Financial performance • Revenue up 4.1% to $724.2 million • Pro forma EBITDA up 9.8% to $80.4 million • Pro forma NPATA up 4.4% to $37.5 million • Free cash conversion to EBITDA of 81.7% • Final dividend of 7.7 cents per share taking fully franked dividends for the full year to 16.3 cents per share, up 5.2%
The results come on the back of four successive years of strong business growth that’s seen IVE’s revenue and EBITDA more than double from $337m to $724m and $30.9m to $80.4m respectively.
IVE Group Executive Chairman Geoff Selig said “We are very pleased to have again delivered a solid result, a year that brought to a conclusion the most significant investment program the sector has seen for many years.”
“Strong free cashflow continues to underpin an ongoing very healthy dividend yield”. IVE’s dividend yield based on its current share price is at 7.5% (pre franking credit). IVE Group expects the solid performance and strong free cashflow of the business to continue in FY20. Following a period of heavy investment in a number of strategic growth initiatives, FY20 targeted and maintenance capital expenditure reduces significantly to circa $8-10 million. The Group also has no further deferred consideration payable from prior acquisitions. FY20 significant items are once again expected to be minimal.
Commenting on the outlook, IVE Group Chief Executive Officer, Matt Aitken said: “we will continue as always to be relentless in our focus on delivering for our customers, and ensuring we operate as efficiently as possible to deliver an acceptable return for our shareholders. We have an exciting year ahead with a number of important initiatives to support the ongoing strength and sustainability of the business”.
IVE Group Chief Marketing Officer, Rob Draper commented “We couldn’t have a better platform from which to transition to one unified IVE brand in November this year. Being able to consolidate under one brand will further integrate our unparalleled offering, provide simpler access to our services, and ultimately make our clients experience in partnering with us easier moving forward. It’s an exciting time to be part of IVE.”