Korvest Ltd. · ASX:KOV
Korvest — Investor Presentation (January 2024)
15 slides from Korvest's investor presentation, Jan 22, 2024
Slide 1: December 2023 Half Year
December 2023 Half Year 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 Dec 23 (1H) June 23 (2H) Dec 22 (1H) Dec 23 vs Dec 22 Sales $51.71m $54.53m $52.95m (2.3%) EBIT $8.18m1 $9.54m2 $6.54m 25.1% NPAT $5.72m $6.66m $4.52m 26.5% Operating cash flow $6.88m $10.53m $4.41m EPS 49.1c 57.6c 39.1c 25.6% Profit After Tax • Improved profitability due to 8,000 7
Slide 5: Industrial Products
Industrial Products Dec 23 (1H) June 23 (2H) Dec 22 (1H) Dec 23 vs Dec 22 Sales $46.25m $49.83m $47.88m (3.4%) EBIT $7.50m $8.18m $6.31m 18.9% EBIT % 16.2% 16.4% 13.2% Trading Update • Reduced major project activity • 3 major projects supplied with 2 largely completed • 1 major project in tender pha
Slide 6: Production Services
Production Services Dec 23 (1H) June 23 (2H) Dec 22 (1H) Dec 23 vs Dec 22 Sales $5.47m $4.70m $5.08m 7.7% EBIT $1.26m $0.94m $0.71m 77.5% EBIT % 23.0% 19.1% 14.0% Trading Update Galvanising volume • Strong external tonnes • Internal volume reduced with lower EzyStrut major project work • Cost of Zin
Slide 7: Capital Expenditure
Capital Expenditure Dec 23 (1H) FY23 FY22 FY21 Capital Expenditure $2.42m $1.86m $2.11m $2.33m • $966k - new equipment related to new capability including NSW trucks. $551k tube laser received in July, delayed from FY23 • $355k - related to the new site in NSW – racking, forklifts, signage etc • $1.
Slide 8: Key initiatives
Key initiatives Automation • Robotic General Weld Cell now capable of welding 3 metre Nema 1 ladders – improved flexibility and utilisation. More products to be added in H2 • Automation efficiency projects ongoing Operational & cost optimisation • Tube laser commissioning delayed due to additional p
Slide 9: Balance Sheet
Balance Sheet ASSETS $m Dec 2023 June 2023 Dec 2022 Cash & Investments 9.1 9.2 3.3 Receivables 17.7 18.9 16.3 Reduced in line with lower revenue Inventories 16.7 16.8 19.8 Stable but project timing can influence Property, Plant & Equipment 21.9 20.4 19.0 Right-of-use Asset 7.6 4.9 4.7 Increase due t
Slide 10: Dividends
Dividends FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Interim 25c 25c 25c 15c 15c Final Dividend N/A 35c 35c 20c 13c Total Dividend N/A 60c 60c 35c 28c Franking 100% 100% 100% 100% 100% DRP suspended for interim dividend Key Dates Record Date: 16 February 2024 Payment Date: 5 March 2024 10
Slide 11: Outlook
Outlook • Overall activity expected to remain consistent with first half • Major infrastructure projects’ volume expected to continue at similar levels to 1H albeit with a change in mix of projects • Day-to-day and project markets expected to remain strong subject to broader economic conditions • Wo
Slide 12: Company Overview
i Korvest |: Company Overview
Slide 13: 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 14: 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 14
Slide 15: 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 15