IVE Group Limited
Annual Report 2024
idea execution
Founded in 1921, IVE is Australia’s largest diversified
marketing company. With an unmatched breadth
and depth of offering, we guide our clients from idea
to execution.
Our landscape is constantly evolving and as
marketing natives so are we. We are forever seeking
new ways to navigate the marketing maze to connect
our clients with customers, wherever and whenever.
Specialising in Creative, Content & Integrated
Solutions, CX & Data, e-Commerce, Brand Activations,
Merchandise & Apparel, Packaging, Print, 3PL and
Household Distribution, we bring together the
capabilities, specialists and technology needed to
make customer connection seamless.
Our offering is supported by robust integrated
technology platforms that make complex marketing
simpler for our clients.
Registered office
IVE Group Limited
Level 3, 35 Clarence Street
Sydney NSW 2000
Telephone: +61 2 8020 4400
ABN 62 606 252 644
IVE Group’s 2024 AGM will be held on
Tuesday, 19 November 2024 commencing
10:00am (Sydney time) at the offices of
KPMG, Level 38 Tower 3, International
Tower Sydney, 300 Barangaroo Avenue,
Barangaroo, Sydney NSW
ASX : IGL
By forever seeking new ways to simplify,
integrate, and amplify their marketing
activity, we take our clients, their
businesses and their customers, further.
Contents
Financial performance
4
Highlights of the year
5
Chair’s review
8
Managing Director’s review
10
Board of Directors
12
Vale Geoff Selig
13
Operating and financial review
14
Our purpose and principles
15
Our integrated service offering
16
Strategy and growth
17
Our clients
18
Growth initiatives
22
Lasoo
23
Packaging
24
Creative, Content & Integrated Solutions
26
Apparel and Uniforms
28
Review of financial performance
30
Sustainability
38
Directors’ report
50
Remuneration report
56
Financial report
74
Consolidated financial statements
75
Notes to the consolidated financial statements
80
Consolidated entity disclosure statement
120
Directors’ declaration
121
Independent auditor’s report
122
ASX additional information
127
3
MATERIAL GROSS
PROFIT MARGIN
46.7%
45.1% PCP
1 The underlying financial results are on a non-IFRS basis, exclude various non-operating items (refer Appendix A)
and are not audited or reviewed.
2 NPATA – NPAT excluding amortisation of acquired customer contracts.
Financial
performance
1
REVENUE
$969.9m
↑0.3% on PCP
EPS (NPAT)
28.0¢
↑5.8% on PCP
EBITDA
$127.8m
↑7.5% on PCP
NPAT
$43.0m
↑8.4% on PCP
NET DEBT
$131.0m
CASH ON HAND
$48.8m
EPS (NPATA2)
30.2¢
↑6.1% on PCP
FULLY FRANKED
FINAL DIVIDEND
8.5¢
PER SHARE
Stable on PCP
IFRS NPAT
$27.6m
↑61.0% on PCP
OPERATING CASH
FLOW TO EBITDA
114.0%
65.7% PCP
4 | IVE Group Limited Annual Report 2024
Highlights
of the year
Strong operating performance
> A record year for revenue, EBITDA, EBIT, NPAT
and EPS – the third successive year of strong
operating performance following the disruption
caused by the COVID pandemic.
FY22 over FY21
— Revenue up 15.6%
— EBITDA up 13.3%
— EBIT up 43.4%
— NPAT up 66.1%
— EPS up 71.0%
FY23 over FY22
— Revenue up 27.5%
— EBITDA up 23.1%
— EBIT up 30.4%
— NPAT up 19.8%
— EPS up 14.5%
FY24 over FY23
— Revenue up 0.3%
— EBITDA up 7.5%
— EBIT up 12.7%
— NPAT up 8.4%
— EPS up 5.8%
> Modest revenue growth of 0.3% with
incremental revenue from acquisitions largely
offset by softer 2H FY24 economic conditions.
Client retention remains strong and product
penetration of our customer base improved
further during the year
> Sound uplift in margins reflecting commercial
initiatives, some input cost relief and enhanced
operating efficiency
> Strong increase in operating cash flow absent
the Ovato-related working capital strain and
supply chain constraints which impacted the
prior year
> Net debt increased modestly due to the JacPak
acquisition largely offset by the improvement
in operating cash flow – gearing remains below
targeted levels
> Fully franked full year dividend stable at 18.0
cents per share
> Return on funds employed (ROFE) increased to
24.9% from 24.7% pcp
> Return on equity (ROE) increased to 22.2% from
21.1% pcp
“Given an increasingly difficult economic landscape, I am very pleased with the FY24
result which was consistent with the targets we set at the beginning of FY24.
In addition to completing the Ovato acquisition ahead of schedule and reaffirming
the integration synergies, we completed the acquisition of JacPak which is
performing in accordance with expectations with cost and revenue synergy
expectations unchanged. Lasoo’s continued strong outperformance of its original
business case is particularly encouraging and warrants ongoing investment that is
expected to deliver a material increase in platform scale and value.”
Matt Aitken, Managing Director
5
6 | IVE Group Limited Annual Report 2024
Highlights of the year
Business updates
> Completed the integration of Ovato assets and
revenue transfer into IVE’s existing operations
by the end of 1H FY24, some six months ahead
of original plans with no adverse client impacts
> Sound progress made against our key FY25
sustainability targets including:
— Appointed a Chief People & Sustainability
Officer;
— Publicly launched IVE’s Sustainability
Strategy;
— Commenced 7-year renewable electricity
partnership with Iberdrola;
— Sustainability training provide to 170
client‑facing teams; and
— Mental health first aid officer training
provided to 62 employees
Growth initiatives
> Lasoo
— Given proof of concept and continued
outperformance of the original business case,
the Group will continue to invest in Lasoo to
further enhance customer experience and
significantly scale the business
> Packaging
— Acquired Melbourne based folding carton
producer, JacPak, on 31 October 2023, which
is expected to contribute annual revenues of
around $45m
— Targeted cost savings were locked-in by the
end of FY24 - the Group is now focused on
filling JacPak’s $15m of available revenue
capacity
> Creative, Content & Integrated Solutions
— IVE is upscaling its Creative, Content &
Integrated Solutions business to capture
additional share of customer wallet and to
access new revenue streams, markets and
customers
— To accelerate that expansion and to create
an unrivalled in-house marketing services
offering, IVE acquired Elastic Group on
31 May 2024
— Elastic is an independent creative agency
that specialises in video content creation and
visual communications with an impressive
portfolio of customers across automotive,
pharmaceutical, government, sports &
entertainment, food & beverage, finance and
property
> Apparel and Uniforms
— Leveraging the garment sourcing component
of IVE’s Merchandising & Apparel business,
the $1.2bn Australian corporate uniforms
was identified as a natural and growing
product adjacency
— Major corporate uniform customer wins
during FY24 included Reece and Securitas
while the Group had a strong pipeline of
opportunities including several promising
RFPs/trials in progress at year end
7
1. Based on average annual dividend paid relative to average
daily share price since listing.
Chair’s review
IVE Group
delivered a strong
outcome for our
shareholders in
the 2024 financial
year. Consistent
with guidance,
underlying net
profit after tax increased by 8.4% to
$43.0 million, underpinned by a pleasing
uplift in margins.
Sound operational execution together with
increasingly favourable positions spanning
several Australian marketing communication
subsectors has contributed to compound
annual growth of more than 14% for both
revenue and underlying EBITDA since listing
in 2015.
In addition to driving operating performance,
the key areas of focus for the year included
the completion of the Ovato integration six
months ahead of the initial timeline, the
Group’s entry into the Australian fibre‑based
packaging sector with the cornerstone
acquisition of JacPak, the continued
development of Lasoo and implementation
of the comprehensive ESG and sustainability
strategy announced last year.
The Board declared a final dividend of
8.5 cents per share, resulting in a full year
dividend of 18 cents per share fully franked,
unchanged from the prior year. Since IPO,
IVE has delivered an average dividend return
of 7.2%1, or in excess of 10% assuming full
utilisation of the associated franking credits.
In May, we learned the devastating news
that our Chairman, Geoff Selig, had passed
away. I wish to acknowledge Geoff’s
enormous contribution to the Group, leading
IVE to become the company that it is today,
as well as my profound sense of loss. I extend
the condolences of the Board to Geoff’s
family and friends.
8 | IVE Group Limited Annual Report 2024
Geoff’s passing resulted in the Group moving
to a more customary governance structure
with chair and executive responsibilities
separated. This resulted in Matt Aitken
joining the Board as Group CEO and
Managing Director.
The 2025 financial year promises to be
another record year for IVE. The Group
continues to demonstrate its ability to grow
revenue and earnings on the back of an
outstanding management team and leading
market positions. With the Ovato integration
complete, the Group’s results will reflect
full year earnings from our Print operations
without the non-recurring costs associated
with Ovato’s former Warwick Farm facility
and other integration related expenditure.
Thank you to Matt Aitken, Executive Director
Paul Selig, CFO Darren Dunkley, our highly
skilled leadership team and our more than
2,000 dedicated staff for an outstanding
year and for their passion, diligence and
commitment.
Thank you also to my fellow Directors for
your continued efforts, expertise and support.
Finally, I would like to express my thanks to
our shareholders, customers and suppliers for
their contribution to IVE Group’s continued
success and for their ongoing support.
James Todd
Chairman
9
Managing Director’s review
The Group once again performed strongly
delivering a result consistent with guidance with
all key profit metrics – revenue, EBITDA, NPAT and
EPS – up on a record prior year. Since listing on the
ASX in 2015, IVE has consistently met or exceeded
guidance which is testament to the depth and
breadth of the Group’s increasingly diverse
offering, its longstanding blue-chip customer base
and the strength and service-oriented culture of
the IVE team.
In addition to reporting a record financial result, the
Group achieved a number of important operational
and strategic milestones during the year including:
> Completed the Ovato integration ahead of
schedule and reaffirmed the integration synergies;
> Entered the Australian fibre-based packaging
sector with the cornerstone acquisition of JacPak;
> Accelerated the expansion of our Creative,
Content & Integrated Solutions offering with
the acquisition of independent creative agency,
Elastic Group;
> Committed to additional investment in Lasoo
following an extremely promising first full year of
operations since its launch in October 2022; and
> Further strengthened sustainability governance
and made sound progress towards achieving our
2025 sustainability targets.
Full year financial performance
Revenue increased 0.3% to $973m, inclusive of
modest incremental revenue from the Ovato
and JacPak acquisitions. Excluding the impact
of acquisitions and normalised for our margin
enhancing decision to cease production in Western
Australia, revenue was down by around 4% relative
to the prior year, largely due to softer economic
conditions which impacted some of our business
units during the second half of the year.
Revenues improved towards the end of the year
and that trend has continued into the current year.
Consistent with previous economic cycles, the
Group’s longstanding tier-1 client base typically has
the financial capacity to increase marketing spend
during periods of softer consumer spending.
Despite the very modest uplift in headline revenue,
underlying EBITDA increased by 7.5% reflecting an
improvement in both material gross profit margin
and operating leverage, the latter primarily driven
by the emergence of Ovato synergies. Commercial
initiatives coupled with some modest input cost relief
has seen our material gross profit margin largely
restored to pre COVID-19 levels.
Notwithstanding a significant increase in interest
expense due to a combination of higher interest
rates and increased borrowings due to the funding
of the JacPak acquisition, underlying NPAT and EPS
increased by 8.4% and 5.8% respectively.
Consistent with the Group’s high quality asset
base, cash generation was once again strong with
IFRS operating cash flow increasing to $119m
from $45m in the prior year, underpinned by lower
restructuring costs and a reduction in working
capital following Ovato and supply chain related
strain in the prior year.
Capital management
The Group remains well capitalised and highly
liquid.
Net debt increased modestly to $131m from $124m
at 30 June 2023, primarily reflecting the funding of
the JacPak acquisition largely offset by the strong
increase in operating cash flow. Net debt equates to
1.3x pre-AASB 16 EBITDA (1.0x post-AASB 16 EBITDA)
which remains below the Group’s target level of 1.5x.
As part of a continual review of capital
management options, the Group’s annual dividend
is expected to be held steady at 18.0 cents per share
in the short-to-medium term reflecting the already
substantial dividend payout/yield and to preserve
cash to pay down senior debt and/or undertake
other capital management initiatives including
opportunistic share buy backs.
While diversification (typically through acquisition)
remains a core element of IVE’s growth strategy,
there is presently nothing on the radar with senior
debt expected to reduce modestly during 2025.
Growth initiatives
Lasoo
Since its successful launch in October 2022, Lasoo
continues to post impressive outcomes across
all key metrics (including monthly active users,
conversion rate, average basket size, average
commission rate and gross transaction value)
relative to the original business case. Given proof
of concept and ongoing better-than-expected
performance, the Group will continue to invest in
Lasoo to further enhance customer experience and
significantly scale the business.
10 | IVE Group Limited Annual Report 2024
Packaging
On 31 October 2023, IVE entered the Australian
fibre-based packaging sector with the cornerstone
acquisition of JacPak, a leading Melbourne based
player in the short-to-medium run length folding
carton segment of the packaging sector with annual
revenue of around $45m. JacPak is performing in
line with expectations and targeted cost synergies
have been locked in. The Group is encouraged by the
number of new business wins since taking ownership
and remains confident of filling JacPak’s $15m of
available revenue capacity.
Complementing the JacPak acquisition, the Group
intends leveraging the operational footprint of its
commercial printing operation in Sydney to build
packaging revenue capacity of $30m that will take
the Group’s annual packaging revenue capacity to
around $90m. Further investment over the medium
term is expected to increase annual packaging
revenue capacity to $150m.
Creative, Content & Integrated Solutions
In last year’s annual report I flagged our intention
to grow and upscale the Group’s Creative,
Content & Integrated Solutions business to unlock
additional value from existing client relationships
and access new revenue streams, markets and
customers. While we made significant progress
in organically expanding our service offering, the
June 2024 acquisition of independent creative
agency, Elastic Group, has accelerated our
capability buildout. Elastic specialises in video
content creation and visual communications
and retains an impressive portfolio of customers
spanning automotive, pharmaceutical, government,
sports & entertainment, food & beverage, finance
and property.
Strategic focus in 2025
The Group’s near term strategic focus includes:
> Fill latent capacity within JacPak and execute the
Group’s planned organic packaging expansion,
primarily in Silverwater in Sydney;
> Materially growing the breadth and depth of IVE’s
Creative, Content & Integrated Solutions offering
(including leveraging the recent acquisition of
Elastic Group);
> Continuing to invest in, and drive further
significant growth across, the Lasoo
platform; and
> Continuing to drive ongoing efficiency and
performance across the business more broadly.
IVE is Australia’s largest integrated marketing and
communications business, holding leading market
positions in almost all of the sectors in which we
operate. With a strong balance sheet and numerous
exciting organic initiatives in-train, the Group is well
positioned for continued profitable growth.
I would like to express my gratitude for the
invaluable guidance and support that Geoff Selig
offered during our 26 years of working together,
through which we accomplished many remarkable
achievements. The news of his passing in May
resonated deeply throughout our Group, the industry,
and amongst our clients and investors. Geoff will be
forever missed and always remembered.
I take great pride in the dedication and contributions
of our 2,000 staff, which have led to such exceptional
results. Thank you also to the Board for their insights
and continued support.
Matt Aitken
Managing Director
11
Geoff Selig
Executive Chairman
Appointed: 10 Jun 2015
Passed away: 5 May 2024
Paul Selig
Executive Director
Appointed: 10 Jun 2015
Sandra Hook
Independent Non-Executive
Director
Appointed: 1 Jun 2016
Cathy Aston
Independent Non-Executive
Director
Appointed: 15 Dec 2020
Board of
Directors
Gavin Bell
Independent Non-Executive
Director
Appointed: 25 Nov 2015
Andrew Bird
Independent Non-Executive
Director
Appointed: 1 Apr 2022
James Todd
Independent Non-Executive
Director and Chair
Appointed: 10 Jun 2015
Matt Aitken
Managing Director
Appointed: 1 Jun 2024
12 | IVE Group Limited Annual Report 2024
Vale Geoff Selig
8 October 1964 – 5 May 2024
On the 5th May 2024, the IVE family was deeply
saddened by the sudden passing of Geoff Selig,
our Executive Chairman. He was an inspiring and
compassionate leader whose commitment to the
success of IVE was unquestioned.
Geoff’s drive and strategic vision transformed
IVE into a diversified world class printing and
marketing communications business and, at
the same time, reshaped the landscape of the
Australian printing industry.
In late 1985, following the completion of an
economics degree, Geoff joined his father Gordon,
working at Link Printing to “help out on a short
term basis” while a full-time financial controller
was recruited. Extraordinarily, some 39 years
later Geoff was still with the business. His reasons
for staying so long were simple; he loved the
industry and he loved the people in it.
Together with his brother Paul, Geoff transformed
the family business, started by their grandfather
over a century ago, and continued by their father
Gordon. Today, IVE stands as Australia’s leading
marketing and communications businesses, and
an ongoing legacy to Geoff’s ability, commitment,
vision and passion.
Geoff was unequivocal in his belief that the
ongoing success and growth of IVE, over a number
of decades, was inextricably linked to the quality
of its people. This was always a source of great
pride for Geoff. He was proud of the inclusive
nature of the business, and had time for all
staff. He maintained a personal contact with an
exceptional number of people at all levels in the
business. His door was always open, and he was
never too busy for a conversation.
Geoff will be remembered for his genuine interest
in people, his compassion, and his unwavering
dedication to IVE. An inspirational leader and
mentor, he was admired and respected by
industry peers and colleagues alike. His profound
impact on all who knew him will not be forgotten.
The IVE family are thankful for his dedicated
service over almost four decades. He will be
deeply missed.
13
Operating and
financial review
14 | IVE Group Limited Annual Report 2024
Our purpose
and principles
We are Team IVE
Our brand principles are what unite us as Team IVE.
They underpin everything we do.
We are connected
At IVE, we believe in the power of
connection. Our entire business is founded
on it. From our very first newspaper in
1921, ‘The Link’, to now being Australia’s
largest diversified marketing company, we
exist to create connections: Connections
between our clients and their customers,
connections within our teams, across our
business and in the industries in which
we operate. We’re here to make those
connections count. Because we believe
living in a world where we feel connected
and understood is what it’s all about.
We are a collective
Put simply, we are better together.
Every day we are blown away by the
talent, expertise and amazingness
that exists across our teams and the
clients we partner with. We love nothing
more than seeing that come together
to create something truly unique and
beyond the realms of anything we could
have ever created solo. We believe our
strength comes from truly collaborating,
respecting our disciplines and not being
afraid to throw ‘that’ idea into the mix.
Because with the right team around you,
you never know where it might go.
We are change makers
We’re not here to do it the way it’s always
been done. Unless that’s awesome. But
even if it is, we’ll keep challenging and
asking the question, how we can do this
better? And if it hasn’t been done before,
let’s try it! Only by adopting this mindset,
can we help our clients go further, be
first to market and set new standards.
From the technology and materials
we use, to our processes and partners,
we strive to lead the way by removing
complacency and throwing in a whole lot
of creative thinking.
We care
So much so, part of our business is
dedicated to it. IVE Care exists to ensure
the well-being of our people, the safety
of our operations and the quality of
our work. We want to leave a positive
impact in all we do. And in order to do
this, we believe we need to start with
empathy, compassion and respect – both
for others and for the communities in
which we operate.
15
Our integrated
service offering
With an unmatched breadth and depth
of offering, we guide our clients from idea
to execution.
Specialising in Creative, Content & Integrated
Solutions, CX & Data, e-Commerce, Brand
Activations, Merchandise & Apparel,
Packaging, Print, 3PL and Household
Distribution, we bring together the
capabilities, specialists and technology
needed to make customer connection
seamless.
Our offering is supported by robust
integrated technology platforms that make
complex marketing simpler for our clients.
16 | IVE Group Limited Annual Report 2024
Operating and financial review
Earnings diversification and
resilience
To improve revenue diversification and strengthen
earnings resilience, IVE began broadening its
product and service offering in the late 1990s,
through a combination of organic growth
initiatives and a disciplined acquisition program.
Core to executing the Group’s strategy was IVE’s
decision to list on the ASX in December 2015.
Since listing, strong free cash flow combined with
access to capital has enabled IVE to successfully
execute a transformational investment and
growth program to further expand and strengthen
our integrated marketing offer and enhance and
deepen long-term client relationships.
Over the past decade, IVE’s continued growth and
diversification, coupled with the convergence of
technologies on the back of the digital revolution,
has coincided with meaningful consolidation
across the more traditional segments of the
marketing and communications sector. This has
resulted in a more concentrated competitive
landscape than ever before with a significantly
reduced number of competitors. IVE has led
sector innovation and consolidation and today is
Australia’s largest and most diversified integrated
marketing communications company by a
considerable margin.
Integral to the ongoing sustainability of the
business is the compelling and diverse value
proposition IVE takes to market which has always
remained relevant by being closely aligned to our
clients’ ever evolving marketing communications
needs. Marketing strategies are increasingly
omni-channel: IVE’s diverse offering spanning
all digital mediums through to traditional print,
brand activations, merchandise and apparel,
and fulfilment and logistics, allows IVE to be
channel and platform agnostic to deliver the
best client solutions.
The diversity of the Group’s value proposition
places IVE in a strong position relative to our
competitors. IVE has an unparalleled breadth of
offering with market leading positions across the
key segments of the marketing communications
value chain in which we operate.
A clearly defined and well executed long-term
strategy has not only cemented IVE as Australia’s
largest integrated marketing communications
business, it has resulted in a resilient business with
diversified revenue streams spanning a broad
range of sectors and underpinned by an extensive
and tier-1 client base. IVE’s earnings resilience
and strong balance sheet has supported a
consistently high dividend yield and funding for
ongoing growth and diversification initiatives.
Strategy
and growth
17
Angus & Coote
Are Media
Australia Post
Barbeques Galore
BCF
Blackmores
BlueScope
Bottlemart
BP
Bunnings
Bupa
BWS
Cancer Council
Chemist Warehouse
Clark Rubber
Coles
Colonial
Crown
Diageo
Domain
Duracell
Energy Australia
Foxtel
Goodman Fielder
GSK
IAG
Innovations Direct
JB Hi-Fi
KIA
Kmart
L’Oréal
Latrobe University
LEGO
Liquorland
Luxottica
McDonalds
MECCA
Microsoft
Myer
NAB
Nestlé
News Corp
NIB
Nissan
NRMA
Officeworks
Optus
Pandora
Petbarn
Pillow Talk
Prouds
R U OK?
Red Energy
Reece
Repco
ResMed
Sanitarium
Scenic
Sony
Specsavers
Sportsgirl
Spotlight
Stihl
Stratco
Supercheap Auto
Tabcorp
Target
Telstra
Toyota
Transurban
UNIQLO
UniSuper
Vodafone
Westpac
Winning Appliances
Woolworths
WorldVision
Zurich
AGL
ALM
Anaconda
2,800 clients across all sectors
IVE has a high-quality customer base spanning most industry sectors and includes many
leading Australian and multi-national companies.
Operating and financial review
Our clients
Customer origination and retention
IVE’s customer origination and retention strategy
is founded upon a:
> Highly customer centric culture;
> Sales focused corporate structure and
executive team;
> Broad range of products and services providing
a sound base for increasing ‘share of wallet’ of
existing customers; and
> Expansion of the value proposition (through
the addition of new products and services)
to ensure the offering remains relevant to
customers’ ever evolving communication needs.
The customer base is highly diversified with the
largest customer representing 7% of total revenue
and the top 20 customers accounting for 39% of
total revenue.
IVE adopts a structured, disciplined, solutions-
based strategy with customers, which enables
the bundling of various products and services to
deliver a tailored customer outcome, improving
the customers’ return on total supply chain
or ‘ownership’ cost. This approach has led
to deep, long-term relationships with customers
and provides an opportunity to further expand
the range of products and services offered
to customers.
Around 86% of IVE’s customers purchase more
than one Group product and/or service, and our
ability to meet customers’ current and evolving
needs is one of our key advantages leading
to the long tenure of customer relationships –
currently around 9.4 years on average for our Top
20 customers.
IVE’s top 20 customers (comprising around 39%
of FY24 revenue) have contractual arrangements
in place. Contract terms generally range from
1–5 years with the average at around 3 years.
Moreover, approximately 78% of revenue was
generated from customers with contractual
arrangements in place or from customers with
whom IVE has an established (greater than two
years) relationship.
Major corporations are increasingly focused
on reducing supply chain ‘counter party’ risk
(financial, operational and ESG) and improving
supply chain efficiency (eliminating hand-offs,
additional administration and reducing supply
chain lead times) by seeking a fewer number of
financially secure, well credentialed full-service
suppliers. IVE’s broad product and service offering
(across which it holds leading market positions),
strong financial position and sound ESG
credentials aligns with those objectives.
Top
customer
7.4%
1 product/
service
14.5%
Top 2–5
customers
16.1%
2 products/
services
19.5%
Top 6–20
customers
16.0%
3 products/
services
9.2%
4 products/
services
9.0%
Other
customers
60.5%
5 or more
products/
services
47.8%
Revenue concentration by customer*
Customer product penetration*
* Based on FY24 revenues.
19
Market position
Leading market positions across a diverse range of sectors
Marketing (but especially printing) industry
structure has improved materially over the
past decade as a result of significant industry
consolidation, much of which has been driven
by IVE.
IVE now holds leading market positions in
most sectors in which we operate including
direct marketing mail (#1), letterbox distribution
(#1), general commercial printing (#1), web
offset printing (#1), brand activations (#1),
merchandising (#1) and integrated marketing
(Top 3).
IVE’s diverse and powerful value proposition,
broad geographical footprint, financial strength
and ESG credentials contribute to the Group’s
attractive and trusted counterparty status.
IVE’s full-service offering enables customers to
consolidate multiple supply chains, thereby
improving efficiency and reducing risk.
The Company enjoys a sound revenue mix,
operating across a broad range of sectors.
Revenue sector analysis1
%
Retail
51.4
White goods, electronics,
furniture, clothing
18.5
Supermarkets
17.7
Health / personal products
13.1
Food / beverage
2.0
Financial / Corporate Services
8.7%
Publishing
6.2%
Media
4.1%
Government
3.1%
Health
2.4%
Tourism / Entertainment
2.1%
Manufacturing
1.6%
Trade
1.5%
Other2
18.9%
Total
100.0%
1. Based on FY24 revenues.
2. Other includes telecommunications, charity/
not-for-profit, manufacturing, service, advertising
agency, education, broker, associations,
automotive, transport, utilities, IT, property,
building/construction.
Relationship tenure of top 20 customers1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Years of tenure
Top 20 customers by revenue
< Average relationship
tenure of top 20
customers
20 | IVE Group Limited Annual Report 2024
Operating and financial review
21
Growth
initiatives
22 | IVE Group Limited Annual Report 2024
Lasoo retailer onboarding momentum
Sep ‘22
Aug ‘22
On the platform
Integrating
Scheduled to integrate
Business case
Dec ‘22
Mar ‘23
Jun ‘23
Sep ‘23
Dec ‘23
Mar ‘24
Jun ‘24
90
100
110
120
130
140
150
160
170
180
190
200
210
220
80
70
60
50
40
30
20
10
Lasoo
Growth momentum warrants further
investment
Since its successful launch in October 2022, Lasoo
continues to show strong month-on-month growth.
Key financial metrics including monthly active
users (MAU), conversion rate, average basket
size (ABS), average commission rate (ACR) and
gross transaction value (GTV) continue to track
in-line with, or above, original business case
expectations.
Retailer uptake remains strong with 213 fully
integrated retailers on the platform at 30 June
2024, well ahead of expectations and up from 28
live prior to launch. The strong retailer support
underpins a broad and deep product/category
offering. Lasoo currently offers over 200,000 SKUs,
while the growth in MAU (currently in excess of
335,000) remains encouraging.
Conversion rate and ABS continue to exceed
expectations with ABS of $229 in June 2024, up
from $177 in December 2023 and nearly double
the original business case of $120.
Consistent with guidance, Lasoo reported an
unchanged FY24 after-tax loss of $4.0m (12
months of trading compared with only 9 months
in FY23). Total commission income was well above
expectations, albeit partially offset by lower-
than-expected content creation revenues.
