Korvest Ltd (ASX:KOV) Reports Record Order Book for FY25
Trading Performance Overview
Korvest Ltd expects a significant increase in project work value during the second half of FY25. This forecast stems from recent communications with major project customers regarding delivery schedules. The company is entering the second half of the financial year with a record order book, which is anticipated to significantly enhance its overall financial performance in this period.
Profit Expectations
The full year FY25 profit is projected to exceed that of the previous year, although the exact extent of this increase cannot yet be quantified due to uncertainties in delivery timing. Previously, Korvest indicated that its first half FY25 performance would likely mirror that of the same period in FY24, but expected lower margins due to project phasing and competitive pressures impacting net profit.
Operational Challenges
In November, Korvest experienced a significant setback, losing 17 days of production in its galvanising business due to an unplanned maintenance shutdown. The plant resumed full operations on 1 December 2024. Costs related to this incident will reflect in the first half results, with some recovery anticipated from insurers after the balance sheet closes.
Executive Comment
Managing Director Chris Hartwig emphasised the robust project pipeline and the company’s preparedness to navigate through operational challenges as it aims for enhanced profitability in FY25.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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