Two businesses: EzyStrut (cable and pipes) and Korvest Galviniser (galvinising)

90% of revenue, with slightly lower margins, is generated through EzyStrut

Flat-to-negative growth past three years, however impressive growth between FY21 and FY22

With a PE of about 10 and a dividend yield of 6.5%, the market views this company as more of an income play than growth.

Seems like the company's exists on a few major projects at a time. For instance in the trading update part of the presso they quoted

1 major project to commence in FY25 with supply into FY26 and FY27

1 major project in tender phase, at least 1 more expected in FY25

Twice in the company's FY24 presso, Korvest mentioned 'data centres'. Is this legit or they just trying to ride the AI/data centre trend. They did not mention Data Centres once in last years presentation.

Also in last years 'Full Years Statutory Accounts' in the 'Principal Activities' section there is no mention of data centres in the sectors/markets they service

This year however 'data centres' has been added:

There is a possibility the company's management realised during the year that data centres and this trend is something they can successfully tap into.

More than doubled CAPEX for FY24, half of which is growth CAPEX

Released 5pm on Friday 22 July.

Korvest is traditionally the first company to release their FY results (most are released in August)

Typically I would consider the release timing (after close of trading on a Friday) of this type of announcement as a major red flag. The company is wanting to hide the awfulness of the results!! That is my first assumption but it can be a generalisation that is wrong on occasion.

And it looks like a completely wrong assumption with Korvest's FY22 results.

Now Korvest has been listed on the ASX for about 50 years and to be honest has just chugged away without any signifcant growth. But could that be changing?

Revenue UP 42% to $99m.

NPAT UP 87% to $11.3m

EPS up 85% to 99c

Operational cash flow (OCF) went backwards

BUT one of the reasons for the weakeness in OCF is due to changes in working capital as perfectly explained in Note 15

Inventories UP $8.1m

Receivables UP $2.8m

My question re Korvest

Is this the start of a signifcant growth phase for the company OR is the company benefiting through some tailwinds that won't last???