In June 2024, Lasoo generated an annualised
GTV of $16m, ahead of previously advised
expectations of $15m and well above the original
business case.
Independent feedback on user experience received
via Testmate1 is encouraging – Lasoo’s site
usability score (SUS) of 94 (website) and 85 (App)
compares favourably with an average score of
67 for mature e-Commerce platforms. Moreover,
Lasoo currently has a Trustpilot2 score of 4.3 stars
(‘excellent’) which compares favourably to Catch
(3.6), Amazon (1.8), The Iconic (1.8), eBay (1.4)
and Kogan (1.4). Primarily reflecting the greatly
expanded number of SKUs on the platform,
Lasoo’s net promoter score (NPS) improved to +82
(‘excellent’) from a 38+ (‘strong’) in October 2022.
Given proof of concept and better-than-expected
performance, the Group will continue to invest in
Lasoo to further enhance customer experience
and significantly scale the business. While the
previous business plan was targeting annualised
GTV of around $50m and break even during FY26,
Lasoo is now expected to achieve annualised
GTV in excess of $150m with break even expected
during FY28.
1. Testmate UX Research Agency.
2. Trustpilot – www.au.trustpilot.com.
23
Cornerstone acquisition of JacPak
The Group entered the Australian fibre-
based packaging sector with the cornerstone
acquisition of JacPak on 31 October 2023.
JacPak is a leading Melbourne based player in
the short‑to‑medium run length folding carton
segment of the packaging sector with annual
revenue of around $45m.
Total purchase consideration was $35m including
around $27.9m paid on completion, $4.0m
payable as deferred consideration (subject
to 12-month performance hurdles) and the
assumption of $2.7m of equipment finance leases.
The purchase consideration was funded via the
Group’s acquisition facility.
During the year, JacPak contributed revenue
of $28.3m which was in-line with expectations
(considering seasonality and commercial
print revenues transferred to IVE’s Victorian
printing operations).
At the end of FY24, IVE had unlocked annual
cost synergies of around $2.4m across
procurement, operational efficiencies, finance and
administration.
At the date of acquisition, JacPak had $15m of
available capacity for organic revenue growth.
The Group is confident of utilising that capacity
through new or expanded customer relationships
and has been encouraged by a number of new
business wins since taking ownership of JacPak.
Organic expansion
The printing equipment used in the production of
folded carton packaging is similar to equipment
IVE currently operates across its existing Victorian
and NSW commercial printing operations. In order
to produce finished folded carton packaging,
die cutting and gluing equipment is required in
addition to printing equipment.
Consistent with the Group’s existing footprint,
IVE intends servicing national brands through
packaging operations in both Victoria and NSW,
supported by our national logistics network to
Packaging
24 | IVE Group Limited Annual Report 2024
Growth initiatives
Packaging – revenue ambition
1. Additional capital expenditure required.
ensure the timely production and distribution of
finished packaging products:
> Victoria – JacPak (IVE Packaging) will continue
to operate as a stand-alone business with
annual revenue capacity of $60m; and
> NSW – IVE intends leveraging the operational
footprint of the Group’s commercial printing
operation in Sydney by expanding the site’s
capability (with the addition of die-cutting and
gluing equipment) to also support the efficient
production of folded carton packaging.
The stand-alone JacPak facility coupled with
the Sydney expansion will result in total annual
packaging revenue capacity of around $90m.
Over the medium term, investment in additional
equipment would add a further $60m to capacity
resulting in the Group achieving its stated
ambition of building a packaging business with
annual revenues of around $150m over 5 years.
JacPak
revenue at
acquisition
JacPak
available
capacity
JacPak
revenue at
capacity
NSW
expansion
revenue
ambition
NSW/Vic
expansion
revenue
ambition
25
Expansion of offering
IVE’s Creative, Content & Integrated Solutions
offering has evolved considerably over the years
and today employs a strong and talented team
of over 120 designers and artists. Our people are
located across Sydney and Melbourne (including
staff embedded within client sites), working across
a range of industries including banking and
financial services, FMCG, grocery, retail, property
and luxury brands.
The business was originally formed to design
and produce the marketing collateral that IVE
would then print, distribute and activate in
market. More recently, the team expanded their
focus and capabilities to support the growth of
the Group’s CX and Data and Brand Activations
businesses. IVE now offers retail and shopper
insights, creative strategy and ideation as well as
structural design expertise.
In parallel, the media landscape continues
to fragment and the proliferation of channels
driving commerce has significantly increased
the type, volume and frequency of content that
needs to be produced to ensure effective omni-
channel marketing.
During FY24, IVE has been implementing a
strategy to grow and upscale the Group’s
Creative, Content & Integrated Solutions business
to unlock additional value from existing client
relationships and access new revenue streams,
markets and customers. Our initial focus has
been on talent and capability development and
significant progress has been made in this area
over the past 12 months: we have expanded
the breadth and depth of our service offering
across strategy, creative, content production
and technology.
The Group has invested organically to strengthen
our teams in Sydney and Melbourne, adding
both creative and strategic fire-power which has
delivered revenue growth from new and existing
customers. Equally as important, our work mix
has evolved with new business secured across
branding, content strategy, digital and social
media as well as omni-channel retail activation.
In addition to organic investment, in June
2024 we announced the acquisition of Elastic
Group, an independent creative agency that
specialises in video content creation and visual
communications. Elastic’s operations in Sydney
and Melbourne have been relocated and
integrated into IVE’s business.
Elastic added 40 new staff to our Creative,
Content & Integrated Solutions arm, as well
as an impressive portfolio of customers across
automotive, pharmaceutical, government, sports
& entertainment, food & beverage, finance and
property.
IVE is encouraged by the interest shown in
Elastic’s services by the Group’s existing client
base and look forward to marketing our
increasingly broader mix of products and services
more widely in FY25.
As a result of these investments, the Group is now
able to create additional value for customers
through efficiently and effectively connecting
their brand with consumers across all major
online and offline communication touch-points.
IVE now has an unrivalled in-house marketing
services offering, providing clients with a
streamlined and simplified way of producing
ideas and content for every marketing channel.
Importantly, our model is quite different to
traditional advertising agencies and that of our
competitors.
IVE’s objective is to add robustness and scale to
brands who have invested in their own in‑house
capability development. The Group strives to
make life easier for marketers by providing
one point of entry to every media channel: our
integrated service model enabling us to reduce
clients’ costs whilst at the same time protecting
our own operating margins.
Looking forward, the Group’s Creative, Content &
Integrated Solutions division remains focused on:
> Building our content creation capabilities;
> The convergence of content, cx and data; and
> Optimising the connected experience for our
customers.
The Group will continue to execute on this strategy
over the next 24 months.
Creative, Content &
Integrated Solutions
26 | IVE Group Limited Annual Report 2024
Growth initiatives
IVE has invested in new skills and capabilities that when combined with our existing offering, enables us
to help brands connect with their targeted consumers across every possible touch‑point.
Podcast
27
An organically developed adjacency
Having developed a garment sourcing component
to IVE’s Merchandise & Apparel business and
after managing some small to medium sized
uniform programs on behalf of existing IVE
customers eg IAG and Woolworths, corporate
uniforms was identified as a natural and growing
product adjacency.
The corporate uniform market in Australia is
estimated to be ~$1.2bn and growing at around
5.3% CAGR. The main revenue drivers for uniforms
are general wear and tear as well as attrition
(which is typically higher in uniformed roles) and
underpins the strong potential of this category.
Major competitors include Joseph Dahdah,
Workwear Group and Deane Apparel.
Although a relatively new player to this market,
the Group’s unique service proposition includes:
> Extensive client base – at least 10% of IVE’s
~3,000 customers are estimated to have
substantial ($100k+ p.a.) uniform spend with
a further 20% having a more modest (<$100k
p.a.) spend;
> Corporate uniforms complement our current
production and distribution offering;
> Intimate knowledge of the brands we work with
and access to their brand collateral;
> Ability to leverage our scale to disrupt existing
pricing structures;
> In-house design resources that include Garment
Technicians, bringing together our design
capabilities from an aesthetic (graphic) and
brand aware (customer knowledge) point of
view with the practical requirements of this
unique manufacturing service;
Apparel and
Uniforms
28 | IVE Group Limited Annual Report 2024
Growth initiatives
> Established national warehousing and
distribution capabilities;
> An easy ‘bolt-on’ to existing ordering platforms
and complex portals limiting transition times;
> Capital and resources to build our own team
and/or the potential to acquire existing apparel
business; and
> Strong ESG sourcing credentials and innovative
ideas around sustainability for discarded
uniforms (a natural outworking of high staff
turnover, especially in the retail/hospitality
industries).
Current major IVE corporate uniform clients
include Reece, Certis (Sydney and Adelaide
airport security, Sydney Trains security), Surf
Lifesaving NSW, Transport NSW, Securitas, Leave
Plus and Woolworths while the Group has a
strong pipeline of opportunities including several
promising RFPs/trials in progress.
29
Review of
financial performance
30 | IVE Group Limited Annual Report 2024
Basis of preparation
IVE’s Financial Report for the year ended 30 June
2024 (FY24) is presented in accordance with
Australian Accounting Standards which comply
with International Financial Reporting Standards
(IFRS).
Certain non-IFRS financial information has also
been included in this report to assist investors in
better understanding the underlying performance
of IVE. The non-IFRS ‘underlying’ financial
information pertaining to the FY24 and FY23
results is presented before the impact of certain
non-operational items.
The directors believe the non-IFRS underlying
results better reflect the underlying operating
performance and is consistent with prior year
reporting.
The non-IFRS underlying financial information has
not been audited or reviewed.
Financial information in this report is expressed
in millions and has been rounded to one decimal
place. This differs from the Financial Report where
numbers are expressed in thousands. As a result,
some minor rounding discrepancies may occur.
Financial results on an IFRS and underlying basis1
FY24
$m
FY23
$m
Variance
%
Revenue
972.8
970.2
0.3
Material profit
454.5
437.4
3.9
% of revenue
46.7%
45.1%
3.6
Underlying EBITDA
127.8
119.0
7.5
Underlying EBITDA margin
13.2%
12.3%
7.2
EBITDA
107.1
90.6
18.2
Depreciation and amortisation
49.9
52.9
(5.7)
EBIT
57.2
37.6
51.8
Net finance costs
17.4
13.3
31.1
NPBT
39.7
24.3
63.2
Income tax expense
12.1
7.2
68.3
NPAT
27.6
17.1
61.0
NPATA
31.0
20.2
53.8
Underlying NPAT
43.0
39.7
8.4
Underlying NPATA2
46.4
42.7
8.8
Underlying ROFE3
24.9%
24.7%
0.8
Underlying ROE4
22.2%
21.1%
5.2
IFRS basic earnings per share (EPS)
18.0¢
11.4¢
57.1
Underlying EPS
28.0¢
26.4¢
5.8
Underlying NPATA EPS
30.2¢
28.5¢
6.1
Dividends per share
18.0¢
18.0¢
-
Underlying payout ratio
64.5%
69.0%
(6.5)
1. The underlying financial results are on a non-IFRS basis, exclude certain non-operating items and are not audited or reviewed.
2. NPATA – NPAT excluding amortisation of customer contracts.
3. ROFE – Underlying EBIT/average funds employed (where funds employed represents net assets plus net debt).
4. ROE – Underlying NPAT/average equity.
31
32 | IVE Group Limited Annual Report 2024
Review of financial performance
FY24 backdrop
Following the post-COVID economic rebound, the
Australian economy experienced a gradual but
progressive economic slowdown across FY24 as
the significant prior year interest rate increases
coupled with cost-of-living pressures impacted
consumer sentiment and spending. While revenue
was adversely impacted in some parts of the
business, particularly during the second half,
commercial initiatives coupled with input price
relief and operating leverage associated with
the Ovato acquisition underpinned strong margin
expansion.
Revenue
IFRS revenue increased 0.3% to $972.8m from
$970.2m in the prior corresponding period (pcp).
Underlying revenue (which excludes Lasoo)
increased 0.3% to $969.9m from $967.4m,
inclusive of modest incremental revenue from
Ovato (acquired 13 September 2022) and JacPak
(acquired 31 October 2023).
Excluding acquisitions and normalised for the
decision to cease production in Western Australia
which reduced revenue by $15m, revenue was
down by around 4% relative to a strong pcp.
This largely reflected softer economic conditions
which impacted CX and Data (formerly DDC)
and commercial printing revenues, particularly
during 2H FY24.
Solid organic revenue growth was achieved in
Brand Activations (formerly Retail Display),
logistics and fulfilment while catalogue and
magazine (including Ovato acquired) revenues
were in-line with expectations.
New customer accounts won during the past 12
months included: Country Road, Australian Open
(tennis), FIFA Women’s World Cup, Target, BMW,
Melbourne Storm, Goodman Fielder and Dilmah.
There were no material customer account losses
during the year.
Material gross profit margin (MGM)
IFRS and underlying material gross profit (revenue
less material cost of goods sold) margin for the
year improved to 46.7% from 45.1% pcp.
The improvement in MGM reflects commercial
initiatives including some input cost relief
(particularly paper and freight) as well as the
exiting of lower margin revenue following the
aforementioned closure
of Western Australian production.
Earnings, NPAT and EPS
Notwithstanding inflation and the JacPak
acquisition, production expenses fell marginally to
$221.2m from $222.9m pcp. Production expenses
mainly relate to direct labour ($134.2m), power
(electricity and gas) and depreciation of property,
plant and equipment and right of use assets
33
for leasehold premises ($39.9m). The material
reduction in underlying production expenses
reflects increased efficiencies captured as a result
of the completion of the Ovato integration as well
as further efficiencies across the balance of the
Group, partly through prior and current period
capital expenditure benefits.
Administrative expenses increased 7.5% to
$160.1m from $148.9m pcp. Normalised for the
JacPack acquisition, administrative expenses
increased $3.6m to $152.8m, mainly reflecting
additional compliance costs relating to continual
improvement in Group IT (cyber security in
particular) and ESG, along with ongoing salary
and wages increases and $0.6m of one-off legal
costs (excluded from underlying earnings) relating
to the successfully defended Wage Inspectorate
of Victoria litigation.
Other expenses were $16.1m, down materially
from $30.8m pcp on an IFRS basis, primarily due
to the reduction in (primarily Ovato related)
restructuring costs. With the integration
completed during FY24, no further Ovato
restructuring costs are expected in FY25.
As a result of the above impacts, IFRS EBITDA
increased 18.2% to $107.1m from $90.6m pcp.
Underlying EBITDA increased 7.5% to $127.8m
from $119.0m pcp, again primarily reflecting
cost-of-sales margin expansion and operating
leverage associated with the Ovato integration.
IFRS depreciation and amortisation of $49.9m
was down from $52.9m pcp. Pre-AASB 16
depreciation (excluding amortisation and
impairment) was $18.6m, broadly unchanged
from $18.3m pcp.
IFRS EBIT increased 51.8% to $57.2m from $37.6m
pcp, reflecting underlying EBITDA growth coupled
with reduced depreciation and amortisation and
materially lower non-operating items.
Underlying EBIT increased 12.7% to $80.2m from
$71.2m pcp.
IFRS and underlying net finance costs were
$17.4m compared to $13.3m pcp, the increase
primarily reflecting the full year impact of higher
interest rates coupled with the funding of the
JacPak acquisition and Ovato integration costs.
IFRS NPAT increased 61.0% to $27.6m from $17.1m
pcp, with the significant increase due to underlying
profit growth coupled with materially reduced
(primarily Ovato related) restructure costs.
Underlying NPAT increased 8.4% to $43.0m
from $39.7m pcp, reflecting strong EBIT growth
partially offset by higher net finance costs.
IFRS earnings per share for the year was 18.0
cents, up significantly from 11.4 cents pcp.
Underlying (NPAT) earnings per share was
28.0 cents, up 5.8% from 26.4 cents pcp, while
underlying (NPATA) earnings per share was 30.2
cents, up 6.1% from 28.5 cents pcp.
34 | IVE Group Limited Annual Report 2024
Review of financial performance
IFRS to underlying NPAT reconciliation
FY24
$m
IFRS NPAT
27.6
Restructure costs
13.1
Acquisition costs
2.0
Software as a service expense (development/implementation complete)
0.8
Lasoo
5.8
Other items
1.3
Pre-tax non-operating items
23.0
Tax effect of adjustments
7.7
Underlying NPAT
43.0
Non-operating items included in IFRS NPAT but excluded from underlying NPAT include:
> Restructuring costs of $13.1m primarily relating to the final phase of the Ovato integration, including
the final asset relocation and subsequent closure of Ovato’s Warwick Farm site;
> Acquisition costs of $2.0m primarily relating to the JacPak acquisition;
> Lasoo’s $5.8m pre-tax operating loss ($5.7m pcp for only 9 months of trading);
> One-off legal costs of $0.6m to successfully defend Wage Inspectorate of Victoria litigation; and
> Other items include impairment of asset held for sale of $1.1m.
35
Balance sheet, capital expenditure and cash flow
Net debt
FY24
$m
FY23
$m
Loans & borrowings1
179.8
169.1
Less cash
48.8
44.9
Net debt
131.0
124.2
1. Loans and borrowings are gross of facility establishment costs and exclude AASB 16 liabilities impacts.
Net debt increased modestly to $131.0m at 30 June 2024 from $124.2m at 30 June 2023, primarily
reflecting the funding of the JacPak acquisition largely offset by the strong increase in operating
cash flow.
Relatively stable working capital coupled with significantly reduced integration and restructuring costs
should contribute to strong operating cash flow in FY25.
Net debt at 1.3x pre-AASB 16 EBITDA (1.0x post-AASB 16 EBITDA) remains below the Group’s target level
of 1.5x and broadly unchanged from 30 June 2023.
Net debt to equity increased to 67.3% at 30 June 2024 from 64.2% at 30 June 2023.
Cash at bank was $48.8m with undrawn debt capacity of $50.0m (excluding acquisition facility) at 30
June 2024.
Capital expenditure
FY24
$m
FY23
$m
Investment and maintenance
11.1
13.9
Lasoo platform enhancement
1.4
1.0
Ovato
3.4
1.6
Total
16.0
16.5
Capital expenditure for the year was $16.0m, including $3.4m related to the Ovato integration and $1.4m
relating to Lasoo including customer experience enhancements.
Investment and maintenance capital expenditure included $2.8m relating to deposits placed on
equipment to facilitate packaging expansionary plans at the Group’s Silverwater facility in Sydney as
discussed in more detail overleaf.
Capital expenditure is expected to be around $24.5m in FY25, including $11m associated with the
packaging capacity build-out (net of disposal proceeds).
36 | IVE Group Limited Annual Report 2024
Review of financial performance
Cash flow
Underlying1
FY24
$m
IFRS
FY24
$m
EBITDA
127.8
107.1
Movement in NWC/non-cash items in EBITDA
18.0
11.9
Operating cash flow
145.8
119.0
Capital expenditure (net)
(12.6)
(12.6)
Payments for acquisitions and deferred consideration
(28.6)
(28.6)
Net cash flow before financing and taxation
104.6
77.9
Tax
(14.8)
(8.3)
Net proceeds of bank loans
15.0
15.0
Payment of finance lease liabilities
(38.0)
(38.0)
Payment of equipment finance loans
(4.4)
(4.4)
Dividends paid
(27.7)
(27.7)
Net interest paid
(10.5)
(10.5)
Net cash flow
24.2
3.9
Operating cash conversion to EBITDA2
114.0%
111.1%
Free cash conversion to EBITDA3
104.2%
99.3%
1. The underlying financial results are on a non-IFRS basis, exclude various non-operating items and are not audited or reviewed.
2. Operating cash flow as a percentage of EBITDA.
3. Operating cash flow net of capital expenditure as a percentage of EBITDA.
Lower restructuring costs and a reduction in working capital (following Ovato and supply chain
related strain pcp) resulted in a significant uplift in IFRS operating cashflow to $119.0m ($44.7m pcp),
underpinned by operating cash conversion of 111.1% (49.4% pcp).
The reduction in working capital also benefited underlying operating cash flow which increased to
$145.8m ($78.2m pcp), underpinned by operating cash conversion of 114.0% (65.7% pcp).
The Board declared a fully franked final dividend of 8.5¢ per share, stable on pcp.
This resulted in a full year dividend of 18.0¢ per share, stable on pcp, based on a full year payout
ratio of 65%.
37
Sustainability
38 | IVE Group Limited Annual Report 2024
Setting the foundations for change
through Sustainability
IVE continues to advance its approach to
Sustainability recognising an increasingly
challenging operating environment and the
Group’s continued desire to navigate the
impacts of climate change, reduce its resource
consumption and contribute to a more equitable
and inclusive society.
The Group’s Sustainability strategy is
underpinned by a commitment to transparency
and governance and focuses on three pillars of
activity:
Pillar 1 – Innovative Customer Solutions;
Pillar 2 – Valuing our People & Communities; and
Pillar 3 – Responsible Operations & Supply
Chains.
Tabled overleaf are the key initiatives within each
of these pillars which are further supported by a
range of foundational internal activities.
Since the release of its Sustainability Strategy
in FY23, the Group has undertaken a range of
activities focused on building a solid foundation of
change readying the business for delivery against
its broader Sustainability goals and objectives.
During the year, the Group strengthened
governance by establishing an organisation-wide
ESG Working Group comprised of representatives
of business divisions and key operational areas.
The Working Group was led by an experienced
Head of ESG & Sustainability who provided
contracted support to the Group for a 12-month
period (and subsequently joined IVE in a full-
time capacity as Chief People & Sustainability
Officer), establishing the Sustainability work-plan
and ensuring that key initiatives within the plan
were mobilised.
Notable achievements delivered during the year
include:
> The public launch of the Group’s Sustainability
strategy and communication of key initiatives
via its website (https://www.ivegroup.com.au/
about/sustainability-strategy);
> The development and delivery of Sustainability
training to around 170 client-facing
employees supporting their understanding of
the Group’s approach to Sustainability and
how this supports and aligns with the varied
approaches of the Group’s extensive client
base;
> Commencement of the Group’s seven-year
partnership agreement with Iberdrola resulting
in the generation of renewable electricity
equivalent to 98% of the Group’s demand
arising from its largest 15 production sites;
> Becoming a signatory to the Australian
Packaging Covenant at a Group level;
> Registering with Reconciliation Australia
to commence development of the Group’s
first Reconciliation Action Plan advancing
engagement and opportunity for First Nations
peoples;
> Providing mental health first aid training to
over 60 employees; and
> Strengthening the Group’s approach to
workplace health, safety and wellbeing.
39
IVE Group’s 2025 Sustainability strategy targets
Innovative customer
solutions
To push the boundaries
of sustainable product
development in our sector
and empower customers
with the knowledge to make
informed choices.
> 100% of our quotes have an
associated environmental
impact rating
> 100% of our textile products
have access to a take back
scheme
> 4% of addressable spend is
contracted to social suppliers
Valuing our people and
communities
To continue creating a
safe and inclusive working
environment and supporting
those communities who
support us.
> Establish lead indicator
workplace safety metrics and
track performance
> Achieve a 40/40/20
gender ratio across senior
management
> Employ 30 graduate,
cadet and apprenticeship
participants sourced from
Indigenous, CALD, youth,
disability and older Australian
cohorts
> A minimum of 80 certified
mental health first aid staff to
be employed in the business
Responsible operation and
supply chains
To mitigate our impact on the
climate and lead projects that
deliver more regenerative and
ethical supply chains
> Transition to 50% renewable
electricity, with an aim to
achieving 100% by 2030
> Achieve a minimum 25%
reduction in scope 1 & 2
emissions intensity (metric)
against CY21 baseline
> Reduce total operational
waste intensity by 20%
against CY21 baseline
40 | IVE Group Limited Annual Report 2024
Sustainability
During the year, the Group reviewed both its 2021
and 2022 (calendar year) carbon footprints
covering emission Scopes 1, 2 and 3, and reported
FY23 Scope 1 and 2 emissions in accordance with
the National Greenhouse & Energy Reporting
(2007) Act.
Following completion and review of the
2022 carbon footprint assessment, several
discrepancies were noted in the previously stated
2021 carbon footprint necessitating review and
recalculation. These discrepancies concerned
Scope 3 emissions only, with material changes
not observed in the calculated Scopes 1 and 2
emissions profiles.
The key drivers for changes to the Scope 3
emissions profile were:
> Changes to Scope 3 emissions factors;
> Changes to the application of the relevant
standard;
> Errors in previously provided data points; and
> Overall improvements in data collection and
agreed calculation approaches.
As a result of these adjustments, the Group’s
2021 carbon footprint (inclusive of Scopes 1, 2
and 3 emissions) has been revised to 394,942
tCO2-e, down 61% from the previously calculated
footprint of 1,001,863.1 tCO2-e.
The 2022 footprint, covering all three emissions
scopes and calculated using the same emissions
factors and methodologies as the adjusted 2021
footprint, was determined to be 470,079 tCO2-e
representing a 19% increase against the adjusted
2021 footprint.
This is largely due to an increase in Scope 2
emissions and Scope 3 emissions from Categories
1 – Purchased Goods & Services and 4 – Upstream
Transportation & Distribution. Most notably, a
32% increase in (Category 1) spend corresponds
to a 30% increase in emissions. This increase
was somewhat softened by a 32% decrease in
emissions associated with Category 12 – End-
of-life Treatment of Sold Products. However,
Category 12 only comprises 11% of the overall
footprint and so the reduction was not significant
enough to negate the increase in Category 1
emissions.
The observed increases correlate with two
significant inorganic events occurring during 2022
– the Ovato acquisition and the commissioning of
two paper shipments which impacted IVE’s overall
Scope 2 emissions and Scope 3 (Category 1 and 4)
emissions respectively.
41
As graphically represented below, the Group’s 2022 carbon footprint comprises 3% Scope 1 emissions,
12% Scope 2 emissions and 85% Scope 3 emissions with Scope 3 emissions also represented by category.
A comparison of the adjusted 2021 and 2022 carbon footprints across Scopes 1, 2 and 3 is tabled below:
Scope
2021 emissions
(tCO2-e)
2022 emissions
(tCO2-e)
Scope 1 emissions
9,115
14,457
Scope 2 emissions
39,533
54,888
Scope 3 emissions
346,294
400,734
Total emissions
394,942
470,079
IVE’s FY23 Scope 1 and 2 emissions were 14,624 tCO2-e and 56,078 tCO2-e respectively. The Group is
currently reviewing its energy and emissions data collection protocols and reporting processes (including
adjusting its calendar year end reporting approach to align with financial year reporting) in advance of
and to prepare for upcoming mandatory climate disclosure requirements. This will include completion of
its FY23 Scope 3 emissions profile and its FY24 Scope 1 and 2 emissions profile (as part of its NGER reporting
obligations) and its FY24 Scope 3 emissions profile.
Scope 1:
3%
Scope 3:
85%
Scope 2:
12%
Category 2:
Capital goods
0.3%
Category 3:
Fuel- and energy-
related emissions
1.8%
Category 4:
Upstream
transportation
and distribution
8.2%
Category 5:
Waste generated
in operations
0.5%
Category 6:
Business travel
0.1%
Category 7:
Employee commuting
0.6%
Category 12:
End-of-life treatment
of sold products
13.0%
Category 1:
Purchased goods
and services
75.4%
Scope 1, 2 and 3 emissions
Scope 3 emissions
42 | IVE Group Limited Annual Report 2024
Sustainability
In addition to strengthening data collection and
reporting processes, the Group’s Sustainability
focus in FY25 will include:
> Readying the Group for its mandatory climate
disclosure, risk and reporting obligations
> Advancing client facing Sustainability initiatives
to better identify and communicate the environ
mental impacts of our products and services;
> Driving our commitments to diversity, equity
and inclusion through the establishment of key
partnerships with employment organisations
supporting a diverse and inclusive talent
pipeline;
> Continuing to enhance and elevate our
approach to health, safety and wellbeing
with dedicated focus on behavioural change,
governance and reporting;
> Establishing a strong program of community
investment and engagement reflective of the
Group and our people’s role in the community;
> Strengthening our approach to supplier
engagement and risk assessment across
key environmental and social domains and
criteria; and
> Operational efficiency within our production,
distribution and logistics facilities targeting
improvements in energy and circularity.
