At some stage the company probably had to move on from the founders. I think there is the 'potential' of a positive paradigm shift in this business hence my remaining interest. Can they do it????? (if they don't achieve it they will probably slowly die with the old guard now gone) New CEO looks interesting, His entrepreneurial past, time at UXC and focus on strategy are promising. I'm still trying to get a full read.
IFM - Infomedia Limited
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At some stage the company probably had to move on from the founders. I think there is the 'potential' of a positive paradigm shift in this business hence my remaining interest. Can they do it????? (if they don't achieve it they will probably slowly die with the old guard now gone) New CEO looks interesting, His entrepreneurial past, time at UXC and focus on strategy are promising. I'm still trying to get a full read.
This was IFM's guidance at the half year report.
Its vague so you have to dig a little to get the number.
Last years Revenue was 60.4M. Say multiply it by 10% as a mid point between the High single and low double digit revenue forecast and you get ~66.5M Revenue. First half NPAT margin was 17.76% So 66.5M @ 17.76% less the 2.5M forecast to accelerate growth, hire new CEO costs of EGM etc. = 9.3M.
Latest Guidance is for 10.2M - 10.5M NPAT but if you read the guidance it for all money reads like a downgrade.
Hmmmm why would they want an update to their guidance which is an improvement to their obscure previous guidance to seem like a downgrade???? Might just take a look at the new CEO's Remuneration arrangements!
Not only does he have a three month period from starting in March to 1 July 2016 to manage earnings lower to get a low starting EPS measure for his rights calculation (explains the acceleration of investment) but the options that are subject to an exercise price has as the reference period
I suspect IFM's market price is going to way under-recognise the true picture of the business over the next month whilst the CEO feathers his nest. But do you get into bed with such dogs to take advantage, there's a big risk of coming out with fleas.
There's a conference call on Tuesday (they said 31March) but I assume they mean May. Why the space between this announcement and when more details will be available - given what I suspect is going on here that call probably won't be particularly upbeat. But maybe then again they are not manipulative - just dumb.
Its vague so you have to dig a little to get the number.
Last years Revenue was 60.4M. Say multiply it by 10% as a mid point between the High single and low double digit revenue forecast and you get ~66.5M Revenue. First half NPAT margin was 17.76% So 66.5M @ 17.76% less the 2.5M forecast to accelerate growth, hire new CEO costs of EGM etc. = 9.3M.
Latest Guidance is for 10.2M - 10.5M NPAT but if you read the guidance it for all money reads like a downgrade.
Hmmmm why would they want an update to their guidance which is an improvement to their obscure previous guidance to seem like a downgrade???? Might just take a look at the new CEO's Remuneration arrangements!
Not only does he have a three month period from starting in March to 1 July 2016 to manage earnings lower to get a low starting EPS measure for his rights calculation (explains the acceleration of investment) but the options that are subject to an exercise price has as the reference period
I suspect IFM's market price is going to way under-recognise the true picture of the business over the next month whilst the CEO feathers his nest. But do you get into bed with such dogs to take advantage, there's a big risk of coming out with fleas.
There's a conference call on Tuesday (they said 31March) but I assume they mean May. Why the space between this announcement and when more details will be available - given what I suspect is going on here that call probably won't be particularly upbeat. But maybe then again they are not manipulative - just dumb.
So basically what you are saying is that since it's a new board they get a cut off period so the old board's decisions can be washed out (pretty much like the first Federal budget after a government is replaced) and like all "clever" CEO's they are really washing the floors clean? Lower earnings base + lower share price at the handover period = higher equity based remuneration in the future if they really can turn the ship around?
I guess the big question for me: is the poor performance lately structural or just a blip.
I think you've said previously they're fighting against the big motor companies developing their own in-house solution because it can end up cheaper.
I also have big questions about the business. It really could go two opposing ways here and its frustrating to not have much information that I need as an investor coming out - Maybe in the conference call they have flagged???
In the meantime the sweeping of the floors (done in the absence of usable information supplied to investors) is some of the most blatant I have seen.
This is a problem investment for me. I bought sub 20c and the business at that price made sense. For quite a while everything was going O.K then things got a little obscure and the price was not cheap anymore, I did sell down significantly but given the history/potential/bias/Baggage I didn't exit fully. Since then I have been a pretty piss poor investor on this one - And still I sit here waiting for the information I need to finally exit or rebuild.
edit
actually average buy price was .2274 only current average price is under 20c.
greggles
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Infomedia Limited has blasted through resistance at $1 this morning following the release of its FY18 financial results.
