Tuesday, 19 August 2008 – Sydney – International automotive software developer, Infomedia Ltd (IFM) today released its 2008 financial year results. The Company is pleased to report net profit after tax of $13,066,000 for the 2008 financial year which is within the guidance range provided in December 2007.
Electronic Parts Catalogue (EPC) subscription numbers grew by 6% to 56,470 and Superservice MenusTM subscription numbers grew by 51% to 3,946 over the previous corresponding period.
Electronic Parts Catalogue subscription growth was driven primarily through the successful release of Microcat® LIVETM into more Toyota Europe markets. Superservice Menu subscriptions were driven by growth in Europe and Asia Pacific.
The consolidated sales revenue was impaired as a result of the rising strength of the Australian dollar throughout the year and by the previously communicated loss of General Motors EPC subscriptions.
On 1 April 2008 the Company commenced a share buy back (on market within 10/12 limit). As at 30 June 2008 the Company had repurchased 3,597,966 shares for a total consideration of $1,370,000.
Cash flows from operations remain strong with $13,181,000 in cash generation. Total dividend payments to shareholders over the 2008 financial year amounted to $12,713,000. Notwithstanding these returns, the balance sheet remains in a strong position with $14,247,000 cash on hand at 30 June 2008.
Final dividend distributions
A fully franked final dividend of one point four cents (1.4¢) will be paid to shareholders of record at 3 September 2008. This combined with the earlier interim dividend declared in March brings the total franked dividend for the year to three point two cents (3.2¢) and represents a payout ratio of 80% based upon net profit after tax.
In the year ahead the Company will see through to conclusion the previously communicated reduction in General Motors subscriptions. However, growth in other subscriptions, particularly Superservice Menus, is forecasted to give rise to net subscription growth for the 2009 year. While the Company maintains an active foreign currency hedging program, the projected strength of the Australian dollar during the course of the 2009 year is likely to have a further dampening affect on reported profit, despite the anticipated net subscription growth.
The recent successful contract renewals in Europe, North America and Asia Pacific, along with the positive reception of our new products provide a solid platform for growth in subscription volumes. Further advances in EPC technology for both the franchised automotive dealer and the Independent Motor Trade will create increased sales momentum and diversification of the Company’s customers and product portfolio over the medium term.
The outlook for Superservice Menus remains strong with continuing growth expected into 2009 and beyond. The Company continues to expand both domestically and internationally with new automakers and organic growth from current releases.