25th Feb 2016 09:36
LONDON (Alliance News) - Satellite communications company Global Invacom Group Ltd Thursday reported a swing to a loss in 2015 as it saw a "challenging year", hit by de-stocking from three key customers in its first half.
The company reported a pretax loss of USD1.3 million, swung from a pretax profit of USD5.5 million, as revenue fell to USD129.1 million from USD134.1 million.
Global Invacom attribute the decline in revenue to the delayed sales in its first half from customers in America, Europe and Asia who either de-stocked or altered their procurement procedures. Despite this, the company said its main customers have resumed orders in the second half.
This fall in revenue was further hit by a fall in gross profit margin to 19.3% from 23.7% due to the reclassification of some products in relation to import duty taxes in the US and the weakening of the Malaysian ringgit against the dollar, and the company also saw one-off costs related to its purchase and restructuring of Satellite Acquisition Corp.
These factors led to a swing to a loss for the year.
"Amidst economic uncertainties, we remain optimistic about the Sat Comms industry given rising demand for digital TV services and communications infrastructure. With advancements in technology, broadcasters are rolling out new features and services, all of which bode well for us," said Executive Chairman Tony Taylor in a statement.
Shares in Global Invacom were untraded Thursday morning, they last traded at 9.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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