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Global Invacom's FY14 earnings down 37% on higher expenses; dividend proposed
MAINBOARD-LISTED satellite equipment provider Global Invacom on Thursday reported a 36.5 per cent slump in net profit to US$5.1 million for financial year 2014.
Earnings per share fell to 2.02 US cents, from 3.42 US cents a year ago. This was despite revenue rising 15.9 per cent to US134.1 million, on increased orders from a major US customer, recognition of contribution from an acquisition made in November 2013, and contribution from two months trading of its latest acquisition, OnePath Networks (trading as Foxcom), in Israel.
But higher administrative expenses dragged its earnings lower, due to one-off professional fees for its AIM listing on the London Stock Exchange and the acquisition of Foxcom, as well as higher manpower and restructuring costs.
Additional research and development costs, including the hiring of more radio frequency design and production engineers, further affected its bottom line.
"Excluding the US$2.6 million one-off professional fees, restructuring cost, provision against a legal dispute and the foreign exchange differential of US$1.2 million between FY14 and FY13, the group would have recorded a net profit of US$8.9 million in FY2014," it said.
Global Invacom concluded its listing on the AIM Market last July and is seeking further strategic acquisitions.
It has also proposed a first and final dividend of 0.525 Singapore cent per share for FY14, compared to 0.5 Singapore cent for FY13. This will be paid on May 25, 2015.