IVE exceeds all forecasts

In its first public results report Blue Star parent IVE revealed it has achieved an increase against forecasts across the board, with profits, sales and customer numbers all on the rise and all up against forecast figures.

The IVE after tax profit at $20.9m was proforma 2.9 per cent above its prospectus forecast, given when it listed in December last year. Pro-forma revenue was up strongly, by 13.2 per cent to $382m over last year’s $337.4m. The net profit after tax was up by a strong 117.5 per cent to $20.9m from $9.6m last year.

Pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) and pro-forma revenue were also above prospectus forecast. The company’s pro-forma EBITDA of $42.8m was 38.7per cent above pro-forma EBITDA of $30.9m in FY2015.

Its customer base expanded by 12 per cent over the year, with the Group now providing services to some 2260 clients, the biggest of which represents four per cent of revenue, with the top 20 responsible for 32 per cent of total Group revenue.

The company says its high cash generation reflects its strong operating performance with a continued focus on working capital.

Executive chairman Geoff Selig told ProPrint, “The results are very pleasing, and are through a combination of factors, and reflect the continued evolution of the group.

IVE does not provide segmented figures but Selig told ProPrint, "The Blue Star division is a very good business, it is market leader in most of its areas, and will continue to receive strong investment."

Selig says, “The business continues to execute effectively on our strategy of ongoing diversification and growth through expansion into complementary products and services.

He continues, “Our 13.2 per cent increase in pro-forma revenue over FY2015 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.”  IVE invested some $13m in capex over the year.

IVE increased its dividend to shareholders to 8.6c from the 8.4c it had in its prospectus forecast.

The IVEO managed solutions division saw major contract wins including Westpac, Vodafone Australia and MacDonald’s Australia. IVE also retained a number of key contracts across the group from both corporates and major publishers, including Tabcorp, American Express, TAL, Foxtel, RACV, Bupa, QBE, AMP, Beyond Blue, Bauer media and Next Media.

During the year IVE made six acquisitions as part of its growth strategy, with Fineline Printing among them.

IVE has four distinct divisions: the managed print solutions arm IVEO; Blue Star which includes the country’s biggest sheetfed print operation as well as web, digital, wide format and promotional printing; creative services agency Kalido and Pareto, a fundraising strategy development and execution business for the not-for-profit sector.

Looking forward the company says 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 company says it is well positioned to grow revenue and EBITDA in FY2017.

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