Recognising the importance of our approach to
people, safety, compliance and sustainability,
the Group established a new function for
FY25 to unify the governance of these areas
of activity. This new function, led by the Chief
People & Sustainability Officer, a newly created
executive position, will integrate adjacent and
complementary performance areas, further
strengthening and accelerating the Group’s
progress and performance.
The Group is committed to reporting annually
to our stakeholders and setting a course for
action under the sustainability strategy every
three years to ensure our approach is in-line with
changing stakeholder expectations and reflects
the evolving industry in which we operate.
As we progress on our journey, we welcome
feedback and stakeholder participation, and
we look forward to sharing our progress in future
reporting and communications.
People and culture
Proudly inclusive, we are an employer of choice
across all the sectors in which we operate,
continuing to attract and retain the best diversity
of talent.
Our IVE Care program is focused on ensuring and
improving the wellbeing, diversity and inclusion,
and health and safety of all our employees. We
believe in ‘a better you, a better workplace’ for our
people and for their families.
43
We are exceptionally proud of our people. Our IVE
Care program provides our 2,000+ employees with
access to a wide range of support and benefits:
Health and wellbeing
Our Employee Assistance Program (EAP) helps
employees resolve issues and challenges arising
in the workplace or in their personal life. The
EAP provides access to independent, confidential
counselling and advice from qualified and
experienced psychologists, and allied health
professionals.
Education, information programs and health and
wellbeing campaigns are also made available
through the EAP to assist employees in making
changes for a healthier lifestyle. Our EAP
continues to be an excellent source of support
and benefit for employees dealing with a range of
difficult circumstances.
Flu vaccinations were again offered across the
IVE business during FY24, and the business again
conducted an employee awareness initiative
aligned to R U OK? Day.
During FY24 we undertook training of additional
accredited Mental Health First Aiders across the
Group. The presence of these First Aiders continued
to be beneficial to the business and employees
across FY24, with numerous instances where we
could offer support to employees in need.
Lifestyle benefits
The IVE Rewards Program provides our employees
and their families the opportunity to stretch their
dollar further through significant savings at all
their favourite retailers. The program is a valued
benefit and well utilised by employees.
Wealth and security
IVE has partnered with Bupa to provide
employees with discounted corporate health
insurance. In addition to competitive premiums,
the cover reduces the waiting periods for certain
benefits and provides access to the Bupa Life
Skills program. IVE also offers employees an
additional superannuation fund choice via a
key client partner.
Personal, family and community
Our Workplace Giving Program has been
developed to build a stronger link between IVE
Group and the community. We believe each of
us has an important role to play in the broader
community. We have designed this program
around several great charity partners to provide
employees with a simple and effective way to
regularly donate from their pre-tax earnings.
Diversity and inclusion
We come from many different nationalities,
backgrounds, experiences and lines of work. IVE
is very proud of the fact that we have employees
originating from more than 50 different countries,
spanning 70 different cultural backgrounds.
Our rich diversity is at the centre of our success
and at the heart of our evolution as Australia’s
leading holistic marketing company. An inclusive
working environment that embraces our unique
differences and diverse perspectives, brings
greater creativity and innovation, leads to higher
wellbeing, productivity and engagement and,
importantly, enables us to better reflect and
relate to our customers.
IVE Group is committed to ensuring diversity and
inclusion permeates all areas and levels of our
business, with every individual feeling included,
safe and supported to express themselves
authentically. In recognition and support of this,
IVE’s Diversity and Inclusion Program reinforces
our commitment to growing a diverse and
inclusive organisational culture encompassing
and benefiting all employees.
IVE’s Diversity and Inclusion Program identifies six
key areas of focus:
> Gender equality and inclusion;
> Cultural and linguistic diversity;
> Intergenerational and mature age;
> Aboriginal and Torres Strait Islander
Australians;
> LGBTIQA+ (lesbian, gay, bisexual, trans/
transgender, intersex, queer/questioning,
asexual); and
> Disability.
44 | IVE Group Limited Annual Report 2024
Sustainability
In mid-2022, the Group partnered with an
external provider to conduct a comprehensive
employee workplace survey which included,
amongst a range of other important areas, a
significant focus on obtaining greater insight
into the diversity and inclusiveness across our
workforce (areas covered included nationality,
gender, sexual identity and orientation,
indigenous identity and disability). We had a
high participation rate with close to 1,000 (50%)
employees completing the survey.
The survey provided us with valuable data
and insight to both better understand and
celebrate the diversity within the business, and
to provide ongoing input for areas of focus and
new initiatives.
In FY23, IVE again partnered with the Australian
Network on Disability to participate in their
‘Stepping Into’ internship program – we have
3 internships in place under this Program.
Pleasingly, an FY22 intern under this program
has since become a permanent team member.
Once again, the Group ran a numberof awareness
events related to International Women’s Day,
Pride Week, Liptember and R U OK? Day.
Compliance and governance
As expectations around corporate responsibility
increase, and as transparency becomes more
prevalent, IVE recognised some time ago the
need to act on sustainability and is committed to
engaging and collaborating with our clients and
investors to provide an ethical and sustainable
partnership.
Through the ongoing assessment of our quality,
information security, ethical and environmental
practices, IVE continues to focus on being a
responsible business that values what’s important
to our customers. IVE’s accreditations continue
to make us a preferred partner for many of our
customers.
Quality assurance
IVE understands the
importance of quality and has
maintained ISO 9001 certification of our Quality
Management System for 15 years. This ensures
the provision of superior products and services to
our customers, measured in terms of performance,
reliability and durability, and
is rewarded by customer satisfaction and loyalty.
We welcome feedback from our clients and strive
to maintain this level of excellence from
marketing technology and multi-channel
communications through to production and
distribution.
Ethical sourcing and environmental
management
IVE remains focused on improving
sustainability and the ongoing
protection of the environments that we source
from, work in and supply.
IVE expects its suppliers to adhere to the same
ethical values we uphold. By blending best
practice with socially responsible sourcing, we
45
achieve optimal levels of cost efficiency, product/
service effectiveness and product safety in a
sustainable, inclusive and ethical manner.
IVE is an active member of Supplier Ethical
Data Exchange (SEDEX). Supplier membership
is highly regarded and allows IVE to assess the
risk in labour standards, health and safety,
environmental impact and provide supply chain
visibility. Ensuring good business practices
is important to our clients, employees and
shareholders.
IVE’s annual Modern Slavery Statement details
our approach to identifying, mitigating and
managing the modern slavery risks present
in our supply chain in accordance with the
Modern Slavery Act 2018. Within our broader
ESG & Sustainability Strategy, the Group
continues to strengthen its approach through
supplier assessment and engagement, and
implementation of controls to ensure the integrity
of our own operations and our suppliers.
We continue to hold certification with the
Programme for the Endorsement of Forest
Certification® (PEFC), which tracks forest-based
products from sustainable sources to the final
product. It demonstrates close monitoring of each
step of the supply chain through independent
auditing to ensure that unsustainable sources
are excluded.
Additionally, certification of our paper and
fibre-based product supply chains to Forest
Stewardship Council® standards assures they
are free from any direct or indirect involvement
in activities that violate traditional and human
rights in forestry operations, as required by
the International Labour Organization (ILO)
Convention 169.4.
IVE holds ISO 14001 certification of our
Environment Management System, and we
remain focused on fulfilling our promise to
continually improve by establishing and
updating ESG and sustainability targets that
reflect our commitment to our customers and the
communities in which we operate.
Paper
Environmental credentials
As the largest printer in Australia, IVE is a
significant user of paper from sustainably
managed forests. Sustainably managed
forests provide economic livelihood for local
communities, improve forest regeneration, and
deliver sustainable solutions to the biodiversity,
fauna conservation and other environmental
improvements. They also prevent deforestation due
to mono-culture planting for agricultural crops or
urbanisation due to population increases and/or
industry development.
The benefits of ‘forest land’ include prevention
of soil erosion, improved water quality – fighting
salinity, providing habitat for native birds and
wildlife, and reducing the use of fertiliser and
chemicals. Forests also act as a ‘carbon sink’ –
taking more carbon dioxide out of the atmosphere
than they produce.
Trees from sustainably managed forests are
grown and harvested in a carefully controlled and
sustainable way to produce paper. Australia has
two million hectares of working tree farms (Two
Sides, 2023). The two key forestry certification
schemes are PEFC and FSC, of which IVE carries
certification across both.
The industry is a leading recycler with 87% of
paper in Australia recycled, up from 28% in 1990,
with household paper product recycling closer to
93% (APIA, 2022).
Catalogues and publishing paper grades without
finishings are 100% recyclable. Recycling
complements the need for virgin wood fibre,
further supporting the growth in fibre-based
products and packaging as an environmentally
sustainable alternative to single-use plastic, of
which State Government bans now apply across
the country (VoPP Mag, 2023).
The majority of IVE’s paper requirement is
sourced offshore due to specific requirements
and fixed local manufacture capacity. IVE
sources paper from highly compliant and
certified paper manufacturing companies.
With the majority of graphic communication
papers coming from Europe, IVE is proud to have
strong European supply partners. Under the
European Green Deal, the EU has committed
46 | IVE Group Limited Annual Report 2024
Sustainability
to planting 3 billion additional trees by 2030
and increasing the resilience and biodiversity of
existing forest ecosystems. The EU and Member
States are implementing various policies and
initiatives supporting forest restoration to achieve
those goals and moving the industry to a fully
credentialed reforestation industry (European
Union, 2024).
Consumer sentiment
Despite the proliferation of digital media,
paper‑based media channels remain stable
in volume, societal balance and consumer
preference. Despite post-COVID volume declines,
catalogues realised a 4.7% increase in volume
and a 34.4% increase in pagination between
2021 and 2022 (TRMC, 2023). In 2024, volumes
have remained broadly stable with YOY growth of
7% reported in recent months reflecting seasonal
trends across the sector (VMA, 2024).
The Australian government review into the
modernisation of the postal system accepted
submissions outlining the significant contribution
of paper media channels to societal balance
with those most impacted by the digital divide
being the most vulnerable citizens. Moreover, 66%
of scams and frauds are from digital channels
with only 0.05% being from paper-based or
letterbox scams (Scamwatch, 2024). 2.54 million
Australians are highly digitally excluded, with
the aged, indigenous, and lower income quintile
communities the most impacted (ADII, 2023).
Demonstrating growing societal concern around
digital channels, 78% of Australians believe
consumers should be given the choice of how to
receive their bills/statements, 61% don’t believe
they should be charged more for paper bills or
statements, 50% feel they spend too much time
on electronic devices, 60% report they do not
pay attention to online advertisements and 66%
report they are more likely to take action when
receiving printed mail (Love Paper, 2022).
Consumer preference for the printed channel
remains high with 72% of consumers preferring
to read from paper rather than from screens
and 65% enjoying the tactile nature of paper.
Consumers also fundamentally believe that
when sourced from sustainably managed forests,
paper and print remain a sustainable way to
communicate (Two Sides, 2019).
Information security
IVE handles millions of items of
personally identifiable information
on behalf of our customers every
year and we recognise our responsibility to
maintain its confidentiality, integrity and
availability. IVE has a mature information
security framework which is continuously reviewed
and upgraded to ensure it is best practice and
fit for purpose. We have an ongoing program of
investment in best available security technology,
a comprehensive information security training
program for all staff, highly secure facilities and
rigorous documented security procedures. Our
integrated information security management
system is certified under ISO 27001 and SOC 2
Type II. We also comply with CPS 234 – the APRA
regulation for information security for the banking
and financial services industries. These globally
respected certifications provide our customers
with concrete evidence of our ability to protect
their customers’ valuable personal information.
Risk Management Framework
The purpose of the Risk
Management Framework
is to provide a mechanism for IVE to identify
opportunities and challenges that could impact
the business, understand the risk appetite,
and ensure appropriate mitigations are in place.
Together with the senior executives, the Risk
Register is reviewed on a quarterly basis to
ensure that risk mitigation is in place for all
identified risks, and includes recent events such as
COVID-19, and economic impacts affecting sales
and client demand and supply volatility.
As part of the last risk review conducted in June
2024, the key risks overleaf were identified as
being the most relevant to the business achieving
its operational and financial targets:
47
Key Risk
Description
Risk Appetite
Mitigation
Customer
Changing Customer
& Client Expectations
Failure to adapt
to changing
customer and client
expectations driven
by new or disruptive
technologies.
When adapting to the
expectations of clients and
customers in the changing
external environment,
IVE will take risk to drive
value for money. This will
be measured by customer
retention, number if services
per customer and customer
feedback.
> Customer feedback
> Board and SLT constantly
review products and services
sustainability
> Acquire and invest in new products
and services
> SLT constantly stay abreast or
new technologies available in the
market
> Reduce client financial impact due
to supply chain issues to protect
channel
> Continue to diversify revenue
streams
IT, Systems
& Security
Cyber Security
Failure to protect
the business from
ransomware, phishing,
data leakage, hacking
or insider threat.
IVE has minimal appetite
and will aim to minimise
risks associated with
cyber security. This will be
measured by data breaches
or incidents, client audit
failures or negative public
relations.
> ISO 27001 certified
> External penetration testing
conducted annually
> Quarterly vulnerability scans
> Restricted firewalls
> Appropriate level of cyber
insurance
> Information security policies
> Improved technologies and
software
> Ongoing Investment in Cyber
Security
IT, Systems
& Security
Data Protection
Breach
Significant (notifiable)
loss of confidential
data (i.e. customer or
employee records) or
Intellectual Property.
IVE has minimal appetite
and will avoid all risk
events associated with
Data Protection. This will be
measured by data breaches
or incidents, client audit
failures or negative public
relations.
> Internal processes / firewall
> Certification 27001/1
> Multiple back-ups
(offsite storage)
> Awareness Training
> Continue to review and purge old
data
48 | IVE Group Limited Annual Report 2024
Sustainability
Additional information
For further information contact:
IVE Group Ltd
Matt Aitken
Darren Dunkley
Tony Jackson
Level 3, 35 Clarence Street
Managing Director
Chief Financial Officer
Investor Relations
Sydney NSW 2000
+ 61 2 9089 8550
+ 61 2 8020 4400
+ 61 2 9089 8548
+ 61 410 499 043
Key Risk
Description
Risk Appetite
Mitigation
Macro
Environment
Macro-economic
Macro-economic
changes disrupting the
Australian economy,
international trade and
key sectors (i.e. retail
or Aus Post services).
Inflation, energy, gas
and other cost increases
as well as the impact of
increased interest rates.
Possible recessionary
environment.
IVE will take a balanced
approach to the risks
associated with changes
in the macro-economic
environment. The level of
risk taken will be planned
for each risk event. This will
be measured by monitoring
the revenue to budget in
customer sectors, increased
debtor days, forward
bookings and economic
indicators.
> Ability to pass costs on
to customers
> Strategic long-term planning
> Indicators in day-to-day figures i.e.
increased debtor days
> MGM and margin decreases
> Sourcing better pricing for long
term, e.g. energy and gas
Environment
Environmental,
Social, and
Governance (ESG)
Pressure from investors
due to lack of
disclosure and policy
to support ESG.
IVE will take a balanced
approach to the risks
associated with climate
change. The level of risk
taken will be planned for
each risk event. This will be
measured by monitoring of
production downtime due
to climate change events,
Government reporting on
environment/emissions and
ASX disclosures.
> Government & ASX disclosures &
reporting
> ISO 14001 certification
> Appropriate and up to date
certification for all suppliers
> Ongoing gathering of
accreditations for IVE’s responses
to RFPs
> Implementation of ESG
strategy and work streams with
appointment of Head
of ESG and Sustainability
Compliance
& Regulation
Workplace Health &
Safety Incidents
Failure to consistently
deliver workplace
safety and keep
employees safe
at work.
IVE’s objective is to avoid
the impacts related to
Workplace Health and
Safety. IVE will take no risks
in circumstances that may
result in injury to employee,
increase Loss Time Injury (LTI)
frequency rates, incident
numbers and near misses.
> MD / SLT constantly review audits
and health and safety plans
> Employee Assistance Programs
> High standards of WHS rolled out
company wide
> IVE care
49
Directors’
report
for the year ended 30 June 2024
50 | IVE Group Limited Annual Report 2024
51
The directors present their report together
with the consolidated financial statements of
the Group comprising of IVE Group Limited (the
Company), and its subsidiaries (the Group or IVE
Group) for the financial year ended 30 June 2024
and the auditor’s report thereon.
Principal activities
The principal activities of the Group during the
course of the financial year were:
> Conceptual and creative design across print,
mobile and interactive media;
> Printing and distribution of catalogues,
magazines, marketing and corporate
communications materials and stationery;
> Manufacturing of point of sale display material
and large format banners for retail applications;
> Fibre-based packaging;
> Personalised communications including marketing
automation, marketing mail, publication mail,
eCommunications and multi-channel solutions;
> Data analytics, customer experience strategy and
CRM; and
> Outsourced communications solutions for
large organisations including development of
customised multi-channel management models
covering creative and digital services, supply
chain optimisation, inventory management,
warehousing and logistics.
The Group services all major industry sectors in
Australia including financial services, publishing,
retail, communications, property, clubs and
associations, not-for-profit, utilities, manufacturing,
education and government.
Operating and financial review
The profit after tax of the Group for the year
ended 30 June 2024 was $27,605 thousand
(2023: $17,148 thousand). A review of operations
and results of the Group for the year ended
30 June 2024 are set out in the Operating
and Financial Review, which forms part of the
Annual Financial Report.
Dividends
The directors have declared a final dividend of
8.5 Australian cents per share, fully franked, to be
paid on 16 October 2024 to shareholders on the
register at 12 September 2024.
Total dividends of $27,716 thousand were declared
and paid by the Company to members during the
2024 financial year. Further details on dividends
are included in Note 24 of the Financial Report.
Significant changes in the state
of affairs
During the year, IVE acquired the following two
businesses:
> On 31 October 2023, IVE acquired 100% of the
fibre-based packaging business of JacPak Pty Ltd
and Egotrade Pty Ltd. The acquired business will
operate as a stand-alone business within IVE.
> On 31 May 2024, IVE acquired the selected assets
and liabilities of Elastic Studios Pty Ltd’s creative
business. This business will be integrated into IVE
Creative.
Further details of these acquisitions is included in
this Financial Report.
In the opinion of the directors there were no other
significant changes in the affairs of the Group that
occurred during the financial year under review.
52 | IVE Group Limited Annual Report 2024
Directors’ Report
Information on Directors
The directors of the Company at any time during or since the end of the financial year are:
Director
Experience, special responsibilities and other directorships
Geoff Bruce Selig
Executive Chairman
Appointed:
10 June 2015,
passed away
5 May 2024
Geoff had over 30 years' experience in the marketing communications sector.
Geoff was managing director of IVE Group prior to moving into the role of executive
chairman following the Company’s listing on the ASX in December 2015.
Geoff was a director Caxton Group and Caxton Print Holdings, and also sat on the
board of The Lysicrates Foundation. He was the State President of the NSW Liberal
Party from 2005-8. Previous not-for profit experience included 9 years on the board of
the Heart Foundation NSW and 3 years on the board of the Pinnacle Foundation.
Geoff held a Bachelor of Economics from Macquarie University and was a member
of the Australian Institute of Company Directors.
James Scott
Charles Todd
Independent,
Non-Executive
Director and
Chairman
Appointed:
10 June 2015,
appointed Chairman
1 June 2024
James is an experienced company director, corporate adviser and investor. James
commenced his career in investment banking and has taken active roles in a range
of private and public companies. Until recently, James was Managing Director of
Wolseley Private Equity, an independent private equity firm he co-founded in 1999.
James was appointed Chair of the Board on 1 June 2024.
James is also a Non-Executive Director of Coventry Group Limited (ASX: CYG), and
Bapcor Limited (ASX: BAP). James was previously a Director of HRL Holdings Limited
(ASX: HRL).
James holds a Bachelor of Commerce and a Bachelor of Laws from the University of
New South Wales, and a Graduate Diploma of Applied Finance from the Financial
Services Institute of Australasia (FINSIA), where he is a Fellow. James is also a
member of the Australian Institute of Company Directors.
Committees: Member of the Nomination & Remuneration Committee, commenced
25 June 2024. Member of the Audit, Risk & Compliance Committee, ceased 25 June
2024.
Gavin Terence Bell
Independent
Non-Executive
Director
Appointed:
25 November 2015
Gavin is an experienced director, executive and lawyer. Prior to becoming a director,
Gavin was the CEO of global law firm Herbert Smith Freehills. He was a partner in
the firm for 25 years.
Gavin holds a Bachelor of Law from the University of Sydney and a Master of
Business Administration from the AGSM, University of New South Wales.
Committees: Member of the Nomination & Remuneration Committee and Member of
the Audit, Risk & Compliance Committee.
Sandra Margaret
Hook
Independent
Non-Executive
Director
Appointed:
1 June 2016
Sandra has a track record in driving customer-centred business transformation and
transitioning traditional organisations in rapidly evolving environments.
A former Managing Director, CEO, COO and CMO for some of Australia’s largest
media companies including NewsLifeMedia (a division of News Limited), Foxtel,
Federal Publishing Company, Murdoch Magazines and Fairfax, Sandra brings more
than 20 years’ experience as a non- executive director on listed, public and private
companies and government bodies.
Sandra is currently a director of MedAdvisor Ltd (ASX: MDR), iCollege Limited (ASX: ICT),
CRC Fight Food Waste, and the Sydney Harbour Foundation Management Ltd.
Sandra is a member of the Australia Institute of Company Directors.
Committee: Chair of the Nomination & Remuneration Committee.
53
Director
Experience, special responsibilities and other directorships
Paul Stephen Selig
Executive Director
Appointed:
10 June 2015
Paul’s career commenced in banking and treasury management before moving into
the print and marketing communications sector over 25 years ago.
He has been a director of the Company since 2012 and was appointed to IVE Group
Limited on its incorporation in 2015. Paul is an experienced director and investor,
having run the Caxton Group family office for over 15 years.
Paul is also a director of Caxton Group, Caxton Print Holdings and Caxton Property
Developments. He holds a Bachelor of Economics (Hons) from Macquarie University.
Catherine Ann Aston
Independent,
Non-Executive
Director
Appointed:
15 December 2020
Cathy is an internationally experienced executive and non-executive director across
a diverse range of sectors including telecommunications, digital, government and
financial services. Cathy has a broad commercial background with senior roles
including CEO, CFO, marketing, strategy and digital business.
Cathy is currently Chair of IMB Bank Ltd and a director of Macquarie Investment
Management Ltd (Chair of Board Audit Risk and Compliance Committee) and
Monash IVF Group Ltd (ASX:MVF). Cathy was previously a director of Integrated
Research Ltd (ASX: IRI), Virtus Health Ltd (ASX: VRT) and Over The Wire Ltd (ASX: OTW).
Cathy holds a Bachelor of Economics from Macquarie University and a Master of
Commerce from the University of NSW. Cathy is a Senior Fellow of the Financial
Services Institute of Australasia and a member of the Australian Institute of
Company Directors.
Committee: Chair of the Audit, Risk & Compliance Committee.
Andrew Peter
George Bird
Independent,
Non-Executive
Director
Appointed:
1 April 2022
Andrew has extensive financial, operational and strategic experience acquired
from a 30-year executive career in consulting, strategy, digital and investment roles
primarily in Australia.
Following the earlier part of his career in management consulting with Booz, Allen
and Hamilton, Andrew joined CCH, a multi-national listed publishing company
and ran one of their business units in Australia. In 1997, Andrew co-founded Aspect
Huntley which was acquired by Morningstar in 2006 and Andrew was appointed
CEO for Australia and New Zealand. In 2010, Andrew established his own family
investment firm with a focus on private equity and early-stage investments in
technology and information businesses.
Andrew is currently the Chair of Sharesight Limited and a Director of LegalVision.
Andrew holds a Bachelor of Arts from Williams College in Massachusetts, USA and
an MBA from INSEAD Business School in Fontainebleau, France.
Committees: Member of the Audit, Risk & Compliance Committee, commenced
25 June 2024. Member of the Nomination & Remuneration Committee, ceased
25 June 2024.
Matthew Aitken
Managing Director
Appointed:
1 June 2024
Matt has led IVE Group since 2019 and has been with the Group for 26 years. Prior to
joining IVE, Matt’s background was in marketing, data and advertising having worked
for Westpac (New Zealand) before taking on a senior role in data and technology
consulting. Matt eventually established the Sydney office of a New Zealand based
advertising agency that was subsequently acquired by IVE Group.
Matt has been Chair of several industry associations and is currently President
of Cronulla Surf Lifesaving Club.
Matt holds a Bachelor of Arts from Victoria University in Wellington, New Zealand.
54 | IVE Group Limited Annual Report 2024
Directors’ Report
Meetings of Directors
The number of directors’ meetings (including meetings of committees of directors) and number of meetings
attended by each of the directors of the Company during the financial year are:
Board
Audit, Risk &
Compliance
Committee (ARCC)
Nomination &
Remuneration
Committee (NRC)
Other Committees
Eligible
Attended
Eligible
Attended
Eligible
Attended
Eligible
Attended
Geoff Selig1
11
10
-
33
-
43
2
2
James Todd
14
14
4
4
-
43
-
-
Gavin Bell
14
14
4
4
4
4
-
-
Sandra Hook
14
14
-
43
4
4
-
-
Paul Selig
14
13
-
43
-
43
-
-
Cathy Aston
14
14
4
4
-
43
2
2
Andrew Bird
14
13
-
43
4
4
-
-
Matt Aitken2
1
144
-
43
-
43
-
23
1. Geoff Selig passed away on 5 May 2024.
2. Matt Aitken became a member of the Board on 1 June 2024.
3. Attended as an invitee.
4. Matt Aitken attended 13 board meetings as an invitee (prior to his appointment as Managing Director).
Company Secretaries
Sarah Prince
Sarah was appointed as joint Company Secretary
on 25 November 2020. Sarah is an experienced
Company Secretary and has worked with ASX-
listed entities in the biotech, technology, managed
funds, legal and mining and resources industries.
Sarah holds a Bachelor of Arts, Bachelor of Laws
and a Graduate Diploma of Applied Corporate
Governance. Sarah is a Fellow of The Governance
Institute of Australia and is admitted as a Solicitor
of the Supreme Court of New South Wales.
Darren Dunkley
Darren has been the Chief Financial Officer (CFO) of
the Group since 2012 and has been with IVE Group
for over 15 years. He has over 25 years of experience
with a range of blue-chip companies including Sharp
Corporation, ANZ Banking Group and Nashua
Australia. Darren has a Bachelor of Commerce
majoring in Accounting from the University of
Western Sydney and is a CPA.
Directors’ interest and benefits
The relevant interests of each director in the shares
of the Company as at the date of this report are
disclosed in the Remuneration Report on page 56.
Environmental regulation
The Group’s operation is not subject to any
significant environmental regulations under either
Commonwealth or State legislation. However,
the Board believes that the Group has adequate
systems in place for the management of its
environmental requirements and is not aware of any
breach of those environmental requirements as they
may apply to the Group during the period covered by
this report.
55
Events subsequent to reporting date
There has not arisen in the interval between the end
of the financial year and the date of this report any
item, transaction or event of a material and unusual
nature likely, in the opinion of the directors of the
Company, to affect significantly the operations of
the Group, the results of those operations, or the
state of affairs of the Group, in future financial
years.
Likely developments
Information about likely developments in the
operations of the Group and the expected results of
those operations in future financial years has not
been included in this report because disclosure of the
information would be likely to result in unreasonable
prejudice to the Group.
Indemnification and insurance of
officers
During the financial year, the Group paid a premium
insuring the directors of the Group, the company
secretaries, and executive officers to the extent
permitted by the Corporations Act 2001.
The Group indemnified its directors and company
secretaries to the extent permitted by law against a
liability incurred.
Indemnification and insurance of
auditor
During or since the end of the financial year the
Group has not indemnified or made a relevant
agreement to indemnify the auditor of the Group
against a liability incurred as the auditor. In
addition, the Group has not paid, or agreed to pay, a
premium in respect of a contract insuring against a
liability incurred by the auditor.
Insurance premiums
During the financial year the Company has paid
premiums in respect of directors’ and officers’
liability insurance contracts for the year ended 30
June 2024. In addition, since the financial year, the
Company paid or agreed to pay premiums in respect
of such insurance contracts for the year ending 30
June 2025. Such insurance contracts insure against
certain liability (subject to specific exclusions) for
persons who are or have been directors or executive
officers of the Company.
