Korvest Ltd. · ASX:KOV
Korvest — Investor Presentation (July 2023)
14 slides from Korvest's investor presentation, Jul 24, 2023
Slide 1: 2023 Results
2023 Results Chris Hartwig and Steven McGregor
Slide 2: Cable & Pipe Supports
EzuStrut <K>> Cable & Pipe Supports korvest galvanisers
Slide 3: Introduction to Korvest
Introduction to Korvest • 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 distributors in Darwin, Townsvi
Slide 4: Headline Numbers
Headline Numbers June 23 June 22 % Change Sales $107.48m $99.22m 8.3% EBIT $16.08m $16.00m 0.5% NPAT $11.18m $11.34m (1.4%) Operating cash flow $14.94m $3.99m 274.4% EPS 96.7c 99.0c (2.3%) Dividend per share 60c 60c - Profit After Tax 8,000 7,036 • Record annual EBIT 6,662 7,000 • $560k non-recurrin
Slide 5: Industrial Products
Industrial Products June 23 June 22 % Change Sales $97.71m $91.13m 7.2% EBIT $14.49m $14.80m (2.1%) EBIT % 14.8% 16.2% Trading Update • 6 major projects supplied during the year • 3 major projects completed during year • 3 major projects ongoing into FY24 • Overall project revenue lower in FY23 • •
Slide 6: Production Services
Production Services June 23 June 22 % Change Sales $9.78m $7.86m 24.4% EBIT $1.65m $1.29m 27.9% EBIT % 16.9% 16.4% Galvanising volume Trading Update • Moderate external volume growth • Internal volume reduced with lower EzyStrut project work • Sell prices increased to offset input cost increases • C
Slide 7: Key initiatives
Key initiatives Automation • Robotic Ladder Weld Cell received significant mechanical and programming upgrades and has now reached handover, output now at improved levels • Optical tray checking now operational • Additional automation projects ongoing Operational & cost optimisation • Tube laser has
Slide 8: Balance Sheet
Balance Sheet ASSETS $m June 2023 June 2022 June 2021 Cash & Investments 9.2 3.8 7.0 Record cash balance Receivables 18.9 16.9 14.2 Increase due to strong May/June 2023 sales Inventories 16.8 20.5 12.4 Reducing post COVID Property, Plant & Equipment 20.4 19.2 16.6 Land & Buildings revalued up by $81
Slide 9: Dividends
Dividends FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Interim 25c 25c 15c 15c 9c Final Dividend 35c 35c 20c 13c 13c Total Dividend 60c 60c 35c 28c 22c Franking 100% 100% 100% 100% 100% DRP suspended for final dividend Key Dates Record Date: 18 August 2023 Payment Date: 6 September 2023 9
Slide 10: Outlook
Outlook • Major infrastructure projects will continue to be supplied throughout FY24 • 3 current projects continue into FY24 • Day-to-day and project markets expected to remain strong subject to broader economic conditions • Working capital levels steady • Gas contracted for calendar 2024 and 2025 a
Slide 11: Company Overview
i Korvest |: Company Overview
Slide 12: Industrial Products
Industrial Products • 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 • Local manufacture allows quick response time and ability to manufacture specials – a diff
Slide 13: Production Services
Production Services • 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 13
Slide 14: Industrial Products
Industrial Products 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 14