42,122
Balance as at 1 January 2020 74,240 (1,656) 725 (4,481) (2,506) (20,591) 45,731
Loss for the period - - - - - (391) (391)
Other comprehensive loss:
Exchange differences on translating foreign operations - - - - - - -
Total other comprehensive loss for the period - - - - - (391) (391)
Balance as at 30 June 2020 74,240 (1,656) 725 (4,481) (2,506) (20,982) 45,340
Loss for the period - - - - - (1,058) (1,058)
Other comprehensive loss:
Exchange differences on translating foreign operations - - - - - - -
Total other comprehensive loss for the period - - - - - (1,058) (1,058)
Balance as at 31 December 2020 74,240 (1,656) 725 (4,481) (2,506) (22,040) 44,282
D. Condensed Interim Consolidated Statement of Cash Flows
Group Group
2H FY2021 2H FY2020 FY2021 FY2020
US$'000 US$'000 US$'000 US$'000
Cash Flows from Operating Activities
Profit/(Loss) before income tax 1,096 2,580 (28) 3,124
Adjustments for:
Depreciation of property, plant and equipment 760 1,261 1,903 2,649
Amortisation of intangible assets 325 343 591 789
Depreciation of right-of-use assets 868 1,188 1,864 2,264
Gain on disposal of property, plant and equipment - (424) (1,143) (424)
Write-back of inventory obsolescence, net (736) (3,229) (738) (3,210)
Impairment loss on trade receivables - 35 - 309
Impairment loss on other financial assets 8 - 8 -
Unrealised exchange loss 60 368 184 315
Interest income - (1) (1) (22)
Interest expense 196 333 519 762
Inventory written off - 2,663 - 2,663
Bad debts written back (113) - (96) -
Loss/(Gain) on lease modifications 144 - (63) -
Write-back of payables (880) - (880) -
Waiver of loan - (1,472) - (1,472)
Operating cash flow before working capital changes 1,728 3,645 2,120 7,747
Changes in working capital:
Inventories 686 782 1,790 (474)
Trade receivables (2,978) 9,170 (5,680) 8,846
Other receivables and prepayments (390) (70) 3 (465)
Trade and other payables 3,777 (2,432) 1,382 (5,188)
Cash generated from/(used in) operating activities 2,823 11,095 (385) 10,466
Interest paid (34) (338) (150) (398)
Income tax paid - (480) (2) (480)
Net cash generated from/(used in) operating activities 2,789 10,277 (537) 9,588
Cash Flows from Investing Activities
Interest received 1 1 1 22
Purchase of property, plant and equipment (384) (1,010) (1,063) (1,976)
Proceeds from disposal of property, plant and equipment 203 479 784 479
Net cash used in investing activities (180) (530) (278) (1,475)
Cash Flows from Financing Activities
Proceeds from borrowings 17,738 21,578 34,764 44,816
Repayment of borrowings (17,817) (26,484) (32,527) (48,390)
Principal repayment of lease liabilities (1,202) (1,108) (1,942) (2,217)
Net cash (used in)/generated from financing activities (1,281) (6,014) 295 (5,791)
Net increase/(decrease) in cash and cash equivalents 1,328 3,733 (520) 2,322
Cash and cash equivalents at the beginning of the period/year 9,435 7,478 11,273 8,912
Effect of foreign exchange rate changes on the balance of cash held in foreign 8 62 18 39
currencies
Cash and cash equivalents at the end of the period/year 10,771 11,273 10,771 11,273
E. Notes to the Condensed Interim Consolidated Financial Statements
1. General Information
Global Invacom Group Limited (the "Company") is a public limited company
incorporated and domiciled in Singapore and is listed on the Mainboard of the
Singapore Exchange Securities Trading Limited ("SGX-ST"). The Company is also
listed on the AIM Market of the London Stock Exchange ("AIM") in the United
Kingdom (UK). These condensed interim consolidated financial statements as at
and for the six months and full year ended 31 December 2021 comprise the
Company and its subsidiaries (the "Group"). The principal activity of the
Company is that of an investment holding company.
The principal activities of the Group are design, manufacture and supply of a
full range of satellite ground equipment, including antennas, LNB receivers,
transceivers, fibre distribution equipment, transmitters, switches and video
distribution components.
