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IPG - IPD Group

Suck on this:

Please tell me they are not presenting their stock promotions as if it were a managed fund with real client's money invested.

This mob is just a paid service for the so aptly named Motley Fools isn't it?
 
So Greg Canavan of 'fat tail investment advisory' reported back to subscribers today after the interview with the IPG investor relations teamlet. He sounds reassured but with a degree of qualification. Advises subscribers to get back up to a 2% weighting (after shrinkage from the lower share price) then look to add more when/if the company reports favourably in August.

Quote excerpt:
"The issues facing IPG appear to be short-term in nature. The CMI business (acquired in early 2024) continues to suffer from weak commercial construction. Economic growth numbers released recently confirmed this, with business investment languishing.
Business investment is cyclical, so this is likely a short-term headwind. Having said that, there have been some integration issues. At the end of last year, the Executive General Manager of Operations for the IPD business, Adam Jones, moved over to CMI to assist with the integration."

Held
Accumulate

DAILY
 
WIth today's candle (so far) this chart is giving me the impression that IPG is consolidating here to prepare at least a swing low rally? That is, a low on a daily or weekly scale, not necessarily a major low, but a candidate for such. All subjective obviously.
Another snippet from Greg Canavan's analysis first referencing the lagging CMI acquisition then discussing Addelec, the electrical vehicle charging installation business:

"... We’ll get a closer look at the integration of CMI when the company hands down its full-year results in August.

The Addelec business is the other area weighing on profits. This is the EV charging infrastructure business. It’s facing project delays on its contract to upgrade EV charging infrastructure at the Kinsgrove bus depot in Sydney. The depot is undergoing a significant transformation to support a fleet of approximately 155 battery electric buses.

At the half-yearly result, management stated that Transport New South Wales expected to deliver the bus depot in August, ‘which means that if it stays on track and it stays to that time line, there will be a significant amount of revenue in the second half of the year attached to Kingsgrove Bus Depot’. But delays to the project have pushed that revenue recognition out. Hence the expected 12% decline in revenues from the Addelec business. Again, that is a short-term timing issue. Longer term, the Addelec business appears to have strong growth prospects.

In NSW alone, the government’s broader Zero Emission Buses Program aims to transition over 8,000 buses to zero-emission technology by 2035 in Greater Sydney, with further targets set for outer metro regions and regional NSW. The program includes converting 11 diesel and natural gas bus depots in Greater Sydney to support battery electric buses, with the first stage expected to be complete by 2028."

DAILY
 
$3.61

FY25 Results Highlights
• Record revenues and earnings at the top end of the guidance range provided in May 2025
• Revenue of $354.7 million representing 22.1% growth on pcp
• Continued revenue growth across the core IPD business (+5.2% on the pcp), CMI’s Minto Plugs (+6.4% on the pro-forma pcp), and EX Engineering (+5.2% on the pro-forma pcp), with all ahead of guidance on strength in key infrastructure sectors (i.e. Data Centres, Water & Waste Water)
• Addelec (revenue -12.8% on the pcp) was impacted by previously-disclosed project delays, while CMI Cables (revenue -10.2% on the pro-forma pcp) was lower than previously guided, driven by a major project order being realised in July (instead of prior to 30 June).
• Data Centre revenue growing strongly, up 33% on FY24, now representing 16% of group revenue
• EBITDA of $46.4 million, up 19.3% on pcp and NPAT of $26.2 million, up 17.0% on pcp
• EPS of 25.3 cents for FY25, up 8.6% on pcp, demonstrating the success of accretive acquisitions made in FY24
• Operating free cash flow (before interest and tax outflows) has continued to increase, rising to $52.7 million for FY25 with Operating free cash flow conversion (before interest and tax outflows) of 113.6% for FY25 (up from 91.3% in the pcp)
• Net Cash of $9.8 million as at 30 June 2025 (vs a Net Debt position of $8.8 million at 30 June 2024) after repaying $20.0 million of core debt during the year
• Total fully franked dividends of 12.6 cents per share declared for FY25, up 16.7% on pcp
 
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