10th Feb 2016 10:10
LONDON (Alliance News) - Global Invacom Group Ltd said Wednesday that whilst it expects to report a better performance for the second half of 2015 than the first, it still expects to report a net loss of between USD1.0 million and USD2.0 million for the year as a whole.
This compares to a net profit of USD5.1 million in 2014.
The Sinagpore-based satellite communications company attributed this loss to a number of factors. This included delays in sales to its main customers in the US, UK and Asia during the first half of the year, a hit to gross margins due to the re-classification of export taxes for some products, and some one-off costs.
One-off costs comprised an earn-out in relation to the company's acquisition of Skyware, legal costs related to an ongoing legal dispute with a supplier of its UK subsidiary, a write-off of capitalised development costs in its UK subsidiary, and restructuring charges in its UK and Shanghai operations.
The company said that following restructuring at its newly acquired Skyware business, it is confident that "barring unforeseen circumstances", it can return Skyware to profitability.
Global Invacom will report its 2015 results February 25.
Shares in Global Invacom were untraded Wednesday morning. They last closed at 9.10 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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