The IPD Group Ltd (ASX: IPG) share price is having a good start to the week.
At the time of writing, the ASX All Ords stock is up 4% to $4.40.
This follows the release of the electrical infrastructure products distributor's half year results before the market open this morning.
ASX All Ords stock charges higher on results day
- Revenue up 46.6% to $176.9 million
- EBITDA up 46.6% to $23.6 million
- Net profit after tax up 40% to $13.3 million
- Fully franked interim dividend up 39.1% to 6.4 cents per share
What happened during the half?
For the six months ended 31 December, IPD Group reported record revenue of $176.9 million. This is up 46.6% on a statutory basis and 2.3% on a pro forma basis.
This was despite macroeconomic challenges impacting the commercial construction sector. Management notes that IPD's diverse product range has enabled the core business to benefit from growth in industries such as Data Centres and Water & Waste Water.
Data Centre revenue continues to grow strongly and was up 25% as a percentage of revenue on FY 2024.
The ASX All Ords stock's earnings per share came in at 12.9 cents for the half, which is up 19.4% on the prior corresponding period. This was above the top end of its guidance range for the half.
Management believes this growth demonstrates the strength of its ongoing strategic focus on mergers and acquisitions (M&A), as well as the success of accretive acquisitions made in FY 2024.
Also growing during the half was its operating free cash flow, which increased to $25.3 million. This represents operating free cash flow conversion of 107.6% and underpinned a 39.1% jump in its fully franked interim dividend to 6.4 cents per share.
Its shares will trade ex-dividend for this payout next month on 27 March. After which, it will be paid to eligible shareholders the following month on 10 April 2025.
Outlook
No guidance was given for the full year, but the ASX All Ords stock was cautiously optimistic on its outlook thanks to its exposure to emerging megatrends. It said:
Whilst some of our end markets are challenging, IPD continues to capitalize on emerging opportunities driven by the transition to renewable energy, increasing demand from data centres and associated energy requirements, the expansion of EV chargers and demand for public transport electrification, and a supportive legislative environment. Management remain focused on executing strategic priorities, long-term value creation, adapting to market conditions, and continuing to deliver sustainable growth.
