IVE Delivers Solid Full Year Results Exceeding Guidance

IVE has announced its financial results for the 12 months ending 30 June 2021, where the financial performance exceeded full-year guidance.

IVE’s strong cashflows significantly strengthened the balance sheet, and solid financial performance demonstrate the underlying resilience of the business throughout a year of uncertainty and volatility

The COVID-19 pandemic affected the business throughout the year, primarily reducing revenue over PCP as clients navigated their way through continual revisions to marketing plans.

Financial Performance:

Revenue $656.5m
EBITDA
$100.2m EBITDA (including Jobkeeper)
$85.3m EBITDA (excluding JobKeeper)
Gross Profit Margin 48.1% (46% PCP)
NPAT
$30.2m (including Jobkeeper)
$19.9m NPAT (excluding JobKeeper)
Earnings Per Share (excluding Jobkeeper) 13.5 cents (8.4% increase on PCP)
Operating cashflow (excluding AASB16) $97m
Net Debt $77.3m
Cash on hand $107m
Final Dividend 7.0 cents per share fully franked

IVE moved quickly at the outset of the pandemic to implement a broad range of measures to protect the safety and wellbeing of our valued staff, and this continued throughout the FY21 full year.

Through the period, once again maintained high levels of customer service through a hybrid of continuing operations across multiple production/service facilities and staff working remotely.

The Company qualified for the Federal Governments JobKeeper Program, receiving $14.9m in Jobkeeper subsidy in FY21.

Notwithstanding the impacts of reduced revenue and other impacts of COVID-19, the company exceeded full-year earnings guidance posting a $100.2m EBITDA result, improved margins over PCP, and an 8.4 per cent growth over PCP in earnings per share (EPS) excluding Jobkeeper.

The solid underlying fundamentals of the business, combined with the strength of our balance sheet, place IVE in an ideal position to deliver strong growth as we emerge from this period of COVID-19 disruption.

Looking forward, revenue growth is expected across the business over the next 12-24 months, driven by post lockdown economic recovery, and further improved market positioning in key sectors.

The Future:

Heightened operating leverage across the business will contribute to earnings growth as revenue returns
$30-40m available to invest in driving earnings accretive growth initiatives:
Enhance our digital offering through Lasoo re-platforming and amplification
Expansion into adjacencies (fibre based packaging and 3PL)
Acquisitions (strategic and/or bolt on)
Target ROFE in excess of 15 per cent
Capital management
Share buyback to remain in place
Dividend policy unchanged

IVE, group executive chairman, Geoff Selig, said: “Given the year of unprecedented volatility and uncertainty, I acknowledge the capacity of our people and business to respond to the pandemic by coming together as one and committing to go above and beyond to service our clients and care for each other.

“The solid financial performance of the business, and our significantly strengthened balance sheet, demonstrate the resilience of the business and position the company to deliver strong growth as we emerge from this period of disruption.

“My thanks to our Board, our CEO Matt Aitken for his leadership, and the entire IVE team for their skill and continued commitment over what has been a most challenging year”.

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Geoff Selig IVE matt aitken