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IVE invests in automation on strong profit result

Wednesday, 28 February 2018
By Graham Osborne

IVE’s Franklin WEB.

IVE Group has recorded ‘very strong’ first half results, with revenue up 73 per cent to $359 million and pro-forma earnings before tax up 57 per cent to $38.3 million.

“The group’s financial performance is well up over the prior corresponding period and strong cashflows continue to support our ongoing high dividend yield,” says IVE Group executive chairman Geoff Selig. “It has been a very important period for the group as we successfully delivered over the past six months on all operational milestones.”

The milestones included: completion of the Franklin WEB Victoria and AIW merger; the Franklin WEB NSW greenfield site becoming fully operational: the ordering of a 2nd 80-page press & ancillary equipment for Franklin WEB NSW; Blue Star Display Victoria’s merger with Franklin WEB’s retail display business and further expansion completed July 2017; SEMA acquisition completed September 2017 – full integration with Blue Star Direct on track for completion by May 2018; and the Dominion acquisition completed in November 2017.

Selig says the company is on target to meets its FY18 full year earnings-before-tax guidance of $72m-$77m.

IVE Group’s Franklin WEB site, Huntingwood, NSW.

The company is pushing ahead with investment plans to further automate its new Franklin WEB site at Huntingwood in Sydney’s west, which became fully operational on 1 November, 2017. A new high-speed stitcher is now being installed and a second manroland 80-page Lithoman press is due in August.

To support significant revenue growth and to re-balance capacity between NSW and Victoria to further enhance our ability to service national retailers, $50m has been invested to establish a highly automated and low cost Franklin WEB operation in NSW, the company told the ASX. Expansion of high-speed stitching capability is on track for commissioning in March 2018, and integrated inserting capability is due to be installed in February 2018.

 “A high-speed stitcher is being installed at Franklin WEB NSW at the moment and we’ll be commissioning that at the end of March,” says Warwick Hay, IVE’s managing director. “Our ultimate goal is as much automation as possible, and we’ve taken the best practices out of our sites at Franklin WEB in Melbourne and Blue Star at Silverwater to help set up the new Huntingwood facility. We’re very happy with the progress so far. It’s all about the balancing of loads and capacity across all three of our printing plants.”

IVE announced an interim dividend of 8 cents per share.




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