IVE Group expects a 14% lift in full year revenue

By AdNews | 22 June 2022
Credit: Jungwoo Hong via Unsplash

Marketing, communications and printing group IVE expects to close the financial year with revenue 14% higher at $750 million.

In a trading update, the company says supply chain disruption, primarily paper supply, remains a key focus.

"We continue to build inventory levels to ensure no disruption to customer service levels, and to place the business in a strong position to take advantage of growth opportunities," the company said.

"Raw material inventory levels are currently approximately 25% higher than June 2021.

"This level of holding, whilst high by historical standards, is considered appropriate given the scale of the business, current supply chain volatility, and the competitive advantage it potentially delivers. We envisage paper inventories will continue to grow over H1 FY23.

"We continue to work successfully with clients to manage flow through price increases as result of upward pressure on input costs."

IVE has renewed its syndicated senior debt facility with the maturity date extended to May 2026. The renewal achieved improvements in both the terms and pricing.  At the end of May, IVE’s senior syndicated loan facility of $160 million was drawn to $125 million (December 31 - $110m), with available headroom of $35 million.

Full year guidance
- Underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) expected to be $98m
- Underlying NPAT (net profit after tax) expected to be $33 million which would deliver an earnings per share (EPS) uplift of 70% com0p-ared to 2021 underlying full year NPAT.
- Capital expenditure expected to be $14.5m (excluding Lasoo investment of $4m)

- Net debt at June 30 expected to be circa $95 million-$100 million
- The Company’s dividend policy remains unchanged, targeting a full year payout ratio of 65%-75% of NPAT

The company will release its full year results on August 25.

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