Infomedia Limited reports: 5 things you must know

Credit: NRMA Motoring and Services

Infomedia Limited (ASX: IFM) shares traded flat following the announcement of its half-year results.

Here are five things you need to know about Infomedia’s half-year report for the period ended 31 December 2015:

  1. Revenue climbed 16% to $33.9 million
  2. Profit fell 14% to $6 million
  3. An unfranked dividend of 1.65 cents per share was declared, down from 1.94 cents per share
  4. The company said the non-renewal of the Jaguar Land Rover (JLR) contract affected results from the EMEA. It also said it lost the competitive tender for JLR from 2018 onwards.
  5. FY16 guidance was set for high-single digit to low double-digit sales revenue. It said profit guidance will be impacted by capital expenditure.

“The Board is pleased with the Company’s solid half year performance and looks forward to continuing this momentum into the second half,” Chairman Fran Hernon said. “As signalled at the AGM, we will continue to invest in our software platforms and sales and delivery capacity that will underpin our future growth.”

The company said its balance sheet remains strong with no debt and $15 million of cash. The company said its half-year dividend represents 85% of net profit.

Foolish Takeaway

Infomedia shares have been on a tumultuous ride so far in 2016. Indeed, the results follow growing concerns from the market regarding its contract with JLR. With shares trading at a price slightly more than 50 cents, value investors may now see value in Infomedia. However, I think it may be worth holding off until the dust settles before running the ruler over its shares.

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Motley Fool contributor Owen Raszkiewicz has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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