The directors have not included details of the
nature of the liabilities covered or the amount
of the premiums paid in respect of the directors’
and officers’ liability insurance contracts, as such
disclosure is prohibited under the terms of the
contract.
56 | IVE Group Limited Annual Report 2024
Directors’ Report
The remuneration report contains the following
sections:
> Introduction
> Persons covered by this report
> Overview of the remuneration framework for
Executive KMP
> Linking reward and performance
> Grant of Performance Share Rights and the
Long‑Term Incentive Plan
> Non-Executive Director remuneration framework
> Contractual arrangements with Executive KMP
> Details of remuneration for KMP
> Rights granted to Executive KMP
> Director and Executive KMP shareholdings
> Other statutory disclosures
Introduction
This Remuneration Report (Report), which has been
audited, describes the Key Management Personnel
(KMP) remuneration arrangements for the 12 months
ended 30 June 2024 for IVE Group, in accordance
with the Corporations Act 2001 (Cth) (Corporations
Act) and its regulations.
The Report is designed to provide shareholders
with an understanding of IVE Group’s remuneration
philosophy and the link between this philosophy and
IVE Group’s strategy and performance.
The Board is committed to having remuneration
policies and practices which are designed to
ensure remuneration is equitable, competitive and
reasonable to attract and retain key talent who
are critical to IVE Group’s business success, align
with long-term interests of the Company and its
shareholders, and to ensure that any incentives
do not reward conduct that is contrary to the
Company’s values or risk appetite. IVE Group
aligns remuneration to strategies and business
objectives and provides a balance between fixed
and variable rewards to ensure that rewards are
given for performance. Remuneration structures are
designed to be transparent to employees and other
stakeholders and easily understood. In addition,
the remuneration framework is designed to be
acceptable to shareholders by being consistent with
market practice and creating value for shareholders.
Following the post-COVID economic rebound, the
Australian economy experienced a gradual but
progressive economic slowdown across the 2024
financial year (FY24) as the significant prior year
interest rate increases coupled with cost-of-living
pressures impacted upon consumer sentiment and
spending. While revenue was adversely impacted in
some parts of the business, particularly during the
second half, commercial initiatives coupled with
input price relief and operating leverage associated
with the Ovato acquisition underpinned strong
margin expansion.
The Company’s strong financial and non-financial
performance and the overall performance of the
leadership team is reflected in the remuneration
outcomes for FY24.
The Company reported underlying EBITDA of
$127.8m which compares favourably to FY23
EBITDA of $119.0m and resulted in the target for
the payment of the key financial component of
the FY24 Short-Term Incentive (STI) being largely
achieved. Performance against non-financial
remuneration measures and the overall performance
of the company was also strong and resulted in the
payment of 91.0% of the STI to each of the Executive
Chairman, the CEO and the CFO.
The FY22 Long-Term Incentive (LTI) grant reached
the end of its three-year performance period
on 30 June 2024. Any shares vesting in relation
to this period will vest after the end of the 2024
financial year. The three-year EPS CAGR hurdle was
met. Accordingly, 100% of this tranche of the LTI
shares will vest. In addition, over the performance
period IVE achieved a TSR at the 88.0th percentile.
Accordingly, 100% of the TSR tranche of the LTI
shares will vest. Details of the value of these shares
will be included in the FY25 Remuneration Report.
At the 2023 Annual General Meeting, 94.8% of the
shares voted at the meeting were cast in favour of
the adoption of the Remuneration Report for the
year ended 30 June 2023.
The Board will continue to review the effectiveness
of the Company’s remuneration practices to ensure
they are appropriately benchmarked and they
align with strategic performance objectives, to
appropriately reward its executives and deliver
shareholder value.
The Board considers that the members of the
Nomination and Remuneration Committee (NRC)
possess the necessary expertise and independence
to fulfil their responsibilities and are able to access
independent experts in remuneration for advice should
this be required. The governance processes in relation
to remuneration are working effectively and the Board
trusts that shareholders find this Report useful and
informative.
Remuneration
report
57
Despite a gradually softening economy as the
year progressed, as outlined in the Operating and
Financial Review, the FY24 financial performance
was underpinned by a solid and broadly based
underlying business performance coupled with the
further emergence of Ovato integration synergies.
The Board believes that the remuneration outcomes
for the Executive KMP for the 2024 financial year
reflect this and satisfy the goals of the remuneration
framework.
Looking forward, the Board plans to encourage
greater equity ownership among KMP, senior
executives and directors, including minimum
shareholding requirements, to better align with
shareholder interests. Details of these changes will
be included in the FY25 remuneration report.
Overview of the remuneration
framework for Executive KMP
The objective of IVE Group’s remuneration philosophy
is to ensure Executive KMP are rewarded for
business performance and retained to continue to
grow the business. The objectives underpinning the
remuneration philosophy are that remuneration will:
> Be competitive and reasonable to attract and retain
key talent (which is key to IVE Group’s success);
> Align to IVE Group’s strategies and business
objectives;
> Provide a balance between fixed and variable
rewards;
> Be transparent and easily understood; and
> Be acceptable to shareholders.
Persons covered by this report
This report covers Non-Executive Directors and Executive KMP (collectively KMP) and includes:
Role
Non-Executive Directors
James Todd
Independent Non-Executive Director
(Chairman effective 1 June 2024)
Gavin Bell
Independent Non-Executive Director
Sandra Hook
Independent Non-Executive Director
Catherine (Cathy) Aston
Independent Non-Executive Director
Andrew Bird
Independent Non-Executive Director
Executive KMP
Geoff Selig
Executive Chairman
(Passed away 5 May 2024)
Paul Selig
Executive Director
Matthew (Matt) Aitken
Chief Executive Officer
(Managing Director effective 1 June 2024)
Darren Dunkley
Chief Financial Officer & Company Secretary
58 | IVE Group Limited Annual Report 2024
Directors’ Report
Governance
IVE Group established the NRC to assist the Board
with its remuneration responsibilities, including
reviewing and recommending to the Board for
approval, arrangements for executives, Executive
Directors and Non-Executive Directors. The NRC
has three members, all of whom are independent,
including an independent committee chair. The
members of the NRC have appropriate qualifications
and experience to enable the NRC to fulfil its role.
During the year, Gavin Bell stepped down from his
role as NRC Chair and Sandra Hook was appointed
to the role.
At the time of listing, the Board also appointed
Gavin Bell as the Lead Independent Director to fulfil
the role of chair whenever the Executive Chairman
was conflicted and to assist in reviewing the
Executive Chairman’s performance as part of the
Board performance evaluation process. Following
Geoff Selig’s passing and the appointment of
James Todd as independent non-executive Chair
of the Board effective 1 June 2024, the role of Lead
Independent Director is no longer required.
External remuneration consultants
The Terms of Reference for the NRC requires that any
remuneration consultants engaged be appointed by
the NRC. No remuneration consultants were engaged
in FY24.
Any advice that may be received from remuneration
consultants in future will be carefully considered by
the NRC to ensure it is given free of undue influence
by IVE Group executives.
Structure of Remuneration
The remuneration framework for Executive KMP
includes both fixed and performance-based pay.
Fixed remuneration
Fixed remuneration is set using a combination
of historical levels and sector comparisons.
Fixed remuneration includes base pay, statutory
contributions for superannuation and non-monetary
benefits. Paying Executive KMP the right fixed
remuneration is a key tool in attracting and retaining
the best talent.
The NRC reviews the fixed remuneration of Executive
KMP on an annual basis. No changes were made
to the fixed remuneration for KMP during FY24,
however, for FY25 the NRC has recommended an
increase in the fixed remuneration of Matt Aitken
to $800,000 (from $700,000) and Darren Dunkley
to $585,000 (from $529,990). The increase in Matt
Aitken’s fixed remuneration reflects his appointment
as Managing Director including the assumption of
some responsibilities previously undertaken by the
Executive Chairman.
Fixed remuneration was the major component of
the Executive Chairman’s remuneration. Through
his family arrangements, he had an interest in a
substantial shareholding in the Company. This
provided significant alignment with shareholders’
experience.
Short-Term Incentive (STI)
The NRC reviews the achievement of STI targets at
the end of each year and sets STI targets for the
following year. The STI is the main tool for rewarding
the current year’s performance of the business.
In FY24, Executive KMP (excluding Paul Selig) were
eligible to receive an STI payment of between 25.1%
and 57.1% of fixed remuneration. The STI is a cash
incentive payment and full payment is conditional
on achievement of the following:
> The key financial performance target for the
Group, specifically, Earnings before Interest, Tax,
Depreciation and Amortisation (EBITDA) for the
year in review;
> Individual financial and non-financial
performance targets relevant to the individual
Executive KMP which includes strategic and other
measurements. Individual measurements vary
depending on the nature and specific strategic
areas attributable to the Executive KMP to align
with the IVE Group’s strategic objectives.
The Board determines the STI payment for Executive
KMP by allocating a percentage weighting across
the above measures. At the end of the financial year,
the Board assesses the individual and collective
performance against the STI measures and retains
an overall discretion in relation to the assessment
of performance, to consider, for example, overall
performance and any changes to priorities.
59
The percentage weightings across financial and non-financial targets, and the assessed performance
achieved during FY24 for each of the KMP to whom an STI payment was made was as follows:
KMP
Group EBITDA
target
Non-financial
targets
Total STI
Target
%
Achieved
%
Target
%
Achieved
%
Target
%
Achieved
%
Geoff Selig
50.0
82.0
50.0
100.0
100.0
91.0
Matt Aitken
50.0
82.0
50.0
100.0
100.0
91.0
Darren Dunkley
50.0
82.0
50.0
100.0
100.0
91.0
On the recommendation of the NRC, the Board determined that Geoff Selig’s achieved STI be paid to his estate
as if he were in the role for the full 12 month period. In making this determination, the NRC and Board noted
that Geoff Selig had acted in his role for more than 10 months of the 12-month performance period and
considered Mr Selig’s contribution to the achievement of the target during the time prior to his death with some
achieved in full prior to his passing.
Non-financial KPIs for Executive KMP
The non-financial performance measures for the Executive KMP and the individual achievement ratings were
as follows:
Geoff Selig, Executive Chairman
Area
Percentage
weighting
Percentage
achieved
Key initiatives
25
100
M&A and growth
25
100
WHS
25
100
Investor relations
15
100
Leadership
10
100
Matt Aitken, Chief Executive Officer (Managing Director effective 1 June 2024)
Area
Percentage
weighting
Percentage
achieved
Key initiatives
45
100
M&A and growth
25
100
WHS
20
100
Investor relations
10
100
Darren Dunkley, Chief Financial Officer
Area
Percentage
weighting
Percentage
achieved
Key initiatives
50
100
M&A and growth
35
100
Investor relations
15
100
The FY24 Actual STI and FY25 maximum STI amounts for Executive KMP are shown in the table on page 61.
60 | IVE Group Limited Annual Report 2024
Directors’ Report
Long-Term Incentive (LTI)
The Board has established an LTI Plan as outlined
in prior years’ Remuneration Reports and outlined
in the section of this Report entitled ‘Share-based
remuneration’. The LTI Plan was last approved by
shareholders at IVE’s 2021 Annual General Meeting
(AGM). The LTI Plan is largely used to reward
long‑term sustainable performance.
The LTI Plan facilitates the offer of Performance
Share Rights (Rights) to key executives and the
Rights vest and convert to ordinary shares on a
one-for-one basis, subject to meeting specific
performance conditions. The current performance
conditions are:
> Relative total shareholder return (TSR);
> Compound annual earnings per share growth
based on NPAT (EPS) over a three-year
Performance Period.
There is no re-testing of performance hurdles.
The LTI Plan, including the combination of TSR and
EPS hurdles, has been designed commensurate
with IVE Group’s long-term strategic objectives so
that Executive KMP will only receive a substantial
component of LTI when there has been strong
absolute and relative performance.
The grant of Rights during FY24 to the Executive
Chairman was approved by shareholders at the
2023 AGM.
The Board has the discretion to amend the future
vesting terms and performance hurdles at the
grant of each award of Rights to ensure that they
are aligned to market practice and ensure the best
outcome for IVE Group. The Board also has the
discretion to change the LTI Plan and to determine
whether LTI grants will be made in future years.
The Board considers the level of LTI to grant each
year based on reviews of total remuneration
packages for executives.
With the level of long‑term incentives unchanged
since FY20, the NRC has recommended an increase
in Matt Aitken’s FY25 LTI grant to $400,000 (from
$200,000) and Darren Dunkley’s to $200,000
(from $150,000). The NRC believes that the issue
of long‑term equity incentivises and aligns
management’s remuneration with shareholders’
longer-term interests.
The staged approach to executive remuneration over
recent years has led to the current level of executive
remuneration which the Board feels is appropriate
in the challenging and competitive sector in
which the Group operates. All rewards, other than
fixed remuneration, are subject to achieving the
performance conditions outlined above.
Assessment of performance
Performance of Executive KMP is assessed against
the agreed non-financial and financial targets on
a regular basis. Prior to his passing, Geoff Selig, as
Executive Chairman made recommendations to the
NRC for Board approval of the amount of STI and
LTI to award (as applicable) to each KMP, other
than the Executive Chairman. Recommendations in
relation to the Executive Chairman were made by
the chair of the NRC to the NRC, for Board approval.
Going forward and in the absence of an Executive
Chairman, the Managing Director will make a
recommendation to the NRC for Board approval
regarding the STI and LTI awards for each KMP, other
than the Managing Director. The NRC assesses the
performance of the Managing Director and makes
recommendations to the Board.
The NRC assesses the actual performance of IVE
Group and the Executive Chairman against the
agreed targets and recommends the amount of the
STI and LTI (as applicable) to be paid for approval by
the Board.
61
Executive KMP remuneration – paid, vested and targets
The table below presents the STI paid and LTI granted to Executive KMP during FY23 and FY24. Further detail
on remuneration is included in the tables at the end of this Report.
All in $
STI
LTI – Number of Rights
Maximum
Actual
Granted
Vested
Geoff Selig
FY24
200,000
182,000
147,058
Not applicable
(3-year vesting)
FY23
200,000
196,400
111,111
Not applicable
(3-year vesting)
Matt Aitken
FY24
400,000
364,000
147,058
Not applicable
(3-year vesting)
FY23
300,000
294,600
111,111
Not applicable
(3-year vesting)
Darren Dunkley
FY24
180,000
163,800
110,294
Not applicable
(3-year vesting)
FY23
180,000
180,000
83,333
Not applicable
(3-year vesting)
Further detail on the value of the Rights granted is included in the tables at the end of this Report.
Proportions of fixed and variable remuneration
The Board and NRC consider annually the fixed remuneration and proportion of variable remuneration that is
dependent on performance (‘at risk’) for each Executive KMP. The relative proportions of fixed versus variable
pay (as a percentage of total remuneration) received by Executive KMP during the past two financial periods
and proposed for the next financial period are shown below.
All in $
Fixed Remuneration1
STI
LTI
FY23
Actual
FY24
Actual
FY25
Agreed
FY23
Actual
FY24
Actual
FY25
Target
FY23
Grant
FY24
Grant
FY25
Grant2
Geoff
Selig
952,000
797,900
N/A
196,400
182,000
N/A
200,000
200,000
N/A
Matt
Aitken
700,000
700,000
800,000
294,600
364,000
400,000
200,000
200,000
400,0003
Darren
Dunkley
528,991
529,990
585,000
180,000
163,800
230,000
150,000
150,000
200,000
Paul
Selig4
330,000
330,000
330,000
N/A
N/A
N/A
N/A
N/A
N/A
1. Fixed remuneration includes superannuation.
2. LTI grant is the $ value of the grant approved by the Board.
3. FY25 LTI grant for Matt Aitken is subject to shareholder approval.
4. Due to the specific nature of his role, Paul Selig does not participate in the STI or LTI Plan.
The Board uses a fair value method to determine the value of Rights issued under the LTI Plan, which was
last approved by shareholders in 2021. This is consistent with the required accounting treatment of Rights
and the basis on which the KMP remuneration arrangements were agreed. The Board recognises that some
stakeholders advocate the use of the face value method to determine the value of Rights. A face value
approach does not consider the risk that Rights may not vest and that the Rights are not entitled to dividends.
Executive KMP remuneration arrangements were agreed assuming a fair value approach. The FY25 LTI will
again use a fair valuation calculation to determine the quantity of Rights to be granted to Executive KMP.
62 | IVE Group Limited Annual Report 2024
Directors’ Report
The Board agreed that the measurement period for the fair valuation report will be based on the volume
weighted average price of the 20 trading days following the release of the Company’s full year 2024 results, as
has been done each year since 2020.
The Board believes that this will allow the market to absorb the full year results and align the fair valuation
closer to the date of grant, noting that a different valuation methodology is applied per AASB 2 share-based
payments.
If a face value method were used, the FY24 LTI grant for each of the Executive KMP would be as indicated in
the table below. The number of Rights granted under the FY25 LTI will be determined and reported in the 2025
remuneration report.
FY24 Fair Value
(No. of Rights)
FY24 Face Value1
(No. of Rights)
Geoff Selig
147,058
86,956
Matt Aitken
147,058
86,956
Darren Dunkley
110,294
65,217
Paul Selig
N/A
N/A
1. Based on the closing share price on 30 June 2023 of $2.30 per share.
Linking reward and performance
Performance indicators and link to performance
Notwithstanding the impacts of the unprecedented COVID-19 pandemic during the 2020, 2021 and
2022 financial years, IVE Group’s financial performance has been strong since listing on the ASX in
December 2015. Performance of the business is reflected in the outcome of the variable components to the
remuneration framework:
> Full STI payments are only made if Executive KMP meet agreed financial and non-financial targets for the
year in review (and the FY20 STI payment was suspended due to the impact of COVID-19); and
> LTI grants only vest if IVE Group achieves the targets set for TSR and EPS over a 3-year performance period.
Rights granted to KMP in 2020 under the FY21 LTI reached their vesting date during FY24. Of these,
1,057,691 Rights vested and nil Rights lapsed in accordance with the IVE Group Equity Incentive Plan rules
as set out below:
Total LTI
Grant FY21
60% of Rights
Earnings Per
Share Target
(EPS)
40% of Rights
Relative Total
Shareholder
Return (TSR)
Vested
Lapsed
Geoff Selig
384,615
230,769
153,846
384,615
-
Matt Aitken
384,615
230,769
153,846
384,615
-
Darren Dunkley
288,461
173,077
115,384
288,461
-
Paul Selig
N/A
N/A
N/A
N/A
N/A
1,057,691
634,615
423,076
1,057,691
-
63
The relevant performance conditions were as follows:
60% of Rights
Earnings Per Share Target (EPS)
40% of Rights
Relative Total Shareholder Return (TSR)
EPS Growth
Target 3%-5%
Performance
Share Rights
Granted
Vested
Less than 3% achieved
Nil
Company ranks below
50th percentile
Nil 50%
3%–3.99% achieved
50% vesting on
straight-line basis
Company ranks at the
50th percentile
50%
4%–4.99% achieved
75% vesting on
straight-line basis
Company ranks
between the 50th and
75th percentile
Straight-line vesting
between 50% and 100%
5% target achieved or
exceeded
100%
Company ranks at or
above 75th percentile
100%
Accumulated pro-forma EPS growth over the three-year vesting period between FY21 to FY23 exceeded the EPS
Target. Accordingly, 100% of the EPS tranche of Rights vested.
IVE Group was ranked 11th (94.38th percentile) compared to the relevant FY21 LTI peer group as at 30 June
2023. Accordingly, 100% of the TSR tranche of Rights vested.
Key financial metrics over the last five years are shown below:
FY201
FY21
FY22 Pre
AASB 16
FY22 Post
FY23
AASB 16
FY24
Revenue ($m)
677.4
656.7
759.0
759.0
967.4
969.9
EBITDA ($m)
57.3
59.3
75.1
96.6
119.0
127.8
Net profit after tax ($m)
18.5
19.9
33.4
33.1
39.7
43.0
Dividend payment
(cents per share)
0.0
14.0
16.5
16.5
18.0
18.0
Dividend payout ratio
0.0%
67%2
72%
72%
69%
65%
Share price change ($)3
(1.26)
+0.655
+0.28
+0.28
+0.58
(0.32)
NPAT EPS (cents)
12.5
13.5
23.1
23.1
26.4
28.0
NPATA EPS (cents)
15.2
16.2
25.4
25.4
28.5
30.2
The above results are prepared on an underlying continuing business basis, pre-AASB 16 for FY20 to FY22 while FY22, FY23
and FY24 are presented on a post-AASB 16 basis. Underlying continuing business basis results exclude all non-operating items
(including JobKeeper). This better reflects the underlying operating performance and is consistent with guidance.
1. FY20 revenue, EBITDA and NPAT have been updated on a continuing business basis i.e. excluding TeleFundraising for FY21
comparative purposes.
2. Dividend payout ratio is based on underlying NPAT including JobKeeper.
3. Calculated as close price on 30 June for the applicable year.
64 | IVE Group Limited Annual Report 2024
Directors’ Report
Grant of Rights and the Long-Term Incentive Plan
During the year, the Company made offers of Rights under the LTI Plan to the Senior Leadership Team with
clear performance measures.
On 30 November 2023, offers were made granting 838,235 Rights under the Senior Leadership Team Plan.
Of these, 147,058 were granted to Geoff Selig for which approval for the issue was obtained under ASX Listing
Rule 10.14 at the 2023 Annual General Meeting. These Rights vest following the release of the FY26 financial
results if specified performance conditions are met during the Performance Period which is 1 July 2023 to
30 June 2026.
In total there were 2,192,101 unvested Rights at 30 June 2024 from the FY22, FY23 and FY24 offers.
There were no offers of options during the year and there are no unvested options.
The terms of the Equity Incentive Plan which provide the framework under which the LTI grants were made in
FY23 and FY24 are as follows:
Feature
Terms of the IVE Group Equity Incentive Plan
Type of security
Rights which are an entitlement to receive fully paid ordinary IVE Group Limited
shares (as traded on the ASX) on a one-for-one basis.
Valuation
The number of Rights for each KMP is calculated by dividing the allocated value of
the LTI award for that KMP by the fair value of a Right. The fair value is calculated
using a Monte Carlo simulation approach for the Awards subject to the Relative
TSR condition and a risk neutral assumption is used the value the Awards subject to
the EPS condition.
For the Executive Chairman and Managing Director (if applicable), the LTI grant, as
recommended by the Board, will be submitted for approval by shareholders at the
relevant Annual General Meeting, as required by the ASX Listing Rules.
Performance Period
The Performance Period is the three-year period 1 July to 30 June inclusive.
Performance
Conditions
The number of Rights that may vest will be determined by reference to:
> Earnings Per Share (EPS) compound annual growth over the Performance Period.
EPS growth will be calculated as IVE Group’s Net Profit After Tax (NPAT) divided
by the undiluted weighted average shares on issue throughout the Performance
Period, using the following formula:
Year 3 EPS
EPS CAGR = 3 ( ————————––– ) — 1
Year 0 EPS
(Benchmark 1); and
> Relative Total Shareholder Return (TSR) performance of the Company in
comparison to similar companies in a peer group determined by the Board. The
peer group for the FY23 offer is the ASX Small Ordinaries Index. The TSR of each
company will be measured from the start of the Performance Period to the end of
the Performance Period (Benchmark 2);
(collectively the Performance Conditions).
Together Benchmark 1 and Benchmark 2 comprise the total Performance
Conditions but act independently relative to their specific target component of
60% and 40% of Rights, respectively.
Re-testing
There is no re-testing. Any unvested LTI after the test at the end of the Performance
Period will lapse immediately.
65
Feature
Terms of the IVE Group Equity Incentive Plan
Forfeiture
All Rights will lapse if the participant elects to cease employment with IVE Group
prior to the Conversion Date (being the date that Performance Share Rights convert
to shares).
Rights will immediately lapse if the participant is dismissed or removed from office
as an employee for any reason which entitles IVE Group to dismiss the participant
without notice or if the participant acts fraudulently, dishonestly or in breach of
their obligations to the Company.
The only exception to the lapse of Rights if for a Good Leaver reason detailed below:
> Any unvested Rights will not lapse if the participant’s employment with IVE
Group ceases due to death, ill-health, total permanent disability or sale of the
business in which they are employed.
> Rights for employees who cease employment due to death will vest in full
upon cessation.
> Rights for other good leavers will remain on foot and will be tested against the
Performance Conditions as at the Vesting Date, vesting on a pro-rata basis.
The Board has discretion to allow vesting for other reasons, such as retirement
or redundancy.
Clawback
The Board has broad ‘clawback’ powers if, amongst other things, the participant
has acted fraudulently or dishonestly, engaged in gross misconduct or has acted
in a manner that has brought the Company into disrepute, or there is a material
financial misstatement, or the Company is required or entitled under law or
company policy to reclaim remuneration from the participant, or the participant’s
entitlements vest as a result of the fraud, dishonesty or breach of obligations of
any other person and the Board is of the opinion that the incentives would not have
otherwise vested.
TSR peer group for FY24 Offer
Due to changes in the market and the lack of material numbers of useful comparator companies, the
peer group chosen for the FY24 grant are the companies included in the ASX Small Ordinaries Index at the
commencement of the performance period, being 1 July 2023.
Non-Executive Director remuneration framework
Non-Executive Directors enter into service agreements through letters of appointment which are not subject
to a fixed term. Non-Executive Directors receive a fee for their contribution as Directors. Fees are determined
with reference to the demands of the role and the responsibilities carried out by Directors. The fee setting
process also considers market levels, the need to attract high quality Directors and the size and complexity
of the Company.
Directors receive fees for their role as members of the Board and, where applicable, for additional
responsibilities. During the reporting period, Non-Executive Directors did not receive additional fees for
being Chair or a member of a Board Committee. Non-Executive Directors do not receive any variable or
performance-based remuneration. Where Directors are required to provide additional services, these are paid
on a fixed fee basis or determined on an hourly basis depending on the nature of the service. There were no
additional services provided in FY24 by Non-Executive Directors.
66 | IVE Group Limited Annual Report 2024
Directors’ Report
Effective 1 July 2023, Board remuneration increased by $5,000 per Non-Executive Director. This followed
unchanged remuneration in FY21 and FY22 and a temporary fee reduction of 50% applying to the three months
ended 30 June 2020, due to COVID-19. Upon the appointment of James Todd as independent Non‑Executive
Chair effective 1 June 2024, the remuneration payable for the role of Non-Executive Chair was resolved
by the Board to be $250,000 per annum, including superannuation. Board remuneration was otherwise
unchanged. Effective 1 August 2024, the Chair of the Audit, Risk and Compliance Committee and the Chair of
the Nomination and Remuneration Committee will each be paid an additional $15,000 per annum (inclusive
of superannuation). Other than this change, no further increase in Non-Executive Director remuneration was
approved for FY25.
The annual fees provided to Non-Executive Directors for FY24 are shown below (inclusive of superannuation):
Chair fee
Non-Executive Director fee
(effective since 1 July 2023)
Nil – Executive Chair
$250,000 – Non-Executive Chair (effective 1 June 2024)
$110,000
The total Non-Executive Director fee pool has a maximum value of $1 million per annum. The total amount
paid to Non-Executive Directors in FY24 was $550,000, being 55% of the approved fee pool. In FY25, the total
amount to be paid to Non-Executive Directors is expected to be $717,500, being almost 72% of the approved fee
pool. The increase in the quantum of the fee pool being utilised reflects the remuneration of the Non‑Executive
Chairman and the introduction of additional fees for the Chair of each standing Board Committee. There is no
intent to seek approval to increase the Non-Executive Director fee pool at the 2024 AGM.
Non-Executive Directors do not receive fees that are contingent on performance, shares in return for their
services, retirements benefits (other than statutory superannuation) or termination benefits.
Executive Directors are not remunerated separately for acting as Directors.
Directors are not required under the Constitution or any other Board policy to hold any shares in IVE Group. The
remuneration paid to Non-Executive Directors is detailed in the tables later in this Report.
Contractual arrangements with Executive KMP
Remuneration and other conditions of employment are set out in the Executive KMP’s employment contracts.
