IVE Group (ASX:IGL) $2.25 as at 21/08/2018
Marketing firm IVE group (ASX:IGL) showed a messy set of numbers in their full year results today, well below market expectations but the miss was driven by some timing issues more so than poor performance. The company, which produces marketing & promotional material, showed revenue growth of near 40%, while EBITDA jumped 32% to $73.2m yet still well below analysts’ expectations. The stock is mostly unmoved today, despite what looks to be a miss. The company talks up the continued benefit of synergies across the business, and the impact of a full year contribution of their Sydney facility – which has now been running for just 6 months.
The dividend was solid, and the company still has free-cash-flow after final dividend is paid – great news for our income portfolio.
IVE Group (IGL) Chart
Market Matters Take/Outlook
Not a great result but more to it than first meets the eye. The company is generating high levels of cash and has plenty of balance sheet flexibility to look for further acquisition in FY19. The vertical integration story for IVE is coming together. A good, solid industrial stocks with a great dividend to boot. View more consumer discretionary reports here