Infomedia Limited reports: 5 things you must know

Infomedia Limited (ASX:IFM) reported a jump in revenue but a fall in profit.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »