After recent heavy investments in new automated printing technology, print and marketing group IVE recorded a 7.9% jump in profit to $20.8 million in the six months to 31 December 2018, with total revenue up 4.5% to $375.6 million.
 |
| Catalogue production line at IVE Group |
“In October 2018, we concluded the most significant investment program the sector has seen for many years, a huge vote of confidence in the sector itself, and in our capacity as a business to execute major initiatives successfully,” said Geoff Selig, IVE Group’s executive chairman. “Our FY19 half year results clearly demonstrate the benefits from this investment program are flowing through with operational efficiencies, margin expansion, and the resulting uplift in earnings.”
IVE Group told the ASX its revenue increase of $16.3 million (4.5% PCP) followed new customer wins, continued success of cross selling to existing customers, key contract extensions and no losses of major customers.
Equipment finance borrowings increased as a result of the capital expenditure program associated with the further expansion of the Group’s personalised communication’s growth strategy post the SEMA acquisition; the period also reflects the large portion of FY19 capital investment spend including final payment for the Franklin WEB NSW second 80 page press and ancillary equipment; FY19 full year capital investment in line with previous update (circa $26.0M).
IVE managing director Warwick Hay said the H1 FY19 results suggested the company was headed for solid growth for the full year.
“With the heavy lifting of our recent investment and integrations phase now behind us, we continue to be focused on delivering exceptional service to our customers to underpin revenue retention and growth. The positive momentum that resulted in a strong H1 performance has continued into H2, giving us the confidence of delivering solid earnings growth for the full year.”
IVE Group declared an Interim dividend of 8.6 cents per share, fully franked.
