Korvest Ltd. · ASX:KOV
Korvest — H1 FY2017 Earnings Presentation
16 slides from Korvest's earnings presentation, Jan 30, 2017
Slide 1: Korvest Ltd December 2016 Half-Year Results
For personal use only Korvest Ltd December 2016 Half-Year Results Alexander Kachellek Steven McGregor 1
Slide 2: Agenda
Agenda For personal use only • 1H FY17 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 warehou
Slide 4: Headline Numbers
Headline Numbers Dec 16 (1H) June 16 (2H) Dec 15 (1H) % Change vs For personal use only Dec 15 Sales $21.29m $27.65m $27.33m (22.1%) EBIT ($1.49m) $1.45m ($0.15m) Operating cashflow ($0.2m) $6.0m $1.43m EPS (9.4c) 9.7c (0.8c) Dividend per share 10c 10c 10c Profit After Tax 3,500 3,265 3,000 • Result
Slide 5: Industrial Products
Industrial Products Dec 2016 June 2016 Dec 2015 % Change For personal use only (1H) (2H) (1H) Vs. Dec 2015 Sales $19.26m $25.83m $24.90m (22.6%) EBIT ($0.99m) $2.09m $0.90m (210.0%) EBIT % (5.1%) 8.1% 3.6% Trading Update • Lack of major projects in 1H • Reduced activity in most states • NSW improved
Slide 6: Production Services
Production Services Dec 2016 June 2016 Dec 2015 % Change For personal use only (1H) (2H) (1H) Vs. Dec 2015 Sales $2.02m $1.85m $2.43m (17.2%) EBIT ($0.28m) ($0.61m) $0.13m (315.4%) EBIT % (13.9%) (33.0%) 5.3% Trading Update Galvanising volume • More external, less internal tonnes • Overall tonnes lo
Slide 7: Balance Sheet
Balance Sheet ASSETS $m Dec 2016 June 2016 Dec 2015 For personal use only Cash & Investments 3.5 5.1 (0.2) Receivables 7.7 8.2 10.8 Inventories 11.6 11.5 13.2 Property, Plant & Equipment 14.0 14.6 15.4 Other 0.1 1.0 0.7 Total Assets 36.9 40.4 39.9 LIABILITIES Payables (3.6) (4.2) (4.6) Other Liabili
Slide 8: Dividends
Dividends For personal use only FY 2016 FY 2016 FY 2015 FY 2014 FY 2013 Interim 10c 10c 17c 26c 26c Special Interim - - 100c - Final Dividend 10c 12c 31c 20c Total Dividend 20c 29c 157c 46c Franking 100% 100% 100% 100% 100% • DRP activated for interim dividend Key Dates Record Date: 24 February 2017
Slide 9: Outlook
Outlook For personal use only • Little change in day-to-day trading expected • Improvement in major projects • Domestic infrastructure projects reaching supply stage in 2H FY2017 • Lower cost base post international business refocus • Return to profitability expected in 2H 9
Slide 10: Company Overview
For personal use only Company Overview 10
Slide 11: 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 12: Industrial Products: Hydraulic/Electric Safety Access Systems
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Safety Lighting • Filter Crushers • Queensland Based • Sales Representatives/agents in: – QLD, WA, NSW – Chile, Brazil, South Africa 12
Slide 13: 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 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 is a non-IFRS measure. The chart showing Profit after Tax on Page 4 shows underlying and statutory Profit after Tax. The calculations of the underlying numbers included in this presentation are set out below. For personal use only Underlying Profit After Tax $’000 FY14 2
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