Page 71 - Print21 March-April 2022

Results
IVE delivers 104% uplift in earnings per share on strong results
The half yearly financials showed how the big two print businesses were travelling, as they navigate the stormy seas of Covid.
Integrated marketing communications group IVE doubled its earnings
per share in the half year, on the back of strong uplifts in revenue, EBITDA and net profit after tax.
The company says it has achieved solid revenue growth, stable margins, and leverage of the recalibrated cost base, and says it is optimistic for future growth.
Revenue for the half year to 31 December was $382.6m, a 12.2 per cent rise on the same period in 2020, with EBITDA
of $55.2m, some 25 per cent higher than the previous year. Net profit after tax doubled to $20.9m. The company has net debt of $78.7m, with cash on hand of $51.6m. It will pay an interim dividend of 8.5 cents per share, fully franked. Share price rose five per cent on the figures.
IVE has set aside $30m-$40m for investment, which could be organic or could
Acquisition wait and see: Geoff Selig, executive chair, IVE
business has contributed to a significant uplift over our H1 FY21 performance, as existing client revenue rebounds and recently secured new business phases in. Revenue momentum continues, and the company remains optimistic this will continue over the remainder of the FY22 year.”
IVE commented on the integration of both ADG and AFI (acquired on 1 November) saying the integration, “is progressing well and will be successfully completed by the end of June. Post integration, we remain confident of achieving $45m of annualised revenue, EBITDA of $6.5m and NPAT of $4m.”
Active Display Group’s
four manufacturing sites are currently all being integrated into the IVE display print site in Braeside.
On supply issues facing the industry, and every industry, IVE says its management is “well placed to manage this prevailing dynamic, which is expected to continue.”
Looking to the full year IVE says it expects its underlying EBITDA to be in the range
of $98m-$101m with an underlying net profit after tax of $33m-$35m. 21
be acquisition, executive chair Geoff Selig telling Print21 that, “acquisition is very much on the table, but we'll have to wait and see.”
IVE’s top 20 clients spent
12 per cent more in the year than the previous 12 months. Its retail display business has benefitted from clients moving work back onshore from Asia.
In catalogues some clients reduced volumes due to their own supply unpredictability, but the group also saw clients return to catalogues and letterbox, which was up by 17 per cent, benefitting from new clients.
Commenting on the company’s first half performance, IVE Group’s CEO, Matt Aitken said, “A clearly defined and well executed strategy over the long term
has cemented IVE as the largest integrated marketing communications business in Australia, holding leading market positions across all sectors in which we operate. This places us in a strong position as we emerge from the significant disruption of the last two years.
“Pleasingly, heightened operating leverage across the
Ovato shares soar on return to profit
Shares in heatset giant Ovato raced up by 31 per cent on its half year figures,
on sales that were down to $161m, and a net profit after tax up by 282 per cent to $17.5m.
Revenue fell by $75m or
32 per cent, but the majority
of this was due to its sold off businesses, with sales revenue down by 11.6 per cent or $19.9m on the same period last year as Covid continued to bite.
Share price in the company rose by 31 per cent to 23c as investors were cheered by the clarity in the business,
Ovato a slimmed-down business: Michael Hannan
which has been through a tumultuous decade.
Ovato said continuity of supply, or rather advertisers’ nervousness over it, and some customer losses over the year had contributed to the downturn.
When the impact of discontinued businesses and significant items is removed EBITDA is down by $10.2m, which the company says is
due to the end of government subsidies, offset by an improved operating result where the reduction in sales volume was more than offset by cost savings.
Sales in Australia were
down by nine per cent or $11.9m excluding discontinued businesses, overall revenue was down by $67.3m with those now sold off businesses included.
Sales in New Zealand were down to $33.9m, shrinking by 19 per cent or $7.5m, although overall revenue was down by a quarter, $11m, as the magazine distribution business was sold. Ovato is a much slimmed- down business compared to when PMP and IPMG joined forces in 2017, with heatset print now the sole focus. 21
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