Monday, 27 February 2017 – Sydney, Australia – Infomedia Ltd (ASX:IFM), a leader in parts and service software to the global automotive industry, today announced its financial results for the six months to the end of December 2016 (1H17).
Since the beginning of the financial year, Infomedia has delivered positive sales momentum having closed several contracts, across all products and regions, including the recent announcement of a global contract with Nissan Motor Company (Nissan). As a result, Infomedia has increased investment in product development and delivery capability for revenue generation in FY18 and beyond.
Infomedia reported revenue growth of three percent for the first half of the 2017 financial year (1H17), although underlying revenue growth was stronger at six percent on a constant currency basis. Net profit after tax (NPAT) increased 16 percent on the previous corresponding period.
Based on the solid profit result and anticipated cash flow needs of the business, Infomedia’s Board declared a fully franked interim dividend of 1.70 cents per share, a three percent increase from the previous corresponding period.
| 1H17 ($’000) |
1H16 ($’000) |
Movement | |
| Group revenue (AUD) | 34,846 | 33,923 | 3%* |
| NPAT | 6,973 | 6,024 | 16% |
| EBITDA | 13,470 | 11,962 | 13% |
| Development costs capitalised | (6,845) | (3,837) | 78% |
| Adj. EBITDA (Cash) | 6,625 | 8,125 | (18%) |
| Earnings per share (cents) | 2.25 | 1.95 | 15% |
| Dividend per share (cents) | 1.70 | 1.65 | 3% |
*6% growth on constant currency basis
Infomedia’s CEO, Mr Jonathan Rubinsztein said: “The result reflects the initiatives implemented during the 2016 calendar year. I am happy with our positive sales momentum and it bodes well for future revenue growth. Of course, shortening the time from sale to revenue remains a key focus.”
“The recent announcement of the contract with Nissan to deliver our electronic parts catalogue (EPC) to its global dealer network highlights demand for our world-leading, market competitive product. The investment and focus dedicated to securing this win underpins our ability to deliver best practice SaaS products into the future” he said.
“We have also driven double digit growth in our Superservice products and continue to see a solid pipeline. We will focus on maintaining our sales momentum in addition to execution and delivery across all of our product segments for the next 12 months,” Mr Rubinsztein said.
Infomedia’s CFO Richard Leon said: “As we work through our growth initiatives, our emphasis is on finding the balance between today and tomorrow, and profitability and cash flow. Together with NPAT, we have adopted Adjusted EBITDA (Cash) as a key performance measure. Adjusted EBITDA (Cash) offers a transparent view of the underlying level of activity and investment in products, particularly in a period where upfront cash investment, underwritten by contract wins, is critical to deliver revenue growth.
“We are committed to drive growth in the near term, but we are equally committed to investing in development and delivery to support longer term growth,” Mr Leon said.
Infomedia remains focused on innovative development to meet our customer’s needs and drive sales momentum and delivery capability. The Company maintains its current guidance of high single digit revenue growth, refined to between six and eight percent, for the financial year ending 30 June 2017. Similar to 1H17, Infomedia expects FY17 NPAT to maintain double digit growth on the prior year.
Infomedia’s dividend record date will be 6 March 2017 and the payment date will be 3 April 2017. The Company’s Dividend Reinvestment Plan (DRP) will operate. No discounts will apply and the Company intends to acquire shares on market to avoid dilution of existing shareholders.
Shareholders wishing to participate in the DRP must ensure their DRP election forms are received by Infomedia’s registry services provider, Link Market Services, by logging into the Investor Centre at www.linkmarketservices.com.au before 5:00pm on 7 March 2017. Please refer to here for further information on the DRP rules.
