Korvest Ltd. · ASX:KOV
Korvest — H1 FY2015 Earnings Presentation
17 slides from Korvest's earnings presentation, Jan 28, 2015
Slide 1: Half Year 2015 Results
For personal use only HALF YEAR 2015 RESULTS Alexander Kachellek | Steven McGregor 1
Slide 2: Korvest Ltd
KORVEST LTD 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 has sales offices warehouses in Adel
Slide 3: Agenda
AGENDA For personal use only 1H FY15 KEY POINTS FINANCIAL RESULTS ITEMS OF NOTE COMPANY OVERVIEW 3
Slide 4: 1H FY15 Key Points
1H FY15 KEY POINTS For personal use only • Underlying profit within 2014 AGM Guidance range • Strong operating cashflows • 17c interim dividend • Difficult day-to-day trading conditions • Revenue down by 5.9% • Power Step & Titan Technologies goodwill impaired by $1.7 million 4
Slide 5: Agenda
AGENDA For personal use only 1H FY15 KEY POINTS FINANCIAL RESULTS ITEMS OF NOTE COMPANY OVERVIEW 5
Slide 6: Headline Numbers
HEADLINE NUMBERS For personal use only DEC 2014 JUNE 2014 DEC 2013 % CHANGE (1H) (2H) (1H) VS DEC 2013 SALES $32.06m $39.68m $34.07m (5.9%) UNDERLYING EBIT1 $2.34m $4.30m $3.35m (30.1%) OPERATING CASHFLOW $5.65m $0.29m $3.99m 41.6% UNDERLYING EPS2 15.7c 37.3c 26.8c (41.4%) DIVIDEND PER SHARE 17c 31c
Slide 7: Industrial Products
INDUSTRIAL PRODUCTS For personal use only DEC 2014 JUNE 2014 DEC 2013 % CHANGE (1H) (2H) (1H) VS DEC 2013 SALES $29.51m $36.99m $30.21m (2.3%) EBIT $2.52m $4.21m $2.40m (5.0%) EBIT % 8.5% 11.5% 7.9% - TRADING UPDATE EZYSTRUT INDAX POWER STEP & TITAN • Large oil & gas projects • Only trading was sale
Slide 8: Production Services
PRODUCTION SERVICES For personal use only DEC 2014 JUNE 2014 DEC 2013 % CHANGE (1H) (2H) (1H) VS DEC 2013 SALES $2.56m $2.70m $3.86m (33.7%) EBIT $0.49m $0.65m $1.44m (66.0%) EBIT % 19.1% 27.1% 37.3% - TRADING UPDATE KORVEST GALVANISERS • External & Internal volumes decreased • Reduced demand for pr
Slide 9: Balance Sheet
BALANCE SHEET For personal use only A$M DEC 2014 JUNE 2014 DEC 2013 ASSETS CASH 2.5 0.5 3.9 RECEIVABLES 11.0 17.7 12.5 INVENTORIES 11.8 11.3 10.9 ASSETS HELD FOR SALE 0.1 1.5 - PROPERTY, PLANT AND EQUIPMENT 16.0 15.9 17.4 GOODWILL AND INTANGIBLES - 1.8 2.1 TOTAL ASSETS 41.6 48.8 47.1 LIABILITIES PAY
Slide 10: Dividends
DIVIDENDS For personal use only FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 INTERIM 17c 26c 26c 18c 11c SPECIAL INTERIM 100c 5c FINAL DIVIDEND 31c 20c 30c 15c TOTAL DIVIDEND 157c 46c 53c 26c FRANKING 100% 100% 100% 100% 100% • DRP remains suspended • FY15 Interim dividend set having regard for underlyin
Slide 11: Agenda
AGENDA For personal use only 1H FY15 KEY POINTS FINANCIAL RESULTS ITEMS OF NOTE COMPANY OVERVIEW 11
Slide 12: Items of Note
ITEMS OF NOTE For personal use only • Graeme Billings elected as Chairman in September 2014 • Gerard Hutchinson appointed as director in November 2014 • Continuing acquisition search • Market conditions remain challenging • Uncertainty surrounding timing of future projects • Little change in 2H trad
Slide 13: Agenda
AGENDA For personal use only 1H FY15 KEY POINTS FINANCIAL RESULTS ITEMS OF NOTE COMPANY OVERVIEW 13
Slide 14: 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 15: Industrial Products: Hydraulic/Electric Safety Access Systems
INDUSTRIAL PRODUCTS For personal use only • Hydraulic/Electric Safety Access Systems • Design/Manufacture • Safety Lighting • Filter Crushers • Hydraulic tools and wrenches • Markets include: large scale construction, power stations, industrial sites, mines, wind towers, etc. 15
Slide 16: 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 16
Slide 17: For personal use only
1300 567 837 SOUTH AUSTRALIA & NORTHERN TERRITORY QUEENSLAND For personal use only 580 Prospect Road, Kilburn, South Australia, 5084 580 Prospect Road, Kilburn, South Australia, 5084 Unit 4/8 Willingdon Street, Archerfield, Queensland, 4108 T +61 8 8360 4500 E korvest@korvest.com.au T +61 8 8360 455