The key elements of these employment contracts are summarised below:
Name:
Title:
Terms of Agreement:
Details:
Termination:
Geoff Selig
Executive Chairman
No fixed term – subject to termination provisions detailed below
Annual remuneration includes cash salary, superannuation and non-cash
benefits Incentives – eligible to participate in short-term incentive and equity
remuneration plans
Termination – 12 months’ written notice (except in certain circumstances, such
as where committed any breach or material neglect of the material terms of his
contract of employment, or any act of serious or wilful misconduct) by Company or
employee
All payments on termination will be subject to the termination benefits cap under
the Corporations Act 2001 in the absence of shareholder approval
Post-employment – 12 months’ restraint provisions
Geoff Selig passed away on 5 May 2024
67
Name:
Title:
Terms of Agreement:
Details:
Termination:
Paul Selig
Executive Director
No fixed term – subject to termination provisions detailed below
Annual remuneration includes cash salary, superannuation and non-cash benefits
Incentives – discretionary bonus
Termination – 3 months’ written notice (except in certain circumstances, such as
where committed any breach or material neglect of the material terms of his
contract of employment, or any act of serious or wilful misconduct) by Company or
employee
All payments on termination will be subject to the termination benefits cap under
the Corporations Act 2001 in the absence of shareholder approval
Post-employment – 12 months’ restraint provisions
Name:
Title:
Terms of Agreement:
Details:
Termination:
Redundancy:
Matthew Aitken
Managing Director (appointed 1 June 2024)
Chief Executive Officer (appointed 5 August 2019)
No fixed term – subject to termination provisions detailed below
Annual remuneration includes cash salary, superannuation and non-cash benefits
Incentives – eligible to participate in short-term incentive and equity remuneration plans
Termination – 9 months’ written notice (except in certain circumstances, such as
where committed any breach or material neglect of the material terms of his
contract of employment, or any act of serious or wilful misconduct) by Company or
employee
All payments on termination will be subject to the termination benefits cap under
the Corporations Act 2001 in the absence of shareholder approval
Post-employment – 3 months’ restraint provisions
6 months’ pay in circumstance where employment is terminated due to redundancy
Name:
Title:
Terms of Agreement:
Details:
Termination:
Redundancy:
Darren Dunkley
No fixed term – subject to termination provisions detailed below
Annual remuneration includes cash salary, superannuation and non-cash benefits
Incentives – eligible to participate in short-term incentive and equity remuneration plans
Termination – 6 months’ written notice (except in certain circumstances, such as
where committed any breach or material neglect of the material terms of his
contract of employment, or any act of serious or wilful misconduct) by Company or
employee
All payments on termination will be subject to the termination benefits cap under
the Corporations Act 2001 in the absence of shareholder approval
Post-employment – 3 months’ restraint provisions
6 months’ pay in circumstance where employment is terminated due to redundancy
68 | IVE Group Limited Annual Report 2024
Directors’ Report
Details of remuneration for KMP
The table below provides remuneration prepared on a statutory basis for Directors and Executive KMP for the
year ended 30 June 2024 (except as noted below).
Fixed Remuneration
Variable
Remuneration
Name
Year
Cash,
salary
and fees1
Super-
annuation
Short-term
incentive
Fair value
of LTI
award2
Total
Total
performance
related
Percentage
performance
related
Executive Directors
Geoff Selig
2024
770,501
27,399
182,000
196,466
1,176,366
378,466
32.2%
2023
926,707
25,293
196,400
301,631
1,450,031
498,031
34.3%
Paul Selig
2024
302,601
27,399
-
-
330,000
-
0.0%
2023
304,708
25,292
-
-
330,000
-
0.0%
Non-Executive Directors
James Todd
2024
109,610
12,057
-
-
121,667
-
0.0%
2023
99,548
10,452
-
-
110,000
-
0.0%
Gavin Bell
2024
110,000
-
-
-
110,000
-
0.0%
2023
110,000
-
-
-
110,000
-
0.0%
Sandra Hook
2024
99,099
10,901
-
-
110,000
-
0.0%
2023
99,548
10,452
-
-
110,000
-
0.0%
Cathy Aston
2024
99,099
10,901
-
-
110,000
-
0.0%
2023
99,548
10,452
-
-
110,000
-
0.0%
Andrew Bird
2024
99,099
10,901
-
-
110,000
-
0.0%
2023
99,548
10,452
-
-
110,000
-
0.0%
Other Executive KMP
Matt Aitken
2024
672,601
27,399
364,000
196,466
1,260,466
560,466
44.5%
2023
674,708
25,293
294,600
301,631
1,296,232
596,231
46.0%
Darren Dunkley
2024
502,591
27,399
163,800
147,350
841,140
311,150
37.0%
2023
503,698
25,293
180,000
226,223
935,214
406,223
43.4%
1. Cash, salary and fees includes annual leave and long service leave.
2. Fair value of LTI award reflects accounting impacts during period, nil shares actually vested/paid.
69
Rights granted to Executive KMP FY24
FY24
KMP
Number of
Rights granted
in FY24
Vesting
conditions
Grant date
Fair value at
grant date
Expiry date
Geoff Selig
147,058
Relative TSR
and compound
annual EPS
growth over
3-years
11 December
2023
$200,000
After vesting
following
release of FY26
financial results
Any unvested
Rights expire
Matt Aitken
147,058
Relative TSR
and compound
annual EPS
growth over
3-years
11 December
2023
$200,000
After vesting
following
release of FY26
financial results
Any unvested
Rights expire
Darren Dunkley
110,294
Relative TSR
and compound
annual EPS
growth over
3-years
11 December
2023
$150,000
After vesting
following
release of FY26
financial results
Any unvested
Rights expire
FY23
KMP
Number of
Rights granted
in FY23
Vesting
conditions
Grant date
Fair value at
grant date
Expiry date
Geoff Selig
111,111
Relative TSR
and compound
annual EPS
growth over
3-years
16 December
2022
$200,000
After vesting
following
release of FY25
financial results
Any unvested
Rights expire
Matt Aitken
111,111
Relative TSR
and compound
annual EPS
growth over
3-years
16 December
2022
$200,000
After vesting
following
release of FY25
financial results
Any unvested
Rights expire
Darren Dunkley
83,333
Relative TSR
and compound
annual EPS
growth over
3-years
16 December
2022
$150,000
After vesting
following
release of FY25
financial results
Any unvested
Rights expire
70 | IVE Group Limited Annual Report 2024
Directors’ Report
FY22
KMP
Number of
Rights granted
in FY22
Vesting
conditions
Grant date
Fair value at
grant date
Expiry date
Geoff Selig
168,067
Relative TSR
and compound
annual EPS
growth over
3 years
10 December
2021
$200,000
After vesting
following
release of FY24
financial results
Any unvested
Rights expire
Matt Aitken
168,067
Relative TSR
and compound
annual EPS
growth over
3 years
10 December
2021
$200,000
After vesting
following
release of FY24
financial results
Any unvested
Rights expire
Darren Dunkley
126,050
Relative TSR
and compound
annual EPS
growth over
3 years
10 December
2021
$150,000
After vesting
following
release of FY24
financial results
Any unvested
Rights expire
FY21
KMP
Number of
Rights granted
in FY21
Vesting
conditions
Grant date
Fair value at
grant date
Expiry date
Geoff Selig
384,615
Relative TSR
and compound
annual EPS
growth over
3 years
25 November
2020
$200,000
384,615 shares
were issued
on vesting of
performance
Rights on
25 August 2023
Matt Aitken
384,615
Relative TSR
and compound
annual EPS
growth over
3 years
25 November
2020
$200,000
384,615 shares
were issued
on vesting of
performance
Rights on
25 August 2023
Darren Dunkley
288,461
Relative TSR
and compound
annual EPS
growth over
3 years
25 November
2020
$150,000
288,461 shares
were issued
on vesting of
performance
Rights on
25 August 2023
In total there were 2,192,101 unvested Rights at 30 June 2024 relating to KMP.
71
Director and Executive KMP shareholdings
The table below provides the number of shares in IVE Group Limited held by each Director and Executive KMP
during the period, including their related parties:
Balance at
30 June 2023
Shares received
during the period
on exercise of
Rights
Shares
acquired
Shares
disposed
Balance at
30 June 2024
Executive Directors
Geoff Selig,
Executive Chairman1
8,367,263
384,615
-
5,391,6472
3,360,231
Paul Selig1
8,410,231
-
-
5,000,0002
3,410,231
Non-Executive Directors
James Todd
122,336
-
-
122,336
Gavin Bell
122,967
-
-
122,967
Sandra Hook
21,808
-
-
21,808
Catherine (Cathy) Aston
7,223
-
-
7,223
Andrew Bird
407,053
43,597
-
450,650
Executive KMP
Matt Aitken
Managing Director
(effective 1 June 2024)
7,532
384,615
-
391,647
500
Darren Dunkley
CFO & Company Secretary
27,770
288,461
-
265,000
51,231
1. Geoff Selig and Paul Selig are each beneficiaries of the Selig Family Trust No. 5, the trustee of which holds 3,360,231 shares.
2. The Selig Family Trust No. 5 disposed of 5,000,000 shares on 24 November 2023.
Other statutory disclosures
Loans to directors and executives
No loans were made to directors and executives of IVE Group Limited including their close family and entities
related to them during the year.
Shares under option
There were no unissued ordinary shares of IVE Group Limited under option outstanding at the date of this report.
Shares under Rights
There were no unissued ordinary shares of IVE Group Limited under Rights outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of IVE Group Limited issued on the exercise of options during the year ended
30 June 2024 and up to the date of this report.
Shares issued on the exercise of Performance Share Rights
1,884,613 Rights vested during the year and 1,884,613 shares were issued on exercise of Rights during the year.
This concludes the remuneration report, which has been audited.
72 | IVE Group Limited Annual Report 2024
Directors’ Report
Non-audit services
The Directors are satisfied that:
1. the non-audit services provided during the
financial year by KPMG as the external auditor
were compatible with the general standard
of independence for auditors imposed by the
Act; and
2. any non-audit services provided during the
financial year by KPMG as the external auditor
did not compromise the auditor independence
requirements of the Act for the following reasons:
a) all non-audit services are subject to
corporate governance procedures adopted
by the Group and have been reviewed by
those charged with governance throughout
the year to ensure they do not impact the
integrity and objectivity of the auditor; and
b) the nature of the services provided do not
undermine the general principles relating
to audit independence in accordance with
APES 110: Code of Ethics for Professional
Accountants, as they did not involve
reviewing or auditing the auditor’s
own work, acting in a management or
decision-making capacity for the Group,
acting as an advocate to the Group or jointly
sharing the risks and rewards.
Details of the amounts paid to the auditor of the
Group, KPMG, for audit and non-audit services
provided during the year are set out in Note 33 of the
Financial Report.
Lead auditor’s independence
declaration
The Lead auditor’s independence declaration is
set out on page 73 and forms part of the directors’
report for the financial year ended 30 June 2024.
Rounding
The Group is of a kind referred to in ASIC
Corporations Instrument 2016/191 dated 24 March
2016 and in accordance with that Instrument,
amounts in the consolidated financial statements
and directors’ report have been rounded off to the
nearest thousand dollars, unless otherwise stated.
This report is made in accordance with a resolution
of the directors:
James Todd
Chairman
Dated at Sydney this 26th day of August 2024
73
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of IVE Group Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of IVE Group Limited for
the financial year ended 30 June 2024 there have been:
i.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
KPM_INI_01
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
KPMG
Daniel Camilleri
Partner
Sydney
26 August 2024
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
Financial
report
for the year ended 30 June 2024
74 | IVE Group Limited Annual Report 2024
Consolidated Financial Statements
Consolidated statement of profit or loss and other comprehensive income
76
Consolidated statement of financial position
77
Consolidated statement of changes in equity
78
Consolidated statement of cash flows
79
Notes to the Consolidated Financial Statements
1. Reporting entity
80
2. Basis of preparation
80
3. Material accounting policies
81
4. Revenue
90
5. Other income
90
6. Personnel expenses
90
7. Expenses
91
8. Net finance costs
91
9. Taxes
91
10. Cash and cash equivalents
94
11. Trade and other receivables
95
12. Inventories
95
13. Assets held for sale
95
14. Property, plant and equipment
96
15. Leases
97
16. Intangible assets and goodwill
99
17. Other assets
100
18. Trade and other payables
101
19. Loans and borrowings
101
20. Employee benefits
101
21. Provisions
102
22. Other liabilities
102
23. Share-based payments
103
24. Capital and reserves
104
25. Earnings per share
105
26. Acquisitions
106
27. Operating segments
107
28. Financial risk management and
financial instruments
107
29. Capital commitments
112
30. Related parties
113
31. Group entities
114
32. Parent entity disclosures
115
33. Auditors’ remuneration
116
34. Deed of cross guarantee
116
35. Restatement
119
36. Subsequent events
119
Consolidated entity disclosure statement 120
Directors’ declaration
121
Independent auditor’s report
122
ASX additional information
127
75
The notes on pages 80 to 119 are an integral part of these consolidated financial statements.
76 | IVE Group Limited Annual Report 2024
Financial Report
The notes on pages 80 to 119 are an integral part of these consolidated financial statements.
Consolidated statement of profit or loss and other
comprehensive income
For the year ended 30 June 2024
In thousands of AUD
Note
2024
2023
Revenue
4
972,821
970,212
Cost of sales
(518,355)
(532,804)
Gross profit
454,466
437,408
Other income
5
11
2,834
Production expenses
(221,121)
(222,882)
Administrative expenses
(160,135)
(148,931)
Other expenses
(16,050)
(30,779)
Results from operating activities
57,171
37,650
Finance income
859
460
Finance costs
(18,314)
(13,767)
Net finance costs
8
(17,455)
(13,307)
Profit before tax
39,716
24,343
Income tax expense
9
(12,111)
(7,195)
Profit for the year
27,605
17,148
Other comprehensive income
Items that are or may be reclassified to profit or loss
Cash flow hedges – effective portion of changes in
fair value (net of tax)
(197)
(274)
Cash flow hedges – reclassified to profit or loss
(net of tax)
369
369
Net exchange differences on translation of foreign
operations
(54)
(73)
Total other comprehensive income
118
22
Total comprehensive income for the year
27,723
17,170
Profit attributable to:
Owners of the Company
27,605
17,148
Profit for the year
27,605
17,148
Total comprehensive income attributable to:
Owners of the Company
27,723
17,170
Total comprehensive income for the year
27,273
17,170
Earnings per share
Basic earnings per share (cents)
25
18.0
11.4
Diluted earnings per share (cents)
25
17.8
11.2
77
The notes on pages 80 to 119 are an integral part of these consolidated financial statements.
Consolidated statement of financial position
As at 30 June 2024
In thousands of AUD
Note
2024
2023
Restated*
Assets
Cash and cash equivalents
10
48,760
44,860
Trade and other receivables
11
140,621
137,243
Inventories
12
80,459
98,724
Prepayments
4,771
5,151
Assets held for sale
13
-
1,056
Current tax receivable
-
1,154
Other current assets
17
2,016
4,211
Total current assets
276,627
292,399
Deferred tax assets
9
15,457
19,268
Trade and other receivables
11
-
160
Property, plant and equipment
14
111,640
106,983
Right-of-use assets
15
105,477
122,195
Intangible assets and goodwill
16
155,058
133,555
Other non-current assets
17
570
718
Total non-current assets
388,202
382,879
Total assets
664,829
675,278
Liabilities
Trade and other payables
18
119,106
118,864
Lease liabilities
32,307
36,683
Loans and borrowings
19
2,966
3,608
Employee benefits
20
28,101
30,989
Current tax payable
1,954
-
Provisions
21
2,113
6,476
Other current liabilities
22
13,667
10,907
Total current liabilities
200,214
207,527
Loans and borrowings
19
170,810
157,236
Lease liabilities
84,848
102,395
Employee benefits
20
7,936
7,672
Provisions
21
5,442
6,720
Other non-current liabilities
22
1,000
170
Total non-current liabilities
270,036
274,193
Total liabilities
470,250
481,720
Net assets
194,579
193,558
Equity
Share capital
24
167,664
167,664
Reserves
24
3,921
2,789
Retained earnings
22,994
23,105
Total equity
194,579
193,558
*Refer to Note 35 on Restatement.
78 | IVE Group Limited Annual Report 2024
Financial Report
The notes on pages 80 to 119 are an integral part of these consolidated financial statements.
In thousands of AUD
Note
Share
capital
Share-
based
payment
reserve
Other
Reserves
Retained
earnings
Total
equity
Balance at 1 July 2022
148,878
1,978
(171)
31,887
182,572
Total comprehensive income for the year
Profit for the year
-
-
-
17,148
17,148
Other comprehensive income
-
-
22
-
22
Total comprehensive income for the year
-
-
22
17,148
17,170
Transactions with owners of the Company
Performance share rights
23
-
960
-
-
960
Proceeds from share issue
(net of transaction costs and tax)
24
18,786
-
-
-
18,786
Dividends to owners of the Company
24
-
-
-
(25,930)
(25,930)
Total transactions with owners
of the Company
18,786
960
-
(25,930)
(6,184)
Balance at 30 June 2023
167,664
2,938
(149)
23,105
193,558
Balance at 1 July 2023
167,664
2,938
(149)
23,105
193,558
Total comprehensive income for the year
Profit for the year
-
-
-
27,605
27,605
Other comprehensive income
-
-
118
-
118
Total comprehensive income for the year
-
-
118
27,605
27,723
Transactions with owners of the Company
Performance share rights
23
-
1,014
-
-
1,014
Dividends to owners of the Company
24
-
-
-
(27,716)
(27,716)
Total transactions with owners
of the company
-
1,014
-
(27,716)
(26,702)
Balance at 30 June 2024
167,664
3,952
(31)
22,994
194,579
Consolidated statement of changes in equity
for the year ended 30 June 2024
79
The notes on pages 80 to 119 are an integral part of these consolidated financial statements.
Consolidated statement of cash flows
for the year ended 30 June 2024
In thousands of AUD
Note
2024
2023
Cash flows from operating activities
Cash receipts from customers
1,074,421
1,050,451
Cash paid to suppliers and employees
(934,763)
(980,557)
Cash generated from operating activities
139,658
69,894
Interest received
859
460
Interest paid
(11,362)
(7,079)
Income tax paid
(8,327)
(14,844)
Payment of restructure costs
(18,739)
(25,203)
Net cash from operating activities
10
102,089
23,228
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment
984
380
Proceeds from disposal of assets held for sale
1,191
2,135
Acquisition of property, plant and equipment
and intangible assets
(14,743)
(11,367)
Acquisitions of businesses
(net of cash and transactions costs)
26
(29,395)
(15,730)
Payment for contingent consideration
(1,086)
(893)
Net cash used in investing activities
(43,049)
(25,475)
Cash flows from financing activities
Proceeds from bank loans
50,000
30,000
Repayment of loans and borrowings
(39,366)
(3,926)
Transaction costs on refinancing bank loans
-
(378)
Dividends paid
(27,716)
(25,930)
Payment of lease liabilities
(38,040)
(38,323)
Proceeds from issue of share capital
(net of transaction costs)
-
18,557
Net cash used in financing activities
(55,122)
(20,000)
Net (decrease)/increase in cash and cash equivalents
3,918
(22,247)
Effects of foreign currency translation
(18)
72
Cash and cash equivalents at beginning of year
44,860
67,035
Cash and cash equivalents at end of year
48,760
44,860
1. Reporting entity
IVE Group Limited (the ultimate parent entity or the
Company) is a company domiciled in Australia.
Its registered address is Level 3, 35 Clarence Street,
Sydney NSW 2000.
This consolidated financial report as at and for the
year ended 30 June 2024 comprises the Company
and its subsidiaries (IVE or Group).
The Group is a for-profit entity. The Group is primary
involved in:
> Conceptual and creative design across print,
mobile and interactive media;
> Printing and distribution of catalogues,
magazines, marketing and corporate
communications materials and stationery;
> Manufacturing of point of sale display material
and large format banners for retail applications;
> Fibre-based packaging;
> Personalised communications including marketing
automation, marketing mail, publication mail,
eCommunications, and multi-channel solutions;
> Data analytics, customer experience strategy,
and CRM; and
> Outsourced communications solutions for
large organisations including development of
customised multi-channel management models
covering creative and digital services, supply
chain optimisation, inventory management,
warehousing and logistics.
The Group services all major industry sectors in
Australia including financial services, publishing,
retail, communications, property, clubs and
associations, not-for-profit, utilities, manufacturing,
education and government.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements are general
purpose financial statements which have been
prepared in accordance with Australian Accounting
Standards (AASBs) adopted by the Australian
Accounting Standards Board (AASB) and the
Corporations Act 2001. The consolidated financial
statements comply with International Financial
Reporting Standards (IFRSs) adopted by the
International Accounting Standards Board (IASB).
The consolidated financial statements were
authorised for issue by the Board of Directors on
26 August 2024. Details of the Group’s accounting
policies is included in Note 3.
(b) Functional and presentation currency
These consolidated financial statements are
presented in Australian dollars, which is the
Company’s functional currency.
The Company is of a kind referred to in ASIC
Corporations Instrument 2016/191 dated 24 March
2016, and in accordance with that Instrument,
all financial information presented in Australian
dollars has been rounded to the nearest thousand
unless otherwise stated. Where applicable certain
comparative figures have been reclassified to align
with current period presentation.
(c) Use of estimates and judgements
In preparing these consolidated financial
statements, management has made judgements,
estimates and assumptions that affect the
application of accounting policies and the reported
amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
The significant judgements made by management
in applying the Group’s accounting policies and the
key sources of estimation uncertainty were the same
as those that applied to the consolidated financial
statements for the year ended 30 June 2023.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised prospectively.
(i) Judgements
Information about judgements made in applying
the Group’s accounting policies that have the most
significant effects on the amounts recognised in the
consolidated financial statements is included in
the following notes:
> Note 3(e) & (f) – estimation of useful lives of assets;
> Note 3(k) – provisions;
> Note 28 – Level 2 and 3 fair values of equity
securities, and forward exchange contracts; and
> Note 15 – lease term: whether the Group is
reasonably certain to exercise extension options.
(ii) Assumptions and estimation uncertainties
Information about assumptions and estimation
uncertainties that have a significant risk of resulting
in a material adjustment within the next financial
year is included in the following notes:
> Note 3(i)(ii) & 16 – impairment testing for cash
generating units containing goodwill
> Note 26 – acquisitions: fair value measured on a
provisional basis; and
> Note 28 – measurement of Expected Credit Loss
(ECL) allowance on trade receivables.
Notes to the consolidated financial statements
For the year ended 30 June 2023
80 | IVE Group Limited Annual Report 2024
Financial Report
Measurement of fair values
When measuring the fair value of an asset or a
liability, the group uses market observable data if
possible. Fair values are categorised into different
levels in a fair value hierarchy based on the inputs
used in the valuation techniques as follows:
> Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.
> Level 2: inputs other than quoted prices included
within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
> Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).
3. Material accounting policies
The accounting policies set out below have been
applied consistently during the period presented
in these consolidated financial statements, and
have been applied consistently by all entities in the
Group, except for the adoption of new accounting
standards (see Note 3(s)).
(a) Basis of consolidation
(i) Business combinations
The Group accounts for business combinations using
the acquisition method when control is transferred
to the Group. The consideration transferred in
the acquisition is generally measured at fair
value, as are the identifiable net assets acquired.
Any goodwill that arises is tested annually for
impairment. Any gain on a bargain purchase is
recognised in profit or loss immediately. Transaction
costs are expensed as incurred, except those related
to the issue of debt or equity securities.
The consideration transferred does not include
amounts related to the settlement of pre-exiting
relationships. Such amounts are generally
recognised in profit or loss.
ny contingent consideration is measured at fair
value at the date of acquisition, with subsequent
changes in the fair value of the contingent
consideration recognised in profit or loss.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. The
Group controls an entity when it is exposed to, or
has rights to, variable returns from its involvement
with the entity and has the ability to affect those
returns through its power over the entity. The
financial statements of subsidiaries are included in
the consolidated financial statements from the date
on which control commences until the date on which
control ceases.
(iii) Transactions eliminated on consolidation
Intra-group balances and transactions, and any
unrealised income and expenses arising from intra-
group transactions, are eliminated in preparing the
consolidated financial statements.
(b) Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated
to the functional currency of the Group (Australian
dollars) at exchange rates at the dates of the
transactions. Monetary assets and liabilities
denominated in foreign currencies are translated to
the functional currency at the exchange rate at the
reporting date.
Foreign currency differences arising on retranslation
are recognised in profit or loss.
(c) Financial instruments
(i) Recognition and initial measurement
Trade receivables and debt securities issued are
initially recognised when they are originated. All
other financial assets and financial liabilities are
initially recognised when the Group becomes a party
to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable
without a significant financing component) or
financial liability is initially measured at fair
value plus or minus, for an item not at fair value
through profit and loss (FVTPL), transaction costs
that are directly attributable to its acquisition
or issue. A trade receivable without a significant
financing component is initially measured at the
transaction price.
(ii) Classification and subsequent measurement
The Group classifies its financial instruments in the
following measurement categories: at amortised
cost, at fair value through profit and loss (FVTPL)
and at fair value through other comprehensive
income (FVOCI).
Financial assets are not reclassified subsequent to
their initial recognition unless the Group changes
its business model for managing financial assets,
in which case all affected financial assets are
reclassified on the first day of the first reporting
period following the change in the business model.
A financial asset is measured at amortised cost if
it meets both of the following conditions and is not
designated as at FVTPL:
81
Notes to the consolidated financial statements – continued
> It is held within a business model whose objective
is to hold assets to collect contractual cash
flows; and
> Its contractual terms give rise on a specified dates
to cash flow that are solely payments of principal
and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it
meets both of the following conditions and is not
designated as at FVTPL:
> It is held within a business model whose objective
is achieved by both collecting contractual cash
flows and selling financial assets; and
> Its contractual terms give rise on specified dates
to cash flow that are solely payments of principal
and interest on the principal amount outstanding.
On initial recognition of an equity investment that is
not held for trading, the Group may irrevocably elect
to present subsequent changes in the investment’s
fair value in OCI. This election is made on an
investment-by-investment basis.
All financial assets not classified as measured at
amortised cost or FVOCI as described above are
measured at FVTPL. This includes all derivative
financial assets. On initial recognition, the Group
may irrevocably designate a financial asset that
otherwise meets the requirements to be measured
at amortised cost or at FVOCI as at FVTPL if doing
so eliminates or significantly reduces an accounting
mismatch that would otherwise arise.
Financial assets at amortised costs
These assets are subsequently measured at
amortised cost using the effective interest method.
The amortised cost is reduced by impairment losses.
Interest income, foreign exchange gains and losses
and impairment are recognised in profit or loss. Any
gain or loss on derecognition is recognised in profit
or loss.
Financial liabilities – Classification, subsequent
measurement and gains and losses
Financial liabilities are classified as measured
at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for-
trading, it is a derivative or it is designated as such
on initial recognition. Financial liabilities at FVTPL
are measured at fair value and net gains and losses,
including any interest expense, are recognised
in profit and loss. Other financial liabilities are
subsequently measured at amortised cost using
the effective interest method. Interest expense and
foreign exchange gains and losses are recognised
in profit or loss. Any gain or loss on derecognition is
also recognised in profit or loss.
(iii) Derecognition
Financial assets
The Group derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to
receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards
of ownership of the financial asset are transferred
or in which the Group neither transfers nor retains
substantially all of the risks and rewards of
ownership and it does not retain control of the
financial asset.
The Group enters into transactions whereby
it transfers assets recognised in its statement
of financial position but retains either all or
substantially all of the risks and rewards of the
transferred assets. In these cases, the transferred
assets are not derecognised.
Financial liabilities
The Group derecognises a financial liability when its
contractual obligations are discharged or cancelled
or expire. The Group also derecognises a financial
liability when its terms are modified and the cash
flows of the modified liability are substantially
different, in which case a new financial liability
based on the modified terms is recognised at
fair value.
On derecognition of a financial liability, the
difference between the carrying amount
extinguished and the consideration paid (including
any non-cash assets transferred or liabilities
assumed) is recognised in profit or loss.
(iv) Offsetting
Financial asset and financial liabilities are offset
and the net amount presented in the statement of
financial position when, and only when the Group
currently has a legally enforceable right to set off
the amounts and it intends either to settle them on
a net basis or to realise the asset and settle the
liability simultaneously.
(v) Derivative financial instruments and hedge
accounting
The Group may hold derivative financial instruments
to hedge its foreign currency and interest rate risk
exposures. Embedded derivatives are separated from
the host contract and accounted for separately if
the host contract is not a financial asset and certain
criteria are met.
Derivatives are initially measured at fair value.
Subsequent to initial recognition, derivatives are
3. Material accounting policies (continued)
82 | IVE Group Limited Annual Report 2024
Financial Report
measured at fair value, and changes therein are
generally recognised in profit or loss.
The Group designates certain derivatives as
hedging instruments to hedge the variability in cash
flows associated with highly probable forecast
transactions arising from changes in foreign
exchange rates and interest rates.
At inception of designated hedging relationships, the
Group documents the risk management objective
and strategy for undertaking the hedge. The Group
also documents the economic relationship between
the hedged item and the hedging instrument,
including whether the changes in cash flows of the
hedged item and hedging instrument are expected
to offset each other.
Cash flow hedges
When a derivative is designated as a cash flow
hedging instrument, the effective portion of changes
in the fair value of the derivative is recognised in
OCI and accumulated in the hedging reserve. The
effective portion of changes in the fair value of the
derivative that is recognised in OCI is limited to the
cumulative change in fair value of the hedged item,
determined on a present value basis, from inception
of the hedge. Any ineffective portion of changes
in the fair value of the derivative is recognised
immediately in profit or loss.
The Group designates only the change in fair value
of the spot element of forward exchange contracts
as the hedging instrument in cash flow hedging
relationships. The change in fair value of the forward
element of forward exchange contracts (‘forward
points’) is separately accounted for as a cost of
hedging and recognised in a costs of hedging reserve
within equity.
When the hedged forecast transaction subsequently
results in the recognition of a non-financial item
such as inventory, the amount accumulated in the
hedging reserve and the cost of hedging reserve
is included directly in the initial cost of the non-
financial item when it is recognised.
For all other hedged forecast transactions, the
amount accumulated in the hedging reserve and
the cost of hedging reserve is reclassified to profit
or loss in the same period or periods during which
the hedged expected future cash flows affect profit
or loss.
If the hedge no longer meets the criteria for hedge
accounting or the hedging instrument is sold, expires,
is terminated or is exercised, then hedge accounting
is discontinued prospectively. When hedge
accounting for cash flow hedges is discontinued,
the amount that has been accumulated in the
hedging reserve remains in equity until, for a hedge
of a transaction resulting in the recognition of a
non-financial item, it is included in the non-financial
item’s cost on its initial recognition or, for other cash
flow hedges, it is reclassified to profit or loss in the
same period or periods as the hedged expected
future cash flows affect profit or loss.
If the hedged future cash flows are no longer
expected to occur, then the amounts that have been
accumulated in the hedging reserve and the cost
of hedging reserve are immediately reclassified to
profit or loss.
(d) Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of ordinary
shares are recognised as a deduction from equity,
net of any tax effects.
(e) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are
measured at cost less accumulated depreciation
and accumulated impairment losses.
Cost includes expenditure that is directly
attributable to the acquisition of the asset.
Purchased software that is integral to the
functionality of the related equipment is capitalised
as part of that equipment.
When parts of an item of property, plant and
equipment have different useful lives, they are
accounted for as separate items of property, plant
and equipment.
Any gains and losses on disposal of an item of
property, plant and equipment (calculated as the
difference between the net proceeds from disposal
and the carrying amount of the item) are recognised
in profit or loss.
(ii) Subsequent costs
Subsequent expenditure is capitalised only when
it is probable that the future economic benefits
associated with the expenditure will flow to the
Group. Ongoing repairs and maintenance are
expensed as incurred.
(iii) Depreciation
Items of property, plant and equipment are
depreciated from the date that they are installed
and are ready for use, or in respect of internally
constructed assets, from the date that the asset is
completed and ready for use.
Depreciation is calculated to write off the cost of
property, plant and equipment less their estimated
residual values using the straight-line basis over
their estimated useful lives. Depreciation is generally
83
Notes to the consolidated financial statements – continued
recognised in profit or loss, unless the amount is
included in the carrying amount of another asset.
Leased assets are depreciated over the shorter
of the lease term and their useful lives unless it
is reasonably certain that the Group will obtain
ownership by the end of the lease term.
The estimated useful lives for the current year of
significant items of property, plant and equipment
are as follows:
> leasehold improvements shorter of lease
term and life of assets
> plant and equipment
3–20 years
> fixtures and fitting
5–10 years
> building
40 years
Depreciation methods, useful lives and residual
values are reviewed at each reporting date and
adjusted if appropriate.
(f) Intangible assets and goodwill
(i) Goodwill
Goodwill arising on the acquisition of subsidiaries
is measured at cost less accumulated
impairment losses.
(ii) Computer software and Capital work in progress
Computer software comprises acquired software
and the historical cost of development activities for
products transferred from capital works in progress
when projects/products are considered ready for
intended use. Computer software is carried at
historical cost less accumulated amortisation and
impairment losses.
(iii) Customer relationships
Customer relationships are carried at their fair
value at the date of acquisition less accumulated
amortisation and impairment losses. Amortisation
commences when the asset is ready for use.
(iv) Subsequent expenditure
Subsequent expenditure is capitalised only when
it increases the future economic benefits embodied
in the specific asset to which it relates. All other
expenditure, including expenditure on internally
generated goodwill and brands, is recognised in
profit or loss as incurred.
(v) Amortisation
Amortisation is calculated to write off the cost of
intangible assets less their estimated residual values
using the straight-line method over their estimated
useful lives, and is generally recognised in profit or
loss. Goodwill is not amortised.
The estimated useful lives are as follows:
> computer software
3–5 years
> customer relationships
5–9 years
Amortisation methods, useful lives and residual
values are reviewed at each reporting date and
adjusted if appropriate.
(g) Assets held for sale
Non-current assets, or disposal groups comprising
assets and liabilities, are classified as held for sale
if it is highly probable that they will be recovered
primarily through sale rather than through
continuing use.
Such assets, or disposal groups, are generally
measured at the lower of their carrying amount and
fair value less costs to sell. Any impairment loss on
a disposal group is allocated first to goodwill, and
then to the remaining assets and liabilities on a
pro rata basis, except that no loss is allocated to
inventories, financial assets, deferred tax assets,
employee benefit assets, investment property or
biological assets, which continue to be measured
in accordance with the Group’s other accounting
policies. Impairment losses on initial classification as
held-for-sale or held-for distribution and subsequent
gains and losses on remeasurement are recognised
in profit or loss.
Once classified as held-for-sale, intangible
assets and property, plant and equipment are no
longer amortised or depreciated, and any equity-
accounted investee is no longer equity accounted.
(h) Inventories
Inventories are measured at the lower of cost and
net realisable value. The cost of inventories is
based on the first-in, first-out principle. In the case
of manufactured inventories and work in progress,
cost includes an appropriate share of production
overheads based on normal operating capacity.
(i) Impairment
(i) Non-derivative financial assets
The Group recognises loss allowances for expected
credit loss (ECL) on financial assets measured at
amortised costs.
The Group measures loss allowance at an amount
equal to lifetime ECL.
When determining whether the credit risk of a
financial asset has increased significantly since
initial recognition and when estimating ECLs, the
Group considers reasonable and supportable
information that is relevant and available without
undue cost or effort. This includes both quantitative
3. Material accounting policies (continued)
84 | IVE Group Limited Annual Report 2024
Financial Report
and qualitative information and analysis, based on
the Group’s historical experience and informed credit
assessment including forward-looking information.
The Group assumes that the credit risk on a financial
asset has increased significantly if it is more than
90 days past due.
The Group considers a financial asset to be in
default when the debtor is unlikely to pay its credit
obligations to the Group in full, without recourse by
the Group to actions such as realising security (if any
is held).
Lifetime ECLs are the ECLs that result from all
possible default events over the expected life of a
financial instrument.
The maximum period considered when estimating
ECLs is the maximum contractual period over which
the Group is exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit
losses. Credit losses are measured as the present
values of all cash shortfalls (i.e. the difference
between the cash flows due to the entity in
accordance with the contract and the cash flows
that the Group expects to receive).
ECLs are discounted at the effective interest rate of
the financial asset.
Credit-impaired financial assets
At each reporting date, the Group assesses whether
financial assets carried at amortised cost are credit
impaired. A financial asset is ‘credit-impaired’ when
one or more events that have a detrimental impact
on the estimated future cash flows of the financial
assets have occurred.
Evidence that a financial asset is credit-impaired
includes the following observable data:
> A breach of contract such as a default or being
more than 90 days past due;
> It is probable that the debtor will enter
bankruptcy or other financial reorganisation.
Presentation of allowance for ECL in the statement
of financial position
Loss allowances for financial assets measured at
amortised cost are deducted from the gross carrying
amount of the assets.
Write-off
The gross carrying amount of a financial asset
is written off when the Group has no reasonable
expectation of recovering a financial asset in its
entirety or a portion thereof. The Group individually
makes an assessment with respect to the timing
and amount of write-off based on whether there is
a reasonable expectation of recovery. The Group
expects no significant recovery from the amount
written off. However, financial assets that are
written off could still be subject to enforcement
activities in order to comply with the Group’s
procedures for recovery of amounts due.
(ii) Non-financial assets
The carrying amounts of the Group’s non-financial
assets, other than inventories and deferred tax
assets, are reviewed at each reporting date to
determine whether there is any indication of
impairment. If any such indication exists, then the
asset’s recoverable amount is estimated. Goodwill is
tested annually for impairment.
For impairment testing, assets are grouped together
into the smallest group of assets that generates
cash inflows from continuing use that are largely
independent of the cash inflows of other assets or
cash-generating unit (CGU). Goodwill arising from a
business combination is allocated to CGUs or groups
of CGUs that are expected to benefit from the
synergies of the combination.
The recoverable amount of an asset or CGU is the
greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated future
cash flows are discounted to their present value
using a post-tax discount rate that reflects current
market assessments of the time value of money and
the risks specific to the asset.
An impairment loss is recognised if the carrying
amount of an asset or CGU exceeds its estimated
recoverable amount.
Impairment losses are recognised in profit or loss.
Impairment losses recognised in respect of CGUs
are allocated first to reduce the carrying amount
of any goodwill allocated to the CGU (group of
CGUs), and then to reduce the carrying amounts of
the other assets in the CGU (group of CGUs) on a
pro rata basis.
An impairment loss in respect of goodwill is not
reversed. For other assets, an impairment loss
is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying
amount that would have been determined, net of
depreciation or amortisation, if no impairment loss
had been recognised.
(j) Employee benefits
(i) Defined contribution plans
A defined contribution plan is a post-employment
benefit plan under which an entity pays fixed
contributions into a separate entity and will
have no legal or constructive obligation to pay
further amounts. Obligations for contributions to
85
Notes to the consolidated financial statements – continued
defined contribution pension plans are recognised
as an employee benefit expense in profit or loss
in the periods during which services are rendered
by employees.
(ii) Other long-term employee benefits
The Group’s net obligation in respect of long-
term employee benefits is the amount of future
benefit that employees have earned in return for
their service in the current and prior periods. That
benefit is discounted to determine its present value.
Remeasurements are recognised in profit or loss in
the period in which they arise.
(iii) Short-term employee benefits
Short-term employee benefits are expensed as the
related service is provided. A liability is recognised
for the amount expected to be paid if the Group has
a present legal or constructive obligation to pay
this amount as a result of past service provided by
the employee and the obligation can be estimated
reliably.
(iv) Share-based payment transactions
The grant-date fair value of equity-settled share-
based payment awards granted to employees
is generally recognised as an expense, with a
corresponding increase in equity, over the vesting
period of the awards. The amount recognised as an
expense is adjusted to reflect the number of awards
for which the related service and non-market
performance conditions are expected to be met, such
that the amount ultimately recognised is based on
the number of awards that meet the related service
and non-market performance conditions at the
vesting date. For share-based payment awards with
market and non- vesting conditions, the grant-date
fair value of the share-based payment is measured
to reflect such conditions and there is no true-up for
differences between expected and actual outcomes.
(k) Provisions
A provision is recognised if, as a result of a past
event, the Group has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are
determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market
assessments of the time value of money and the
risks specific to the liability. The unwinding of the
discount is recognised as finance cost.
(i) Restructuring
A provision for restructuring is recognised when
the Group has approved a detailed and formal
restructuring plan, and the restructuring either
has commenced or has been announced to
those affected. Future operating losses are not
provided for.
(ii) Make good provision
A make good provision is recognised when the
Group enters into a lease contract that requires the
property to be returned to the lessor in its original
condition. The provision is based on the expected
future cost of the refurbishment discounted to reflect
current market assessments.
(l) Revenue from contracts with customers
Revenue is measured based on the consideration
specified in a contract with a customer. The Group
recognises revenue at a point in time or over-time.
Recognising of revenue at a point in time
The Group recognises revenue relating to print
production and distribution when it transfers control
over a good or service to a customer. Customers
obtain control when the goods are delivered to
and have been accepted. Invoices are generated
at that point in time. Invoices are usually payable
within 30 days.
Recognising of revenue over-time
Revenue is recognised on the rendering of services
relating to print management, communications,
creative and digital services, supply chain
optimisation, inventory management, warehousing
and logistics in proportion to the stage of completion
of the transaction at the reporting date. The stage
of completion is assessed based on surveys of work
performed.
The Group applies the practical expedient as per
paragraph 121 of AASB 15 and therefore does not
disclose information about remaining performance
obligations that have expected duration of one year
or less
Contract asset
The contract assets primarily relate to the Group’s
rights to consideration for work completed but
not billed at the reporting date or upfront agreed
expenditure incremental to obtaining the contract.
The contract assets are transferred to receivables
when the rights become unconditional, or the
expenditure is amortised over the contract term
as an expense or deducted from other revenue if it
is a discount.
Contract liabilities
The contract liabilities primarily relate to the
advance consideration received from customers,
for which revenue is recognised at a point in time or
over time.
3. Material accounting policies (continued)
86 | IVE Group Limited Annual Report 2024
Financial Report
(m) Leases
At inception of a contract, the Group assesses
whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contracts
conveys the right to control the use of an identified
asset for a period of time in exchange for
consideration.
(i) As a lessee
At commencement or on modification of a contract
that contains a lease component, the Group
allocates the consideration in the contracts to each
lease component on the basis of its relative stand-
alone prices.
The Group recognises a right-of-use asset and lease
liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located,
less any lease incentives received.
The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the end of the lease
term, unless the lease transfers ownership of the
underlying asset to the Group by the end of the lease
term or the cost of the right-of-use asset reflects
that the Group will exercise a purchase option. In
that case, the right-of-use asset will be depreciated
over the useful life of the underlying asset, which is
determined on the same basis as those of property
and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any,
and adjusted for certain remeasurements of the
lease liability.
The lease liability is initially measured at the
present value of the lease payments that are
not paid at the commencement date, discounted
using interest rate implicit in the lease or, if that
rate cannot be readily determined, the Group’s
incremental borrowing rate. Generally, the Group
uses its incremental borrowing rate as the discount
rate.
The Group determines its incremental borrowing
rate by obtaining interest rates for classes of leased
assets and lease terms from external financing
sources.
Lease payments included in the measurement of the
lease liability comprise the following:
> fixed payments, including in-substance fixed
payments;
> variable lease payments that depend on an index
or a rate, initially measured using the index or rate
as at the commencement date;
> amounts expected to be payable under a residual
value guarantee; and
> the exercise price under a purchase option that
the Group is reasonably certain to exercise,
lease payments in an optional renewal period
if the Group is reasonably certain to exercise
an extension option, and penalties for early
termination of a lease unless the Group is
reasonably certain not to terminate early.
The lease liability is measured at amortised cost
using the effective interest method. It is remeasured
when there is a change in future lease payments
arising from a change in an index or rate, if there
is a change in the Group’s estimate of the amount
expected to be payable under a residual value
guarantee, if the Group’s changes its assessment
of whether it will exercise a purchase, extension
or termination option or if there is a revised
in‑substance fixed lease payment.
When the lease liability is remeasured in this way,
a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded
in profit or loss if the carrying amount of the
right‑of‑use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Group has elected not recognise right-of-use
assets and liabilities for leases of low-value assets
and short-term leases, including IT equipment. The
Group recognises lease payments associated with
these leases as an expense on a straight-line basis
over the lease term.
(ii) As a lessor
At inception or on modification of a contract
that contains a lease component, the Group
allocates the consideration in the contract to each
lease component on the basis of their relative
stand‑alone prices.
When the Group acts as a lessor, it determines at
lease inception whether such lease is a finance lease
or an operating lease.
To classify each lease, the Group makes an
overall assessment of whether the lease transfers
substantially all of the risks and rewards incidental
to ownership of the underlying asset. If this is the
case, then the lease is a finance lease; if not, then it
is an operating lease. As part of this assessment, the
Group considers certain indicators such as whether
the lease is for the major part of the economic life of
the asset.
87
Notes to the consolidated financial statements – continued
When the Group is an intermediate lessor, it
accounts for its interests in the head lease and
the sub-lease separately. It assesses the lease
classification of a sub-lease with reference to the
right-of-use asset arising from the head lease, not
with reference to the underlying asset. If a head
lease is a short-term lease to which the Group
applies the exemption described above, then it
classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease
components, then the Group applies AASB 15 to
allocate the consideration in the contract.
(n) Finance income and finance costs
Finance income comprises net gain on financial
assets at FVTPL and interest income on funds
invested. Interest income is recognised as it accrues
in profit or loss, using the effective interest method.
Finance costs comprise net loss on financial assets
at FVTPL, and interest expense on borrowings.
Borrowing costs that are not directly attributable
to the acquisition, construction or production of
a qualifying asset are recognised in profit or loss
using the effective interest method.
Foreign currency gains and losses are reported on
a net basis as either finance income or finance cost
depending on whether foreign currency movements
are in a net gain or net loss position.
(o) Income tax
Income Tax expense comprises current and deferred
tax. Current and deferred tax are recognised in
profit or loss except to the extent that it relates
to items recognised directly in equity or in other
comprehensive income.
(i) Current tax
Current tax is the expected tax payable or
receivable on the taxable income or loss for the year,
using tax rates enacted or substantively enacted
at the reporting date, and any adjustment to tax
payable in respect of previous years.
(ii) Deferred tax
Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and
the amounts used for taxation purposes. Deferred
tax is not recognised for:
> temporary differences on the initial recognition
of assets or liabilities in a transaction that is not
a business combination and that affects neither
accounting nor taxable profit or loss; or
> temporary differences related to investments in
associates to the extent that the Company is
able to control the timing of the reversal of the
temporary differences and it is probable that they
will not reverse in the foreseeable future, and
> taxable temporary differences arising on the
initial recognition of goodwill.
The measurement of deferred tax reflects the tax
consequences that would follow the manner in
which the Group expects, at the end of the reporting
period, to recover or settle the carrying amount of its
assets and liabilities.
Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences
when they reverse, using tax rates enacted or
substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there
is a legally enforceable right to offset current tax
liabilities and assets, and they relate to taxes levied
by the same tax authority on the same taxable
entity, or on different tax entities, but they intend
to settle current tax liabilities and assets on a
net basis or their tax assets and liabilities will be
realised simultaneously.
A deferred tax asset is recognised for unused
tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that
future taxable profits will be available against
which they can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the
related tax benefit will be realised.
(iii) Tax exposures
In determining the amount of current and deferred
tax the Group takes into account the impact of
uncertain tax positions and whether additional
taxes and interest may be due. This assessment
relies on estimates and assumptions and may
involve a series of judgements about future events.
New information may become available that causes
the Group to change its judgement regarding the
adequacy of existing tax liabilities; such changes to
tax liabilities will impact tax expense in the period
that such a determination is made.
(iv) Tax consolidation
IVE Group Limited and its wholly owned Australian
controlled entities formed a tax consolidated group
on 16 December 2015. As a consequence, these
entities are taxed as a single entity and the deferred
tax asset and liabilities of these entities are offset in
the consolidated financial statements.
3. Material accounting policies (continued)
88 | IVE Group Limited Annual Report 2024
Financial Report
(p) Good and services tax (GST)
Revenue, expenses and assets are recognised net
of the amount of GST, except where the amount of
GST incurred is not recoverable from the taxation
authority. In these circumstances, the GST is
recognised as part of the cost of acquisition of the
asset or as part of an item of expense. Receivables
and payables are shown inclusive of GST.
The net amount of GST recoverable from, or
payable to, the taxation authority is included as
part of receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing or
financing activities, which is recoverable from, or
payable to, the taxation authority is classified as
operating cash flows.
(q) Earnings per share
The Group presents basic and diluted earnings per
share data for its ordinary shares. Basic earnings
per share is calculated by dividing the profit or
loss attributable to ordinary shareholders of
the Company by the weighted average number
of ordinary shares outstanding during the year,
adjusted for own shares held. Diluted earnings
per share is determined by adjusting the profit or
loss attributable to ordinary shareholders and
the weighted average number of ordinary shares
outstanding, adjusted for own shares held, for the
effects of all dilutive potential ordinary shares,
which comprise convertible notes and share options
granted to employees.
(r) Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker. It has been
determined the Board of Directors is the chief
operating decision maker, as they are ultimately
responsible for allocating resources and assessing
performance.
(s) New and amended Standards adopted by
the Group
The Group has applied the following standards
and amendments for the first time in their annual
reporting period commencing 1 July 2023:
> AASB 17 – Insurance Contracts
> AASB 2023-2 – Amendments to Australian
Accounting Standards – Definition of Accounting
Estimates International Tax Reform – Pillar Two
Model Rules [AASB 112]
> AASB 2021-5 – Amendments to Australian
Accounting Standards – Deferred Tax related
to Assets and Liabilities arising from a Single
Transaction [AASB 112)
> AASB 2021-2 – Amendments to Australian
Accounting Standards – disclosure of Accounting
Policies Definition of Accounting Estimates [AASB
7, AASB 101, AASB 108, AASB 134 & AASB Practice
Statement 2]
The amendments listed above did not have any
impact on the amounts recognised in prior periods
and are not expected to significantly affect the
current or future periods.
The Group also adopted Disclosure of Accounting
Policies (Amendments to NZ /AS 1 and IFRS Practice
Statement 2) from 1 July 2023. Although the
amendments did not result in any changes to the
accounting policies themselves, they impacted
the accounting policy information disclosed in the
financial statements.
The amendments require the disclosure of
‘material’, rather than ‘significant’ accounting
policies. The amendments also provide guidance
on the application of materiality to disclosure of
accounting policies, assisting entities to provide
useful, entity-specific accounting policy information
that users need to understand other information in
the financial statements.
(t) Accounting Standard issued but not yet
effective
A number if new standards are effective for annual
periods beginning after 1 July 2024 and early
adoption is permitted. However, the Company has
not early adopted any of the new standards and
these are not expected to have a material effect on
the Group’s financial statements.
89
Notes to the consolidated financial statements – continued
4. Revenue
The Group’s operations and main revenue streams are those described in Note 3(l). The tables below provide
information on the Group’s revenue and contract balances derived from contracts with customers.
(a) Disaggregation of revenue
In thousands of AUD
2024
2023
Products and services transferred at a point in time
916,395
914,148
Services transferred over time
56,426
56,064
972,821
970,212
(b) Contract balances
In thousands of AUD
2024
2023
Receivables, which are included in
‘Trade and other receivables’
143,188
135,371
Contract assets
1,715
3,743
Contract liabilities
9,405
9,885
The majority of contract liabilities of $9,885 thousand as at 30 June 2023 were recognised as revenue in the
year ending 30 June 2024. The majority of contract liabilities of $9,405 thousand as at 30 June 2024 will be
recognised as revenue during the year ending 30 June 2025.
5. Other income
In thousands of AUD
2024
2023
Other income
11
2,843
During the year ended 30 June 2023, the Group agreed a refund of purchase consideration of $2,736 thousand
from the administrators of Ovato.
6. Personnel expenses
In thousands of AUD
2024
2023
Wages and salaries
225,554
224,182
Contributions to defined contribution plans
18,700
17,428
Share-based payment expense
1,014
960
245,268
242,570
90 | IVE Group Limited Annual Report 2024
Financial Report
7. Expenses
Included in the consolidated statement of profit or loss and other comprehensive income:
In thousands of AUD
2024
2023
Depreciation, amortisation, and impairment
49,862
52,925
Acquisition and transaction costs
2,017
3,013
Restructuring costs
13,089
20,108
Make good expenses
(300)
165
Software for service
831
1,369
(Gain)/Loss on disposal of assets held for sale, and
plant and equipment
(643)
1,904
8. Net finance costs
In thousands of AUD
2024
2023
Interest income
859
460
Finance income
859
460
Interest expense
(18,309)
(13,766)
Net foreign exchange losses
(5)
(1)
Finance costs
(18,314)
(13,767)
Net finance costs
(17,455)
(13,307)
9. Taxes
In thousands of AUD
2024
2023
Current tax expense
Current year
11,240
7,804
Changes in estimates related to prior years
(84)
154
11,156
7,958
Deferred tax expense
Origination and reversal of temporary differences
955
(763)
Total tax expense
12,111
7,195
91
Notes to the consolidated financial statements – continued
Numerical reconciliation between tax expense and pre-tax accounting profit
In thousands of AUD
2024
2023
Profit before tax
39,716
24,343
Tax using the Company’s domestic tax rate of 30%
11,915
7,303
(Non-assessable income)/non-deductible
expenses – (net)
266
(289)
Changes in estimates related to prior years
(84)
154
Other items (net)
14
28
12,111
7,195
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
In thousands of AUD
Assets
Liabilities
Net
2024
2023
2024
2023
2024
2023
Property, plant and equipment
-
-
(5,449)
(5,071)
(5,449)
(5,071)
Right-of-use assets
-
-
(27,002)
(31,670)
(27,002)
(31,670)
Inventories
184
16
-
-
184
16
Intangible assets
-
-
(2,692)
(2,435)
(2,692)
(2,435)
Lease liabilities
33,543
39,599
-
-
33,543
39,599
Employee benefits
12,748
13,538
-
-
12,748
13,538
Provisions
3,289
4,975
-
-
3,289
4,975
Other items
836
316
-
-
836
316
Tax assets/(liabilities)
50,600
58,444
(35,143)
(39,176)
15,457
19,268
Set off of tax
(35,143)
(39,176)
35,143
39,176
-
-
Net deferred tax assets
15,457
19,268
-
-
15,457
19,268
9. Taxes (continued)
92 | IVE Group Limited Annual Report 2024
Financial Report
Movement in temporary differences during the year
2024
In thousands of AUD
Balance
1 July 2023
Acquisition
through
business
combination
Recognised
in equity
Recognised
in profit
or loss
Balance
30 June
2024
Property, plant and equipment
(5,071)
(2,071)
-
1,693
(5,449)
Right-of-use-assets
(31,670)
(1,117)
-
5,785
(27,002)
Inventories
16
(41)
-
209
184
Intangible assets
(2,435)
(1,470)
-
1,213
(2,692)
Lease Liabilities
39,599
1,117
-
(7,173)
33,543
Employee benefits
13,538
519
-
(1,309)
12,748
Provisions
4,975
155
-
(1,841)
3,289
Other items
316
125
(74)
468
836
19,268
(2,783)
(74)
(955)
15,457
2023
In thousands of AUD
Balance
1 July
2022
Acquisition
through
business
combination*
Recognised
in equity
Recognised
in profit
or loss
Balance
30 June
2023
Property, plant and equipment
(307)
(5,290)
-
526
(5,071)
Right-of-use assets
(26,895)
(2,032)
-
(2,743)
(31,670)
Inventories
(1,723)
-
-
1,739
16
Intangible assets
(3,593)
-
-
1,158
(2,435)
Lease Liabilities
34,775
2,032
-
2,792
39,599
Employee benefits
11,056
2,692
-
(210)
13,538
Provisions
2,882
3,757
-
(1,663)
4,975
Other items
956
-
195
(837)
316
17,151
1,159
195
763
19,268
The gross amount of capital losses for which no deferred tax asset is recognised is nil (2023: nil).
