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
Tony Taylor, Executive Chairman	via Vigo Consulting
Strand Hanson Limited (Nominated Adviser and Broker)	www.strandhanson.co.uk
James Harris / Rob Patrick	Tel: +44 20 7409 3494
Vigo Consulting (UK Media & Investor Relations)	www.vigoconsulting.com
Jeremy Garcia / Kendall Hill	Tel: +44 20 7390 0238
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

 

 

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 FY2021	2H FY2020	Increase/ (Decrease)		FY2021	FY2020	Increase/ (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.
Other comprehensive (loss)/income for the period/year, net of tax	(445)	358	N.M.		(120)	253	N.M.
Total comprehensive income for the period/year	1,291	2,625	(50.8)		438	2,862	(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

 

 

Group	Share capital	Treasury shares	Merger reserves	Capital redemption reserves	Share options reserve	Capital reserve	Foreign currency translation reserve	Retained profits	Attributable to equity holders of the Company	Non-controlling interests	Total
	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)

 

 

Company	Share capital	Treasury shares	Share options reserve	Capital reserve	Foreign currency translation reserve	Accumulated losses	Total
	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 currencies	8	62		18	39
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 FY2021	2H 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 FY2021	2H 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 preference dividends	Group		Group
	2H FY2021 US$	2H FY2020 US$	FY2021  US$	FY2020 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 earnings per share	271,662,227	271,662,227	271,662,227	271,662,227
Weighted average number of ordinary shares used in computation of diluted earnings per share	271,662,227	271,662,227	271,662,227	271,662,227

 

* 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 US$	31 Dec 2020 US$	31 Dec 2021 US$	31 Dec 2020 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 costs	Total
	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$'000
Balance as at 1 Jan 2021 and 31 Dec 2021	271,662,227	72,584
FY2020	No. of shares	US$'000
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