Improving growth trajectory
Wednesday, 15 August 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 financial year ending 30 June 2018 (FY18).
FY18 Result
- 7.9% increase in NPAT
- 6.9% increase in full year dividend
- Increased investment in product development
Infomedia reported a 3.5% increase in revenue to $72.9 million for FY18, when compared to $70.4 million reported in the previous corresponding period (pcp) and net profit after tax (NPAT) of $12.9 million, up 7.9% from $11.9 million pcp. EBITDA (earnings before interest tax depreciation and amortisation) was $29.1 million, up 15.2% pcp.
| FY18 $’000 |
FY17 $’000 |
Movement |
|
| Group Revenue (AUD) | 72,935 | 70,474 | 3.5% |
| EBITDA | 29,050 | 25,219 | 15.2% |
| Development costs capitalised | 18,463 | 13,715 | 34.6% |
| Cash EBITDA | 10,477 | 11,652 | (10.1%) |
| NPAT | 12,897 | 11,953 | 7.9% |
| Earnings Per Share (cents) | 4.16 | 3.85 | 8.1% |
| Final dividend per Share(cents) | 1.70 | 1.20 | 41.7% |
| Total annual dividend per Share(cents) | 3.10 | 2.90 | 6.9% |
The investment focus over the past two years has enabled a positive momentum shift in revenue in the second half of FY18.
New recurring revenue from contracts won in prior periods contributed 6.3% growth in the second half of FY18 when compared to the first half of FY18. The second half revenue growth did not include any revenue related to a major contract roll off announced in 2015. All regions and product portfolios contributed to half-on-half growth.
Infomedia continues to report Cash EBITDA as a key performance measure to identify the cash impact of investing in development costs that are capitalised in reported NPAT.
As foreshadowed, investing for long term growth impacted Cash EBITDA in FY18 with the Company reporting $10.5 million compared to $11.7 million in the prior year. Investment uplift related to the pre-revenue development for parts and service contracts secured in the previous financial year.
Infomedia anticipates a substantial increase in Cash EBITDA in FY19 through strong top-line growth and disciplined cost management.
Infomedia’s financial position remains strong with net current assets of $11.5 million at 30 June 2018 (FY17: $13.5 million). The cash and cash equivalents position closed at $13.3 million (FY17: $13.3 million) reflecting the robust cash generative nature of the business. The company has no debt.
Infomedia’s CEO, Mr Jonathan Rubinsztein said: “Our performance reflects a focus on improving our growth trajectory. The investments we have made over the past two years will provide a solid foundation for scale into the future and enable us to be the leading software solution provider to the parts and service sectors of the global automotive industry.
We will continue to invest to leverage our existing global footprint, increase our coverage with existing relationships, enter new markets and invest in innovation“ Mr Rubinsztein said.
Outlook
Board and management are confident about the year ahead.
Confidence in FY19 is underpinned by an increase in recurring revenue from contracts won in prior periods and disciplined cost management.
The Group is exploring acquisitions that are close to its core and value adding. Infomedia will pursue opportunities that provide an entry into new markets, access to new customers or provide innovation to its existing parts and service software solutions.
Infomedia aims to deliver sustainable growth in revenue and earnings.
FY18 Dividend
Infomedia declared a fully franked final dividend of 1.70 cents per share, an increase of 41.7% pcp. The total annual dividend was 3.10 cents per share. Infomedia’s dividend record date will be 22 August 2018 and the payment date will be 10 September 2018. The Company’s Dividend Reinvestment Plan (DRP) will operate. No discounts will apply.
Shareholders wishing to participate in the DRP should submit DRP election forms to Link Market Services, by logging into the Investor Centre at www.linkmarketservices.com.au before 5:00pm on 23 August 2018. Please refer here for further information on the DRP rules.
