TIDMGINV
RNS Number : 8925S
Global Invacom Group Limited
14 March 2023
GLOBAL INVACOM GROUP LIMITED
(Incorporated in the Republic of Singapore)
(Company Registration No. 200202428H)
RESPONSE TO QUERIES FROM SINGAPORE EXCHANGE SECURITIES TRADING
LIMITED ("SGX-ST") ON THE FULL YEAR RESULTS FOR FY2022
The Board of Directors (the "Board") of GLOBAL INVACOM GROUP
LIMITED (the "Company") refers to the following queries raised by
the SGX-ST on 10 March 2023 and would like to provide additional
information in relation to the Company's full year results for the
financial year ended 31 December 2022 ("FY2022"), as follows:
SGX-ST's Query 1:
Please disclose:
(i) the nature of the non-current receivables; and
Company's response to Query 1(i):
The non-current receivables of US$54,000 are deposits for
electricity and water for the Group's subsidiary in the United
States.
(ii) the Board's assessment of the recoverability of the
non-current other receivables and prepayments.
Company's response to Query 1(ii):
The Board is of the opinion that the non-current other
receivables and prepayments are recoverable.
SGX-ST's Query 2:
It is disclosed on page 17 of the unaudited financial statements
that the impairment charge in 2H FY2022 and FY2022 was attributed
to a goodwill impairment of US$5.2 million, which is non-cash in
nature, related to the performance of the Group's US subsidiary.
The requirement to recognise this charge has arisen due to the
sustained loss making position of the Group's US subsidiary. In
this regard, please disclose the following information:
(i) how the amount of impairment was determined;
(ii) whether any valuation was conducted; the value placed on
the relevant assets; the basis and the date of such valuation;
Company's response to Queries 2(i) & 2(ii):
The Group has goodwill of US$5.2 million allocated to the United
States subsidiary cash-generating units ("CGUs") as at 31 December
2022.
These CGUs are tested for impairment annually. Management
applies the value in use method to determine the recoverable amount
of each CGU. Any shortfall of the recoverable amounts against the
carrying amounts are recognised as an impairment loss. The
recoverable amount is determined based on estimates of forecasted
revenue, growth rates, profit margins and discount rates.
(iii) the Board's confirmation as to whether it is satisfied
with the reasonableness of the methodologies used to determine
amount of impairment.
Company's response to Query 2(iii):
The Board is satisfied with the reasonableness of the
methodologies used to determine the amount of impairment.
SGX-ST's Query 3:
Please explain why no interest income was recorded during the
financial period ended 31 December 2022 when the Company has
significant cash and bank balance amounting to US$9,244,000.
Company's response to Query 3:
The majority of the Group's cash and cash balances are in the
United Kingdom bearing either zero or very low interest, resulting
in interest income of less than US$100 which is below the reporting
threshold.
SGX-ST's Query 4:
Please provide information on the Group's inventory turnover
days.
Company's response to Query 4:
The Group's inventory turnover days are as follows:
FY2022 FY2021
Inventory turnover 150 days 145 days
days
--------- ---------
SGX-ST's Query 5:
Please disclose a breakdown of other payables amounting to
US$3,109,000 and US$4,447,000 as at 31 December 2022 and 31
December 2021 respectively. For other payables, please disclose the
nature of these other payables and whether the counterparties are
related parties.
Company's response to Query 5:
The nature of other payables are as follows:
FY2022 FY2021
US$'000 US$'000
Accrued operating
expenses 1,574 2,409
Provision for warranty 148 235
Customers advances
received 781 1,085
GST/VAT payables 84 177
Other creditors 522 693
-------- --------
3,109 4,599
-------- --------
No counterparties are related parties.
SGX-ST's Query 6:
Please confirm if there are any outstanding convertibles and if
yes, the number shares that may be issued on conversion of the
outstanding convertibles.
Company's response to Query 6:
There are no outstanding convertibles.
BY ORDER OF THE BOARD
Gordon Blaikie
Interim Chief Executive Officer
14 March 2023
For further information, please contact:
Global Invacom Group Limited www.globalinvacom.com
Gordon Blaikie, Interim Chief Executive via Vigo Consulting
Officer
Strand Hanson Limited (Nominated Adviser www.strandhanson.co.uk
and Broker)
James Harris / Richard Johnson / David Tel: +44 20 7409
Asquith 3494
Vigo Consulting (UK Media & Investor www.vigoconsulting.com
Relations)
Jeremy Garcia / Fiona Hetherington / Tel: +44 20 7390
Kendall Hill 0238
ginv@vigoconsulting.com
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END
MSCEANDLFEADEEA
(END) Dow Jones Newswires
March 14, 2023 05:30 ET (09:30 GMT)
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