IVE Group drops Kalido, Blue Star, Pareto brands

Chris Pash
By Chris Pash | 28 August 2019

Marketing, communications and printing group IVE posted a 4.1% lift in full year revenue to $724.2 million despite "soft" trading conditions. 

Statutory net profit after tax for the 12 months to June was up 21.7% to $31.3 million. 

The company has decided to drop the brands Kalido, Blue Star, Pareto, IVEO, from November and operate under the IVE umbrella.

"The evolution to one IVE brand is in recognition of our increasingly integrated offering, and will ensure we build further on the IVE brand to create a highly impactful, strong and simplified offer to the market," says Ive. 

Executive Chairman Geoff Selig described the result as solid.

"Notwithstanding softer trading conditions in H2, revenue momentum continued throughout the year and all key operational milestones were met," he says. 

IVE expects the solid performance and strong free cashflow to continuethis financial year. 

The company declared a full franked final dividend of 7.7 cents a share taking the full year payout to 16.3 cents, up 5.2%.

Bell Potter rates IVE as a Buy with a 12-month target price of $2.44 a share, which clsoed yesterday at $2.10.

"Our positive view of the company is based on its strong competitive position across key operating segments, a broad integrated product offering across the print and communications value chain, structural improvements in the print industry which has seen capacity reductions, and a strong management team with a long history in the industry," says Bell potter in a note to clients.

"With the accelerated capex program and significant items from acquisitions coming to an end, we forecast strong growth in free cash flow, an improving balance sheet and the potential to announce material capital management policies." 

IVE's full year numbers:

Ive full year results 2019

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