2. Basis of Preparation
The condensed interim financial statements for the six months and full year
ended 31 December 2021 have been prepared in accordance with Singapore
Financial Reporting Standards (International) ("SFRS(I)") 1-34 Interim
Financial Reporting issued by the Accounting Standards Council Singapore. The
condensed interim financial statements do not include all the information
required for a complete set of financial statements. However, selected
explanatory notes are included to explain events and transactions that are
significant to an understanding of the changes in the Group's financial
position and performance of the Group since the last annual financial
statements for the year ended 31 December 2020.
The accounting policies adopted are consistent with those of the previous
financial year which were prepared in accordance with SFRS(I)s and
International Financial Reporting Standards ("IFRSs"), except for the adoption
of new and amended standards as set out in Note 2.1.
The condensed interim financial statements are presented in United States
dollar which is the Company's functional currency.
2.1 New and amended standards adopted by the Group
There has been no change in the accounting policies and methods of computation
adopted by the Group for the current reporting period compared with the
audited financial statements for the year ended 31 December 2020, except for
the adoption of new or revised SFRS(I) and interpretations of SFRS(I) ("INT
SFRS(I)") that are mandatory for the financial year beginning on or after 1
January 2021. The adoption of these SFRS(I) and INT SFRS(I) has no significant
impact on the Group.
2.2 Use of judgements and estimates
In preparing the condensed interim financial statements, management has made
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements as at and
for the year ended 31 December 2020.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised and in any future periods affected.
Information about critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in the financial
statements is included in the following notes:
· Note 9 - capitalised development costs
· Note 11 - impairment test on property, plant and equipment
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
2. Basis of Preparation (cont'd)
2.2 Use of judgements and estimates (cont'd)
Information about assumptions and estimation uncertainties that have a
significant risk of resulting in a material adjustment to the carrying amounts
of assets and liabilities within the next interim period are included in the
following notes:
· Note 10 - impairment test of goodwill: key assumptions underlying
recoverable amounts
· Note 11 - useful lives of property, plant and equipment
3. Seasonal Operations
The Group's businesses are not affected significantly by seasonal or cyclical
factors during the six months and full year ended 31 December 2021.
4. Segment and Revenue Information
The Group is organised into the following main business segments:
· Satellite Communications ("Sat Comms"); and
· Contract Manufacturing ("CM")
These operating segments are reported in a manner consistent with internal
reporting provided to the executive directors who are responsible for
allocating resources and assessing performance of the operating segments.
4.1 Reportable segments
Sat
Comms CM Group
US$'000 US$'000 US$'000
FY2021
Revenue 82,541 - 82,541
Operating profit/(loss) 507 (17) 490
Finance income 1
Finance costs (519)
Income tax credit 586
Profit for the year 558
Amortisation of intangible assets 591 - 591
Depreciation of property, plant and equipment 1,903 - 1,903
Depreciation of right-of-use assets 1,864 - 1,864
Addition to property, plant and equipment 1,063 - 1,063
Impairment loss on other financial assets 8 - 8
Bad debts written (back)/off (113) 17 (96)
Gain on lease modifications (63) - (63)
Write-back of inventory obsolescence, net (738) - (738)
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
4. Segment and Revenue Information (cont'd)
4.1 Reportable segments (cont'd)
Sat
Comms CM Group
US$'000 US$'000 US$'000
Assets and liabilities
Segment assets 74,109 1,573 75,682
Unallocated assets
- Non-current assets 20
- Other receivables 79
- Deferred tax assets 1,780
- Cash and cash equivalents 155
- Tax receivables 169
- Right-of-use assets 39
Total assets 77,924
Segment liabilities 23,393 - 23,393
Unallocated liabilities
- Other payables 362
- Deferred tax liabilities 646
- Borrowings 6,120
- Lease liabilities 38
Total liabilities 30,559
FY2020
Revenue 101,458 1,600 103,058
Operating profit/(loss) 3,885 (21) 3,864
Finance income 22
Finance costs (762)
Income tax expense (515)
Profit for the year 2,609
Amortisation of intangible assets 789 - 789
Depreciation of property, plant and equipment 2,648 1 2,649
Depreciation of right-of-use assets 2,122 142 2,264
Addition to property, plant and equipment 1,976 - 1,976
Impairment loss on trade receivables 296 13 309
Restructuring costs 510 - 510
Reinstatement costs 219 80 299
Inventories written off 1,947 716 2,663
Write-back of inventory obsolescence, net (2,484) (726) (3,210)
Waiver of loan (1,472) - (1,472)
Assets and liabilities
Segment assets 73,953 561 74,514
Unallocated assets
- Non-current assets 82
- Other receivables 98
- Deferred tax assets 1,363
- Cash and cash equivalents 150
- Right-of-use assets 162
Total assets 76,369
Segment liabilities 23,702 688 24,390
Unallocated liabilities
- Other payables 367
- Provision for income tax 1
- Deferred tax liabilities 634
- Borrowings 3,883
- Lease liabilities 167
Total liabilities 29,442
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
4. Segment and Revenue Information (cont'd)
4.2 Disaggregation of revenue
The Group's revenue is disaggregated by principal geographical areas, major
product lines and timing of revenue recognition.
