ASX-listed print and marketing communications business IVE Group says it’s expects to deliver pre-tax earnings of $55 million – before acquisition and restructure costs - when its full year results are released later this month.
In a market update, IVE also revealed it has secured $70 million in incremental contracted revenue since acquiring Franklin Web and AIW Printing for $116 million in December 2016, with Franklin Web recently signing a two-year extension of its lucrative contract with the Associated Retail Traders of Australia (NARTA).
IVE says its investment in the new Franklin Web site at Huntingwood in Sydney’s west (pictured, above) is progressing according to plan.
This investment, and the re-balancing of capacity between NSW and Victoria to better service national retailers and the publishing sector, has been instrumental in securing new contracted revenue.
In January 2017, IVE Group swiped from rival IPMG a multi-million-dollar contract to print Coles Supermarkets’ monthly catalogue and in July IVE signed a four-year contract – previously held by industry leader PMP - to print the entire group of titles of Seven West Media-owned magazine publisher Pacific Magazines.
NARTA, with 26 members in Australia and 9 in New Zealand, is the largest independent electrical buying group in Australia, with a combined buying power of more than $A3 billion.
“We had no hesitation in extending the term of our agreement with Franklin Web – they have been a wonderful supply partner for many years,” said NARTA CEO Michael Jackson. “IVE’s commitment to a major investment program through the establishment of a low cost, highly automated Franklin Web operation in NSW delivers real advantages to our members, all of whom have a national presence.”
Franklin CEO Phil Taylor said the team at Franklin was “delighted” the NARTA contract had been extended for a further two years, with an additional two one-year options.
“We enjoy a very strong relationship with all NARTA members and are proud of our track record of exemplary service and on time delivery over many years.”
IVE – formerly Blue Star – launched on the Australian Stock Exchange in December 2015 and turned a $20.9 million profit in its first year.
The company's full year results will be released to the market on Monday, August 28.