Tuesday, 23 August 2011 Sydney – International automotive software developer, Infomedia Ltd (IFM) today released its 2011 financial results. The Company reports net profit after tax (NPAT) of $10,039,000 which is slightly above the upper range of $10,000,000 previously advised in its guidance.
Sales revenue was $44,093,000, against $45,339,000 for the financial year 2010. The reduction was caused by the impact of the strong Australian dollar, which, despite underlying growth in sales, drove a net reduction in sales revenue of $1,246,000.
In constant currency terms, sales revenue rose by $2.9m and operating costs decreased $1.9m. However, the impact of foreign currency translations and movements in some non-cash entries, namely lower research and development capitalisation and higher depreciation and amortisation, combined to reduce profit by $1,297,000.
Founder and Executive Chairman of Infomedia, Richard Graham, said the underlying performance of the Company was strong. “What the headline numbers do not convey is the organic growth in our revenues in their native currencies – the US dollar, Euro, and Australian Dollar,” Mr. Graham said. “In constant currency terms, revenues in Europe, Asia Pacific and North America all grew.”
Revenue from Superservice Menus increased by $1.9m in constant currency and this product continues to drive growth for the Company. The Company’s electronic parts catalogue (EPC) solutions also found new customers with its sophisticated Auto PartsBridge operating in the United States. It also launched its new fully online EPC, Microcat LIVE, for Toyota and Ford dealers in the USA and importing distributors around the world.
Karen Blunden, CEO of Infomedia subsidiary IFM North America Inc. and Director of Global Business Development and Sales, said; “This has been a successful year for us with the launch of our new Microcat LIVE system. By calendar year end, Ford, Toyota, Land Rover, Hyundai and KIA will all be using our new EPC platform around the world. And within the next year we expect to convert all our OEM clients to it.”
“We are excited about the upcoming release of Superservice Menus in the USA for General Motors and Toyota dealers. Our customers across the globe have already found this product to be the most accurate precision quoting system in the dealer world. We believe our North American customers will find the same. The field trials have been very encouraging.”
Despite the reduction in net profit, cash flows from operations increased by $1,146,000 to $11,320,000.
“There was strong focus by department heads to review all costs assumptions from the past and reset them according to the current needs and evolution of the Company,” Richard Graham said. “As a result, management renegotiated a number of technology and services supply agreements with third parties and we achieved some respectable reductions in our costs.”
During the reporting period, the Company maintained its share buyback program and repurchased 1,298,221 shares for consideration totalling $332,810. The Company is pleased to announce a fully franked final dividend payment of 1.2 cents.
This, together with the fully franked interim dividend of 1.2 cents and the share buyback, reflects a distribution of 76% of reported net profit for the full year. This is consistent with
the Company’s Dividend Policy. The record date to determine entitlements to the dividend distribution is 6 September 2011 and the date on which the dividend is payable is 20 September 2011.
With regards to FY 2012, the Company advises that, while it anticipates sales revenue growth
on a constant currency basis, it expects its results will continue to be affected by adverse foreign exchange rates and amortization as its new products continue to be released to market. Accordingly, the Company provides guidance that it anticipates its 2012 financial
year sales revenue to be between $43M and $45M, and net profit after tax to be between $7.5
million and $8.5 million.
