IVE announces strong half year results

Diversified marketing and printing company IVE Group has reported a proforma net profit after tax and amortisation (NPATA) of $20.8m for the half year to December 2018, a 7.9 per cent rise on the previous period.

Revenue was up 4.5 per cent in the results for the six months to December 31, 2018 to $375.6m while proforma EBITDA was $43.4m, up 13.3 per cent on the previous corresponding period.

The results come after IVE opened the Franklin Web NSW high volume print facility in October last year improving operational efficiencies and lifting revenues.

The company cited in its results new customer wins, continued success of cross selling to existing customers and key contract extensions as among the drivers of its revenue increase.

A gross profit margin of 48.2 per cent, 47.7 per cent in the pcp, was driven by reduced outwork through the Franklin Web NSW facility being operational for the full period, IVE said in the results.

Paper cost increases were cited as having some negative impact during the period while gross profit in all other areas of the business remained stable.

IVE Group executive chairman Geoff Selig says, “In October 2018 we concluded the most significant investment program the sector has seen for many years, a huge vote of confidence in the sector itself, and in our capacity as a business to execute major initiatives successfully.

“Our FY19 half year results clearly demonstrate the benefits from this investment program are flowing through with operational efficiencies, margin expansion, and the resulting uplift in earnings.”

IVE has also predicted a positive outlook for the coming year with solid growth expected.

IVE Group managing director Warwick Hay says, “With the heavy lifting of our recent investment and integrations phase now behind us, we continue to be focused on delivering exceptional service to our customers to underpin revenue retention and growth. The positive momentum that resulted in H1 performance has continued into H2, giving us the confidence of delivering solid earnings growth for the full year.”

IVE also declared an interim dividend of 8.6 cents per share, fully franked.

 

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