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$37m in profit: another year of solid growth for IVE Group

Print and marketing business IVE Group delivered another year of substantial growth, with revenue up 4.1% to $724 million in the 12 months ended June 2019 and net profit after tax rising by 4.4% to $37.5 million – despite what it calls “softer trading conditions” in the second half.

ive warehouse

IVE Group told the ASX this morning that the company had met all key operational milestones, including: the final stage investment and official opening in November 2018 of the group’s $53 million Franklin WEB NSW operation; additional investment of $6.4m in high speed continuous inkjet technology to support further expansion in personalised communications; the logistics and fulfilment operation in Victoria was relocated to a new 15,000sqm facility; and the group refinanced its senior debt facilities for a new 4 year term.

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       IVE Group's Geoff Selig

“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,” said IVE Group’s executive chairman Geoff Selig.

“Notwithstanding softer trading conditions in H2, revenue momentum continued throughout the year and all key operational milestones were met. Strong free cashflow continues to underpin an ongoing very healthy dividend yield."

IVE Group expects the solid performance and strong free cashflow of the business will continue in FY20, following "a period of heavy investment in a number of strategic growth initiatives."

IVE Group CEO Matt Aitken said: “We will continue as always to be focused 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 our move to one brand in November, the continued upgrade/enhancement of our group-wide MIS platforms, and a number of other important initiatives to support the ongoing strength and sustainability of the business.”

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  (image courtesy IVE Group)

 Financial performance for the year ended June 2019

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%
Strong balance sheet, net debt 1.79 times full year pro forma EBITDA