REG - Global Invacom Group - Trading Update

Global InvacomAnnouncement

24/11/2022 09:30

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RNS Number : 4880H  Global Invacom Group Limited  24 November 2022

 

Global Invacom Group Limited

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

 

Trading Update for the Nine Months Ended 30 September 2022

&

Implementation of an Internal Operational Review

 

Singapore/London, 24 November 2022 - Global Invacom (SGX: QS9) (AIM: GINV),
the global provider of satellite communications equipment and electronics,
announces a trading update for the nine months ended 30 September 2022 ("Q3
FY2022"), alongside the implementation of an internal review of operations
("the Review").

 

The Company continues to be impacted by the residual effects of Covid-19 on
global supply chains, which has had a profound impact on the availability of
semiconductors, alongside the much publicised increase in both raw material
and transportation costs. This, alongside a more recent decline in demand for
satellite television products, and unforeseen delays in the completion of our
XRJ product which delivers cutting edge Ka-Band VSAT capabilities with an
integrated transceiver and receiver for land and marine applications using
low-Earth, mid-Earth and geostationary satellites, has further impacted the
Group's financial performance.

 

As a result of the above headwinds, the Group expects the financial
performance of the Group to be impacted in the current financial year as
evidenced by a preliminary review of the Group's unaudited results to the end
of Q3 FY2022. In this period, which the Company does not anticipate disclosing
again going forward, Global Invacom delivered revenues of approximately
US$56.5 million (Q3 FY2021: US$62.6 million) and an EBITDA loss of
approximately US$2.4 million (Q3 FY2021: US$1.4 million profit).

 

As at 30 September 2022, the Group had cash of US$10.4 million (30 September
2021: US$10.7 million) and net cash of US$4.2 million (30 September 2021:
US$4.7 million).

 

Therefore, the Board has sought to reduce the Group's fixed cost base by
outsourcing the manufacturing of a range of products to a strategic partner in
the Philippines. This has enabled the Group to reduce costs within its China
operations and simplify the corporate structure.

 

In addition, the Board has now implemented an operational review of the
broader business, with the aim of creating a more robust operational
platform.

 

Central to the Review will be for Global Invacom to potentially deliver
greater shareholder value by leveraging its global customer base value through
the development of technological solutions for the satellite industry.

 

The Review will consider the operational structure and management of the
business. In addition, management will evaluate the supply chain in order to
maximise efficiencies and cost savings, assess the Group's go-to-market
strategy, alongside a commercial assessment of both existing and new products
to ensure the Group is ideally positioned for growth.

 

The Group continues to work closely with a number of its key customers and is
beginning to see encouraging signs of renewed activity. Although the lead time
on these opportunities may vary, the Board currently anticipates that they
will underpin our revenue growth in the medium term.

 

A presentation for investors will be available to download from the Company's
website at: https://globalinvacom.com/pages/downloads
(https://globalinvacom.com/pages/downloads) .

 

 

 

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014, as it forms part of UK domestic law.

 

In accordance with SGX market practice, the Board of Directors of the Company
wishes to advise the shareholders and investors of the Company to exercise
caution when dealing in the shares of the Company. In the event of any doubt,
they should consult their stockbrokers, bank managers, solicitors, accountants
or other professional advisers.

 

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 / Richard Johnson / 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/)

 

 

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