REG - Global Invacom Group - Response to Shareholder AGM Questions

Global InvacomAnnouncement

25/04/2022 07:00

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RNS Number : 1261J  Global Invacom Group Limited  25 April 2022

 

 

 

 

GLOBAL INVACOM GROUP LIMITED

(Incorporated in the Republic of Singapore)

(Company Registration No. 200202428H)

 

 

RESPONSE TO QUESTIONS RECEIVED FROM A SHAREHOLDER IN RELATION TO THE ANNUAL
GENERAL MEETING FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 ("FY2021")

 

 

The Board of Directors (the "Board") of GLOBAL INVACOM GROUP LIMITED ("Global
Invacom", the "Company", together with its subsidiaries, the "Group") would
like to provide the following information in response to questions raised by a
Shareholder in relation to the Company's Annual General Meeting for FY2021:

 

 

Question 1:

 

Group revenue for FY2021 decreased in America by US$22.8 million (-32.9%).
That is very concerning and if one keeps track of space and satellite news,
most of the activity seems to be coming from the US. What's the Group's
assessment of this?

Company's Response:

 

Fundamentally, the United States ("US") remains a key growth market for the
Company, however, the broader market has been impacted by the combination of
COVID-19 restrictions and the well documented global supply chain issues
globally.  This has been a key feature of FY2021 and management believe that
these factors will remain prevalent in the current financial year, alongside
supply shortages within the semiconductor sector, and ongoing inflationary
pressure across international shipping, wages (particularly in the US) and raw
materials (including steel).

 

Generally speaking, the long-term outlook for the global satellite market
remains positive.

 

 

Question 2:

 

Geographically, where are the expected revenue growth areas for FY2022? Is the
demand from America expected to return?

 

Company's Response:

 

The US remains a key growth market for the Company alongside Europe.

 

 

Question 3:

 

Has the Group stopped providing contract manufacturing services?

 

Company's Response:

 

The Group has stopped providing contract manufacturing services when its
subsidiaries in China, Global Invacom Manufacturing (Shanghai) Co Ltd, ceased
operations in 2019 and all orders were fulfilled in 2020.

 

Question 4:

 

How concerning is the reshoring of manufacturing (i.e. manufacturing returning
to US or Europe) that would affect the Group's business?

 

Company's Response:

 

The Company has a manufacturing facility in Smithfield, North Carolina, which
has been manufacturing high quality communications products for over 60 years.
The company has two manufacturing facilities in the UK and one in Israel and
an established global sales and support team.

 

Each of these facilities is focused on meeting specific customer and product
demand.

 

 

Question 5:

 

Note 20, the loss allowance increased from 18% to 29.5% for receivables over
60 days. Is this an anomaly or can be described to be within the Group's
historical experience?

Company's Response:

 

The increase is in line with the Group's 3 years historical average.

 

 

Question 6:

 

Without disclosing the identity, did the Group lose its largest customer that
had 32.8% share of revenue in 2020?

 

Company's Response:

 

We did not lose a large customer in FY2020.  The loss in revenue is a direct
result of the impact of the COVID-19 pandemic on the global economy. This was
a global phenomenon and is not localised to Global Invacom.

 

 

BY ORDER OF THE BOARD

 

 

Anthony Brian Taylor

Executive Chairman

 

 

23 April 2022

 

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