StockMarketWire.com - Satellite communications provider Global Invacom said it expected to swing to a net loss due to one-off costs, including the upcoming closure of its Shanghai site.

Due to the upcoming closure of the Shanghai site, one-off write offs, impairments and other charges, Global Invacom said expected to record a net loss in 2019 compared with a net profit of US$1.5m in 2018.

Manufacturing operations in Shanghai would be shuttered during the first half of 2020, with its China-based manufacturing and assembly operations transferring to a third-party vendor in the Philippines, the company said.

'Following the realignment of Asian manufacturing operations, the group expects its operations and financial performance in 2020 to improve year-on-year compared to 2019,' it added.

The move to re-locate its Shanghai operations was part of detailed review, which included additional measures to drive growth including an acceleration in product development and R&D through Global Invacom's US subsidiary, Global Skyware.

Trading for the year ended 31 December 2019 had been in line with management expectations, with over 40% of revenues deriving from the group's data over satellite division.


At 8:28am: [LON:GINV] Global Invacom Group share price was -1.75p at 6.5p



Story provided by StockMarketWire.com