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Highlights

  • IPD Group sells electrical infrastructure products to system integrators, power utilities, switchboard manufacturers, contractors, electrical wholesalers and customers
  • In 1HFY24, the company delivered 8.84% YoY surge in its revenue to AUD 120.70 million
  • Yoosuff (Mohamed) has the maximum stake in IPG with a shareholding of 10.92%

IPD Group Limited (ASX: IPG) is an Australia based automation and electrical distributor. Predominantly, the company is engaged in sales of electrical infrastructure products to system integrators, power utilities, switchboard manufacturers, contractors, electrical wholesalers and customers.

In the first half of the financial year 2024 (1HFY24), the company recorded 8.84% YoY increase in its revenue to AUD 120.70 million, 15.83% YoY rise in gross profit to AUD 48.30 million and 22.50% YoY growth in NPAT to AUD 9.80 million.

During the reported period, revenue growth and expanded gross margin were supported by conclusion of the acquisition of EX engineering and growth in daily trading business. Furthermore, NPAT increased on the back of elevated top line and increasing gross margins in 1HFY24.

Top 10 shareholders of IPG

The top 10 shareholders of IPG have around 34.33% shareholding in the firm. Yoosuff (Mohamed) and Toose (Keith William) have the maximum stake in the firm with a shareholding of nearly 10.92% and 5.93%, respectively.

Recent business update

Through an ASX filing dated 29 May 2024, the company posted earnings guidance for FY24. In FY24, the company expects to report statutory EBITDA of AUD 39 – 39.5 million and statutory EBIT of AUD 33.5 – 34 million.

On 4 June 2024, the company notified that Michael Sainsbury, CEO of IPG, sold 353,000 shares to finance the recent purchase of a primary residence, retaining his 75% of the ownership stake with no further intention of selling shares in the near term.

Outlook

In the second half of FY24, the company expects commencement of multiple projects, indicating the positive outlook for the overall business.

The focus is on undertaking strategic acquisitions to accelerate growth and synergies of the group’s portfolio.

The company is expected to launch a lead-sharing incentive campaign for their group business. This development is anticipated to leverage advanced technologies.

Share performance of IPG

IPG shares closed 2.77% higher at AUD 4.45 apiece on 19 June 2024. In the past one year, IPG’s share price has declined by 1.11%, while in the last three months, it has gained 0.68%.

The 52-week high of IPG is AUD 5.420, recorded on 22 February 2024, and the 52-week low is AUD 3.604, recorded on 1 November 2023.

IPG Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 19 June 2024. The reference data in this report has been partly sourced from REFINITIV.