Sustained performance – Investment underpins future growth
Monday, 24 August 2020 – Sydney, Australia: Infomedia Ltd (ASX:IFM), a leading software provider in parts, service and data insights solutions to the global automotive industry, today announced its financial results for the 12 months to 30 June 2020 (FY20).
- 12% increase in Revenue to $94.6 million
- 21% increase in EBITDA to $46.0 million, 11% increase in Cash EBITDA
- 15% increase in NPAT to $18.6 million
- $83.9 million in new equity raised to support growth strategy
Infomedia reported a 12% increase in revenue to $94.6 million for FY20, compared to $84.6 million reported in the previous corresponding period (pcp). Earnings before interest, tax, depreciation, and amortisation (EBITDA) was $46.0 million, up 21% pcp. Net profit after tax (NPAT) increased 15% to $18.6 million, up from $16.1 million pcp.
Cash EBITDA, a key internal metric to identify the cash impact of capitalised development costs in reported NPAT increased 11% to $21.3 million, up from $19.1 million pcp.
|Group Revenue (AUD)||94,618||84,598||12%|
|Development costs capitalised||(21,910)||(18,969)||16%|
|Earnings Per Share (cents)||5.69||5.19||10%|
|Final dividend per Share(cents)||2.15||2.15|
|Total annual dividend per Share(cents)||4.30||3.90||10%|
Infomedia Ltd is a cash generative business and maintains a solid financial position with net current assets of $98.0 million as at 30 June 2020. Within this, cash and cash equivalents of $103.9 million include $83.9 million raised from an institutional placement and share purchase plan completed in May 2020.
Infomedia Ltd CEO, Mr Jonathan Rubinsztein said: “It has been a rewarding and challenging year. In the first half, we benefited from the completion of the rollout of a global contract, a strong cadence of sales across the each of the regions, and the progressive development and successful early stage pilots of our Next Gen parts and service platforms.”
“In late February, we moved quickly to implement a ‘protect and attack’ strategy to ensure the safety and security of our employees, our customers and the business. Contract signings and installations were delayed following travel restrictions and lockdowns. Late in the second half, we saw a renewed focus by manufacturers and dealers on increasing productivity in aftersales, resulting in an increase in sales in June”, Mr Rubinsztein said.
“COVID-19 associated restrictions have resulted in delayed revenue in each of our regions. However, the period has also delivered positive outcomes, including deeper customer relationships and increased focus on leveraging technology and data insights in global automotive aftersales; revenue will follow the current build of contracted sales”, Mr Rubinsztein said.
The Board remains confident about Infomedia’s strategic direction. Infomedia is well placed to emerge from the challenges of FY20 in a much stronger position.
Customer engagement returned through June and July and a backlog of dealer based and large manufacturer contracted deals are expected to rollout and revenue late in 2021. COVID-19 related restrictions are expected to delay sales converting to revenue. Softer revenue growth than experienced in recent periods is anticipated in the first half of the 2021 financial year (1H21). Similarly, protracted travel constraints are slowing efforts to bring international acquisitions to fruition. Subject to restrictions easing, growth in calendar 2021 should re-emerge at a faster pace.
As a result, Infomedia is not providing guidance but is well positioned to sustain growth in the medium term. The focus over the coming months will be pursuing acquisitions, investment in core products, implementing delayed rollouts, training and installations and continuing contract negotiations delayed in the last quarter of the financial year.
Infomedia Ltd declared a partially franked final dividend of 2.15 cents per share. The total annual dividend was 4.30 cents per share, a 10% increase pcp. Infomedia’s dividend record date will be 31 August 2020 and the payment date will be 17 September 2020.
2020 Annual General Meeting
Infomedia will hold its Annual General Meeting on Wednesday 11 November 2020. The meeting will take place virtually owing to the ongoing COVID-19 restrictions. A formal Notice of Meeting will be released in October. Director nominations close at 5pm on 22 September 2020.