This morning Infomedia Limited (ASX: IFM) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half year.
- Revenue of $40.4m, up 14%
- Net profit after tax of $7.3m, up 28%
- Development costs capitalised of $8.7m, down 5% from $9.1m
- Cash EBITDA of $17m, up 36%
- Earnings per share (EPS) of 2.36 cents, up 28% from 1.84 cents
- Dividends per share of 1.75 cents, up 25% from 1.4 cents
- Board & management confident of delivering "strong" full year results
- $7.5m cash on hand and no debt
The Infomedia share price closed 7% higher to $1.52 today in response to a strong result for the auto parts distribution business that seems to have ridden out weakness to hit other parts of the second-hand car dealing and car parts distribution businesses such as Bapcor Ltd (ASX: BAP) or AP Eagers Ltd (ASX: APE).
After a shaky period on the back of reportedly rising competition Infomedia's management reported today's result is the result of increased investment in the business, while the late 2018 acquisition of Nisdau will help the group build a third pillar under 'data and insights' according to management.
At $1.52 the group trades on 32x annualised earnings with an annualised yield of 2.3%. However, given the growth rates and 'turnaround' status of the business these multiples may portray it in a slightly unfair light.
It's also debt free and paying out 74% of earnings in dividends gives it some room for more reinvestment or other capital management initiatives.
