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IVE GROUP LIMITED — Capital/Financing Update 2017
Aug 15, 2017
65109_rns_2017-08-15_067fb5d3-a41b-4a3d-94d2-436feff814c0.pdf
Capital/Financing Update
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ASX RELEASE – IVE GROUP LIMITED (ASX: IGL)
UPDATE ON FRANKLIN WEB AND CONFIRMATION OF IVE GROUP GUIDANCE
August 16, 2017
IVE Group Ltd (“IVE”), Australia’s most diversified print and marketing communications business, today announced:
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Franklin WEB (“Franklin”) has extended its contract with The National Associated Retail Traders of Australia (“NARTA”)
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IVE has secured $70 million in incremental contracted revenue since acquiring Franklin and AIW Printing (“AIW”) in December 2016
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Full year FY17 EBITDA is expected to be approximately $55 million
Extension of NARTA contract - Franklin WEB
Franklin (an IVE business) and NARTA have today announced that the catalogue printing contract between the organisations has been extended for a further 2 years (with an additional two x one year options) from January 1, 2018.
NARTA is the largest independent electrical buying group in Australasia with 26 members in Australia and combined buying power of more than A$3 billion.
NARTA CEO Michael Jackson said “We had no hesitation in extending the term of our agreement with Franklin WEB - they have been a wonderful supply partner for many years. IVE’s commitment to a major investment program through the establishment of a low cost, highly automated Franklin WEB operation in NSW delivers real advantages to our members, all of whom have a national presence. We also see potential to expand our relationship further through engaging with other divisions of the diversified IVE Group.”
Franklin CEO Phil Taylor said “We enjoy a very strong relationship with all NARTA members, and are proud of our track record of exemplary service and on time delivery over many years. The team at Franklin are delighted with our contract extension”.
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Revenue Growth
Since IVE’s move into the large format web offset market in December 2016 through the acquisitions of Franklin and AIW, the Group has secured approximately $70 million of incremental contracted annual revenue. Additionally, all major clients have been retained.
The Company also confirms its investment in the Franklin WEB greenfields site in NSW is progressing according to plan. This investment, and the re-balancing of capacity between NSW and Victoria to better service national retailers and the publishing sector has been instrumental in securing new contracted revenue.
FY17 EBITDA
IVE is pleased to advise that it expects full-year FY17 EBITDA (before acquisition and restructure costs) to be approximately $55 million. This is within the range advised to the market at the time of the Company’s half-year results.
Full year results will be released to the market on Monday August 28, 2017.
For further information contact:
Geoff Selig Executive Chairman
- 61 2 90898550