Korvest Ltd. · ASX:KOV
Korvest — FY2024 Earnings Presentation
15 slides from Korvest's earnings presentation, Jul 26, 2024
Slide 1: 2024 Results
2024 Results Chris Hartwig and Steven McGregor For personal use only
Slide 2: Cable & Pipe Supports
For personal use only Cable & Pipe Supports 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 and galvanising services • Listed in September 1970 • Korvest has sales offices and warehouses in Adelaide, Melbourne, Sydney, Brisbane and Perth, with distribut
Slide 4: Headline Numbers
Headline Numbers June 24 June 23 % Change Sales $102.89m $107.48m (4.3%) For personal use only EBIT $15.82m1 $16.08m2 (1.6%) NPAT $11.04m $11.18m (1.3%) Operating cash flow $10.35m $14.94m (30.7%) EPS 94.7c 96.7c (2.1%) Dividend per share 65c 60c 8.3% Profit After Tax 8,000 7,036 • Improved day-to-d
Slide 5: Industrial Products
Industrial Products June 24 June 23 % Change For personal use only Sales $92.73m $97.71m (5.1%) EBIT $14.56m $14.49m 0.5% EBIT % 15.7% 14.8% Trading Update • 4 major projects supplied during FY24, but at lower revenue compared to FY23 • 1 major project completed during FY24, 2 nearing completion • 1
Slide 6: Production Services
Production Services June 24 June 23 % Change For personal use only Sales $10.16m $9.78m 3.9% EBIT $2.06m $1.65m 24.8% EBIT % 20.3% 16.9% Trading Update Galvanising volume • Static overall plant volume • Strong external volume (record level) • Internal volume reduced with lower EzyStrut major project
Slide 7: Capital Expenditure
Capital Expenditure FY24 FY23 FY22 FY21 For personal use only Capital Expenditure $4.51m $1.86m $2.11m $2.33m $2.15 million - new capability, productivity and capacity • NSW trucks, tube laser, Galv pickling tanks, new roll-former deposit, waste heat recovery project $0.36 million - related to the n
Slide 8: Key initiatives
Key initiatives For personal use only Automation • Robotic tray unloading operational with improved cycle time • New products added to robotic weld cell • Improved internal automation capability • Additional automation projects ongoing Operational & cost optimisation • Tube laser in use on tunnel pr
Slide 9: Balance Sheet
Balance Sheet ASSETS $m June 2024 June 2023 June 2022 Cash & Investments 7.1 9.2 3.8 For personal use only Increase due to sales timing and customers pushing Receivables 22.6 18.9 16.9 payment into early July Inventories 17.0 16.8 20.5 Stable but project timing can influence Property, Plant & Equipm
Slide 10: Dividends
Dividends For personal use only FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Interim 25c 25c 25c 15c 15c Final Dividend 40c 35c 35c 20c 13c Total Dividend 65c 60c 60c 35c 28c Franking 100% 100% 100% 100% 100% DRP suspended for final dividend Key Dates Record Date: 16 August 2024 Payment Date: 6 September
Slide 11: Outlook
Outlook For personal use only • Major infrastructure projects will continue to be supplied throughout FY25 • 1 major project has supply into FY25 and FY26 • 1 major project will commence supply in FY25 and continue into FY26 and FY27 • Day-to-day and small project markets expected to remain strong s
Slide 12: Company Overview
For personal use only Overview Company 12
Slide 13: Industrial Products
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 major project contractors • Local manufacture allows quick response time and ability to m
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: Australia's leading range of cable & pipe supports
For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Quick turnaround galvanising of the largest, smallest, and most complex construction members. www.korvestgalvanisers.com.au 15