13th Aug 2021 11:48
(Alliance News) - Global Invacom Group Ltd on Friday said that business disruptions caused by the pandemic and supply chain issues resulted in a loss-making start to 2021.
In the six months ended June 30, the satellite communications company swung to a USD1.1 million loss from a USD544,000 profit the year before.
Revenue fell 23% year-on-year to USD40.4 million from USD52.8 million.
Global Invacom said its performance was primarily affected by Covid-19 related restrictions and supply-chain disruption that limited the availability of key products, including semiconductors and capacitors.
Despite these challenges, the company noted growing demand for its Data Over Satellite products, "driven by ongoing demand for connectivity and data delivery through the Covid-19 pandemic".
The company declared no dividend for the period, consistent with the year prior.
Restructuring efforts continued throughout the first half, the company said, as Global Invacom attempted to further reduce its cost base, lower administrative expenses and remove excess employees in non-core functions.
Executive Chair Tony Taylor said: "The first half of 2021 has been challenging as we faced down a number of operational and macroeconomic headwinds. Despite this, our business has delivered a solid performance, supported by a highly skilled and talented workforce.
"As global restrictions ease, and supply chains move more freely, I firmly believe our business is ideally placed to deliver a sustainable recovery in the medium term."
Shares in Global Invacom were trading flat at 6.00 pence each in London on Friday morning.
By Scarlett Butler; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
GINV.L