IPD Group (IPG) H2 2024 earnings summary

Executive summary

• Achieved record FY 2024 results, exceeding top-end guidance with revenue of AUD 290.4 million, up 28% year-over-year, and strong growth across all key metrics.

• 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 and margin expansion.

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

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

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).

• Pro forma revenue for FY 2024 would be AUD 350 million, reflecting full-year impact of acquisitions.

• Gross profit reached AUD 107.8 million, up 24.2% YoY; gross margin was 37.1%, down 1.1ppt.

• Cash conversion improved to 88% from 51% in FY 2023.

• Net debt at AUD 8.8 million, with AUD 22.3 million cash and AUD 31.1 million borrowings.

Outlook and guidance

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

• Data center segment expected to grow at least 25% year-over-year in FY 2025.

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

• Strategic focus on organic growth at twice the market rate, continued M&A activity, and product diversification.

• Board to provide Q1 trading update at AGM on 26 November 2024.