Thursday, 21 August 2014 – Sydney – International automotive software developer Infomedia Ltd (IFM.ASX) today released its annual financial results for 2014. The results for the year ending 30 June 2014 show that the Company’s Net Profit After Tax (NPAT) grew by 22.0% to $12.3m and sales revenues grew by 17.4% to $57.1m.
The Company’s NPAT exceeded previously advised guidance by $0.3m. The achievement of NPAT beyond guidance is attributed to sales growth combined with tight cost control and a small benefit from a weaker Australian dollar compared with that used for guidance.
The increase in sales revenue was driven by growth in all major product lines. Electronic Parts Catalogue Solutions (EPC) revenue grew $6.6m, Superservice revenue grew $2.2m and other revenue reduced $0.4m.
Subscription equivalents increased to an all-time high of 75,838 with Superservice products increasing 9.2% to 18,274 subscriptions, and EPC subscriptions by 1.5% to 57,564.
In constant currency terms, sales revenue rose by $2.9m and operating costs increased $1.1m. Foreign currency translations favourably affected constant currency EBITDA over the prior year by $2.0m. Consequently, the Company achieved an EBITDA (excluding capitalisation of research and development) of $16.5m, an increase of $3.8m (30%).
The Company saw increased capitalisation and amortisation during the year and a higher tax expense. Overall, NPAT increased $2.2m or 22% to $12.3m.
Cash flows from operations increased by $1.2m to $12.5m due to the higher profit.
The Company is debt free and had $11.4m of cash as at 30 June 2014.
The Board has declared a fully franked final dividend payment of 1.89 cents per share. This, together with the interim dividend of 1.89 cents, results in a total dividend of 3.78 cents for the full year which is 34% higher than the prior year and represents a payout ratio of 94% of NPAT.
The record date to determine entitlements to the dividend distribution is 3 September 2014 and the date on which the dividend is payable is 17 September 2014. There is no foreign conduit income attributed to the dividend.
With regards to FY2015, the Company advises that it expects both constant currency and reported AUD growth. Accordingly, the Company provides guidance that it expects NPAT to exceed $14.5 million in FY2015 driven by increasing sales.