CONTINUED MOMENTUM WITH IMPROVED OPERATING MARGINS
Financial Results for the six months to 31 December 2021
25 February 2022v– Sydney, Australia : Infomedia Ltd (ASX:IFM), a leading SaaS platform provider in parts, service and data insights solutions to the global automotive industry, today announced its first half financial results for the six months to 31 December 2021 (1H22).
| 1H22 A$’000 |
1H21 A$’000 |
Variance (pcp) |
|
| Revenue | 58,955 | 47,689 | 24% |
| Underlying Cash EBITDA1 | 13,294 | 9,193 | 45% |
| Underlying EBITDA1 | 25,911 | 22,628 | 15% |
| NPAT (Reported) | 3,500 | 9,331 | (62%) |
| Earnings per share (cents) | 0.93 | 2.49 | (63%) |
| lnterim dividend per share (cents) | 2.60 | 2.15 | 21% |
Infomedia delivered a strong financial result for the six months ended 31 December 2021 (1H22) driven by sales growth in core products, and good contribution from our latest acquisition, SimplePart, which is included for the full six months. Infomedia reported revenue of $59.0 million for 1H22, compared to $47.7 million reported in the previous corresponding period (pcp), an increase of 24%.
Underlying Cash EBITDA1 (earnings before interest, tax, depreciation, and amortisation), the key operational measure for the business was $13.3 million, up from $9.2 million or 45% pcp. Organic underlying Cash EBITDA1 was up 25% pcp.
Underlying EBITDA1 was $25.9 million. Lower underlying EBITDA growth of 15% reflects reduced capitalisation of software development costs following the completion of NextGen.
Net profit after tax (NPAT) was $3.5 million, down 62% pcp. This was impacted by significant increases in non-cash depreciation and amortisation and non-operating items such as the expensing of earnouts on the Nidasu and SimplePart acquisitions during the period.
Infomedia Ltd is a highly cash generative business and maintains a solid financial position. Net current assets were $62.5 million at 31 December 2021, down from $67.0 million at 30 June 2021. Net cash from operating activities increased to $20.3 million, up from $17.0 million pcp.
Infomedia Ltd Interim CEO, Jim Hassell said: “Having spent the past four months immersed in the business I believe that Infomedia has an excellent foundation for the future. We have long term relationships with our customers, 95% of our revenues are recurring, we have global presence – a perspective which is increasingly important to our customers. We are cash generative, and have invested well in our platform and acquisitions, which have delivered good results,” he said.
“We continue to see strong demand for Infodrive and Superservice in APAC. APAC revenue was up 15% pcp and sequentially up 5% over the previous six months. Our successful Infodrive connected car solution for BMW Australia has now been extended to New Zealand and we have seen our first e-commerce win in APAC with RAM Trucks Australia which we expect to go live in the coming half.
Revenue growth in EMEA was 6% pcp and up 3% when compared to the second half of FY21. Despite the challenges over the past two years, we have seen some good successes in the first half of the year including our first European win for e-commerce from SimplePart at Hyundai Ireland,” Mr Hassell said.
“In the Americas, the addition of SimplePart has led to 57% revenue growth over the prior corresponding six months. Excluding SimplePart, the Americas business held steady in local currency pcp, and delivered a 2% increase over the previous six-month period. The business is now stabilising,” he said.
“The addition of SimplePart also helps to build increased scale and capability in the Americas and we will benefit from this globally as we complete our integration,” he said
Outlook
The Board remains confident that Infomedia is in a very strong strategic position as a trusted provider of automotive aftersales software, data services and e-commerce solutions to automakers, dealers, and suppliers globally.
Infomedia’s partnerships with its global customers together with the ability to provide solutions for both current and evolving needs provide a strong platform for continued growth. This growth will be underpinned by continued investment in our platform and strategic acquisitions.
Infomedia is on track to deliver FY22 revenue guidance in the tightened range of $119 million to $123 million in FY222.
1H22 Dividend
Infomedia Ltd declared an interim dividend of 2.60 cents per share (franked at 70%), up 21% pcp. Infomedia’s dividend record date will be 4 March 2022 with a payment date of 22 March 2022.
1 Infomedia uses certain non-IFRS measures that are useful in understanding the company’s operating performance. These are consistent with the internal measures disclosed in Infomedia’s Operating Segment Note (note 3 to the interim financial report) and are directly reconciled to the company’s statutory reported IFRS financial information within the Operating Segment Note.
2 FY22 guidance assumes no adverse movements in foreign exchange rates and no further negative consequences from COVID 19.
