Wednesday, 21 August 2013 – Sydney – Global automotive industry IT developer Infomedia Ltd (IFM.ASX) announced today its 2013 Financial Year results and dividend. The results for the year ending 30 June show that the Company’s Net Profit After Tax (NPAT) grew by 19.0% to $10,066,000 and Sales Revenue grew by 6.6% to $48,689,000.
Executive Chairman, Richard Graham, said the FY2013 results and the guidance provided for FY2014 demonstrated the Company’s underlying strength and resilience.
“I believe this demonstrates the ability of our teams to achieve positive results while at the same time preparing the Company for sustainable, strategic growth,” Mr Graham said.
The Company’s NPAT exceeded previously advised guidance by $566,000, while Sales Revenue was in the middle of FY2013 guidance range. Infomedia CFO, Jonathan Pollard, attributed the achievement of NPAT beyond guidance to sales growth combined with tight cost control and some benefit from a weaker Australian dollar towards the end of the year.
The increase in Sales Revenue was driven by growth in all product lines. Electronic Parts Catalogue Solutions (EPC) revenue grew $1.7m, Superservice revenue grew $1.2m and other revenue grew $0.1m.
Subscription Equivalents increased to an all-time high of 73,464 with Superservice products increasing 15% to 16,742 subscriptions, and EPC subscriptions by 1.5% to 56,722.
“In constant currency terms, Sales Revenue rose by $3.3m and operating costs remained virtually flat,” Mr Pollard said. “Foreign currency translations adversely affected constant currency EBITDA over the prior year by $1.9m. Despite this, the Company achieved an EBITDA (excluding capitalisation of research and development) of $12.7m, a 12.7% increase of $1.4m.”
The Company saw increased capitalisation and amortisation during the year and a lower tax expense. Overall, NPAT increased $1.6m or 19% to $10.1m.
Cash flows from operations increased $1.5m to $11.2m primarily due to higher sales offset by adverse foreign currency translations. The Company is debt free and had $9.3m of cash as at 30 June 2013. The Board has declared a fully franked final dividend payment of 1.55 cents per share. This, together with the interim dividend of 1.27 cents, results in a total dividend of 2.82 cents for the full year which is 17.5% higher than the prior year and represents a payout ratio of 85% of NPAT.
The record date to determine entitlements to the dividend distribution is 2 September 2013 and the date on which the dividend is payable is 20 September 2013.
“During FY2013, the Company built upon the good progress of recent years and delivered all around good results and we are all very proud of that performance,” Mr Graham said. “We believe these results are not only sustainable, they are the foundation for further cumulative financial and market leadership growth.”
With regards to FY2014, the Company advises that it expects both constant currency and reported AUD growth. Accordingly, the Company provides guidance today that it anticipates continuing double-digit growth with Sales Revenue to grow by 8% – 12% and NPAT to grow by 10% – 19% in FY2014.