IPD Group (IPG) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results, surpassing top-end guidance with revenue of AUD 290.4 million, up 28% year-over-year, and strong growth across all key metrics.

• Underlying EBITDA rose 44.8% to AUD 40.1 million, EBIT up 46.6% to AUD 34.3 million, and net profit increased 44.7% to AUD 23.3 million.

• Acquisitions of EX Engineering and CMI Operations contributed significantly to growth, margin expansion, and diversification.

• Net assets more than doubled to AUD 150.7 million, and net debt stood at AUD 8.8 million as of June 30, 2024.

• Fully franked total dividends for FY24 were AUD 0.108 per share (50% payout ratio), totaling AUD 11.2 million.

Financial highlights

• Revenue: AUD 290.4 million (+28% YoY); EBITDA: AUD 40.1 million (+44.8% YoY); EBIT: AUD 34.3 million (+46.6% YoY); Net profit: AUD 23.3 million (+44.7% YoY).

• Gross profit reached AUD 107.8 million, up 24.2% YoY; gross margin declined by 1.1ppt to 37.1% due to acquisition mix.

• Operating expenses as a percentage of revenue decreased by 2.7% YoY to 23.6%.

• Cash conversion improved to 88% from 51% in FY23.

• Pro forma revenue for FY24 would be AUD 350 million, reflecting full-year impact of acquisitions.

Outlook and guidance

• Market outlook remains strong, supported by renewable energy transition, data centre demand, EV infrastructure growth, and favorable legislation.

• Order book at record levels, with committed orders covering three months of revenue.

• Data center segment expected to grow at least 25% YoY in FY25.

• Strategic focus on M&A, operational efficiency, and leveraging synergies to support continued growth.

• Board to provide Q1 trading update at AGM in November 2024.