Slide 1: Korvest Ltd FY2016 Results
For personal use only Korvest Ltd FY2016 Results Alexander Kachellek Steven McGregor 1
Slide 2: Agenda
Agenda For personal use only • FY16 Key Points • Financial Results • Outlook • Company Overview 2
Slide 3: Introduction to Korvest
Introduction to Korvest For personal use only • Korvest (ASX:KOV) is headquartered in South Australia and provides cable and pipe supports, access systems for large mobile equipment, hydraulic tools and wrenches, and galvanising services • Listed in September 1970 • Korvest’s businesses sell to a wi
Slide 4: Headline Numbers
Headline Numbers June 2016 June 2015 % Change For personal use only Sales $54.98m $63.03m (12.8%) Underlying EBIT1 $2.68m $4.44m (39.6%) Operating cashflow $7.43m $5.12m 45.1% Underlying EPS1 17.8c 30.3c (41.3%) Dividend per share 20c 29c Profit After Tax 3,265 3,500 • Day-to-day and medium sized pr
Slide 5: Industrial Products
Industrial Products For personal use only June 2016 June 2015 % Change Sales $50.70m $58.33m (13.1%) Statutory EBIT $2.99m $5.16m Restructuring Costs $0.29m - Underlying EBIT $3.28m $5.16m (36.4%) Underlying EBIT % 6.5% 8.8% 5
Slide 6: Industrial Products Trading Update
Industrial Products For personal use only Trading Update • LNG projects largely complete during 2H • All domestic markets contracted • General market remained skewed to commercial • NZ sales grew • Singaporean Business Development resource in place • Poor performance due to lack of mining activity •
Slide 7: Production Services
Production Services June 2016 June 2015 % Change For personal use only Sales $4.28m $4.69m (8.7%) Statutory EBIT ($0.05m) $0.7m Restructuring Costs $0.27m - Underlying EBIT $0.22m $0.7m (68.6%) Underlying EBIT % 5.1% 14.9% Trading Update Galvanising volume • Lowest annual plant volumes for a decade
Slide 8: Balance Sheet
Balance Sheet ASSETS $m June 2016 June 2015 June 2014 For personal use only Cash 5.1 (0.5) 0.5 Receivables 8.2 13.6 17.7 Inventories 11.5 13.6 11.3 Property, Plant & Equipment 14.6 15.9 15.9 Other 1.0 0.3 - Assets held for sale - - 1.5 Goodwill and intangibles - - 1.8 Total Assets 40.4 42.9 48.8 LIA
Slide 9: Dividends
Dividends For personal use only FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Interim 10c 17c 26c 26c 18c Special Interim - - 100c - 5c Final Dividend 10c 12c 31c 20c 30c Total Dividend 20c 29c 157c 46c 53c Franking 100% 100% 100% 100% 100% • DRP suspended for final dividend Key Dates Record Date: 26 Augu
Slide 10: Outlook
Outlook For personal use only • Little change expected in domestic underlying trading conditions • Recovery tied to non-residential construction/investment cycle • Build on good FY16 performance in NZ • Pivotal period for SE Asia strategy with local resource in place • New products and approvals a f
Slide 11: Company Overview
For personal use only Company Overview 11
Slide 12: Industrial Products: Cable and pipe supports
Industrial Products For personal use only • Cable and pipe supports • Market leader in cable supports • Manufacturing facility in Kilburn, SA • Overseas supply chain • Sells to EPCMs, Wholesalers, and direct to project contractors and trade • Local manufacture allows quick response time and ability
Slide 13: Industrial Products: Hydraulic/Electric Safety Access Systems
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Queensland Based • Sales Representatives/agents in: – QLD, WA, NSW – Chile, Brazil, South Africa • Hydraulic tools and wrenches – Sale – Hire – Repair 13
Slide 14: Production Services
Production Services For personal use only • Longest galvanising kettle in Australia (14m) • South Australia’s only centrifuge plant (national market) • Predominantly structural work for SA projects or fabrications • In-house work for EzyStrut 14
Slide 15: Calculations
Calculations Underlying EBIT and EPS are non-IFRS measures. The calculation of the underlying numbers included in this presentation is set out below. For personal use only Underlying EBIT Underlying EPS $’000 June 16 June 15 $’000 June 16 June 15 Statutory EBIT 1,303 2,720 Statutory Profit after tax
Slide 16: For personal use only
For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Safety Access solutions for all large mobile equipment. www.powerstep.com.au Superior bolting solutions for any industry. www.titantools.com.au Quick turnaround galvanising of the largest, smallest, and mos