Print and marketing communications company IVE Group, which listed on the ASX in December last year, has exceeded its prospectus forecasts for the 2016 fiscal year, more than doubling its profit and recording double-digit revenue growth.
In a statement to shareholders, IVE announced a pro-forma net profit of $20.9 million for the 12 months to 30 June 2016 – up 117.5 per cent on FY15 and 2.9 per cent more than the group’s prospectus forecast.
IVE also recorded 13.2 per cent growth in revenue to $382 million over the 12-month period – up 0.3 per cent from its prospectus forecast – while the group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 38.7 per cent to $42.8 million (up 0.8 per cent on its prospectus forecast).
Geoff Selig, executive chairman of IVE, said the company was pleased to have exceeded its prospectus forecasts.
“The business continues to execute effectively on our strategy of ongoing diversification and growth through expansion into complementary products and services,” he said.
“Our 13.2 per cent increase in pro-forma revenue over FY16 reflects continued organic growth, increased revenue from our existing customer base through an expanded service offering, and contributions from acquisitions.
“Earnings have also benefitted from our capital expenditure program and closely-managed cost base, which resulted in an expanded EBITDA margin.”
Selig said the company continued to execute its “disciplined” acquisition program, “with the bolt-on acquisition and integration of four businesses, together with the acquisition of two uniquely-positioned businesses that further expanded our product and service offering”.
“Our long-term relationships with customers provide opportunities to expand further the range of value-added products and services we offer them.”
IVE told shareholders that it will continue to pursue its strategy to diversify and grow, and will invest to refine its cost base and enhance its offering.
“Recent acquisitions will be integrated and the disciplined acquisition program will continue,” the statement said.
“The company is well positioned to grow revenue and EBITDA in FY2017.”