Group Group
2H 2H FY2021 FY2020
FY2021
FY2020
US$'000 US$'000 US$'000 US$'000
Principal geographical market
America
- Sale of goods 23,295 33,384 46,460 69,246
Europe
- Sale of goods 13,364 11,825 24,361 23,884
Asia
- Sale of goods 3,483 2,179 4,692 4,193
Rest of the World
- Sale of goods 1,960 2,897 7,028 5,735
Total 42,102 50,285 82,541 103,058
Major product lines
Sale of goods 42,102 50,285 82,541 103,058
The Group recognises revenue from sale of goods at a point in time, when the
Group satisfies a performance obligation and the customers obtain control of
the goods.
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
5. Financial Assets and Financial Liabilities
5.1 Significant items
Group Group
2H 2H FY2021 FY2020
FY2021
FY2020
US$'000 US$'000 US$'000 US$'000
Interest income - 1 1 22
Interest expense (196) (333) (519) (762)
Write-back of payables 880 - 880 -
Waiver of loan - 1,472 - 1,472
Gain on disposal of property, plant and equipment - 424 1,143 424
(Loss)/Gain on lease modifications (274) - 67 -
Impairment loss on trade receivables - (35) - (309)
Impairment loss on other financial assets (8) - (8) -
Loss on foreign exchange (177) (182) (193) (284)
Bad debts written back 113 - 96 -
Inventory written off - (2,663) - (2,663)
Write-back of inventory obsolescence 736 3,229 738 3,210
Depreciation of property, plant and equipment (760) (1,261) (1,903) (2,649)
Depreciation of right-of-use assets (868) (1,188) (1,864) (2,264)
Amortisation of intangible assets (325) (343) (591) (789)
Restructuring costs - (510) - (510)
Reinstatement costs - (299) - (299)
Operating lease expense (19) (15) (19) (15)
5.2 Related party transactions
There are no material related party transactions apart from those disclosed
elsewhere in the condensed interim financial statements.
6. Taxation
The Group calculates the period income tax expense using the tax rate that
would be applicable to the expected total annual earnings.
7. Earnings Per Share
Earnings per ordinary share of the Group, after deducting any provision for Group Group
preference dividends
2H 2H FY2021 FY2020
FY2021 FY2020 US$ US$
US$ US$
(a) Based on weighted average number of ordinary shares on issue; and 0.64 cent 0.84 cent 0.21 cent 0.96 cent
(b) On a fully diluted basis 0.64 cent* 0.84 cent* 0.21 cent* 0.96 cent*
Weighted average number of ordinary shares used in computation of basic 271,662,227 271,662,227 271,662,227 271,662,227
earnings per share
Weighted average number of ordinary shares used in computation of diluted 271,662,227 271,662,227 271,662,227 271,662,227
earnings per share
* 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.
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
8. Net Asset Value
Group Company
31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020
US$ US$ US$ US$
Net asset value per ordinary share based on issued share capital 17.44 cents 17.28 cents 15.51 cents 16.30 cents
Total number of issued shares 271,662,227 271,662,227 271,662,227 271,662,227
9. Intangible Assets
Trading name Intellectual property rights Capitalised development Total
costs
US$'000 US$'000 US$'000 US$'000
Group
2021
Cost
Balance at 1 January and 31 December 16 2,674 4,834 7,524
Amortisation and impairment
Balance at 1 January 16 757 4,460 5,233
Amortisation charge - 284 307 591
Currency realignment - 2 - 2
Balance at 31 December 16 1,043 4,767 5,826
Net book value
Balance at 31 December - 1,631 67 1,698
2020
Cost
Balance at 1 January 16 2,685 4,823 7,524
Currency realignment - (11) 11 -
Balance at 31 December 16 2,674 4,834 7,524
Amortisation and impairment
Balance at 1 January 16 483 3,921 4,420
Amortisation charge - 250 539 789
Currency realignment - 24 - 24
Balance at 31 December 16 757 4,460 5,233
Net book value
Balance at 31 December - 1,917 374 2,291
10. Goodwill
Group
31 December 2021 31 December 2020
US$'000 US$'000
Cost
Balance at the beginning and end of the year 9,352 9,352
Allowance for impairment loss
Balance at the beginning and end of the year 3,260 3,260
Net carrying amount 6,092 6,092
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
10. Goodwill (cont'd)
10.1 Allocation of goodwill
Goodwill has been allocated to the Group's cash generating unit ("CGU")
identified according to the business segment as follows:
Group
31 December 2021 31 December 2020
US$'000 US$'000
Satellite Communications
- OnePath Networks Limited ("OPN") - Israel 893 893
- Satellite Acquisition Corporation ("SAC") - United States of America 5,199 5,199
6,092 6,092
11. Property, Plant and Equipment
Freehold Machinery & Motor Furniture, fittings &
property equipment vehicles equipment Renovations Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Group
2021
Cost
Balance at 1 January 2,883 17,639 40 7,649 1,458 29,669
Currency realignment - (19) - 12 (1) (8)
Additions - 814 - 152 97 1,063
Disposals (12) (527) - - (116) (655)
Balance at 31 December 2,871 17,907 40 7,813 1,438 30,069
Accumulated
depreciation
Balance at 1 January 928 11,187 40 6,969 1,135 20,259
Currency realignment 44 322 - - 70 436
Depreciation charge - 1,541 - 275 87 1,903
Disposals (12) (527) - - (116) (655)
Balance at 31 December 960 12,523 40 7,244 1,176 21,943
Net book value
Balance at 31 December 1,911 5,384 - 569 262 8,126
2020
Cost
Balance at 1 January 2,807 28,069 220 8,377 1,376 40,849
Currency realignment 76 (12) - 53 184 301
Additions - 1,462 - 410 104 1,976
Disposals - (146) - - (10) (156)
Write-off - (11,734) (180) (1,191) (196) (13,301)
Balance at 31 December 2,883 17,639 40 7,649 1,458 29,669
Accumulated
depreciation
Balance at 1 January 849 20,640 220 7,629 1,257 30,595
Currency realignment - 419 - (1) (1) 417
Depreciation charge 79 1,963 - 532 75 2,649
Disposals - (101) - - - (101)
Write-off - (11,734) (180) (1,191) (196) (13,301)
Balance at 31 December 928 11,187 40 6,969 1,135 20,259
Net book value
Balance at 31 December 1,955 6,452 - 680 323 9,410
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
11. Property, Plant and Equipment (cont'd)
Furniture,
fittings &
equipment Renovations Total
US$'000 US$'000 US$'000
Company
2021
Cost
Balance at 1 January and 31 December 211 80 291
Accumulated depreciation
Balance at 1 January 137 72 209
Depreciation charge 55 7 62
Balance at 31 December 192 79 271
Net book value
Balance at 31 December 19 1 20
2020
Cost
Balance at 1 January 209 80 289
Additions 2 - 2
Balance at 31 December 211 80 291
Accumulated depreciation
Balance at 1 January 76 45 121
Depreciation charge 61 27 88
Balance at 31 December 137 72 209
Net book value
Balance at 31 December 74 8 82
The proceeds from disposal of property, plant and equipment of US$784,000 and
gain on disposal of property, plant and equipment of US$1,143,000 pertains to
machinery and equipment that was fully written off in the prior financial year
ended 31 December 2020.
12. Investment in Subsidiaries
Company
31 Dec 2021 31 Dec 2020
US$'000 US$'000
Unquoted equity shares, at cost 40,533 40,533
Accounting for employee share options 725 725
Currency realignment 131 131
Less: Allowance for impairment loss (16,014) (14,287)
25,375 27,102
Movement in the allowance for impairment loss are as follows:
At the beginning of the year 14,287 13,803
Impairment loss recognised during the year 1,727 484
At the end of the year 16,014 14,287
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
12. Investment in Subsidiaries (cont'd)
Allowance for impairment loss
(i) Global Invacom Manufacturing Pte Ltd ("GIMPL")
As at 31 December 2021 and 31 December 2020, an allowance for impairment loss
of US$8,648,000 was made on the cost of investment in GIMPL, as the allocated
CGU, to which the investment relates to, was incurring losses from operations
due to the restructuring costs incurred. The recoverable amount was based on
management's estimate of the fair value less costs to sell, with reference to
the fair value of the net assets of GIMPL, which is considered to be Level 3
in the fair value hierarchy.
(ii) Global Invacom Holdings Limited and its subsidiaries ("GIHL
Group")
As at 31 December 2021 and 31 December 2020, an allowance for impairment loss
of US$7,366,000 and US$5,639,000, respectively, was made on the cost of
investment in GIHL Group, as the allocated CGU, to which the investment
relates to, was incurring losses from operations. The recoverable amount was
based on management's estimate of the fair value less costs to sell, with
reference to the fair value of the net assets of GIHL Group, which is
considered to be Level 3 in the fair value hierarchy.
13. Borrowings
Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 31 Dec 2021 As at 31 Dec 2020
Secured Unsecured Secured Unsecured
US$'000 US$'000 US$'000 US$'000
6,120 - 3,883 -
Amount repayable after one year
As at 31 Dec 2021 As at 31 Dec 2020
Secured Unsecured Secured Unsecured
US$'000 US$'000 US$'000 US$'000
- - - -
The revolving credit loans of US$6,120,000 were secured over the assets of the
subsidiaries and corporate guarantees provided by the Company and the
subsidiaries.
14. Share Capital
FY2021 No. of shares US$'000
Balance as at 1 Jan 2021 and 31 Dec 2021 271,662,227 72,584
No. of shares US$'000
FY2020
Balance as at 1 Jan 2020 and 31 Dec 2020 271,662,227 72,584
There were 10,740,072 treasury shares held by the Company as at 31 December
2021 and 31 December 2020 and there was no subsidiary holdings.
E. Notes to the Condensed Interim Consolidated Financial Statements
(cont'd)
14. Share Capital (cont'd)
Total number of issued shares excluding treasury shares as at the end of the
current financial period and as at the end of the immediately preceding year:
31 Dec 2021 31 Dec 2020
Total number of issued shares excluding treasury shares 271,662,227 271,662,227
Total number of treasury shares as at the end of the current financial period
reported on:
FY2021 No. of shares US$'000
Balance as at 1 Jan 2021 and 31 Dec 2021 10,740,072 1,656
15. Subsequent events
There are no known subsequent events which have led to adjustments to this set
of interim financial statements.
F. Other Information Required by Listing Rule Appendix 7.2
1. Review
The condensed interim consolidated statement of financial position of Global
Invacom Group Limited and its subsidiaries as at 31 December 2021 and the
related condensed interim consolidated statement of comprehensive income,
condensed interim statements of financial position, condensed interim
consolidated statement of changes in equity and condensed interim consolidated
statement of cash flows for the six-month period then ended and certain
explanatory notes have not been audited or reviewed by the auditors.
2. Review of Performance of the Group
2.1 Review of Financial Performance
Revenue
The Group's revenue for the year ended 31 December 2021 ("FY2021") decreased
by 19.9% to US$82.5 million from US$103.1 million in the prior year
("FY2020"). Revenue for the second half year ended 31 December 2021 ("2H
FY2021") was US$42.1 million against US$50.3 million in the prior year ("2H
FY2020"). The ongoing COVID-19 pandemic impacted the Group globally, as there
have been a reduction in orders from our customers. It has also impacted the
Group's production facilities around the world as our working practices were
adapted to comply with regional variations on COVID-19 Work Restrictions and
social distancing guidelines during the pandemic.
Geographically, Group revenue for FY2021 decreased in America by US$22.8
million (-32.9%) and increased in Europe, Asia and Rest of the World ("RoW")
by US$0.5 million (+2.0%), US$0.5 million (+11.9%) and US$1.3 million
(+22.5%), respectively. Revenue for 2H FY2021 decreased in America and RoW by
US$10.1 million (-30.2%) and US$0.9 million (-32.3%), respectively,
compensated by an increase in Europe and Asia by US$1.5 million (+13.0%) and
US$1.3 million (+59.8%), respectively, compared to the prior year.
Gross Profit
The decrease in revenue resulted in a 35.6% decrease in gross profit from
US$25.7 million in FY2020 to US$16.6 million in FY2021. Gross profit margin
has decreased by 4.8 percentage points from 24.9% to 20.1%, mainly
attributable to higher materials costs and the supply chain constraints that
continue to cause disruptions to the Group.
Similarly, gross profit decreased from US$13.4 million in 2H FY2020 to US$7.8
million in 2H FY2021. Gross profit margin has decreased by 8.2 percentage
points from 26.6% to 18.4%.
Other Income
Other income in 2H FY2021 and FY2021 relates primarily to a grant from the US
government of US$2.7 million, gain on disposal of equipment of US$1.1 million,
write-back of payables of US$0.9 million and subsidy support received from
various government bodies across the Group due to the COVID-19 pandemic.
Administrative and Research and Development Expenses
Administrative expenses, together with research and development expenses, for
FY2021 decreased 9.0% to US$20.9 million compared to US$23.0 million in
FY2020, representing 25.3% and 22.3% of revenue, respectively. The ongoing
cost control measures across the Group, including a reduction in travelling
and marketing activity, have resulted in lower administrative expenses being
incurred. For 2H FY2021, administrative and research and development expenses,
decreased 16.1% to US$10.0 million compared to US$12.0 million in the previous
year, representing 23.8% of revenue for both periods.
Other Operating Expenses
Other operating expenses in 2H FY2021 and FY2021 were attributed mainly to
foreign exchange losses.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
2. Review of Performance of the Group (cont'd)
2.1 Review of Financial Performance (cont'd)
Profit Before Tax & Net Profit
The Group posted a loss before tax of US$28,000 in FY2021, compared to a
profit before tax of US$3.1 million the prior year, representing a negative
margin of 0.03% and a margin of 3.0%, respectively. For 2H FY2021, the Group
recorded US$1.1 million profit before tax compared to US$2.6 million in the
prior year, representing a margin of 2.6% and 5.1%, respectively.
In 2H FY2021, the UK Group received research and development tax credits from
the UK government and, coupled with deferred taxes, resulted in the Group
recording a net profit of US$1.7 million compared to US$2.3 million in the
prior year, representing a margin of 4.1% and 4.5%, respectively. For FY2021,
the Group recorded a net profit of US$0.6 million, compared to US$2.6 million
the prior year, representing a margin of 0.7% and 2.5%, respectively.
2.2 Review of Financial Position
Non-current assets decreased by US$3.4 million to US$22.1 million as at 31
December 2021, due to the depreciation of plant and equipment, the
right-of-use assets and the amortisation of intangible assets, offset by the
increase in deferred tax assets.
Net current assets increased by US$2.1 million to US$29.1 million as at 31
December 2021 compared to US$27.0 million as at 31 December 2020. Trade and
other receivables increased by US$6.3 million due to slower collections,
whilst trade and other payables increased by US$0.8 million with controlled
payments to suppliers, offset by a decrease in inventories of US$1.1 million.
Tax receivables was US$0.2 million as at 31 December 2021.
Cash and cash equivalents decreased by US$0.5 million to US$10.8 million as at
31 December 2021 from US$11.3 million at 31 December 2020, and borrowings
increased by US$2.2 million to US$6.1 million as at 31 December 2021 from
US$3.9 million as at 31 December 2020. The repayment of leases has resulted in
a decrease of US$0.2 million in the current portion of lease liabilities.
With the repayment of leases, the non-current portion of the lease liabilities
decreased by US$1.8 million to US$3.1 million as at 31 December 2021.
The Group's net asset value stood at US$47.4 million as at 31 December 2021,
compared to US$46.9 million as at 31 December 2020.
2.3 Review of Cash Flows
In 2H FY2021, net cash generated from operating activities was US$2.8
million, comprising US$1.8 million cash inflow from operating activities
(before working capital changes), US$1.1 million net working capital inflow
and US$0.1 million payment of interest.
In FY2021, net cash used in operating activities was US$0.5 million,
comprising US$$2.1 million cash inflow from operating activities (before
working capital changes), US$2.5 million net working capital outflow and
US$0.1 million payment of interest and income tax.
Net cash used in investing activities in 2H FY2021 and FY2021 amounted to
US$0.2 million and US$0.3 million, respectively, relating predominately to the
purchase of machinery and equipment, offset against proceeds from the disposal
of property, plant and equipment.
Net cash used in financing activities in 2H FY2021 was US$1.3 million and net
cash generated from financing activities in FY2021 was US$0.3 million,
attributable to the net proceeds of borrowings and repayment of lease
liabilities.
The Group recorded a net increase in cash and cash equivalents amounting to
US$1.3 million, and net decrease amounting to US$0.5 million in 2H FY2021 and
FY2021, respectively, bringing cash and cash equivalents per the consolidated
statement of cash flows to US$10.8 million as at 31 December 2021.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
3. 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.
4. 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 combination of ongoing COVID-19 restrictions and the well documented
global supply chain issues were key feature in forming the broader trading
conditions for the Group throughout 2021. Management believes that, whilst
demand for the Company's products will remain robust, economic headwinds,
including supply shortages within the semiconductor sector, and ongoing
inflationary pressure across international shipping, wages (particularly in
the U.S.) and raw materials (including steel), will likely impact the
performance of the business in the current financial year.
As with the prior year, and given the global nature of Global Invacom's
business, the health and safety of all our staff, partners, suppliers and
customers continues to be of paramount importance.
Despite the impact of these global headwinds on the Company's financial
performance, Global Invacom remained profitable in the year, facilitated by
the implementation of pragmatic cost-saving initiatives, including a reduction
in marketing activity and various government grants, to mitigate the impact of
the COVID-19 pandemic. The Group's prudent transition of R&D employees and
office staff to remote working from 2020 have enabled our international
network of teams to function efficiently throughout 2021.
During 2021, the Group focused on launching a range of innovative devices to
augment its product offering across all key categories. New additions to
Global Invacom's portfolio include the Optical to Optical ("O2O") converter, a
Fibre to the Home ("FTTH") device designed to increase the number of
subscribers that can be connected to a single dish, and Ku-Band and C-Band
VSAT Radio Frequency ("RF") Block Up Converters, two new DOS products that
consolidate the Group's unique position as a leading manufacturer and supplier
of VSAT RF electronics, antennas and feeds.
The Group continues to ensure new products are expertly designed to work in
tandem with existing Global Invacom devices, providing an upgraded service
whilst simultaneously generating valuable cross selling opportunities. As the
satellite communications industry continues to evolve and new technologies
emerge, the Group is focused on leveraging its R&D capabilities to
future-proof new devices. With teams based in hubs across the globe, Global
Invacom's employees can rapidly respond to regulatory updates in regional
markets to ensure the Group continues to develop cutting-edge competitive
products.
More generally, O3b mPOWER plan to launch their O3b mPOWER communications
system during 2022, which comprises of an initial constellation of 11
high-performance satellites, intelligent software and extensive ground
infrastructure. Hughes, the global provider of high-speed satellite internet
service, also indicated that their much-anticipated GEO satellite Jupiter
system is currently scheduled to be launched during Q4 2022.
The Group remains well-positioned to benefit from the recovery of the global
economy and the continued growth of its target DOS market. As the broader
restrictions associated with the COVID-19 pandemic ease along with the well
documented supply chain pressures, Global Invacom's products will continue to
play a significant role in meeting the continued growth in demand for data and
connectivity.
F. Other Information Required by Listing Rule Appendix 7.2 (cont'd)
5. 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.
6. 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 2021.
7. 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 2021.
8. Confirmation 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 year ended 31 December 2021 to be false or misleading in any
material aspect.
9. Confirmation Pursuant to Rule 720(1) of the Listing Manual
Global Invacom Group Limited confirms that undertakings under Rule 720(1) have
been obtained from all its directors and executive officers in the format set
out in Appendix 7.7.
10. 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.
On behalf of the Board
Anthony Brian
Taylor
Gordon Blaikie
Executive
Director
Executive Director
BY ORDER OF THE
BOARD
Anthony Brian Taylor
Executive Chairman
25 February 2022
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