Korvest Ltd. · ASX:KOV
Korvest — H1 FY2014 Earnings Presentation
21 slides from Korvest's earnings presentation, Jan 23, 2014
Slide 1: Investor Presentation: 2014 Half Year Results Road Show
1 ASX:KOV For personal use only Investor Presentation 2014 Half Year Results Road Show
Slide 2: Agenda
2 Agenda For personal use only Half Year Results Highlights Financial Results Future Company Overview Steven McGregor – Finance Director
Slide 3: Introduction to Korvest
3 Introduction to Korvest For personal use only • Korvest (ASX:KOV) is headquartered in South Australia and provides cable and pipe supports, walkway systems, access systems for large mobile equipment, hydraulic tools and wrenches, and galvanising services. • Listed in September 1970 • Korvest has s
Slide 4: 1st H FY14 Highlights
4 1st H FY14 Highlights For personal use only • 1H FY14 results at top end of AGM guidance (Oct 13) • Some improvement in medium sized project activity • Day-to-day trading remains patchy • Strong Galvanising performance
Slide 5: Divisional Overview
5 Divisional Overview For personal use only Industrial Products Production Services Headcount 187 43 Revenue Contribution1 88.7% 11.3% EBIT Contribution1 62.5% 37.5% (1) Based on FY2014 reported revenue and EBIT
Slide 6: Agenda
6 Agenda For personal use only Half Year Results Highlights Financial Results Future Company Overview
Slide 7: Headline Numbers
7 Headline Numbers For personal use only Dec 2013 June 2013 Dec 2012 % Change (1H) (2H) (1H) Vs. Dec 2012 Sales $37.07m $29.03m $32.69m 4.2% EBIT $3.35m $2.17m $3.16m 6.0% Operating cashflow $3.99m $3.19m $4.34m (8.1%) Earnings per share 26.8c 18.1c 25.9c 3.5% Dividend per share 26.0c 20.0c 26.0c -%
Slide 8: Industrial Products
8 Industrial Products For personal use only Dec 2013 June 2012 Dec 2012 % Change (1H) (2H) (1H) Vs. Dec 2012 Sales $30.21m $25.9m $29.58m 2.1% EBIT $2.40m $1.30m $2.52m (4.8%) EBIT % 7.9% 5.0% 8.5% Trading Update – EzyStrut • More medium sized project activity • Day-to-day trading patchy • Qld, SA
Slide 9: Industrial Products
9 Industrial Products For personal use only Dec 2013 June 2012 Dec 2012 % Change (1H) (2H) (1H) Vs. Dec 2012 Sales $30.21m $25.9m $29.58m 2.1% EBIT $2.4m $1.3m $2.52m (4.8%) EBIT % 7.9% 5.0% 8.5% Trading Update • Global slowdown in demand for mining equipment • Overall result below expectations •
Slide 10: Production Services
10 Production Services For personal use only Dec 2013 June 2013 Dec 2012 % Change (1H) (2H) (1H) Vs. Dec 2012 Sales $3.86m $3.11m $3.10m 24.5% EBIT $1.44m $0.90m $0.79m 82.3% EBIT % 37.3% 28.9% 25.5% Trading Update – Korvest Galvanisers • Excellent result • Main plant internal and external volumes
Slide 11: Balance Sheet
11 Balance Sheet For personal use only June Y/E A$m Dec 2013 June 2013 Dec 2012 ASSETS Cash 3.9 2.4 6.3 Receivables 12.5 12.5 12.5 Inventories 10.9 9.5 8.7 Property, Plant & Equipment 17.4 17.5 17.2 Goodwill and intangibles 2.1 2.1 - Total Assets 47.1 44.0 44.7 LIABILITIES Payables (7.3) (5.2) (4.9)
Slide 12: Dividends
12 Dividends For personal use only FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 Interim 26c 26c 18c 11c 17c Special Interim 5c Final Dividend 20c 30c 15c 15c Total Dividend 46c 53c 26c 32c Franking 100% 100% 100% 100% 100% Upcoming Dates • Record Date: 26th February 2014 • Payment Date: 12th March 2014
Slide 13: Agenda
13 Agenda For personal use only Half Year Results Highlights Financial Results Future Company Overview
Slide 14: Future
14 Future For personal use only • 2H expected to improve on 1H performance • Project work secured for second half to replace completed 1H projects • Continue to search for acquisitions with synergies within Australia and Internationally • Explore Asia-Pacific project opportunities
Slide 15: Agenda
15 Agenda For personal use only Half Year Results Highlights Financial Results Future Company Overview
Slide 16: Industrial Products: Cable and pipe supports
16 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 abili
Slide 17: Industrial Products: Fabrication of walkway systems
17 Industrial Products For personal use only • Fabrication of walkway systems • Grating and handrail • Majority of work is made to order based on customer drawings • Sell to EPCMs and other fabricators • Sale of component parts • Fabrication facility at Kilburn, South Australia • Vertical integratio
Slide 18: Industrial Products: Hydraulic/Electric Access Systems for mobile mine vehicles
18 Industrial Products For personal use only • Hydraulic/Electric Access Systems for mobile mine vehicles • Design • Manufacture • Installation • Safety Lighting • Filter Crushers • Queensland Based • Sales Representatives/agents in: QLD,WA, NSW Chile, Brazil, South Africa • Apx. 60% export in recen
Slide 19: Industrial Products: Hydraulic tools and wrenches
19 Industrial Products For personal use only • Hydraulic tools and wrenches • Sale • Hire • Repair • Markets • Large scale construction • Power stations • Industrial sites • Mines • Wind towers
Slide 20: Production Services
20 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 and Indax
Slide 21: For personal use only
21 For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Premium suppliers of grating, handrail, stanchions, and other walkway infrastructure. www.indax.com.au Access solutions for all large mobile equipment. www.powerstep.com.au Superior bolting solutions for