Tuesday, 24 August 2010 – Sydney – International automotive software developer, Infomedia Ltd (IFM) today released its 2010 financial year results. The Company reports net profit after tax of $11,336,000 for the 2010 financial year which is within the range previously advised in its guidance, released to the market on 11 December 2009.
The Company’s reported sales revenue for the year was $45,339,000 which represents a 16.6% reduction over the previous corresponding period. The major cause of the reduction in sales revenue was due to the strengthening of the Australian dollar over the 2010 financial year. As part of the Company’s foreign currency hedging program, favourable hedge translation rates were achieved. The effect of these, whilst not included in the sales revenue number, had a significant positive impact on the net profit and is shown separately within the statutory accounts.
In constant currency terms, revenue decreased by $2.9 million. The impact of a $3.9 million revenue reduction from the conclusion of a previously disclosed data licence was offset by organic growth from Electronic Parts Catalogues, Superservice MenusTM and the Company’s newest parts solution for the collision industry, Auto PartsBridgeTM.
During the year the Company signed a new extended lease on its headquarters in Sydney. The new lease led to provisions of approximately $900,000 pre tax to be credited to the profit and loss account during the year. The Company also saw an improvement in its debtor position and consequently reduced its provision for doubtful debts by $283,000, which had the impact of increasing its pre tax profit by the same amount. The net profit result included a tax adjustment of $488,000 down from the previous corresponding period of $1,067,000. This had the effect of increasing the Company’s effective tax rate from 17.5% in 2009 to 21.8% in 2010. The Company anticipates its 2011 effective tax rate to return closer to historical averages.
Cash flows from operations increased to $10,174,000 primarily due to the absence of an advanced royalty paid in 2009.
During the year the Company repurchased 6,694,918 shares for $1,732,000 under its buy back program. The Company is pleased to advise a final dividend payment of 1.2 cents unfranked which together with the interim dividend of 1.2 cents and the share buy back reflects a payout ratio of 80% of net profit after tax reported for the full year. The record date to determine entitlements to the dividend distribution is 7 September 2010 and the date on which the dividend is payable is 21 September 2010.