*Refer to Note 35 on Restatement.
9. Taxes (continued)
93
Notes to the consolidated financial statements – continued
10. Cash and cash equivalents
In thousands of AUD
2024
2023
Bank balances
48,755
44,855
Petty cash
5
5
Cash and cash equivalents in the statement of cash flows
48,760
44,860
Reconciliation of cash flows from operating activities
In thousands of AUD
2024
2023
Profit from continuing operations
27,605
17,148
Non-cash items
Depreciation, amortisation and impairment
49,862
52,925
Share based payment expense
1,014
960
Interest expense
6,947
6,687
Income tax expense
12,111
7,195
Net other income and expenses
342
(196)
(Gain)/Loss on disposal of assets held for sale,
and plant and equipment
(643)
1,904
Make good expenses
(300)
-
Cash items
Acquisition costs in investing activities
1,880
2,730
98,818
89,353
Change in trade and other receivables
4,307
(19,616)
Change in inventories
22,050
(18,566)
Change in current assets
1,378
2,740
Change in prepayment
709
338
Change in trade and other payables
(7,308)
(10,089)
Change in provisions and employee benefits
(9,538)
(6,088)
Cash generated from operating activities
110,416
38,072
Income tax paid
(8,327)
(14,844)
Net cash from operating activities
102,089
23,228
94 | IVE Group Limited Annual Report 2024
Financial Report
11. Trade and other receivables
In thousands of AUD
2024
2023
Current
Trade receivables
141,716
135,371
Allowance for impairment
(2,257)
(2,180)
139,504
133,191
Lease and other receivables
1,117
4,052
140,621
137,243
Non-current
Lease receivables
-
160
12. Inventories
In thousands of AUD
2024
2023
Finished goods
4,221
6,764
Work in progress
18,213
16,094
Raw materials
59,839
76,546
82,273
99,404
Allowance for inventory obsolescence
(1,814)
(680)
80,459
98,724
During the year, raw materials, consumables and changes in finished goods and work in progress recognised
as cost of sales amounted to $518,355 thousand (2023: $532,804 thousand).
During the year, an analysis of aged inventory and previous write-offs was performed which resulted in a net
increase in provision amounting of $1,134 thousand (2023: net decrease of $834 thousand).
13. Assets held for sale
In thousands of AUD
2024
2023
Opening balance
1,056
-
Acquisitions through business combination
-
4,167
Net Transfer from plant and equipment
-
3,087
Disposals
-
(1,979)
Impairment
(1,056)
(4,219)
Closing balance
-
1,056
Assets held for sale included plant and equipment acquired through the Ovato acquisition.
95
Notes to the consolidated financial statements – continued
14. Property, plant and equipment
In thousands of AUD
Leasehold
improvements
Plant
and
equipment
Capital
work in
progress
Land
and
buildings
Fixtures
and
fittings
Total
Cost
Balance at 1 July 2022
23,906
160,707
1,793
2,000
2,649
191,055
Acquisitions through business
combination
-
17,737
-
-
-
17,737
Additions
5,973
4,912
292
-
350
11,527
Disposals
(4,208)
(11,995)
-
-
(580)
(16,783)
Net Transfers to assets held
for sale
-
(3,357)
-
-
-
(3,357)
Balance at 30 June 2023
25,671
168,004
2,085
2,000
2,419
200,179
Balance at 1 July 2023
25,671
168,004
2,085
2,000
2,419
200,179
Acquisitions through business
combination
193
7,425
-
-
131
7,749
Transfers to/(from) capital
work in progress
-
2,115
(2,115)
-
-
-
Additions
445
7,619
4,114
-
33
12,211
Disposals
-
(878)
-
-
-
(878)
Balance at 30 June 2024
26,309
184,285
4,084
2,000
2,583
219,261
Depreciation and
impairment losses
Balance at 1 July 2022
10,311
79,416
-
25
1,215
90,967
Depreciation for the year
2,517
12,619
-
25
168
15,329
Disposals
(4,177)
(8,137)
-
-
(516)
(12,830)
Transfers to assets held for sale
-
(270)
-
-
-
(270)
Balance at 30 June 2023
8,651
83,628
-
50
867
93,196
Balance at 1 July 2023
8,651
83,628
-
50
867
93,196
Depreciation for the year
2,464
12,620
-
25
165
15,274
Disposals
-
(849)
-
-
-
(849)
Balance at 30 June 2024
11,115
95,399
-
75
1,032
107,621
Carrying amounts
At 1 July 2023
17,020
84,376
2,085
1,950
1,552
106,983
At 30 June 2024
15,194
88,886
4,084
1,925
1,551
111,640
Security
At 30 June 2024 the carrying amount of total assets less the written down value of finance leased assets were
held as security for bank facilities.
96 | IVE Group Limited Annual Report 2024
Financial Report
15. Leases
A. Leases as lessee
The Group leases warehouses and factory facilities. The leases typically run up to a period of 10 years, with
an option to renew the lease after that date. Lease payments are renegotiated periodically to reflect market
rentals. Some leases provide for additional rent payments that are based on changes in local price indices.
These leases were entered into many years ago as combined leases of land and buildings.
The Group also leases production equipment under a number of leases with contract terms of one to five years.
The Group leases IT equipment with contract terms of one to three years. These leases are short term and/or
leases of low-value items. The Group has elected not to recognise right-of-use assets and lease liabilities for
these leases.
Information about leases for which the Group is a lease is presented below.
(i) Right-of-use assets
The carrying amounts of right-of-use assets are as below.
In thousands of AUD
Property, plant and equipment
Property
Production
equipment
Total
Balance as at 1 July 2022
89,623
16,294
105,917
Depreciation charge for the year
(22,984)
(3,751)
(26,735)
Acquisitions through business combination
6,773
-
6,773
Additions/modifications to right-of-use assets
32,352
5,818
38,170
Disposals of right-of–use assets
(1,930)
-
(1,930)
Balance as at 30 June 2023
103,834
18,361
122,195
Balance as at 1 July 2023
103,834
18,361
122,195
Depreciation charge for the year
(21,958)
(4,761)
(26,719)
Acquisitions through business combination
2,496
1,227
3,723
Additions/modifications to right-of-use assets
3,451
2,827
6,278
Balance as at 30 June 2024
87,823
17,654
105,477
(ii) Amounts recognised in profit or loss
In thousands of AUD
2024
2023
Interest on lease liabilities
6,116
6,349
Income from sub-leasing right-of-use assets
1,443
1,042
Expenses relating to short-term leases
591
925
Expenses relating to leases of low-value assets,
excluding short-term leases of low-value assets
400
494
(iii) Amounts recognised in statement of cash flows
In thousands of AUD
2024
2023
Total cash outflow for leases
38,040
38,323
97
Notes to the consolidated financial statements – continued
(iv) Extension options
Some property leases contain extension options exercisable before the end of the non-cancellable contract
period. Where practicable, the Group seeks to include extension options in new leases to provide operational
flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group
assesses at lease commencement date whether it is reasonably certain to exercise the extension options. The
Group reassesses whether it is reasonably certain to exercise the options if there is significant event or changes
in circumstances within its control.
B. Leases as lessor
The Group leases out some its leased properties. All leases are classified as operating leases from a lessor
perspective with the exception of a sub-lease, which the Group classified as a finance sub-lease.
(i) Finance lease
During the year, the Group recognised $18 thousand interest income on lease receivables (2023: $34 thousand).
The following table sets out the maturity analysis of lease receivables, showing the undiscounted lease
payments to be received after the reporting date.
In thousands of AUD
2024
2023
Less than one year
169
1,453
Total undiscounted lease receivable
169
1,610
Unearned finance income
(2)
(20)
Net investment in the lease
167
1,590
(ii) Operating lease
The Group has classified some sub-leased property as operating leases, because they do not transfer
substantially all of the risks and rewards incidental to the ownership of the assets.
Rental income recognised by the Group during the year was $75 thousand (2023: $73 thousand).
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments
to be received after the reporting date.
In thousands of AUD
2024
2023
Less than one year
78
75
Between one to five years
80
178
More than five years
-
-
Total
158
253
15. Leases (continued)
98 | IVE Group Limited Annual Report 2024
Financial Report
16. Intangible assets and goodwill
In thousands of AUD
Goodwill*
Computer
software
Capital
work in
progress
Customer
relationships
Total
Cost
Balance at 1 July 2022
147,378
22,606
5,216
37,754
212,953
Acquisition
5,439
-
-
-
5,439
Disposal
-
(601)
-
-
(601)
Transfer to/(from) computer software
-
6,041
(6,041)
-
-
Other additions
-
374
1,091
-
1,465
Balance at 30 June 2023 Restated*
152,817
28,420
266
37,754
219,257
Balance at 1 July 2023
152,817
28,420
266
37,754
219,257
Acquisition
20,929
-
-
4,900
25,829
Other additions
-
1,286
1,201
-
2,487
Balance at 30 June 2024
173,746
29,706
1,467
42,654
247,573
Amortisation and impairment losses
Balance at 1 July 2022
40,000
16,756
-
22,905
79,661
Amortisation for the year
-
3,607
-
3,035
6,642
Disposal
-
(601)
-
-
(601)
Balance at 30 June 2023
40,000
19,762
-
25,940
85,702
Balance at 1 July 2023
40,000
19,762
-
25,940
85,702
Amortisation for the year
-
3,376
-
3,437
6,813
Balance at 30 June 2024
40,000
23,138
-
29,377
92,515
Carrying amounts
At 1 July 2023 Restated*
112,817
8,658
266
11,814
133,555
At 30 June 2024
133,746
6,568
1,467
13,277
155,058
No impairment losses in relation to goodwill have been recognised in the year ended 30 June 2024 (2023: nil).
*Refer to Note 35 on Restatement.
99
Notes to the consolidated financial statements – continued
Impairment testing for cash-generating units containing goodwill
The Group completes impairment testing for seven CGUs. The individual CGUs within the ‘Production Group
(of CGUs)’ are not individually significant and have been grouped for disclosure. The carrying amount of any
goodwill summarised by operating division is set out below:
In thousands of AUD
2024
2023
Restated*
Print Web Offset including distribution
44,361
44,361
Data-Driven Communications
38,506
38,506
Production (group of CGUs)
50,879
29,950
133,746
112,817
Goodwill impairment testing is performed by applying value in use calculations. The calculations for all CGUs
use nominal 5 year cash flow projections based on FY25 budgeted EBITDA approved by the Board. The EBITDA
has been developed using past experience and industry knowledge. A pre-tax WACC rate has been used based
on the size and nature of each CGU. Also, a nominal growth allowance in the 5 year and terminal growth cash
flow projections has been made in determining management’s estimate of the EBITDA projections of each CGU.
The WACC and growth rates are:
WACC rate
(pre-tax nominal)
Growth rate
Print Web Offset including distribution
11.9% (2023:11.5%)
1% (2023: 1%)
Data-Driven Communications
12.8% (2023:12.7%)
2% (2023: 2%)
Production (group of CGUs)
11.8% to 12.6%
(2023: 11.8% to 12.6%)
1% to 2%
(2023: 1% to 2%)
There are no reasonable possible changes in assumptions that would give rise to impairment.
17. Other assets
In thousands of AUD
2024
2023
Current
Contract assets
1,284
3,025
Other assets
732
1,186
2,016
4,211
Non-current
Contract assets
431
718
Other assets
139
-
570
718
16. Intangible assets and goodwill (continued)
100 | IVE Group Limited Annual Report 2024
Financial Report
18. Trade and other payables
In thousands of AUD
2024
2023
Current
Trade payables
86,889
85,360
Accrued expenses
32,217
33,504
119,106
118,864
19. Loans and borrowings
In thousands of AUD
2024
2023
Current
Equipment finance
2,966
3,608
Non-current
Bank loan
169,392
154,061
Equipment finance
1,418
3,175
170,810
157,236
Bank loan
As at 30 June 2024, the amended Syndicated Facilities Agreement has a carrying amount of $169,392
thousand and face value of $170,000 thousand (2023: carrying amount of $154,061 thousand and face value
of $155,000 thousand). These facilities are at an interest rate of BBSY plus a margin, and maturity date of 6
May 2026. The Group was in compliance with all loan covenants as at 30 June 2024.
20. Employee benefits
In thousands of AUD
2024
2023
Current
Liability for long service leave
14,050
15,164
Liability for annual leave
14,051
15,825
28,101
30,989
Non-current
Liability for long service leave
7,936
7,672
36,037
38,661
101
Notes to the consolidated financial statements – continued
21. Provisions
In thousands of AUD
Restructure
Make good
Total
Balance at 1 July 2023
5,827
7,369
13,196
Assumed in business in combination
-
350
350
Provisions utilised during the year
(4,500)
(1,149)
(5,649)
Provisions reversed during the year
(300)
(300)
Unwind of discount
-
(42)
(42)
Balance at 30 June 2024
1,327
6,228
7,555
Current
1,327
786
2,113
Non-current
-
5,442
5,442
1,327
6,228
7,555
Refer to Note 3(k) on the nature of the provision.
22. Other liabilities
In thousands of AUD
2024
2023
Current
Contract liabilities
9,405
9,885
Contingent consideration
4,000
744
Forward exchange contracts used for hedging
262
278
13,667
10,907
Non-current
Contingent consideration
1,000
-
Forward exchange contracts used for hedging
-
170
1,000
170
102 | IVE Group Limited Annual Report 2024
Financial Report
23. Share-based payments
During the year ended 30 June 2024, the company granted Rights under the Equity Incentive Plan (EIP).
The Rights are an entitlement to receive fully paid ordinary IVE Group Limited Shares on a one-for-one basis.
Further details on the Rights are described below.
Type of arrangement
Senior Leadership Team Award
Date of grant
20 November 2023
Number granted
838,235
Contractual life
3 years and 2 months
Vesting conditions
The Rights are subject to the following Performance
Conditions: sixty percent of the Rights are referenced
against achieving Earnings Per Share Target (EPS), and
forty percent are referenced against achieving Relative
Shareholder Return (TSR) target. The performance
period is 1 July 2023 to 30 June 2026 inclusive.
The vesting date is expected to be on or soon after the
approval of IVE’s 2026 Annual Financial Report.
Weighted average fair value
$1.36
Valuation methodology
The EPS target was calculated using a risk-neutral
assumption, whereas the TSR target has been valued
using a Monte Carlo simulation approach.
Expected dividend
Holders of performance share rights are not entitled
to receive dividends prior to vesting.
Other key valuation assumptions
Share price at valuation date
$2.024
Expected volatility
36%
Risk-free interest rate
4.04%
Dividend yield
7.85%
*Share rights issued to Directors required shareholder approval. This occurred at the Group’s 2023 Annual General Meeting.
During the year, 838,235 Rights were granted (2023: 711,808), 1,884,613 were exercised (2023: nil) 181,465
thousand lapsed (2023: 647,056), and 2,192,104 remain outstanding (2023: 3,419,947). The total expense
relating to the Rights granted was $1,014 thousand (for the year ended 30 June 2023: $960 thousand).
These expenses are included in Note 6 of the consolidated financial statements.
103
Notes to the consolidated financial statements – continued
24. Capital and reserves
Issued and paid up capital (In thousands of AUD)
2024
2023
153,980,641 (June 2023: 152,096,028)
ordinary shares fully paid
167,664
167,664
Movement in ordinary share capital
Date
Details
Number of
shares
Issue
price
Total
$’000
1-Jul-22
Opening balance
143,508,948
-
148,878
28-Sep-22
Institutional placement (including
transaction costs net of tax)
8,000,000
2.25
17,485
17-Oct-22
Share purchase plan (including
transaction costs net of tax)
587,080
2.25
1,301
30-Jun-23
Closing balance
152,096,028
-
167,664
1-Jul-23
Opening balance
152,096,028
-
167,664
28-Aug-23
Issue of shares under the Equity
Incentive Plan
1,884,613
-
-
30-Jun-24
Closing balance
153,980,641
167,664
Dividends
On 26 August 2024, the directors have declared a fully franked dividend of 8.5 cents per share to be paid on
16 October 2024 to shareholders on the register at 12 September 2024. The final dividend payout is $13,088
thousand (2023: $12,928 thousand). A liability has not been recognised as the dividend was declared after the
reporting date.
The following dividends were declared and paid during the year ended 30 June 2024:
In thousands of AUD
Cents per share
Total amount
Date of payment
2024
Final 2023 ordinary
8.5
13,087
12 October 2023
Interim 2024 ordinary
9.5
14,629
12 April 2024
Total amount
27,716
On 12 October 2023 a dividend of 8.5 cents per share (100% franked) was declared and paid by the directors.
The dividend was paid out of opening retained profits and profits earned up to that date.
On 12 April 2024 a further dividend of 9.5 cents per share (100% franked) was declared and paid by
the directors. The dividend was paid out of opening retained profits and profits earned up to that date.
The following dividends were declared and paid during the year ended 30 June 2023:
Cents per share
Total amount
$'000
Date of payment
2023
Final 2022 ordinary
8.0
11,481
13 October 2022
Interim 2023 ordinary
9.5
14,449
13 April 2023
Total amount
25,930
104 | IVE Group Limited Annual Report 2024
Financial Report
Dividend franking account
In thousands of AUD
2024
2023
Amount of franking credits available to shareholders
of IVE Group Limited for subsequent financial years
15,234
20,337
The ability to utilise the franking credits is dependent upon the ability to declare dividends.
Reserves
Included within reserves are the fair value of hedged derivative instruments, and foreign currency translation
reserve balances.
25. Earnings per share
In cents
2024
2023
Basic earnings per share
18.0
11.4
Diluted earnings per share
17.8
11.2
In thousands
2024
2023
Earnings
Profit after income tax attributable to owners of the company used in
calculating basic and diluted earnings per share
27,605
17,148
Weighted average number of ordinary shares
Weighted average number of ordinary shares used in calculating
basic earnings per share
153,682
149,972
Weighted average number of ordinary shares used in calculating
diluted earnings per share
155,549
153,060
105
Notes to the consolidated financial statements – continued
26. Acquisitions
On 31 October 2023, IVE acquired 100% of the fibre-based packaging business of JacPak Pty Ltd and
Egotrade Pty Ltd. The acquired business will operate as a standalone business within IVE.
On 31 May 2024, IVE acquired the selected assets and liabilities of Elastic Studios Pty Ltd’s creative business.
This business will be integrated into IVE Creative.
The following summarises the major classes of consideration attributable to the acquisition, and the
provisionally recognised amounts of assets acquired and liabilities assumed at the acquisition date:
In thousands of AUD
JacPak/
Egotrade
Elastic
(provisional)
Total
Consideration transferred
Initial cash paid
27,926
1,717
29,643
Completion cash adjustment*
(1,700)
10
(1,690)
Contingent consideration
4,000
1,000
5,000
30,226
2,727
32,953
Identifiable assets acquired and liabilities assumed
Cash
428
-
428
Trade and other receivables
8,934
104
9,038
Inventories
3,785
-
3,785
Prepayments
316
13
329
Property, plant and equipment
7,636
113
7,749
Intangible assets
4,900
-
4,900
Right-of-use asset
3,650
73
3,723
Trade and other payables
(6,628)
(260)
(6,888)
Tax payable
(289)
-
(289)
Deferred tax assets/(liabilities)
(2,906)
123
(2,783)
Employee benefits
(1,416)
(217)
(1,633)
Provisions
(576)
(50)
(626)
Equipment loan
(1,917)
(68)
(1,985)
Lease liability
(3,650)
(73)
(3,723)
12,266
(242)
12,024
Goodwill on acquisition
17,960
2,969
20,929
*The completion adjustment includes working capital and balance sheet date adjustments. These adjustments are made in the
ordinary course of a transaction to reflect the difference between normalised expectations around balance sheet items at the
time of signing and actual balances on transactions at completion.
As part of the consideration transferred, contingent consideration is expected to be payable. The Group has
made a best estimate of the amount of consideration payable for the acquisition where there is a variable
purchase price based on future revenue performance. Based on past and expected performance the Group
assumes that the acquirees will meet the future revenue target. Any variation at time of settlement with be
recognised as an expense or income.
106 | IVE Group Limited Annual Report 2024
Financial Report
Management have measured the assets and liabilities acquired at fair value at acquisition date. The Fair
Values of the Elastic acquisition has been measured on a provisional basis pending the completion of
final valuations. If new information obtained within one year from the acquisition date about facts and
circumstances that existed at the acquisition date identifies adjustments to the above amounts, or any
additional provisions existed at the acquisition date, then the accounting for the acquisition will be revised.
The goodwill is attributed to IVE’s strategy in expanding its business, as well as the synergies expected to be
realised within the Group. None of the goodwill recognised is expected to be deductible for tax purposes.
Since acquisition, JacPak’s/Egotrade’s revenue and profit before tax (before acquisition costs) contribution
estimate was $28,340 thousand and $678 thousand, respectively.
Since acquisition, Elastic’s revenue and loss before tax (before acquisition costs) contribution estimate was
$405 thousand and ($200) thousand, respectively.
If these acquisitions had occurred from the beginning of the reporting period the combined Group revenue
and net profit before tax (NPBT) would have been estimated at $999,475 thousand and $41,306 thousand,
respectively.
Acquisition-related costs totalling $1,880 thousand has been included in other expenses in the Group’s
consolidated statement of profit or loss and other comprehensive income.
27. Operating segments
The Group has identified one operating segment (whole of business) based on the internal reports that are
reviewed and used by the Board (Chief Operating Decision Maker or ‘CODM’) in assessing performance and in
determining the allocation of resources. The Board reviews the internal report on a monthly basis.
The key measure of performance used by the CODM to assess performance is earnings before interest, tax,
depreciation and amortisation (EBITDA).
A reconciliation of the reportable segment’s EBITDA to profit before income tax expense is shown below. Profit
and loss, total assets and liabilities for the reportable segment is consistent with the primary statements
included in this consolidated interim financial report.
In thousands of AUD
2024
2023
EBITDA
107,033
90,575
Depreciation, amortisation and impairment
(49,862)
(52,925)
Net finance costs
(17,455)
(13,307)
Profit (loss) before income tax
39,716
24,343
28. Financial risk management and financial instruments
Overview
The Group has exposure to the following risks from its use of financial instruments:
a. credit risk
b. liquidity risk
c. market risk
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives,
policies and processes for measuring and managing risk, and the Group’s management of capital. Further
quantitative disclosures are included throughout these consolidated financial statements.
107
Notes to the consolidated financial statements – continued
Risk management framework
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the
Group’s risk management framework. The CFO is responsible for developing and monitoring the Group’s risk
management policies. He reports regularly to the Board of Directors on its activities.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Group activities. The
Group, through its training and management standards and procedures, aims to maintain a disciplined and
constructive control environment in which all employees understand their roles and obligations.
The Audit & Risk Committee oversees how management monitors compliance with the Group’s risk
management policies and procedures, and reviews the adequacy of the risk management framework
in relation to the risks faced by the Group.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Group’s receivables from customers.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date was:
In thousands of AUD
Carrying amounts
Notes
2024
2023
Cash and cash equivalents
10
48,760
44,860
Trade receivables
11
141,716
135,371
Lease and other receivables
11
1,117
4,212
Contract assets
17
1,715
3,743
193,308
188,186
28. Financial risk management and financial instruments (continued)
108 | IVE Group Limited Annual Report 2024
Financial Report
Trade, lease and other receivables, and contract assets
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base,
including the default risk associated the industry under the current economic environment. Additional
allowances have been made for this uncertainty.
The Group has no significant concentrations of credit risk. The Group has policies in place to ensure that sales
of services are made to customers with an appropriate credit history based on enquiries through the Group’s
Finance department. Ongoing customer credit performance is monitored on a regular basis.
The aging of the trade, lease and other receivables and contract assets at the end of the reporting period that
were not impaired was as follows:
In thousands of AUD
Carrying amounts
2024
2023
Neither past due nor impaired
79,052
91,925
Past due 1–30 days
45,996
37,389
Past due 31–90 days
13,465
9,204
Past due 91 days and over
6,035
4,808
144,547
143,326
The movement in the allowance for impairment in respect of receivables during the year was as follows:
In thousands of AUD
2024
2023
Balance at beginning of the year
2,180
3,124
Assumed in a business combination in current year
123
-
Impairment loss recognised/(reversed)
(46)
551
Amounts written off
-
(1,495)
Balance at end of year
2,257
2,180
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach
to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Group’s reputation.
The Group manages working capital and forecasts cash flow to meet its financial obligations.
The Group at 30 June 2024 had undrawn facility of $60,000 thousand (2023: $35,000 thousand) for general
corporate and working capital purpose. The facility will mature on 6 May 2026.
109
Notes to the consolidated financial statements – continued
The following are the remaining contractual maturities of financial liabilities at the reporting date.
The amounts are gross and undiscounted, and include estimated interest payments:
30 June 2024
Contractual cash flows
In thousands of AUD
Carrying
amount
Total
12 mths
or less
1–5
years
More than
5 years
Non-derivative financial liabilities
Trade and other payable
119,106
119,106
119,106
-
-
Lease liabilities
117,155
146,312
32,307
70,584
43,421
Equipment finance
4,384
4,507
2,966
1,541
-
Bank loans
169,392
189,100
10,421
178,679
-
410,037
459,025
165,800
250,804
43,421
Derivative financial liabilities
Forward exchange contracts used
for hedging
262
262
262
-
-
262
262
262
-
-
30 June 2023
Contractual cash flows
In thousands of AUD
Carrying
amount
Total
12 mths
or less
1–5
years
More than
5 years
Non-derivative financial liabilities
Trade and other payable
118,864
118,864
118,864
-
-
Lease liabilities
139,078
172,240
36,683
83,842
51,715
Equipment finance
6,783
7,908
3,608
4,082
218
Bank loans
154,061
179,842
8,785
171,057
-
418,786
478,854
167,940
258,981
51,933
Derivative financial liabilities
Forward exchange contracts used
for hedging
448
448
278
170
-
448
448
278
170
-
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, equity prices and interest
rates will affect the Group’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.
28. Financial risk management and financial instruments (continued)
110 | IVE Group Limited Annual Report 2024
Financial Report
Currency risk
The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in
which purchases are denominated and the respective functional currencies of Group entities. The functional
currency of the Group is the Australian dollar (AUD). The currencies in which these transactions are primarily
denominated are Euro, US dollars and AUD.
During the year, 2% (2023: 2%) of total group purchases were made in foreign currencies. The Group has used
forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the
reporting date. These forward exchange contracts has been designated as a cash flow hedge, and have $37
thousand fair value at the reporting date (2023: $30 thousand). The Group has performed effectiveness testing
and recognised the full fair value amount net of deferred tax $118 thousand in other comprehensive income
(2023: $22 thousand). Based on the results of the test no in-effectiveness has been recognised in the profit or loss.
Exposure to currency risk
The summary quantitative data about the Group’s exposure to currency risk as reported to the management of
the Group is as follows:
In thousands of AUD
As at 30 June 2024
As at 30 June 2023
Euro
USD
Euro
USD
Equipment finance loan
1,814
-
5,364
-
Next three months forecast purchases
303
1,221
606
532
Next twelve months capital commitments*
6,852
-
-
-
Forward exchange contracts
(2,117)
(1,221)
(5,969)
(532)
Net exposure
6,852
-
-
-
*Post year-end, the Group has hedged this exposure using a forward exchange contract.
Sensitivity analysis
The impact of exchange rate movements on profit is subject to other variables including movement in market
prices. The impact of exchange rate movements on profit and loss is not material.
Interest rate risk
The Group has the ability to enter into interest rate swap contracts to minimise its variable interest exposure on
bank loans. As at 30 June 2024, no interest rate swap contracts were outstanding, hence $169,392 thousand of
the carrying amount of the bank loan is exposed to variable rates (2023: $154,061 thousand).
Exposure to interest risk
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
In thousands of AUD
Carrying amounts
2024
2023
Fixed rate instruments
Financial liabilities – leases liabilities
(117,155)
(139,078)
Financial liabilities – equipment finance
(2,851)
(2,139)
(120,006)
(141,217)
Variable rate instruments
Financial assets – bank balances
48,760
44,860
Financial liabilities – bank loans
(169,392)
(154,061)
Financial liabilities – equipment finance
(1,533)
(4,644)
(122,165)
(113,845)
111
Notes to the consolidated financial statements – continued
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss
therefore a change in interest rate at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 10 basis points in interest rates at the reporting date would have increased (decreased) profit or
loss by $123 thousand (2023: $115 thousand). This analysis assumes that all other variables, in particular
foreign currency rates, remain constant. The analysis is performed on the same basis as 2023.
