Infomedia’s Half Year Report to Shareholders – FY2016

Monday, 22 February 2016 – Sydney – International automotive software developer, Infomedia Ltd (the Company) today released its half year financial results for FY2016.

Chairman Ms Fran Hernon said “The Board is pleased with the Company’s solid half year performance and looks forward to continuing this momentum into the second half. As signalled at the AGM, we will continue to invest in our software platforms and sales and delivery capacity that will underpin our future growth. We look forward to welcoming our new CEO, Mr Jonathan Rubinsztein, on 14 March”.

For the six months ended 31 December 2015:

• Sales revenue grew by 16% or 3% in real terms, with growth in real terms across all operating regions: Asia Pacific 3%, EMEA 1% and the Americas 5%. EMEA was the region most affected by the non-renewal of a Superservice Menus contract with Jaguar Land Rover, which expired on 31 December 2014. Excluding this impact, EMEA sales grew by 8% in real terms.
• Parts platform (EPC) sales grew by 2% in real terms, through a combination of subscription number increases and contract driven price increases. The Service platform achieved 13% growth excluding the impact of JLR, through increased subscriptions across all operating regions. Lubrication publication and other sales revenue grew by 41% during the period, following increased demand from new and existing customers.
• EBITDA grew by 9% using the Company’s standard measurement of EBITDA.
• Operational costs increased due to expansion of sales and delivery capacity and one-off costs linked to the CEO transition.
• An NPAT margin of 17.8% was achieved for the half year period. Excluding the impact of hedging, NPAT margins were sustained above 20%.
• Net assets increased to $44.5m. The balance sheet remains strong with no debt and $15.0m of cash

Infomedia confirms its guidance that it expects to generate high single digit to low double digit sales revenue growth in FY2016.  As announced at the AGM, maintaining the FY2015 NPAT margin is expected to be impacted by investment expenditure of up to $2.5m after tax in FY2016.

DIVIDEND

An interim half year unfranked dividend of 1.65 cents per share has been declared (FY15: 1.94 cents per share, unfranked). The half year dividend represents 85% of NPAT, which is the upper limit of the Company’s dividend policy.

The dividend is eligible for Infomedia’s dividend reinvestment plan (DRP). No discounts will apply and the Company intends to acquire shares on market to avoid diluting existing shareholdings.

The following key dates apply to the dividend:

Shareholders who wish participate in the DRP must ensure that their DRP election forms are received by Boardroom by 5:00pm on 4 March 2016. Please refer to the DRP Rules and supporting materials located here for further information.

INVESTOR TELECONFERENCE

The Company will host a conference call for investors. Details of the call are as follows:

Investor presentation: Please note that a presentation slideshow will be published to the Australian Stock Exchange prior to the teleconference.  This slideshow will form the basis of the presentation made during the teleconference.  We strongly recommend that participants avail themselves of the slideshow prior to joining the teleconference.