Korvest (KOV) H2 2024 earnings summary

Executive summary

• Revenue declined 4.3% year-over-year to $102.89m, with EBIT down 1.6% to $15.82m and NPAT down 1.3% to $11.04m.

• Achieved near record earnings in FY24 despite rising costs and a temporary lull in major project activity.

• Operating cash flow decreased 30.7% to $10.35m, while EPS fell 2.1% to 94.7c.

• Dividend per share increased to 65c, fully franked, with DRP suspended for the final dividend.

• Margin improvement and improved day-to-day trading offset lower revenue from fewer major projects.

Financial highlights

• EBIT included a $319k gain from entering a sublease; prior year EBIT included a $560k benefit from derecognition of a site restoration provision.

• Net assets increased to $53.4m from $49.0m, driven by property, plant, and equipment investments and a new lease in NSW.

• Receivables rose due to sales timing and delayed customer payments.

• Fully franked final dividend of 40.0 cents per share, up from 35.0 cents last year; interim dividend maintained at 25.0 cents per share.

• Dividend Reinvestment Plan remains suspended for the final dividend.

Outlook and guidance

• Major infrastructure projects will continue to be supplied through FY25, with some extending into FY26 and FY27.

• Day-to-day and small project markets expected to remain strong, subject to economic conditions.

• Data-centre market opportunities are improving.

• Update on trading conditions to be provided at the Annual General Meeting.