After the market's close yesterday evening, global automotive software developer, Infomedia Limited (ASX: IFM), delivered its 2015 profit result to the market.
In the year ended 30 June 2015, Infomedia achieved a 6% increase in sales revenue to $60.4 million, and a net profit after tax of $13.2 million – up 8% on the prior corresponding period.
The company said the Electronic Parts Catalogues (EPC) enjoyed revenue growth of $2.5 million while the run rate of the Superservice Platform came in flat.
In constant currency terms, sales revenue rose by 1.8%, but operating costs rose by $2.7 million due to increased business development, and enhancements of the Superservice Platform.
The company will pay both a regular and special dividend to shareholders.
The regular dividend is an unfranked amount of 1.70 cents per share, equivalent to 85% of net profit – the maximum under its dividend policy.
The special component of 0.25 cents per share is fully franked, and takes the total annual payout to 3.89 cents per share – up 3% on last year's payment.
The combined dividend distribution will be payable on 15 September 2015.
CEO departs
In a separate ASX media release, the company announced the resignation of CEO Andrew Pattison and long-serving, founding non-executive director, Myer Herszberg. Mr Pattinson's retirement is effective at today's close of business.
"Andrew has worked tirelessly for the good of Infomedia during his 27-year career at the Company and in his time as CEO has positioned the Company for future growth," Chairman Fran Hernon said.
Curiously, the company noted: "Mr Pattinson has agreed to lead a series of important projects over the next six months."
The retirement of Mr Herszberg comes after 23 years' service to Infomedia. "The Board and the entire Infomedia team deeply appreciates and thanks him for his contribution and wishes him well in his retirement," Ms Hernon said.
Mr Bart Vogel, an experienced director, has been appointed to fill the casual vacancy created by Mr Herszberg's departure.
What now
Looking ahead into 2016, Infomedia expects to generate sales revenue growth, while maintaining its strong NPAT margin at 2015 levels.
Although it may appear to be a promising outlook, personally I think the sudden departure of two significant contributors to the company within such a short window will likely raise the eyebrows of many investors.
