SUSTAINING TOP & BOTTOM LINE GROWTH – INVESTING IN THE FUTURE
Financial Results for the 6 months ended 31 December 2019
27 February 2020 – Sydney, Australia: Infomedia Ltd (ASX:IFM), a leading software provider in parts, service and data insights to the global automotive industry, today announced its financial results for the six months ended 31 December 2019 (1H20).
1H20 Results
- 19% increase in Revenue
- 45% increase in Cash EBITDA and 35% increase in EBITDA
- 24% increase in NPAT
Infomedia reported a 19% increase in revenue to $47.9 million for 1H20, compared to $40.4 million reported in the previous corresponding period (pcp). EBITDA (earnings before interest, tax, depreciation and amortisation) was $22.9 million, up 35% pcp. Net profit after tax (NPAT) increased 24% to $9.0 million, up from $7.3 million pcp.
| 1H20 A$’000 |
1H19 A$’000 |
Movement | |
| Group revenue | 47,885 | 40,389 | 19% |
| Cash EBITDA | 11,414 | 7,889 | 45% |
| Development costs capitalised | 10,296 | 8,691 | 18% |
| EBITDA | 22,899 | 16,980 | 35% |
| NPAT | 9,041 | 7,315 | 24% |
| Earnings per share (cents) | 2.86 | 2.36 | 21% |
| Dividend per share (cents) | 2.15 | 1.75 | 23% |
The first half of the 2020 financial year was characterised by sustained consistent growth in revenue and earnings. Infomedia also continued to invest in both the platform and additional functionality in Infomedia’s core parts and service products and incremental investment in the data and insights suite.
Cash EBITDA increased 45% in the 1H20 to $11.4 million, up from $7.9 million pcp. Infomedia’s Board and management maintain Cash EBITDA as a key internal measure for the business.
Infomedia is a cash generative business demonstrated by an 11% increase in the cash and cash equivalents closing position of $17.2 million, compared to $15.5 million at 30 June 2019. The Company remains free of debt.
Infomedia’s CEO, Mr Jonathan Rubinsztein said: “Our performance during the first half of the year reflects our confidence that annual growth at both the top and bottom lines will continue regardless of fluctuations in timing of recognising revenue from new contract wins. The APAC and EMEA* regions are performing well, and we are optimistic about opportunities emerging in the Americas under a new regional head.”
Mr Rubinsztein said the company will continue to invest to capitalise on the opportunities arising from an industry increasingly focussed on technology, data and aftersales. “The additional functionality we are introducing in our core parts and service products is data-driven, collaborative and performance focussed. Early indications are positive however we anticipate that any revenue contribution from our investment will be minimal in the 2020 calendar year,” he said.
Outlook
Infomedia will continue to invest and remains on track to deliver low double-digit growth in revenue and earnings in FY20. Growth in the Americas and the execution and roll-out of data opportunities could contribute potential upside to the FY20 result.
The Board and management remain confident about Infomedia’s position in the market. Infomedia’s Board and management believe the Company will grow by leveraging its core assets, investing to remain competitive and exploring acquisitions that support the ability to leverage and compete globally.
1H20 Dividend
Infomedia declared an interim dividend of 2.15 cents per share (70% franked), an increase of 23% pcp. Infomedia’s dividend record date will be 5 March 2020 and the payment date will be 20 March 2020.
The Company’s Dividend Reinvestment Plan (DRP) will not operate and has been indefinitely suspended as announced on 31 October 2019.
