IVE reveals 3.2% revenue drop, but EBITDA grows and dividend reinstated
IVE Group Limited has revealed that the first half of FY21 saw a slight decrease in revenue, down 3.2% to $340.8 million compared to the same period the year prior.
However, underlying EBITDA of continuing operations (including JobKeeper) was $59.2 million, an 18.5% increase year on year, while underlying Net Profit After Tax (NPAT) for continuing operations (including JobKeeper) also rose, up 29.7% to $23 million.
Net debt was reduced to $90.1 million, a further reduction of $47 million since 30 June 2020, while IVE also reinstated an interim dividend, listed at $0.07 per share, fully franked.
IVE H1 2021 Results
IVE Group executive chairman, Geoff Selif, said the board was “very pleased” with the results.
“The impacts of COVID-19 have varied across our business, our clients, supply chain and the sector more broadly. Under the circumstances, the Board is very pleased with the first half performance and the significant reduction of $89m in net debt since the end of March 2020”
He added: “The share buyback announced on 12 November 2020 represents a flexible and efficient capital management initiative that benefits shareholders and reflects the confidence in the Company’s ongoing performance.
“The board’s focus continues to be on maintaining our strong financial position and sound strategic roadmap.”
IVE received JobKeeper support during 2020, which ended for the majority of IVE businesses at the end of the September quarter.
The company pivoted into personal protective equipment (PPE) in October of 2020, while the evolution of the business structure also continued during the first half of FY21 with the divestment of IVE Telefundraising (formerly Pareto Phone) for cash consideration of $16.5 million, a net gain on sale of $4.2 million.
In its report, IVE reaffirmed previous guidance that FY21 underlying EBITDA is expected to be consistent with FY21.
IVE Group CEO Matt Aitken said: “Our solid first half performance reflects the depth and breadth of our client relationships, the diversity of the value proposition we take to market, and the resilience and commitment of our staff.
“The Company remains well placed to grow our market share across the numerous sectors we operated in as we emerge from the COVID-19 pandemic.”
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Zanda Wilson was a reporter and podcast producer at Mumbrella, specialising in radio reporting. He left Mumbrella in September 2021.
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