25 August, 2021

IVE delivers solid full year results exceeding guidance

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Today, IVE (ASX:IGL) 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 balance sheet, and solid financial performance demonstrate the underlying resilience of the business throughout a year of uncertainty and volatility.   

Financial Performance [1]

  • 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

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.

IVE moved quickly at the outset of the pandemic in Q4 FY20 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.

The Company, 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 in Q4 FY20, receiving $14.9m in Jobkeeper subsidy in Q1 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% growth over PCP in earnings per share (EPS) excluding Jobkeeper.

Commenting on the Company’s FY21 performance, 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”.

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
  • 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%  

Capital management

  • Share buyback to remain in place
  • Dividend policy unchanged

[1] Underlying and continuing basis

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