Wednesday, 26 August 2009 – Sydney – International automotive software developer, Infomedia Ltd (IFM) today released its 2009 financial year results. The Company reports net profit after tax of $10,536,000 for the 2009 financial year which is within the range previously advised in its earnings guidance, released to the market on 21 January 2009.
Electronic Parts Catalogue revenue declined by 4% to $45,042,000 and Superservice Menus™ revenue grew by 41% to $3,628,000 over the previous corresponding period. The reduction in Electronic Parts Catalogue revenue was primarily due to the cessation of the General Motors contract; this decline was offset by growth in other markets. The increase in Superservice Menus was due to growth over a range of automakers in both Europe and Asia Pacific. Revenues from other products increased 21% to $2,647,000.
Cash flows from operations reduced to $5,204,000 primarily due to the timing of royalty payments and increased headcount as the Company prepares new products for release to market during the course of the 2010 financial year.
On 1 April 2008 the Company commenced a share buyback (on market within 10/12 limit). This was reinitiated on 8 April 2009. As at 30 June 2009 the Company had repurchased 14,701,578 shares for a total consideration of $4,875,000. The balance sheet remains debt free with $8,005,000 cash on hand at 30 June 2009.
The Company is pleased to advise a final dividend payment of 2.1 cents (franked to 0.7 cents) which together with the interim dividend reflects a payout ratio of 83% of net profit after tax reported for the full year. The record date to determine entitlements to the dividend distribution is 7 September 2009 and the date on which the dividend distribution is payable will be 22 September 2009. Whilst business conditions remain challenging, when considering the amount of the final dividend, Directors took into consideration the profit for the period and their confidence in forecast earnings, the foreign currency hedges already in place and associated cash flow expectations for 2010.
In the year ahead the Company is releasing its new generation products. While some releases will be web upgrades to existing products, the Company expects the investment made in the new web platform technology will give rise to new revenue streams from existing and new markets.
The Company regards the year ahead for the global automotive market as challenging with many automakers continuing to feel the effects of the global financial crisis. However, the emergence of a new and revitalised automotive sector will present many opportunities for Infomedia’s solutions. As such, the previously issued net profit after tax guidance for financial year 2010 of between $13 million and $14 million remains consistent with the Company’s expectations at this time.