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Korvest Ltd (ASX:KOV)

ALERT: Price-sensitive ASX Announcement for KOV
Current share price for KOV : $17.330 6.39 (58.41%)+
Announcement
Release
21 Jan 2025 12:16PM
Price at Release
$10.940
Full Release
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Summary
Korvest Ltd (ASX:KOV) is an Australian company that specializes in providing cable and pipe supports as well as galvanizing services, with a strong operational presence across major Australian cities and a robust overseas supply chain. The company faced challenges in its first half due to operational issues, competitive pressures, and inflation, resulting in contraction of margins and a significant impact on profitability. However, despite these setbacks, Korvest reported a record order book driven by new major projects, and it anticipates a strong recovery in the second half of the financial year with profits expected to exceed the previous year.
Key Points
  • Korvest is headquartered in South Australia.
  • The company has sales offices and warehouses in major Australian cities.
  • Korvest manufactures, fabricates, and galvanizes in Adelaide.
  • The first half of FY2024 was impacted by $670k in one-off costs.
  • A galvanizing operational issue led to 17 days of lost production.
  • Margin contraction was due to competitive pressures and project phasing.
  • Despite challenges, there was improved day-to-day revenue.
  • Korvest secured two new major projects in December.
  • The company expects significant increases in major project work in the second half.
  • FY25 profit is expected to exceed FY24 profit.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.