IVE posts $23m HY net profit, reinstates dividend

One of Australia’s largest print and diversified marketing companies, IVE Group, has posted a $23 million half year net profit after tax (including JobKeeper) and has offered shareholders a 7 cent fully franked interim dividend.

With JobKeeper out of the equation IVE was also still in the black with a $12.7 million half year NPATA recorded, down 28.6 per cent on the prior corresponding period.

Revenue slid 3.2 per cent to $340.8 million compared to the same time last year. IVE also added $16.5 million into the balance sheet through the sale of IVE Telefundraising, formerly Pareto Phone, during the half.

IVE executive chairman Geoff Selig attributed the strong half year result to the strength of IVE’s client relationships, cost base flexibility and the company’s capacity to respond to the impacts of COVID-19.

Strong cashflow also resulted in high liquidity for the business and there was also a meaningful reduction in debt with that now sitting at $90.1 million, a reduction of $47 million from June 30 2020.

IVE has also reaffirmed its FY21 guidance and announced an interim dividend of 7 cents per share fully franked.

“The impacts of COVID-19 have varied across our business, our clients, supply chain and the sector more broadly,” Selig said.

“Under the circumstances, the Board is very pleased with the first half
performance and the significant reduction of $89m in net debt since the end of March 2020.”

Selig said the company’s share buyback instituted in November 2020 was also a representation of efficient capital management.

“The share buyback announced on 12 November 2020 represents a flexible and efficient capital management initiative that benefits shareholders and reflects the confidence in the Company’s ongoing performance. The Board’s focus continues to be on maintaining our strong financial position and sound strategic roadmap,” he said.

IVE also pivoted into Personal Protective Equipment (PPE) during 2020 with the ivolve brand established in October 2020.

IVE used this diversification to mitigate short term revenue impacts due to COVID-19.

Fiscal outlook

IVE has also reaffirmed its previous guidance that FY21 underlying EBITDA is expected to be consistent with FY20 – $100 million underlying EBITDA continuing operations.

IVE chief executive officer Matt Aitken said the performance reflects the depth and breadth of the company’s value proposition.

“Our solid first half performance reflects the depth and breadth of our client relationships, the diversity of the value proposition we take to market, and the resilience and commitment of our staff,” Aitken said.

“IVE remains well placed to grow our market share across the numerous sectors we operate in as we emerge from the COVID-19 pandemic.”

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One thought on “IVE posts $23m HY net profit, reinstates dividend

  1. Thought companies who receive job keeper were not to use those funds to pay shareholder dividends…$15m to I’ve in job keeper for H1….looks like the tax payer is the only one funding this dividend

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