IVE delivers solid full year growth

Diversified marketing communications services business and major printer IVE Group saw all its figures rise in 2019, as it met all its key operational milestones.  

Revenue was up by 4.1 per cent to $724.2m, pro forma EBITDA rose by 9.8 per cent to $80.4m, and pro forma NPATA was up by 4.4 per cent to $37.5m.

Its EBITDA margin was up by 0.6 per cent to 11.1 per cent, with the company saying it “reflected increased revenue and efficiency gains offset by unrecovered increases in paper costs and continued absorption of higher energy costs.” The company says it is expecting another solid performance in the current 2020 financial year.

Speaking to Print21 this morning, IVE Group executive chairman Geoff Selig said, “The domestic economy cannot be said to be buoyant, but IVE is positioned to serve the market efficiently. Catalogues remain a really important channel, and niche magazines are performing well.”

In November the company will bring all four of its operating divisions, including the Blue Star print division, along with Pareto, Kaledo, and IVEO, under the IVE brand. Selig told Print21, “The time has come for an integrated approach to market under one brand.”

Selig cited volatility in the pulp and paper market, and “first half malaise in the economy thanks to the election and retail pressure”, as impacting on the 2019 results. IVE gained several client wins, enhanced its cross selling, and suffered no material client losses during the year.

Selig said, “We are pleased to have again delivered a solid result, a year that brought to a conclusion the most significant investment program the sector has seen for many years.”

During the year IVE Group completed and opened its $53m Franklin Web NSW facility, the highly automated heatset plant that mirrors the Victoria site. The next two years will see capital investment and maintenance running at around $8m-$10m. This year will also see the beginning of a company-wide upgrade of its MIS, which will represent an investment of $3m-$4m, and will take two to three years.

IVE Group chief executive officer Matt Aitken said: “We will continue as always to be focused on delivering for our customers, and ensuring we operate as efficiently as possible to deliver an acceptable return for our shareholders.

“We have an exciting year ahead with our move to one brand in November, the continued upgrade/enhancement of our group-wide MIS platforms, and a number of other important initiatives to support the ongoing strength and sustainability of the business,” he said.

IVE Group has recorded growth in every matrix since it floated in 2016, with revenue, EBITDA, EBIT, NPAT and NPATA all rising every year. It is a major player in heatset, sheetfed, display, digital and inkjet printing.