IVE Group’s half year results to December 31, 2016 show the company is on track to achieve a strong finish for the current financial year. IVE’s pro forma revenue increased by 5.9% to $207.7 million reflecting increased returns through a combination of new business, existing customer base, expanded service offering and business acquisitions.
Executive chairman Geoff Selig said, “We are very pleased with our performance in the first half, with continued good momentum across the business. The acquisitions of Franklin Web and AIW Printing in December have been very well received by all key stakeholders, with our integration and expansion plan now well underway and on track. We expect FY17 to finish strongly and feel confident the business is very well positioned for FY18.”
All key components of the Franklin Web/AIW Printing integration plan and large format web offset expansion are on track and will be completed by the end of this year. IVE integrating AIW into Franklin and leveraging its low cost production environment is expected to deliver operational synergies of a minimum $11.5 million per annum.
IVE has successfully rolled over a number of key contracts across the Group including Commonwealth Bank, Travelcorp, The Australian Electoral Commission, Fairfax, Glaxo Smith Kline, Bauer Media, Next Media and Flight Centre. Major new contract wins have come from L’Oréal, Diageo, BP and Blackmores in its IVEO division; Norwegian Cruise Lines, Globus, HelloWorld, Nestle, Suncorp and Lovatts Media Group in the Blue Star division; and Foxtel, Just Group, AXA and Treasury Wine Estates in the Kalido division.
In addition, there has been a significant new business win with Franklin Web securing the Coles Supermarkets catalogue printing contract, while the IVEO division has successfully implemented a managed solutions contract with Westpac.
During the release of IVE’s half year results Geoff Selig and CFO Darren Dunkley gave an overview of the initial phase of its $30 million investment and transition plans for the balance of 2017, including:
AIW operations at Springvale will be progressively wound down and integrated into Franklin Web at Sunshine.
Franklin Web’s post press capability will be further enhanced through the installation of a high speed perfect binding line.
A greenfields large format web offset operation will be established in Sydney by the middle of the year, significantly enhancing IVE’s ability to service national retailers.
There will be a significant press upgrade in Blue Star WEB based in Sydney
BlueStar’s retail display business in Victoria will be integrated into Franklin Web’s retail display operation at Sunshine, resulting in an expansion of retail display capacity in Victoria.
Building on a solid FY16 financial year result, the Group has experienced strong new business performance across a broad cross section of customers. IVE now transacts with over 2,200 customers, demonstrating the Group's stability and scalability as a reliable partner in the marketing services and print communications sector.