Korvest Ltd. · ASX:KOV
Korvest — FY2019 Earnings Presentation
17 slides from Korvest's earnings presentation, Jul 29, 2019
Slide 1: June 2019 Results
For personal use only June 2019 Results Chris Hartwig Steven McGregor 1
Slide 2: Agenda
For personal use only Agenda • FY19 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 has sales offices and war
Slide 4: For personal use only
zy ystrut 6 ama ae a) A 1) ‘») O-aak ee and Pipe Supports | ~ mma | it a ! [=m | © ‘a Bi Safety Access Systems
Slide 5: Headline Numbers
Headline Numbers June 19 June 18 % Change For personal use only Sales $60.84m $56.96m 6.8% EBIT $4.07m $1.86m 118.8% NPAT $2.90m $1.40m 107.1% Operating cash flow $1.41m $5.11m (72.4%) EPS 25.9c 12.3c 110.6% Dividend per share 22c 12c 83% Profit After Tax 2,000 1,748 • Improved sales from project an
Slide 6: Industrial Products
Industrial Products June 19 June 18 % Change For personal use only Sales $55.70m $51.68m 7.8% EBIT $4.29m $2.13m 101.4% EBIT % 7.7% 4.1% EzyStrut • Improved volume, some project but mainly general market with wholesale partners • Improved margins • Price rises • Sourcing on major projects • Cost con
Slide 7: Production Services
Production Services June 19 June 18 % Change For personal use only Sales $5.15m $5.28m (2.5%) EBIT $0.52m $0.23m 126.1% EBIT % 10.1% 4.3% Galvanising volume • Static volumes offset by price rise • Improved labour efficiency • Zinc and energy costs remain high • Gas pricing increased 16% from 1 Jan F
Slide 8: Strategic initiatives
Strategic initiatives • Purchase portion of IXL inventory following their exit from market For personal use only • Manufacturing arrangement with IXL to boost capacity • Option to purchase equipment from IXL • Moved EzyStrut Victoria to a new, larger site ($93k capex) • Re-contracted electricity fro
Slide 9: Balance Sheet
Balance Sheet ASSETS $m June 2019 June 2018 June 2017 For personal use only Cash & Investments 3.4 5.4 2.0 Receivables 14.1 10.0 9.3 Increased activity including active major project late in FY19 Inventories 10.5 9.4 10.7 IXL stock, stock replenishment from FY18 shortfalls Property, Plant & Equipmen
Slide 10: Dividends
For personal use only Dividends FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Interim 9c 5c 10c 10c 17c Final Dividend 13c 7c 3c 10c 12c Total Dividend 22c 12c 13c 20c 29c Franking 100% 100% 100% 100% 100% • DRP suspended for final dividend Key Dates Record Date: 23 August 2019 Payment Date: 6 September 2
Slide 11: Outlook
For personal use only Outlook Trading • Supply of major NSW project continues into 1H of FY20 • Day-to-day and small project markets expected to remain strong • Infrastructure investment forecasts remain strong over the short to medium term • Increased capex in FY20 Focus areas • Working capital imp
Slide 12: Company Overview
For personal use only Overview Company 12
Slide 13: 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 major contractors • Local manufacture allows quick response time and ability to manufacture special
Slide 14: Industrial Products: Safety Access Systems
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Safety Lighting • Sun blinds • Queensland Based • Sales agents in: – QLD – Chile, Brazil, South Africa 14
Slide 15: Industrial Products: Hydraulic tools and wrenches
Industrial Products For personal use only • Hydraulic tools and wrenches – Sale – Hire – Repair • Markets – Large scale construction – Power stations – Industrial sites – Mines – Wind towers 15 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
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