Wednesday, 22 August 2007 – Sydney – International automotive software developer, Infomedia Ltd (IFM) today released its 2007 financial year results. The Company is pleased to report net profit after tax of $15.3 million for the 2007 financial year which is within the guidance previously provided to the market in December 2006.
Electronic Parts Catalogue subscription numbers grew by 11% to 53,165 and Superservice Menus subscription numbers grew by 56% to 2,614 over the previous corresponding period.
Electronic Parts Catalogue subscription growth was driven primarily through the successful worldwide launch into Kia markets coupled with organic growth within the existing portfolio. Superservice Menu subscription growth was driven primarily across European markets with particular emphasis on Daihatsu and Hyundai.
Catalogue & Publishing sales revenue increased by 3% to $53.0 million over the equivalent prior period. This growth was impaired as a result of the rising strength of the Australian dollar throughout the year. Consolidated sales revenue of $54.6 million only included five months of the Business Systems division compared to the full twelve months of the comparative period following the sale of the division. The division was sold on 1 December 2006 for gross proceeds of $1.5 million. The absence of the Business Systems division in the second half had little impact on reported profits as this business was operating on a near breakeven basis.
Cash flows from operations remain strong with $14.0 million in cash generation. Total dividend payments to shareholders over the 2007 financial year amounted to $24.4 million. Notwithstanding these returns, the balance sheet remains in a strong position with $15.7 million cash on hand at 30 June 2007.
Final dividend distributions
A fully franked final dividend of two point one cents (2.1¢) will be paid to shareholders of record at 6 September 2007. This combined with the earlier interim dividend declared in February brings the total franked dividend for the year to four cents (4.0¢) and represents a payout ratio of 85% based upon net profit after tax.
Outlook
In the year ahead the Company will incorporate higher data licence costs and experience the previously communicated reduction in General Motors subscriptions in North America. Despite anticipated net growth in software subscription volumes, the projected strength of the Australian dollar during the course of the 2008 year is likely to have a dampening affect on reported profit.
The recent successful contract renewals in Europe, North America and Asia Pacific, along with the positive reception of our new products provide a solid platform for growth in subscription volumes. Further advances in EPC technology for both the franchised automotive dealer and the Independent Motor Trade will create increased sales momentum and diversification of the Company’s customers and product portfolio over the medium term.
The outlook for Superservice Menus remains strong with continuing growth expected into 2008 and beyond. The Company continues to expand both domestically and internationally with new automakers and organic growth from current releases.
