Beam Communications : pdf Appendix 4D and Half Year Financial Report 31 December 2020 (670 KB)

25 February 2021

The Manager

Market Announcements Platform Australian Securities Exchange

Appendix 4D Half Year Report and Financial Report

The Company, Beam Communications Holdings Limited, encloses its Appendix 4D (Half Year Report) and Half Year Financial Report for the six months ended 31 December 2020, including audited Financial Statements, Notes to the accounts, Directors Report and Auditors Review Report, for immediate release.

Yours faithfully

Dennis Payne Company Secretary

Half year report ended 31 December 2020

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Beam Communications Holdings Limited

ABN 39 010 568 804

Appendix 4D

Half Year Report

Half Year ended 31 December 2020

The information contained in this Appendix 4D should be read in conjunction with the most recent Annual Report covering the financial year ending 30 June 2020.

1. Reporting periods

Current reporting period Previous corresponding periodsHalf year ended 31 December 2020

Half year ended 31 December 2019

Financial year ended 30 June 2020

2. Results for announcement to the market

$A

2.1 Total revenue	Up 25.8% to $ 8,953,723
2.2 Profit from ordinary activities after tax attributable to members	Profit up by $23,422 from $ 160,538 to $ 183,960
2.3 Net profit for the period attributable to members	Profit up by $23,422 from $ 160,538 to $ 183,960
2.4 Dividends (distributions) Final dividend Interim dividend Previous corresponding period: Final dividend Interim dividend	Amount per security NIL ¢ NIL ¢ NIL ¢ NIL ¢	Franked amount per security NIL ¢ NIL ¢ NIL ¢ NIL ¢
2.5 Record date for determining entitlements to the dividend	N/A

Half year report ended 31 December 2020

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2.6

EXPLANATION

Beam's results were achieved in the face of a severe global recession that was triggered by the COVID-19 pandemic. While the fallout from the crisis touched every part of the Group's business, Beam improved its first-half net profit after tax to $183,960 and total revenue increased by 25.8% compared to the prior corresponding period.

Demand for the newly launched Beam designed and manufactured ZOLEO device is one of the key drivers for the strengthening performance in sales, however the revenue reporting does not include the revenues generated by the subscribers base of ZOLEO Inc, being that of the ZOLEO recurring Monthly Fees and Activation charges. At this stage these are recognised at the Joint Venture (JV) level and the net gain or loss contribution from the JV is included in the Beam accounts as "Share of Loss in Interest in JV".

Another contributor to Beam's strong first-half performance was the ongoing repeat orders for Iridium GO! from its long-standing partner, Iridium Communications Inc (NASDAQ: IRDM). Beam received its eighth order for the portable satellite hotspot device from Iridium at the end of September last year, which will take the total number of the Beam-developed device to 50,000 built and shipped units.

Beam's wholly-owned subsidiary, SatPhone Shop, also performed resiliently through the COVID crisis with sales decreasing modestly by 4.4% to $653,000 in 1HFY2021 compared to the same period in the previous year. Strong cost control, a temporary 20% wage reduction for all employees during the height of the COVID-19 crisis and a significantly smaller loss than anticipated from the ZOLEO JV entity also helped lift Group profits during the period.

A major cost item was project amortisation of $405,226 which was related to the accumulated development costs of ZOLEO with the Australian Government R&D grants take up worth $35,903 related to grants received to 31 December, partially offsetting development expenses.

Income tax expense comprised current year tax of $2,633 incurred by the Group's USA subsidiary which is unable to be claimed against Australian tax losses and deferred tax expense of $186,268. The deferred tax expense reflects the decrease in the deferred tax net assets driven particularly by the tax treatment of intangible assets and capitalised development costs.

3. Net Tangible Assets per security

Net tangible assets per security

31 December 2020 Cents per share	30 June 2020 Cents per share
9.0364	4.1747

4. Details of entities over which control has been gained or lost during the period:

4.1

Name of the entity.

N/A

Half year report ended 31 December 2020

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• 4.2 The date of the gain or loss of control.

  N/A

• 4.3 Where material to an understanding of the report - the contribution of such entities to the reporting entity's profit from ordinary activities during the period and the profit or loss of such entities during the whole of the previous corresponding period.

Current period	Previous corresponding period
N/A	N/A

5. Individual and Total Dividend or Distribution Payments

Dividend or distribution payments:	Amount	Date on which each dividend or distribution is payable	Amount per security of foreign sourced dividend or distribution (if known)
N/A	N/A	N/A	N.A
Total

6. Dividend or Distribution Reinvestment Plans

N/A

7. Details of associates and joint venture

Name of entity	% Holding	Aggregate Share of profit (losses)	Contribution to net profit
Current period	Previous correspon-ding period	Current period	Previous correspon-ding period
N/A