Diversified marketing communications group IVE saw all figures rise in the first half of the year, as its senior management lauded its investment into print, and said the heavy lifting phase was behind it.
IVE, which has multiple divisions including print businesses Blue Star - which has web, sheetfed and display print operations - and Franklin Web, achieved revenue up by 4.5 per cent to $375.6m, with EBITDA of $43.4m, a 13.3 per cent rise on the prior corresponding period, while net profit after tax was up by 7.9 per cent to $20.8m.
The company paid an 8.6c dividend, which was 7.5 per cent more than last time around. IVE expects the key drivers of growth to continue over the remainder of the financial year.
Speaking to Print21 this morning IVE executive chairman Geoff Selig said the company was now realising the returns of its strategic initiatives implemented over the past two years. He said, "The company is positioned to leverage off its investments, and deliver solid results in the forthcoming period."
Chief financial officer Darren Dunkley told investors there would be no significant capex in the 2019-2021 period. The company is now set to deliver its value proposition to the market following the period of rapid activity which has seen it buy and integrate several print businesses, build the country's biggest new web plant in years, and invest in other areas of its business.
The $16.3m revenue increase in the half year was due to new customer wins, cross selling to existing customers, key contract extensions, and revenue for the full period from its prior acquisitions. There were no significant contract losses during the half year.
Gross margin increased by 0.5 per cent, thanks to reduced outwork as Franklin Web was in full operation throughout the period, although printing costs did take a hit from increased paper prices. Net cash flow was up by a fifth.
Selig said: “In October 2018 we concluded the most significant investment programme 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.”
“Our FY19 half year results clearly demonstrate the benefits from this investment programme are flowing through with operational efficiencies, margin expansion, and the resulting uplift in earnings.”
IVE Group managing director Warwick Hay said: “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 officially opened the new $50m Franklin Web supersite in Sydney late last year, to mirror the Victoria operation.