Korvest Ltd. · ASX:KOV
Korvest — FY2015 Earnings Presentation
17 slides from Korvest's earnings presentation, Aug 4, 2015
Slide 1: 2015 Results
For personal use only 2015 RESULTS Alexander Kachellek | Steven McGregor 1
Slide 2: Korvest Ltd
KORVEST LTD 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 warehouses in Adel
Slide 3: Agenda
AGENDA For personal use only FY15 KEY POINTS FINANCIAL RESULTS ITEMS OF NOTE COMPANY OVERVIEW 3
Slide 4: FY15 Key Points
FY15 KEY POINTS For personal use only • Revenue down by 14.5% • Solid operating cashflows • Day-to-day trading remains difficult • 12c final dividend • Power Step & Titan Technologies goodwill impaired by $1.7m • Indax asset sales finalised • Actively reviewing growth opportunities ($0.2m associated
Slide 5: Agenda
AGENDA For personal use only FY15 KEY POINTS FINANCIAL RESULTS ITEMS OF NOTE COMPANY OVERVIEW 5
Slide 6: Headline Numbers
HEADLINE NUMBERS For personal use only JUNE 2015 2H 1H JUNE 2014 2H 1H % CHANGE FY15 VS FY14 SALES $63.03m $31.0m $32.0m $73.76m $39.7m $34.0m (14.5%) UNDERLYING EBIT1 $4.44m $1.9m $2.5m $7.66m $4.3m $3.4m (42.0%) OPERATING CASHFLOW $5.12m ($0.5m) $5.6m $4.23m $0.3m $3.9m 21.0% UNDERLYING EPS2 30.3c
Slide 7: Industrial Products
INDUSTRIAL PRODUCTS For personal use only JUNE 2015 2H 1H JUNE 2014 2H 1H % CHANGE FY15 VS FY14 SALES $58.33m $28.8m $29.5m $67.20m $37.0m $30.2m (13.2%) EBIT $5.16m $2.6m $2.5m $6.61m $4.2m $2.4m (21.9%) EBIT % 8.8% 9.1% 8.6% 9.8% 11.4% 7.9% - TRADING UPDATE EZYSTRUT INDAX POWER STEP & TITAN • Larg
Slide 8: Production Services
PRODUCTION SERVICES For personal use only JUNE 2015 2H 1H JUNE 2014 2H 1H % CHANGE FY15 VS FY14 SALES $4.69m $2.1m $2.6m $6.56m $2.7m $3.9m (28.5%) EBIT $0.70m $0.2m $0.5m $2.09m $0.7m $1.4m (66.5%) EBIT % 14.9% 9.7% 19.2% 31.9% 23.9% 37.3% - TRADING UPDATE KORVEST GALVANISERS • External & Internal
Slide 9: Balance Sheet
BALANCE SHEET For personal use only A$M JUNE 2015 JUNE 2014 JUNE 2013 ASSETS • ERP • Contract management CASH (0.5) 0.5 2.4 • Higher zinc prices RECEIVABLES 13.6 17.7 12.5 • More EzyStrut RM and FG • Reductions targeted INVENTORIES 13.6 11.3 9.5 • Goodwill written off ASSETS HELD FOR SALE - 1.5 - PR
Slide 10: Dividends
DIVIDENDS For personal use only FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 INTERIM 17c 26c 26c 18c 11c SPECIAL - 100c - 5c - FINAL DIVIDEND 12c 31c 20c 30c 15c TOTAL DIVIDEND 29c 157c 46c 53c 26c FRANKING 100% 100% 100% 100% 100% • DRP reactivated for final dividend • Final dividend at upper end of 65-
Slide 11: Agenda
AGENDA For personal use only 1H FY15 KEY POINTS FINANCIAL RESULTS ITEMS OF NOTE COMPANY OVERVIEW 11
Slide 12: Items of Note
ITEMS OF NOTE For personal use only • Market conditions remain difficult • Uncertainty surrounding timing of future projects • Little change anticipated in 1H FY2016 trading conditions • Actively engaged in reviewing potential acquisition opportunities • Continue to pursue opportunities in Asia Paci
Slide 13: Agenda
AGENDA For personal use only 1H FY15 KEY POINTS FINANCIAL RESULTS ITEMS OF NOTE COMPANY OVERVIEW 13
Slide 14: 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 15: Industrial Products: Hydraulic/Electric Safety Access Systems
INDUSTRIAL PRODUCTS For personal use only • Hydraulic/Electric Safety Access Systems • Design/Manufacture • Safety Lighting • Filter Crushers • Hydraulic tools and wrenches • Markets include: large scale construction, power stations, industrial sites, mines, wind towers, etc. 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: Contact details and office locations
1300 567 837 SOUTH AUSTRALIA & NORTHERN TERRITORY QUEENSLAND For personal use only 580 Prospect Road, Kilburn, South Australia, 5084 580 Prospect Road, Kilburn, South Australia, 5084 Unit 4/8 Willingdon Street, Archerfield, Queensland, 4108 T +61 8 8360 4500 E korvest@korvest.com.au T +61 8 8360 455