Global Invacom Group Ltd (GINV)


Global Invacom posts Q3 profit

Global Invacom Group posts a net profit of US$0.7 million for the three months ended 30 September compared with a US$2.7 million loss a year earlier.

The second consecutive quarter of profitability came on the back of increased demand in the US for the group's electronics products.

Net profit for the nine months ended 30 September was US$0.3 million compared to a loss of US$5.6 million in 9M FY2015.

Revenue for Q3 FY2016 was basically flat, down 0.4% to US$32.1 million from US$32.2 million in Q3 FY2015, due mainly to a US$2.4 million reduction in the Electronics Manufacturing Services and lower year-on-year sales orders in Asia.

However, revenue for 9M FY2016 rose 11.8% to US$96.3 million from US$86.2 million a year ago.

With the inclusion of Global Skyware, Q3 FY2016 revenue from America and Europe rose US$2.3 million (+11.9%) and US$0.5 million (+6.9%), respectively, offset by a fall in revenue from Asia and the Rest of the World by US$2.1 million (-61.5%) and US$0.8 million (-54.6%), respectively.

Gross profit increased by US$0.9 million, or 15.4%, to US$7.2 million in Q3 FY2016 from US$6.3 million in Q3 FY2015. Gross profit margin improved to 22.6% from 19.5% due to a favourable product mix, improved efficiencies and tighter factory cost control.

Administrative expenses fell 34.1% to US5.7 million in Q3 FY2016 from US$8.7 million in Q3 FY 2015, representing 17.9% and 27.1% of revenue, respectively. This was due to the absence of professional fees in relation to the Global Skyware acquisition, lower legal costs related to a dispute in Q3 FY2015 and cost savings arising from restructuring and rationalisation in FY2016.

Earnings per share on a fully diluted basis was 0.26 US cent in Q3 FY2016 compared to a loss per share of 1.04 US cents in Q3 FY2015. Net asset value per share improved to 20.31 US cents as at the end of September compared with 20.05 US cents at the end of 2015.

At 9:16am: (LON:GINV) Global Invacom Group share price was +0.5p at 8.5p