IPD Group Posts $354.7M Revenue and $26.2M Profit, Cuts Debt Sharply

Record Financial Performance Amid Market Challenges

IPD Group Limited has delivered a standout financial performance for the year ended 30 June 2025, posting record revenue of $354.7 million, a 22.1% increase over the previous year. Net profit after tax rose 17.0% to $26.2 million, underscoring the company’s ability to grow earnings despite ongoing macroeconomic pressures, particularly in the commercial construction sector.

The company’s diversified product portfolio, especially its focus on electrical infrastructure products and services, has been a key driver of growth. Notably, sectors such as data centres and water and wastewater infrastructure have contributed to a 5.2% increase in core business revenues on a pro-forma basis, offsetting declines in more cyclical areas like commercial construction cables.

Balance Sheet Strength and Dividend Policy

IPD Group’s balance sheet shows marked improvement, with net assets rising to $163.9 million and borrowings reduced from $31.1 million to $11.1 million during the year. The company ended the period with a net cash position of $9.8 million, reflecting disciplined debt management and strong operating cash flow conversion of 113.6%.

In line with its solid earnings growth, the Board declared a fully franked final dividend of 6.2 cents per share, maintaining a 50% payout ratio for the full year. This follows an interim dividend of 6.4 cents per share paid earlier in the year, bringing total dividends for FY25 to 12.6 cents per share, up from 10.8 cents in FY24.

Operational Expansion and Strategic Outlook

During FY25, IPD Group expanded its physical footprint with new offices in Brisbane and Melbourne, featuring product showrooms and training facilities designed to foster collaboration and support future growth. The company remains focused on operational efficiency, leveraging economies of scale and synergies across its divisions.

Looking ahead, management is optimistic about emerging opportunities linked to the renewable energy transition, increased demand from data centres, electric vehicle infrastructure, and public transport electrification. While some end markets remain challenging, the Group is well positioned to capitalize on these growth drivers and any recovery in commercial construction.

Executive Remuneration and Incentive Outcomes

The FY25 remuneration report reveals that key executives, including CEO Michael Sainsbury and Director of Strategic Development Mohamed Yoosuff, participated in the company’s Employee Incentive Plan (EIP). However, performance rights granted under the plan were forfeited due to the company not meeting the specified performance hurdles, notably total shareholder return and net profit after tax targets for the year.

This forfeiture highlights the company’s commitment to aligning executive rewards with shareholder value creation, though it raises questions about future incentive structures and executive retention strategies.