Global Invacom Group Limited (the Group) has recently announced that its net profit for the first half of 2013 (H1 FY2013) stood at US$3.4 million, an increase of 804 percent from the same period last year.
The SGX Mainboard-listed satellite communications equipment solutions provider said the net profit rise was propelled by a 78.9 percent increase in revenue, following its recent reverse takeover (RTO).
The Group had completed its RTO in July 2012, following which it acquired The Waveguide Solution Limited (TWS). It recognised the full six months' results of TWS which began revenue contribution in August 2012.
The Group's H1 FY2013 revenue includes recognition from its two China contract manufacturing operations, TWS and the newly established Malaysian assembly operations. Revenue improved by US$2 million in the US, by US$6.1 million in Europe and by US$16.3 million in the rest of the world.
Tony Taylor, Executive Chairman of Global Invacom, said: "The post-RTO initiatives to improve synergies and combine organic growth with acquisitions have clearly borne fruit."
The Group's financial position remains healthy with a cash position of US$25 million. Earnings per share (on a fully diluted basis) rose to 2.28 US cents in H1 FY2013 from 0.31 US cents in the same period last year. Its net asset value per share as at 30 June 2013 increased to 24.96 US cents from 23.77 US cents as at 31 December 2012.
Since the Group has substantially completed its first Asian order, it is likely to receive a repeat order from the customer in H2 FY2013. After the follow-on order, the Group will convert its Malaysian operations from sub-assembly to manufacturing to improve efficiency and offer an alternative to its manufacturing activities in China.
Baring an unforeseen circumstances, the board of directors expects the financial performance for FY2013 to surpass that of FY 2012.
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