All IVE figures rise in half year results
Integrated marketing communications group IVE has doubled its earnings per share in the half year, on the back of strong uplifts in revenue, EBITDA and net profit after tax.
The company says it has achieved solid revenue growth, stable margins, and leverage of the recalibrated cost base, and says it is optimistic for future growth
Revenue for the half year to 31 December was $382.6m, a 12.2 per cent rise on the same period in 2020, with EBITDA of $55.2m, some 25 per cent higher than the previous year. Net profit after tax doubled to $20.9m. The company has net debt of $78.7m, with cash on hand of $51.6m. It will pay an interim dividend of 8.5 cents per share, fully franked. Its share price rose five per cent on the figures.
IVE has set aside $30m-$40m for investment, which could be organic or could be acquisition, executive chair Geoff Selig telling Print21 that, "acqusition is very much on the table, but we'll have to wait and see."
Its top 20 clients spent 12 per cent more in the year than the previous 12 months. Its retail display business has benefitted from clients moving work back onshore from Asia. In catalogues some clients reduced voumes due to their own supply unpredictability, but IVE also saw former clients, including Kmart, return to catalogues and to letterbox distribution. Its letterbox business was up by 17 per cent overall, with new clients including Officeworks, Aldi and Bunnings.
Commenting on the company’s first half performance, IVE Group’s CEO, Matt Aitken said, “A clearly defined and well executed strategy over the long term has cemented IVE as the largest integrated marketing communications business in Australia, holding leading market positions across all sectors in which we operate. This places us in a strong position as we emerge from the significant disruption of the last two years.
“Pleasingly, heightened operating leverage across the business has contributed to a significant uplift over our H1 FY21 performance, as existing client revenue rebounds and recently secured new business phases in. Revenue momentum continues, and the company remains optimistic this will continue over the remainder of the FY22 year.”
IVE commented on the integration of both ADG and AFI which it acquired in November last year, saying the integration “is progressing well and will be successfully completed by the end of June." It said, " Post integration, we remain confident of achieving $45m of annualised revenue, EBITDA of $6.5m and NPAT of $4m.”
Active Display Group's four manufacturing sites are currently all being integrated into the IVE display print site in Braeside.
On supply issues facing the industry, and every industry, IVE says its management is "well placed to manage this prevailing dynamic, which is expected to continue."
Looking to the full year IVE says it expects its underlying EBITDA to be in the range of $98m-$101m with an underlying net profit after tax of $33m-$35m, with that result to be impacted by some $3m on a timing issue over paper supply.