MOMENTUM BUILDING IN SUPERSERVICETM
Financial Results for the 6 months to 31 December 2017
Thursday, 22 February 2018 – 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 six months to 31 December 2017 (1H18).
As foreshadowed, Infomedia reported a subdued half year result with a one percent increase in revenue to $35.3m for 1H18, when compared to $34.8m reported in the previous corresponding period (pcp) and net profit after tax (NPAT) of $5.7m, down 18 percent from $6.9m in the previous corresponding period. EBITDA was $12.4m, down eight percent pcp.
|Development costs capitalised||9,120||6,845||33%|
|Earnings per share (cents)||1.84||2.25||(18%)|
|Dividend per share (cents)||1.40||1.70||(18%)|
The 1H18 result reflects the impact of the completion of a European-based electronic parts catalogue (EPC) contract and an increase in development costs and associated investment in future growth.
Investment in capitalised product development increased to meet the needs of contractual commitments of major projects secured in 2017. Development work for those major projects was largely completed in the period on time and on-budget including the Nissan global EPC contract announced in February 2017.
Associated investments made in the period in the areas of infrastructure, sales, processes and upskilling, position Infomedia for future sustainable growth.
At a product level, Infomedia achieved strong double-digit revenue growth in its SuperserviceTM product in the period, which offset the loss of revenue from the above mentioned European-based EPC contract. Infomedia continued to invest in product innovation to enhance the product portfolio.
Despite modest top-line growth, the Company is on track to accelerate growth from the second half as revenue from 2017 contract wins commences and will continue to ramp up into the financial year ending 30 June 2019 (FY19).
Investment in highly skilled leadership with backgrounds in technology, development, the global automotive industry and sales is an indication of the Board and Management’s confidence in leveraging Infomedia’s global presence and relevance with automotive manufacturers and dealers.
Infomedia’s CEO, Mr Jonathan Rubinsztein said: “Infomedia is one of very few global SaaS providers to the parts and services segments of the automotive industry. As pressure on new car sales numbers builds, automotive manufacturers and dealers are increasingly focused on the profitability of parts and service and that is driving momentum in our business,” Mr Rubinsztein said.
“Ongoing development and innovation within our product suite is attractive to automakers and dealers
looking for efficiencies and customer retention. The development of an integrated product suite, combined
with our experience and long-standing relationships with customers globally, means we are well positioned to be more relevant to our existing 150,000+ users and to new customers in new geographies“, Mr Rubinsztein said.
Infomedia expects a stronger second half for the six months to 30 June 2018 through both revenue ramp
and managing operating expenses at levels similar to 1H18. The Company anticipates year on year growth
in reported Revenue, EBITDA and NPAT for FY18.
Infomedia expects momentum to continue in FY19 with the full benefit of recurring revenue from large
contracts won in the previous year. In particular, the double-digit revenue growth of the SuperserviceTM
suite of products will provide a platform for growth in revenue, EBITDA and profits into 2019 and beyond.
Infomedia declared a fully franked 1H18 dividend of 1.40 cents per share. The dividend represents a payout ratio of 76% of NPAT consistent with the Company’s dividend policy of paying 75% to 85% of NPAT. Infomedia’s dividend record date will be 1 March 2018 and the payment date will be 29 March 2018. 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 2 March 2018. Please refer to here for further information on the DRP rules.