Delivering strong growth & margin improvement – cash EIBTDA up 82%
Monday, 19 August 2019 – Sydney, Australia: Infomedia Ltd (ASX:IFM), a leading software provider in parts, service and data insights to the global automotive industry, today announced its financial results for the financial year ended 30 June 2019 (FY19).
FY19 Results
- 16% increase in Revenue
- 31% increase in EBITDA & 82% increase in Cash EBITDA
- 25% increase in NPAT
Infomedia reported a 16% increase in revenue to $84.6 million for FY19, when compared to $72.9 million reported in the previous corresponding period (pcp). EBITDA (earnings before interest, tax, depreciation and amortisation) was $38.0 million, up 31% pcp. Net profit after tax (NPAT) increased 25% to $16.1 million, up from $12.9 million pcp.
| FY19 $’000 |
FY18 $’000 |
Movement |
|
| Group Revenue (AUD) | 84,598 | 72,935 | 16% |
| EBITDA | 38,041 | 29,050 | 31% |
| Development costs capitalised | 18,969 | 18,463 | 3% |
| Cash EBITDA | 19,111 | 10,477 | 82% |
| NPAT | 16,122 | 12,897 | 25% |
| Earnings Per Share (cents) | 5.19 | 4.16 | 25% |
| Final dividend per Share(cents) | 2.15 | 1.70 | 26% |
| Total annual dividend per Share(cents) | 3.90 | 3.10 | 26% |
The 2019 financial year was defined by a period of delivering strong growth while also continuing to improve margins. Investment across the business resulted in several FY19 highlights including:
- The completion of the Nissan global electronic parts contract roll-out, ex-Japan*; extending the Nissan relationship globally – selling more products to existing relationships and moving into new markets
- The move into data analytics through the acquisition & integration of Nidasu, the leading provider of data analytics to auto makers and dealers in Australia; leveraging data insights beyond Australia
- Growth in all regions and all products
Operating leverage in the business delivered an 82% increase in Cash EBITDA in FY19 to $19.1 million, up from $10.5 million in FY18 as a result of disciplined cost management and investments made in previous years. Cash EBITDA remains a key internal measure for the business.
The cash generative nature of Infomedia’s business saw the cash and cash equivalents position close at $15.5 million compared to $13.3 million in the prior financial year. The Company has no debt.
The acquisition of Nidasu, announced in the first half of FY19, met expectations for the period to the end of June 2019, with a number of promising opportunities moving through the 2020 financial year (FY20).
Infomedia’s CEO, Mr Jonathan Rubinsztein said: “Our performance during the year reflects the growing importance of parts and service aftersales to the global automotive industry. Our investment to date has contributed to an increase in scale and improved margins.”
We will continue to invest to capitalise on the emerging opportunities that will arise from significant disruption. We are investing to differentiate Infomedia to be the leading software solution provider to the parts and service sectors of the global automotive industry “Mr Rubinsztein said.
Outlook
We enter FY20 with strong, global customer relationships and good momentum and expect to deliver continued double-digit growth in both revenue and earnings.
Through strong execution, we believe Infomedia can continue its current growth trajectory while also investing to take advantage of opportunities emerging from disruption in the automotive industry.
The Board and management are confident about Infomedia’s position in the market. We believe we can grow Infomedia’s business by leveraging our key assets to provide real value to our customers while they face significant
change in their environment.
FY19 Dividend
Infomedia declared an unfranked final dividend of 2.15 cents per share, an increase of 26% pcp. The total annual dividend was 3.90 cents per share. Infomedia’s dividend record date will be 26 August 2019 and the payment date will be 25 September 2019. 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 27 August 2019. Please refer here for further information on the DRP rules.
*scheduled July – September 19
