Global Invacom Group shares tumbled 13.7% to 6p in late afternoon trading on Friday, after the firm announced a revenue fall to $37.4 million in HY1 2022 against $40.4 million linked to a global shortage of semiconductors.
The supply problems resulted in limited ability to carry out existing orders, and had a knock-on effect on revenue growth across the financial term.
The Group reported a gross profit slide to $7.4 million from $8.8 million, alongside a widened net loss to $3.3 million compared to $1.2 million year-on-year.
Global Invacom Group highlighted cost price increase, labour challenges and business problems faced by customers as factors contributing to its profit drop.
The company said it had embarked on a business review process to optimise its business structure and relationships in the “new normal” volatile market environment.
Global Invacom Group mentioned cash and cash equivalents of $10 million on 30 June 2022 against $10.8 million in the previous year.
“Trading across the first six months of the year has not been without its challenges, as we continue to adjust to the ongoing shortages for semiconductors globally, alongside inflationary pressures across our business,” said Global Invacom Group CEO Tony Taylor.
“These factors are not unique to our business, and we continue to drive the Company forward, which for us means an unrivalled commitment to our customers to remain at the cutting edge of innovation and product development.”
“Whilst we are fully aware the broader macro picture will take time to improve, Global Invacom remains well placed to capitalise on the growing demand for satellite communications services globally.”
