IVE Group reported $20.9 million in net profit for the first half of FY22, after a 12% increase in revenue to $382 million, despite uncertain conditions caused by Covid and supply chain challenges. IVE's recently acquired wide format businesses Active and AFI Branding are on track to generate $45 million a year in revenue.
IVE Group's headquarters in Homebush, Sydney
“In the six months to 31 December, IVE has continued to successfully navigate the uncertain conditions that resulted from the outbreak of the COVID-19 pandemic,” IVE told the ASX.
“The most recent period has seen the Company produce very positive outcomes across the business relative to pcp. Revenue increased by 12.2% to $382.6m and the gross profit margin remained strong at 47.5% compared with pcp at 47.3%.
“There have been predominantly stable market conditions excluding the current supply chain challenges.
“Underlying EBITDA, was up by $10.9m to $55.2m. after excluding the JobKeeper benefit in the pcp. Underlying NPAT was $20.9m in the half, an increase of $10.4m after excluding the JobKeeper benefit in pcp. Given this performance, EPS has increased by more than 100% to 14.6 cents per share.
“Continued balance sheet strength and strong cash generation has seen net debt reduce to $78.7m from $90.1m pcp. Cash at bank is $51.6m and a working capital facility of $30.0m remains undrawn. A $50.0m senior debt facility was repaid in August 2021.”
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| IVE Group's Retail Display facility in Braeside, Melbourne |
In an update on IVE’s $6.5m acquisition last year of wide format businesses Active Displays and AFI Branding, the company said integration of the ADG & AFI businesses was "progressing well and will be complete by the end of June 2022.
“Post integration, we remain confident of achieving $45m annualised revenue, EBITDA of $6.5m and NPAT of $4m.
“ADG’s operations across 4 sites are currently being fully integrated into our Retail Display facility in Braeside Victoria, where meaningful synergies will be unlocked.
"Our Group sales teams are already cross selling the broader IVE offer to ADG/AFI clients, and existing IVE clients the new products and services acquired including printed fabric and dedicated third party logistics (3PL).”
