Infomedia delivers 16% profit growth and sales momentum
Monday, 28 August 2017 – Sydney, Australia: Infomedia Ltd (ASX:IFM), a leader in parts and service software to the global automotive industry, today announced its financial results for the full-year to 30 June 2017 (FY17).
The 2017 financial year delivered strong outcomes for Infomedia. The year was defined by strong sales results, increased investment in product development and building on existing customer relationships to deliver increased revenue in all regions.
During the year, Infomedia secured the largest global contract win in the company’s history for the build and supply of an electronic parts catalogue (EPC) with Nissan Motors. The company also extended its reach in Europe with Nissan adding new markets to the rollout of Superservice Menus and Triage products.
The company entered new markets including China, Japan, the Middle East and Mexico and secured contract wins with current and new global automotive partners in existing geographies.
Infomedia reported revenue growth of four percent for FY17 and underlying revenue growth was seven percent on a constant currency basis. Net profit after tax (NPAT) increased 16 percent on the previous corresponding period.
Infomedia’s Board declared a fully franked final dividend of 1.20 cents per share, bringing the full-year dividend to 2.90 cents fully-franked, a nine percent increase on the previous corresponding period.
| FY17 $’000 |
FY16 $’000 |
Movement |
|
| Group Revenue (AUD) | 70,474 | 68,087 | 4%* |
| NPAT | 11,953 | 10,323 | 16% |
| EBITDA | 25,219 | 20,897 | 21% |
| Development costs capitalised | (13,715) | (8,054) | 70% |
| Cash EBITDA | 11,504 | 12,843 | (10%) |
| Earnings Per Share (cents) | 3.85 | 3.33 | 16% |
| Dividend per Share(cents) | 2.90 | 2.65 | 9% |
*7% growth on constant currency basis ($72.7m)
Infomedia’s CEO, Mr Jonathan Rubinsztein said: “I am pleased that the result is in line with the outcome we anticipated while also positioning the business for the future. Internally, the business feels more agile and better able to be both innovative and engaged. Our focus on driving sales has been successful and benefits from the change in structure will endure.
“I am encouraged by our growth in all regions and in new markets.
“The product development decisions made in the last year are an investment in future sustainable growth. Investment in Infomedia’s core business will be ongoing where growth opportunities exist with our current and new customers,” Mr Rubinsztein said.
Infomedia is also looking to supplement organic growth with new product enhancements and considering small merger and acquisition opportunities in adjacencies close to the core business.
Since the end of the financial year, Infomedia completed the acquisition of a CRM software product known as FieldForce. This will be rebranded as Microcat CRM and will extend into Infomedia’s parts portfolio for customers. For a modest initial investment, Infomedia acquired an Australian developed, complementary product that will support original parts sales for both automakers and dealers worldwide.
Infomedia’s CFO, Mr Richard Leon said: “Winning new business is a key driver of our increased investment. The acceleration of our investment, represented by an increase in capitalised development costs, is underpinned by contract wins.”
The outlook for FY18 is a year that will be defined by two distinct halves. The remainder of the 2017 calendar year will recognise the completion of a contract roll-off. The global Nissan EPC contract is on track to start generating revenue in the first three months of the 2018 calendar year with the full roll-out due to be completed in October 2018.
These combined events are expected to result in a subdued first-half FY18 followed by a stronger second-half, the six months ending 30 June 2018. Overall, Infomedia expects to maintain underlying growth momentum for revenue and profitability in FY18.
Infomedia’s dividend record date will be 4 September 2017 and the payment date will be 6 October 2017. The company’s Dividend Reinvestment Plan (DRP) will operate. No discounts will apply.
Shareholders wishing to participate in the DRP must ensure their DRP election forms are received by Infomedia’s registry services provider, Link Market Services, by logging into the Investor Centre at www.linkmarketservices.com.au before 5:00pm on 5 September 2017. Please refer here for further information on the DRP rules.
Infomedia’s 2017 Annual General Meeting will be held in our Sydney Head Office at 3 Minna Close Belrose, NSW on 24 October 2017.
