IVE group – which includes Blue Star Group – has delivered a 5.9 per cent increase in revenue this HY to $207.7m, up from the prior corresponding period (pcp) result of $196.1m and EBITDA of $24.0M also up by 8.1 per cent on pcp, on a pro forma basis.
Statutory revenue is up 12.5 per cent with EBITDA up 67.6 per cent on pcp, with H1 FY2017 impacted by key acquisition and restructure costs primarily relating to the Franklin Web and AIW Printing acquisitions in mid-December. The H1 FY2016 statutory results were impacted by one off costs associated with the company listing on the ASX in December 2015.
The company says the results reflect continued growth through a combination of new business, as well as existing customer base, together with business acquisitions in the second half of FY2016, and the first half of FY2017.
Geoff Selig, Executive Chairman, IVE says, “We are pleased with our performance in the first half, with continued good momentum across the business. The acquisitions of Franklin Web and AIW Printing in December have been well received by all key stakeholders, with our integration and expansion plan now well underway and on track. We expect FY17 to finish strongly and feel confident the business is well positioned for FY18.”
IVE group made three smaller acquisitions in late 1HY 2017, including The Mailing House, commercial wide format digital print business Display Bay, and design marketing and strategy agency Retail 25 Consulting. The Group also strategically acquired Franklin and AIW, a significant acquisition in December, funded through a combination of shares issued to vendors, a capital raising and a new 3 year senior debt facility.
As a result of the Franklin and AIW acquisitions, net debt has increased to $116.8m and based on FY16 pro forma EBITDA (including Franklin and AIW) represents 1.9X EBITDA.
The company notes that all key components of the Franklin/AIW integration plan and large format web offset expansion are on track to be completed in under 12 months from the acquisition, with the expected synergies validated at a minimum of $11.5m per annum.
The company has provided a range of $54-$57m EBITDA (before key restructure and acquisition costs) for the full FY2017 year.
The positive HY result has been viewed favourably by the market, IVE shares trading up to a year high of $2.60, the launch price in December 2015 was $2.
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