Korvest Ltd. · ASX:KOV
Korvest — H1 FY2019 Earnings Presentation
16 slides from Korvest's earnings presentation, Jan 29, 2019
Slide 1: Half Year Results December 2018
For personal use only December 2018 Half Year Results Chris Hartwig Steven McGregor
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: Headline Numbers
Headline Numbers Dec 18 (1H) June 18 (2H) Dec 17 (1H) % Change vs For personal use only Dec 17 Sales $29.2m $27.4m $29.6m (1.4%) EBIT $1.6m $1.1m $0.8m 100.0% Operating cashflow ($1.1m) $4.8m $0.3m EPS 10.2c 7.4c 4.9c 108.1% Dividend per share 9c 7c 5c Profit After Tax 1,500 1,278 1,138 • Improved p
Slide 5: Industrial Products
Industrial Products Dec 2018 June 2018 Dec 2017 % Change For personal use only (1H) (2H) (1H) Vs. Dec 2017 Sales $26.41m $24.80m $26.88m (1.7%) EBIT $1.74m $1.18m $0.95m 83.2% EBIT % 6.6% 4.8% 3.5% Trading Update • Day-to-day activity continues to be strong • Margin improvement underpinned improved
Slide 6: Production Services
Production Services Dec 2018 June 2018 Dec 2017 % Change For personal use only (1H) (2H) (1H) Vs. Dec 2017 Sales $2.78m $2.58m $2.70m 3.0% EBIT $0.23m $0.06m $0.17m 35.3% EBIT % 8.3% 2.3% 6.3% Galvanising volume Trading Update • External volume consistent with recent periods • Improved sell price •
Slide 7: Balance Sheet
Balance Sheet ASSETS $m Dec 2018 June 2018 Dec 2017 For personal use only Cash & Investments 2.9 5.4 1.4 Receivables 10.8 10.0 11.9 Inventories 11.5 9.4 10.1 Property, Plant & Equipment 12.7 12.9 13.4 Other 0.5 0.2 0.1 Total Assets 38.4 37.9 36.9 LIABILITIES Payables (4.5) (4.7) (4.4) Other Liabilit
Slide 8: Dividends
Dividends For personal use only FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Interim 9c 5c 10c 10c 17c Special Interim - - - - Final Dividend 7c 3c 10c 12c Total Dividend 12c 13c 20c 29c Franking 100% 100% 100% 100% 100% • DRP suspended for final dividend Key Dates Record Date: 22 February 2019 Payment D
Slide 9: Outlook
Outlook For personal use only • Supply of major NSW project continues into 2H • Major project work expected to increase in 2H based on on-hand orders • Infrastructure investment forecasts remain strong over the short to medium term • Day-to-day and small project markets expected to remain buoyant •
Slide 10: Company Overview
For personal use only Overview Company
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: 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 For personal use only Underlying Profit After Tax 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. Underlying Profit After Tax
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