Measurement of fair values
The table below gives information on the valuation technique and unobservable inputs of financial assets or
liabilities categorised as a Level 2 and 3 in the fair value hierarchy.
Type
Valuation technique
Significant
unobservable
inputs
Relationship between the fair value
and unobservable inputs
Forward exchange
contracts (level 2)
The fair value is
determined using quoted
forward exchange
rates and present value
of estimated future
cash flow based on
observable yield curves.
Not applicable
Not applicable
Contingent
consideration
(level 3)
The fair value is
calculated based on
the acquired business
achieving future
revenue target.
Forecast revenue
growth
If the applicable performance targets
are higher by 10% than no additional
payment will be made. However,
if the target is lower by 10%, then the
contingent consideration value
will be decreased by
approximately $4.25 million
Fair values versus carrying amounts
As at the reporting date, the carrying value of other financial assets and liabilities as at the end of the
financial year are considered to approximate their fair value.
Capital management
The primary objective of the Group’s capital management is to maintain a strong capital base through cash
flow management in order to sustain future development of the business and maximise shareholder value.
There were no changes in the Group’s approach to capital management during the year. The Group is subject
to externally imposed capital requirements (being financial loan covenants – refer to Note 19).
29. Capital commitments
As at 30 June 2024, the Group has EUR6,852 thousand commitment to purchase plant and equipment
(2023: $1,000 thousand).
28. Financial risk management and financial instruments (continued)
112 | IVE Group Limited Annual Report 2024
Financial Report
30. Related parties
Key management personnel compensation
Key management personnel compensation comprised the following:
In AUD
2024
2023
Short-term employee benefits
3,475,001
3,589,013
Post-employee benefits
154,356
142,979
Share-based payments
540,282
829,485
4,169,639
4,561,477
Related party transactions and outstanding balances
In AUD
Transaction value
year ended
30 June 2024
Transaction value
year ended
30 June 2023
Tamkin Pty Ltd – sales
-
2,327
There are no outstanding receivables or payables with related parties.
James Todd is the director and shareholder of Tamkin Pty Ltd that results in him having control or significant
influence over the financial or operating policies of these entities.
During the year ending 30 June 2023, the Group sold goods and services to Tamkin Pty Ltd.
The terms and conditions of the transactions above were no more favourable than those available, or which
might reasonably be expected to be available, on similar transactions to other third parties on an arm’s
length basis.
113
Notes to the consolidated financial statements – continued
31. Group entities
Ultimate parent entity
IVE Group Limited
Ownership interest
2024
%
2023
%
Caxton Print Group Holdings Pty Ltd
100
100
Caxton Print Group Pty Ltd
100
100
IVE Group Australia Pty Ltd
100
100
IVE Group Victoria Pty Ltd
100
100
Task 2 Pty Ltd
100
100
Pareto Fundraising Pty Ltd
100
100
James Bennett & Associates Pty Ltd
100
100
IVE Employment (Australia) Pty Ltd
100
100
IVE Employment (Victoria) Pty Ltd
100
100
Taverners No. 13 Pty Ltd
100
100
AIW Printing (Aust) Pty Ltd
100
100
AIW Printing Unit Trust
100
100
IVE Group Asia Limited
100
100
Guangzhou IVE Trading Company Limited
100
100
SEMA Holdings Pty Ltd
100
100
SEMA Infrastructure Pty Ltd
100
100
SEMA Operations Pty Ltd
100
100
John W Gage & Co Pty Ltd
100
100
IVE Distribution Pty Ltd
100
100
Lasoo Pty Ltd
100
100
Reach Media New Zealand Limited
100
100
IVE Group Limited Employee Share Trust
100
100
AFI Branding Solutions Pty Ltd
100
100
IVE Employment PW01 Pty Ltd
100
100
IVE Employment PW02 Pty Ltd
100
100
JacPak Pty Ltd
100
-
Egotrade Pty Ltd
100
-
All entities are incorporated in Australia except for: IVE Group Asia Limited (incorporated in Hong Kong, China),
Guangzhou IVE Trading Company Limited (incorporated in China), and Reach Media New Zealand Limited
(incorporated in New Zealand).
114 | IVE Group Limited Annual Report 2024
Financial Report
32. Parent entity disclosures
As at, and throughout, the financial year ending 30 June 2024 the parent entity of the Group was IVE Group
Limited.
In thousands of AUD
2024
2023
Result of parent entity
Profit/(loss) for the year
27,716
22
Other comprehensive income
-
-
Total comprehensive income for the year
27,716
22
Financial position of parent entity at year/period end
Current assets
299
588
Total assets
18,513
18,323
Current liabilities
209
109
Total liabilities
209
109
Total equity of the parent entity comprising of:
Share capital
298,976
298,976
Equity reserve
(145,444)
(145,444)
Accumulated losses (net of dividend paid)
(135,318)
(135,318)
Total equity
18,214
18,214
IVE Group Limited was incorporated on 10 June 2015, but did not undertake any trading activities until its
listing (IPO) on the Australian Stock Exchange (ASX) on 16 December 2015 where it also contemporaneously
acquired Caxton Print Group Holdings Pty Ltd (CPGH).
An internal restructure took place resulting in IVE Group Limited becoming the holding company of CPGH.
The Directors elected to account for the restructure as a capital reorganisation rather than a business
combination. In the Directors’ judgement, the continuation of the existing accounting values is consistent with
the accounting that would have occurred if the assets and liabilities had already been in a structure suitable
to IPO and most appropriately reflects the substance of the internal restructure. As such, the consolidated
financial statements of the new IVE Group have been presented as a continuation of the preexisting
accounting values of assets and liabilities in CPGH’s financial statements.
Accordingly, the other equity reserve represents the difference between the fair value of the share capital at
the date of the IPO and historical book values of the assets and liabilities of the Group.
115
Notes to the consolidated financial statements – continued
33. Auditors’ remuneration
In AUD
2024
2023
Audit services
Auditors of the Company – KPMG
Audit and review of financial reports
540,712
507,245
Other assurance
10,195
-
550,907
507,245
34. Deed of cross guarantee
Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785 the wholly-owned subsidiaries
listed below are relieved from the Corporations Act 2001 requirements for preparation, audit and lodgement of
financial reports, and directors’ reports.
It is a condition of the Instrument that IVE Group Limited (the Company) and each of the subsidiaries enter
into a Deed of Cross Guarantee. The effect of the Deed is that the Company guarantees to each creditor
payment in full of any debt in the event of winding up of any of the subsidiaries under certain provisions of the
Corporations Act 2001. If a winding up occurs under other provisions of the Act, the Company will only be liable
in the event that after six months any creditor has not been paid in full. The subsidiaries have also given similar
guarantees in the event that the Company is wound up.
The Company and its subsidiaries amended its Deed of Cross Guarantee on 29 January 2024.
The subsidiaries subject to the Deed are:
a. Caxton Print Group Holdings Pty Ltd
b. IVE Group Australia Pty Ltd
c. IVE Group Victoria Pty Ltd
d. Caxton Print Group Pty Ltd
e. Task 2 Pty Ltd
f.
Pareto Fundraising Pty Ltd
g. James Bennett & Associates Pty Ltd
h. IVE Employment (Australia) Pty Ltd
i.
IVE Employment (Victoria) Pty Ltd
j.
Taverners No. 13 Pty Ltd
k. AIW Printing (Aust) Pty Ltd
l.
SEMA Holdings Pty Ltd
m. SEMA Infrastructure Pty Ltd
n. SEMA Operations Pty Ltd
o. John W. Gage & Co Pty Ltd
p. IVE Distribution Pty Ltd
q. Lasoo Pty Ltd
r.
AFI Branding Solutions Pty Ltd
s. IVE Employment PWO1 Pty Ltd
t.
IVE Employment PWO2 Pty Ltd
u. JacPak Pty Ltd
v. Egotrade Pty Ltd
116 | IVE Group Limited Annual Report 2024
Financial Report
The following consolidated statement of profit or loss and other comprehensive income and consolidated
statement of financial position, comprising the Company and controlled entities, which are a party to the
Deed, after eliminating all transactions between parties to the Deed of Cross Guarantee, for the year ended 30
June 2024, are:
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
In thousands of AUD
2024
2023
Revenue
946,244
942,351
Cost of sales
(503,217)
(516,808)
Gross profit
443,027
425,543
Other income
15
2,834
Production expenses
(220,546)
(222,305)
Administrative expenses
(152,004)
(140,704)
Other expenses
(16,050)
(30,749)
Results from operating activities
54,442
34,619
Finance income
858
459
Finance costs
(18,273)
(13,723)
Net finance costs
(17,415)
(13,264)
Profit before tax
37,027
21,355
Income tax expense
(11,258)
(7,169)
Profit for the year
25,769
14,186
Cash flow hedges
171
95
Total other comprehensive income
25,940
14,282
Reconciliation of movement in retained earnings
Balance reported at 1 July
19,046
30,790
Profit for the year
25,769
14,186
Dividends to owners of the Company
(27,716)
(25,930)
Balance at 30 June
17,099
19,046
117
Notes to the consolidated financial statements – continued
Consolidated statement of financial position
As at 30 June 2024
In thousands of AUD
2024
2023
Assets
Cash and cash equivalents
44,808
41,110
Trade and other receivables
137,598
133,972
Inventories
79,178
98,695
Prepayments
4,303
4,580
Assets held for sale
-
1,056
Current tax receivable
-
503
Other current assets
1,868
4,068
Total current assets
267,755
283,984
Deferred tax assets
15,483
22,037
Trade and other receivables
197
1,021
Property, plant and equipment
111,344
106,669
Right-of-use assets
104,219
120,430
Intangible assets and goodwill
154,819
130,361
Other non-current assets
570
718
Total non-current assets
386,632
381,236
Total assets
654,387
665,220
Liabilities
Trade and other payables
115,228
115,328
Lease liabilities
31,592
35,891
Loans and borrowings
2,966
3,608
Employee benefits
28,101
30,989
Current tax payable
2,738
-
Provisions
2,113
6,476
Other current liabilities
13,667
10,907
Total current liabilities
196,405
203,199
Trade and other payables
294
-
Loans and borrowings
170,810
157,236
Lease liabilities
83,912
100,820
Employee benefits
7,936
7,672
Provisions
5,346
6,624
Other non-current liabilities
1,000
170
Total non-current liabilities
269,298
272,522
Total liabilities
465,703
475,721
Net assets
188,684
189,499
Equity
Share capital
167,664
167,664
Reserves
3,921
2,789
Retained earnings
17,099
19,046
Total equity
188,684
189,499
34. Deed of cross guarantee (continued)
118 | IVE Group Limited Annual Report 2024
Financial Report
35. Restatement
The Group has restated goodwill relating to the prior year Ovato business acquisition. This is due to the
acquired tax asset values being restated following completion of the tax return process.
Below is summary of the restated balances:
In thousands of AUD
30 June 2023
Reported
Restatement
30 June 2023
Restated
Total current assets
292,399
-
292,399
Deferred tax assets
22,037
(2,769)
19,268
Intangible assets and goodwill
130,786
2,769
133,555
Total other non-current assets
230,056
-
230,056
Total assets
675,278
-
675,278
Total liabilities
481,720
-
481,720
Net assets
193,558
-
193,558
Total equity
193,558
-
193,558
The restatement did not have an impact on the Group’s statement of profit and loss and other comprehensive
income, statement of changes in equity, or statement of cashflows
36. Subsequent events
There have been no other events subsequent to balance date which would have a material effect on the
Group’s consolidated financial statements at 30 June 2024.
119
Entity name
Body corporate
or trust
% of share
capital held by
the Company
Country of
incorporation
Country
of tax
residency
IVE Group Limited (the Company)
Body corporate
100%
Australia
Australia
Caxton Print Group Holdings Pty Ltd
Body corporate
100%
Australia
Australia
Caxton Print Group Pty Ltd
Body corporate
100%
Australia
Australia
IVE Group Australia Pty Ltd
Body corporate
100%
Australia
Australia
IVE Group Victoria Pty Ltd
Body corporate
100%
Australia
Australia
Task 2 Pty Ltd
Body corporate
100%
Australia
Australia
Pareto Fundraising Pty Ltd
Body corporate
100%
Australia
Australia
James Bennett & Associates Pty Ltd
Body corporate
100%
Australia
Australia
IVE Employment (Australia) Pty Ltd
Body corporate
100%
Australia
Australia
IVE Employment (Victoria) Pty Ltd
Body corporate
100%
Australia
Australia
Taverners No. 13 Pty Ltd
Body corporate
100%
Australia
Australia
AIW Printing (Aust) Pty Ltd
Body corporate
100%
Australia
Australia
AIW Printing Unit Trust
Trust
N/A
Australia
Australia
IVE Group Asia Limited
Body corporate
100%
Hong Kong, China
Australia
Guangzhou IVE Trading Company Limited
Body corporate
100%
China
Australia
SEMA Holdings Pty Ltd
Body corporate
100%
Australia
Australia
SEMA Infrastructure Pty Ltd
Body corporate
100%
Australia
Australia
SEMA Operations Pty Ltd
Body corporate
100%
Australia
Australia
John W Gage & Co Pty Ltd
Body corporate
100%
Australia
Australia
IVE Distribution Pty Ltd
Body corporate
100%
Australia
Australia
Lasoo Pty Ltd
Body corporate
100%
Australia
Australia
Reach Media New Zealand Limited
Body corporate
100%
New Zealand
Australia
IVE Group Limited Employee Share Trust
Trust
N/A
Australia
Australia
AFI Branding Solutions Pty Ltd
Body corporate
100%
Australia
Australia
IVE Employment PW01 Pty Ltd
Body corporate
100%
Australia
Australia
IVE Employment PW02 Pty Ltd
Body corporate
100%
Australia
Australia
JacPak Pty Ltd
Body corporate
100%
Australia
Australia
Egotrade Pty Ltd
Body corporate
100%
Australia
Australia
Determination of Tax Residency Section 295 (3A) of the Corporations Acts 2001 requires that the tax residency
of each entity which is included in the Consolidated Entity Disclosure Statement (CEDS) be disclosed. In the
context of an entity which was an Australian resident, “Australian resident” has the meaning provided in the
Income Tax Assessment Act 1997. The determination of tax residency is prepared based on legislation in force
at 30 June 2024.
Consolidated entity disclosure statement
For the year ended 30 June 2024
120 | IVE Group Limited Annual Report 2024
Financial Report
IVE Group Limited
Directors’ declaration
1 In the opinion of the directors of IVE Group Limited (the Company):
(a) the consolidated financial statements and notes, set out on pages 76 to 119,
are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
performance for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
the consolidated entity disclosure statement as at 30 June 2024 set out on page 120 is true and
correct; and
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
2 There are reasonable grounds to believe that the Company and the group entities identified in Note 31 will
be able to meet any obligations or liabilities to which they are or may become subject to by virtue of the
Deed of Cross Guarantee between the Company and those group entities (refer Note 34) pursuant to ASIC
Corporations (Wholly owned Companies) Instrument 2016/785.
3 The Directors have been given the declarations required by section 295A of the Corporations Act 2001 from
the Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2024.
4 The directors draw attention to Note 2 to the consolidated financial statements, which includes a
statement of compliance with International Financial Reporting Standards.
Signed in accordance with a resolution of directors.
James Todd
Chairman
Dated at Sydney this 26th day of August 2024
121
122 | IVE Group Limited Annual Report 2024
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
Independent Auditor’s Report
To the shareholders of IVE Group Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
IVE Group Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company gives a true and
fair view, including of the Group’s
financial position as at 30 June 2024 and
of its financial performance for the year
then ended, in accordance with the
Australian Accounting Standards and the
Corporations Regulations 2001.
The Financial Report comprises:
•
Consolidated Statement of financial position as at 30
June 2024
•
Consolidated statement of profit or loss and other
comprehensive income, Consolidated statement of
changes in equity and Consolidated statement of
cash flows for the year then ended
•
Consolidated entity disclosure statement and
accompanying basis of preparation as at 30 June
2024
•
Notes, including material accounting policies
•
Directors’ Declaration.
The Group consists of the Company and the entities it
controlled at the year end or from time to time during
the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
105
123
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in
our audit of the Financial Report of the current period.
This matter was addressed in the context of our audit of the Financial Report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on this matter.
Valuation of Goodwill at 30 June 2024 (133.7 million)
Refer to Note 16 to the Financial Report
The key audit matter
How the matter was addressed in our audit
A key audit matter for us was the
Group’s annual testing of goodwill
for impairment, given the size of
the balance (being 20% of total
assets) and the higher estimation
uncertainty driven by current
economic conditions. Certain
conditions impacting the Group
increased the judgement applied
by us when evaluating the
evidence available. We focused on
the significant forward-looking
assumptions the Group applied in
its value in use models, including:
•
Assessment of the Cash
Generating Units (CGUs)-The
Group has multiple operating
businesses/product lines and
has made acquisitions during
the year necessitating our
consideration of the Group’s
determination of CGUs, based
on the smallest group of
assets which generate largely
independent cash inflows;
•
Forecast operating cash flows,
annual growth rates and
terminal growth rates – the
Group has experienced
continuing competitive market
conditions due to technological
change and digital disruption in
the printing industry that can
impact print demand and
Our procedures included:
•
We considered the Group’s determination of its
CGUs based on our understanding of the Group’s
business, and how independent cash inflows
were generated against the requirements of the
accounting standards;
•
We analysed the acquisitions made during the year
and the Group’s internal reporting to assess the
Group’s monitoring and management of activities,
and the consistency of the allocation of goodwill to
CGU’s;
•
We considered the appropriateness of the value
in use method applied by the Group to perform
the annual test of goodwill for impairment against
the requirements of the accounting standards;
•
We assessed the integrity of the value in use
models used, including the accuracy of the
underlying calculations;
•
We compared the Group’s cash flow forecasts
contained in the value in use models to the Board
approved forecasts;
•
We assessed the accuracy of previous Group
forecasts to inform our evaluation of forecasts
incorporated in the models. We noted previous
trends of constrained market conditions and how
they impacted the business for use in further
testing;
•
Working with our valuation specialists we
checked the consistency of the growth rates to
the Group’s plans and our experience regarding
the feasibility of these in the printing industry
124 | IVE Group Limited Annual Report 2024
volumes or change the
demand mix of business
between CGU’s. These
conditions increase the
possibility of goodwill being
impaired, plus the risk of
inaccurate forecasts or a
significantly wider range of
possible outcomes for us to
consider;
•
Discount rates – These are
complicated in nature and vary
according to the conditions
and environment the specific
Cash Generating Unit is
subject to from time to time.
The Group uses complex models to
perform its annual testing of
goodwill for impairment. The
models are largely manually
developed, use adjusted historical
performance, and a range of internal
and external sources as inputs to
the assumptions. The Group has not
always met prior forecasts, raising
our concern for reliability of current
forecasts. Complex modelling, using
forward-looking assumptions tend
to be prone to greater risk for
potential bias, error and inconsistent
application. These conditions
necessitate additional scrutiny by
us, in particular to address the
objectivity of sources used for
assumptions, and their consistent
application.
Given the nature of these
judgements, we involved our
valuation specialists and senior
staff with experience in the
industry and the Group’s
business in assessing this key
audit matter.
and economic environment in which it operates;
•
Working with our valuation specialists, we
independently developed a discount rate range
using publicly available data for comparable
entities, adjusted by risk factors specific to the
Group and the industry it operates in;
•
We considered the sensitivity of the models by
varying key assumptions, such as forecast
operating cash flows, forecast growth rates,
terminal growth rates and discount rates, within
a reasonable range. We considered the
interdependencies of key assumptions when
performing the sensitivity analysis and what the
Group considers to be reasonable. We did this
to identify those CGUs at higher risk of
impairment and those assumptions at higher
risk of bias or inconsistency in application and to
focus our further procedures;
•
We challenged the Group’s significant forecast
cash flow and growth assumptions in light of
continuing competitive market conditions due to
technological change and digital disruption in the
printing industry that can impact print demand
and volumes or change the demand mix of
business between CGUs. We applied increased
skepticism to forecasts in the areas where
previous forecasts were not achieved. We
compared forecast growth rates and terminal
growth rates to authoritative published studies
of industry trends and expectations and
considered differences for the Group’s
operations. We used our knowledge of the
Group, business and customers and our industry
experience;
•
We assessed the impact of technology and
market changes on the Group’s key
assumptions, specifically the continued market
for catalogues and other printed products, for
indicators of bias and inconsistent application,
using our industry knowledge and information
published by reputable sources; and
•
We assessed the disclosures in the financial report
against the requirements of the accounting
standards.
125
Other Information
Other Information is financial and non-financial information in IVE Group Limited’s annual report which
is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible
for the Other Information.
The Other Information we obtained prior to the date of this Auditor’s Report was the Operating and
financial review. The Business highlights, Year in Review, Chairman’s Review Report and Chief
Executive Officer’s Review Report are expected to be made available to us after the date of the
Auditor's Report.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
and will not express an audit opinion or any form of assurance conclusion thereon, with the exception
of the Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we consider whether the Other Information is materially inconsistent with
the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
•
preparing the Financial Report in accordance with the Corporations Act 2001, including giving
a true and fair view of the financial position and performance of the Group, and in compliance
with Australian Accounting Standards and the Corporations Regulations 2001
•
implementing necessary internal control to enable the preparation of a Financial Report in
accordance with the Corporations Act 2001, including giving a true and fair view of the
financial position and performance of the Group, and that is free from material misstatement,
whether due to fraud or error
•
assessing the Group’s ability to continue as a going concern and whether the use of the going
concern basis of accounting is appropriate. This includes disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless they either
intend to liquidate the Group and Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
•
to obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
•
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the Financial Report.
126 | IVE Group Limited Annual Report 2024
109
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf) This description forms part of our
Auditor’s Report.
Report on the Remuneration Report
Opinion
In our opinion, the Remuneration Report
of IVE Group Limited for the year ended
30 June 2024, complies with Section
300A of the Corporations Act 2001.
Directors’ responsibilities
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration
Report in accordance with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in
pages 31 to 51 of the Directors’ report for the year
ended 30 June 2024.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
KPMG
Daniel Camilleri
Partner
Sydney
26 August 2024
127
ASX additional
information
Additional information required by the Australian Securities Exchange (ASX) and not disclosed elsewhere
in the Annual Report is set out below. The shareholder information below is correct as at 7 August 2024.
IVE Group Limited shares are traded on the ASX under the code ‘IGL’.
Share registry
Link Market Services
Level 12, 680 George Street
Sydney NSW 2000
Phone: +61 1300 554 474
Registered office
Level 3, 35 Clarence Street
Sydney NSW 2000
Phone: +61 2 8020 4400
Principal Place of Business
Building B,
350-374 Parramatta Road
Homebush NSW 2140
Phone: +61 2 8020 4400
Substantial shareholders of ordinary shares (as reported to the ASX)
Name
Number of
Shares Held
%
Date of notice
to ASX
Anthony Young
12,373,578
8.1%
25 August 2023
Ryan Young
10,118,488
8%
23 October 2023
Tynan Young
7,642,431
5%
27 April 2023
Distribution of shareholders and shareholdings – ordinary shares
There are 153,980,641 ordinary shares on issue held by 4,248 shareholders.
Range
Ordinary Shares
%
No. of
holders
%
1 to 1,000
345,619
0.22
644
15.16
1,001 to 5,000
3,562,417
2.31
1,228
28.91
5,001 to 10,000
6,002,719
3.90
746
17.56
10,001 to 100,000
44,188,304
28.70
1,465
34.49
100,001 and over
99,881,582
64.87
165
3.88
Total
153,980,641
100.00
4,248
100.00
Distribution of performance right holders and holdings – performance share rights (unlisted)
There are 2,192,101 unlisted performance share rights on issue that have been issued under an employee share
plan. These are held by 8 employees.
Range
Performance
Share Rights
%
No. of
holders
%
1 to 1,000
-
-
-
-
1,001 to 5,000
-
-
-
-
5,001 to 10,000
-
-
-
-
10,001 to 100,000
88,235
4.03%
1
12.50%
100,001 and over
2,103,866
95.97%
7
87.50%
Total
2,192,101
100.00%
8
100.00%
128 | IVE Group Limited Annual Report 2024
ASX additional information – continued
Unmarketable parcels
The number of shareholders holding less than a marketable parcel of ordinary shares is 134 for 5,704 shares,
based on IVE’s closing share price of $2.16, on 7 August 2024.
Twenty largest shareholders
Rank
Name
No. shares
%
1
CITICORP NOMINEES PTY LIMITED
14,824,440
9.63
2
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
5,521,961
3.59
3
RYLELAGE PTY LTD
5,474,827
3.56
4
STRATEGIC VALUE PTY LTD
5,417,122
3.52
5
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
5,268,755
3.42
6
BNP PARIBAS NOMS PTY LTD
4,432,614
2.88
7
UBS NOMINEES PTY LTD
3,686,101
2.39
8
CAXTON PRINT HOLDINGS PTY LTD
3,310,231
2.15
9
EXLDATA PTY LTD
3,224,174
2.09
9
MR STEPHEN CRAIG JERMYN
3,000,000
1.95
10
SCJ PTY LIMITED
3,000,000
1.95
11
STRATEGIC VALUE PTY LIMITED
2,063,337
1.34
12
WARBONT NOMINEES PTY LTD
1,841,991
1.20
13
DOROTHY PRODUCTIONS PTY LTD
1,600,000
1.04
14
MR DAVID RONALD MCLAREN & MRS ROSEMARY PHYLLIS
MCLAREN
1,225,000
0.80
15
MR TREVOR READ
1,050,059
0.68
16
EXLDATA PTY LTD
1,030,851
0.67
17
MR MIKE FEGELSON
1,002,500
0.65
18
JOHN BARNES FOUNDATION LIMITED
930,277
0.60
19
RYLELAGE PTY LTD
844,444
0.55
20
CITICORP NOMINEES PTY LIMITED
750,000
0.49
Total
69,498,684
45.13
Balance of register
84,481,957
54.87
Grand total
153,980,641
100.00
On-Market Buy Back
There is no current on-market buy back.
Voting rights
The voting rights attached to ordinary shares are set out below:
On a show of hands every member present at a meeting in person or by proxy shall have one vote, and upon a
poll, one vote for each fully paid share held.
Holders of performance rights do not have voting rights on the performance rights held by them.
Voluntary escrow
There were no ordinary shares held in a voluntary escrow arrangement as at 7 August 2024.
Stock Exchange Listing
IVE Group securities are only listed on the ASX.
Corporate Governance Statement
The Board is responsible for the overall corporate governance of IVE Group Limited, including adopting
appropriate policies and procedures designed to ensure that the IVE Group is properly managed to protect
and enhance Shareholder interests.
The Board monitors the operational and financial position and performance of IVE and oversees its business
strategy, including approving the strategic goals of IVE. The Board is committed to maximising performance,
generating appropriate levels of Shareholder value and financial return, and sustaining the growth and
success of IVE.
In conducting business with these objectives, the Board is committed to ensuring that IVE is properly managed
to protect and enhance Shareholder interests, and that IVE, its Directors, officers and employees operate in
an appropriate environment of corporate governance. Accordingly, the Board has created a framework for
managing IVE, including adopting relevant internal controls, risk management processes and corporate
governance policies and practices, which it believes are appropriate for IVE’s business and that are designed
to promote the responsible management and conduct of IVE.
Details of IVE’s key governance policies and the charters for the Board and each of its committees are
available on IVE’s website at https://investors.ivegroup.com.au/Investor-Centre/?page=corporate-governance.
The Corporate Governance Statement reports against the 4th edition of the ASX Corporate Governance
Council’s Principles and Recommendations (ASX Principles) and the practices detailed in the
Corporate Governance Statement are current as at 26 August 2024. It has been approved by the Board
and is available on the IVE website under Investors at https://investors.ivegroup.com.au/investor-
centre/?page=corporate-governance.
This report has been approved by the IVE Group Board.
IVE Group Limited
ivegroup.com.au
617079 1023