Tuesday, 2 March 2021 IVE’s response to COVID-19 contributes to solid financial performance for 1H FY21 The strength of IVE’s client relationships, flexibility of the cost base, and its capacity to respond to the impacts of COVID-19, were all cited as contributing factors to IVE’s solid financial performance for the six months ending 31 December 2020 (1H FY21). Commenting on the Company’s 1H FY21 performance, IVE Group Executive Chairman Geoff Selig said: “The impacts of COVID-19 have varied across our business, our clients, supply chain and the sector more broadly. Under the circumstances, the Board is very pleased with the first half performance and the significant reduction of $89m in net debt since the end of March 2020. “The share buyback announced on 12 November 2020 represents a flexible and efficient capital management initiative that benefits shareholders and reflects the confidence in the Company’s ongoing performance. The Board’s focus continues to be on maintaining our strong financial position and sound strategic roadmap.” Strong free cashflow has resulted in continued high liquidity, a further meaningful reduction in net debt, and the resumption of dividend payments. IVE has reaffirmed its previous guidance for the FY21 full year. Financial Performance: Revenue $340.8m EBITDA $59.2m NPATA $23.0m Cash on hand of $94.6m at 31 December 2020 Net Debt $90.1m, a further reduction of $47m from 30 June 2020 Earnings per share of 16 cents Interim dividend of 7 cents per share, fully franked The evolution of IVE’s business structure has continued with the divestment of IVE Telefundraising (formally Pareto Phone) for cash consideration of $16.5m, a net gain on sale of $4.2m, with the proceeds used to further strengthen the balance sheet. Following the successful pivot into PPE during FY20, the ivolve brand and extensive range of PPE was successfully launched in October 2020. The Company continued through the period to flex and streamline the cost base in response to COVID-19 to mitigate short term revenue impacts and to further strengthen the business on an ongoing basis. IVE has reaffirmed its previous guidance that FY21 underlying EBITDA is expected to be consistent with FY20 ($100m underlying EBITDA continuing operations). “Our solid first half performance reflects the depth and breadth of our client relationships, the diversity of the value proposition we take to market, and the resilience and commitment of our staff,’ said Matt Aitken, IVE Group Chief Executive Officer. “IVE remains well placed to grow our market share across the numerous sectors we operate in as we emerge from the COVID-19 pandemic“. Previous Article Smartech acquires Quadient Oceania: expands footprint in Asia-Pacific Next Article Ombudsman sounds alarm for small businesses as debts owed to ATO hit record high If you have a news story, or story about an interesting project or installation please contact [email protected] Sign up to Image Magazine Newsletter. Print