Korvest Ltd (ASX: KOV)
Share price -$10.38
Annual dividend yield - 6.20%
Dividend Pay date - 7 Mar 25
Dividend amount per share $0.25
Franking - 100%
Dividend ex date - 13 Feb 2025
Market cap $123.03 Million
As of 22 Jan 2025
Korvest Ltd (ASX: KOV) reported mixed results for the first half of FY25, with several challenges impacting profitability. The company experienced margin contraction due to competitive pressures and project phasing, in addition to inflationary cost pressures. A significant operational issue at the Galvanising plant led to 17 days of lost production, costing around $435k, and a product rectification at EzyStrut further impacted results, totaling an estimated $670k EBIT hit. Despite these challenges, the company saw strong cash generation and a record order book, driven by the acquisition of two major infrastructure projects. The reduced activity in large projects during 1H was offset by better performance in smaller projects and day-to-day orders. This trend is expected to continue into the second half of FY25, with a significant uptick in major project work based on current customer schedules. The full-year profit is projected to exceed FY24 levels, supported by improved customer service and strong order book growth. Additionally, the company has declared a fully franked interim dividend of 25.0 cents per share, with the record date set for 14 February 2025 and the payment date on 7 March 2025.
Korvest's industrial and production services divisions also showed a mixed performance. While small project and day-to-day revenue improved, major project revenue declined in the first half, though the company secured two new major projects that will begin in the second half. The company’s capital expenditure for the period totaled $1.1 million for new equipment and capability expansion, including enhancements to galvanising and new trucks. Korvest is also focused on cost optimisation through various initiatives, such as waste heat recovery and automation, with a third automated tray line installed and operational. The company’s commitment to operational excellence is reflected in its improved safety performance and emphasis on staff training and engagement. The second half of FY25 is expected to see better financial performance, driven by an active order book and strong project pipelines.
Myer Holdings Limited (ASX: MYR)
Share price -$0.905
Annual dividend yield - 3.93%
Dividend Pay date - 20 Mar 2025
Dividend amount per share $0.025
Franking - 100%
Dividend ex date - 24 Jan 2025
Market cap $745.42 Million
As of 22 Jan 2025
Myer Holdings Limited (ASX: MYR) has demonstrated resilience in FY24 despite challenging trading conditions, reflecting ongoing efforts to stabilize the business and lay the groundwork for sustainable growth. The company, with its 124-year retail heritage and position as the 7th most trusted brand in Australia, achieved an 85% in-store customer satisfaction rating and a record 4.4 million active MYER one members, underscoring strong customer engagement.
Group comparable sales grew modestly by 0.4%, with improving momentum in the second half. Total sales declined 2.9% to $3,266.1 million due to store closures (Frankston, Brisbane, and Werribee), although online sales continued to grow, up 2.0% to $704.3 million, now accounting for 21.6% of total sales. Gross margin improved by 15 basis points to 36.6%, but Net Profit After Tax (NPAT) declined by 26.0% to $52.6 million, reflecting inflationary pressures, store closures, and underperformance in the sass & bide, Marcs, and David Lawrence brands. Statutory NPAT, including $9.1 million in implementation and one-off costs, was $43.5 million.
Operational highlights include improved cash flow, with operating cash flow up $8.0 million to $250.4 million and a net cash position of $113.8 million at year-end. Inventory management remained robust, with clearance inventory reduced to 7.5% of total inventory from 8.0% in FY23. Key investments included three store refurbishments, a new Point of Sale system, and a National Distribution Centre, although the latter faced implementation delays. Customer loyalty remains a strategic advantage, with 77.2% of sales tagged to MYER one cards and significant growth in the under-35 demographic. Additionally, omni-channel capabilities were enhanced with metro-to-metro fulfillment services, boosting delivery speeds. The Board declared a final dividend of 0.5 cents per share, fully franked, bringing FY24 total dividends to 3.5 cents per share. With a robust balance sheet, a clear focus on profitability, and continued investment in customer engagement and operational efficiency, Myer is well-positioned to navigate the current environment and deliver long-term shareholder value.
Source: Company’s Report
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