Strong financial results and improved growth outlook for Infomedia

Infomedia ASX IFM automotive parts service 2018 results
Infomedia reported a 3.5% increase in revenue to $72.9m and net profit after tax increase of 7.9% to $12.9m, for FY18.

Global automotive parts and service software provider Infomedia (ASX: IFM) has reported increased revenue, earnings, profits and dividends as well as an “improved growth trajectory” in its financial summary for the year ending 30 June 2018.

The company lodged a revenue of A$72.9 million for the 12 months to June 2018, reflecting a 3.5% increase on the A$70.4m figure reported in the previous corresponding period.

New recurring revenue from contracts won in prior periods contributed 6.3% growth in the second half of the period and excluded any revenue related to a major contract roll-off announced in 2015.

Net profit after tax (NPAT) for the 2018 financial year was up 7.9% on the previous period from A$11.9m to A$12.9m, while earnings before interest, tax, depreciation and amortisation (EBITDA) went up 15.2% to A$29.1m.

The good news continued for Infomedia shareholders with the company declaring a 41.7% increase on last year’s final dividend to A$0.017 per share fully franked (compared to $0.012), taking the total annual dividend to A$0.031 per share.

Key metrics achieved

Infomedia continues to report Cash EBITDA as a key performance measure to identify the cash impact of investing in development costs which are capitalised in reported NPAT figures.

Investments for long-term growth impacted the company’s Cash EBITDA for the 2018 period, with the final figure being A$10.5m compared to A$11.7m in the previous corresponding period, however 2019 forecasts anticipate a substantial increase through “strong top-line growth and disciplined cost management”.

The company said its financial position remains strong with net current assets at the end of the reporting period of A$11.5m, compared to A$13.5m in the previous period.

Cash and cash equivalents remained steady at A$13.3m, reflecting the “robust cash-generative nature of the business”.

Strategic investments

Infomedia chief executive officer Jonathan Rubinsztein said the positive financial results are the outcome of strategic investments made since 2016.

“Our performance reflects a focus on improving our growth trajectory,” he said.

“The investments we have made over the past two years will provide a solid foundation for scale into the future and enable us to become the leading provider in our industry.”

Founded in 1987, Infomedia provides software-as-a-service (SaaS) solutions to more than 170,000 end users in automative operations across 186 countries.

The company supplies sophisticated online parts and service selling systems integrated with original equipment manufacturer (OEM) data for dealership and aftersale markets.

Mr Rubinsztein said Infomedia will pursue opportunities during the 2019 period which provide entry to new markets, access to new customers and levels of innovation to its existing parts and service software solutions.

At mid-afternoon trade, shares in Infomedia were 23.74% higher at A$1.225.

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