Korvest has almost doubled its dividend over the past year

Industrial products manufacturer Korvest has boosted profit by almost 90 cent, with shareholders enjoying a rich benefit.

Korvest shares surged on Monday after the release of strong profit results and a 75 per cent increase in its final dividend.

The Adelaide-based galvaniser and industrial products manufacturer increased its net profit by 87.2 per cent to $11.3m, on revenue of $99.2m, up 42.2 per cent.

The company’s stock was up 8 per cent on Monday at $8.10.

Korvest increased its final, fully-franked dividend by 15c to 35c, bringing the total dividend paid for the year to 60c, up from 35c for the previous corresponding period.

The company said its EzyStrut business performed “very strongly’’ during the year, supplying four major infrastructure projects.

“In addition to the record level of project work, the small project and day-to-day markets also performed well with improvement achieved in all states compared to the prior year,’’ the company said in a statement.

Korvest said it had experienced significant cost increases as a result of the pandemic, as well as impacts around staff availability.

However its EzyStrut business had passed through cost increases to customers through prices rises in August and December.

“Inventory increased significantly during the year due to a combination of higher raw material costs, project items and increased holdings to mitigate supply chain risks,’’ the company said.

Korvest’s galvanising business also generated record volumes, with EzyStrut contributing to this uplift.

“External tonnes fell slightly in FY22 although the revenue achieved increased due to a higher average sell price,’’ the company said.

“Price rises to customers were implemented during the year as a result of the increased price of zinc.’’

Korvest said it had a healthy order book for this year.