From this morning's announcement:
Looks like a solid result and there is clearly optimism concerning revenue going forward. Could be some further upside for IFM, which is currently up 12.63% to $1.115.
From this morning's announcement:
FY18 Result
• 7.9% increase in NPAT
• 6.9% increase in full year dividend
• Increased investment in product development
Infomedia reported a 3.5% increase in revenue to $72.9 million for FY18, when compared to $70.4 million reported in the previous corresponding period (pcp) and net profit after tax (NPAT) of $12.9 million, up 7.9% from $11.9 million pcp. EBITDA (earnings before interest tax depreciation and amortisation) was $29.1 million, up 15.2% pcp.
Looks like a solid result and there is clearly optimism concerning revenue going forward. Could be some further upside for IFM, which is currently up 12.63% to $1.115.
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Another big breakout following small consolidation period. I suspect will continue to rise but probably due for a small pull back.
greggles
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Infomedia going from strength to strength following the release of its FY19 financial results. Currently up 12% to $2.055.
Up across the board. $15.5 million in cash and no debt. Management optimistic about FY20 outlook with expectations of delivering continued double-digit growth in both revenue and earnings.
This looks like a good buy and hold prospect for long term investors. If they meet expectations this should be above $3 in 12 months time.
Up across the board. $15.5 million in cash and no debt. Management optimistic about FY20 outlook with expectations of delivering continued double-digit growth in both revenue and earnings.
This looks like a good buy and hold prospect for long term investors. If they meet expectations this should be above $3 in 12 months time.
greggles
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Coming back to IFM after almost two years to find growth didn't quite live up to expectations. The company struggled after the COVID-19 outbreak began last year and growth softened.
However, they are using some of the piles of cash the company generates to grow through acquisitions. Recently they acquired the US-based e-commerce platform SimplePart for upfront consideration of USD $24.5 million, plus an earn-out of up to USD $20.5 million over three years.
With the share price back around $1.50 and things looking better than they have in more than a year, I'm wondering if the worst may now be over for IFM. As per today's announcment, the company anticipates final revenue of $95-$96 million and Cash EBITDA of $19-$20 million for FY21.
However, they are using some of the piles of cash the company generates to grow through acquisitions. Recently they acquired the US-based e-commerce platform SimplePart for upfront consideration of USD $24.5 million, plus an earn-out of up to USD $20.5 million over three years.
With the share price back around $1.50 and things looking better than they have in more than a year, I'm wondering if the worst may now be over for IFM. As per today's announcment, the company anticipates final revenue of $95-$96 million and Cash EBITDA of $19-$20 million for FY21.
Dona Ferentes
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Bell Potter is positive on Infomedia, a leading provider of software solutions to the parts and service sectors of the global automotive industry.
While the company was hit hard by COVID-19, Bell Potter notes that its performance improved greatly during the second half of FY 2021. Pleasingly, the broker expects this positive form to continue in FY 2022 despite the recent departure of its CEO.
Its analysts have a buy rating and $2.00 price target
While the company was hit hard by COVID-19, Bell Potter notes that its performance improved greatly during the second half of FY 2021. Pleasingly, the broker expects this positive form to continue in FY 2022 despite the recent departure of its CEO.
Its analysts have a buy rating and $2.00 price target
JohnDe
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All the talk was about IFM, and like you said, then Covid hit and slowed them down. Though I'm not sure why when used car sales and repairs went ballistic. I've b been watching them for 18 months, almost gave up but I'll have another look. I suppose with new car sales coming back on line in full and changes with EVs there will have to be new work for IFM.
JohnDe
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Dona Ferentes
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and another-y
American tech-focused private equity form Battery Ventures has lobbed a $1.75 a share bid for Infomedia, which has now got three suitors on its heel.
Battery Ventures’ offer is non-binding and indicative and would be funded from its existing funds, according to Infomedia’s board which revealed the bid in Friday morning’s ASX filings.
It’s higher than TA Associates and Viburnum Funds’s $1.70 a share offer, which has secured it access to preliminary due diligence information.
Also understood to be in the data room, with access to limited historical financial information, is US private equity firm Genstar Capital-owned auto software business OEConnection which is yet to put in an offer.
American tech-focused private equity form Battery Ventures has lobbed a $1.75 a share bid for Infomedia, which has now got three suitors on its heel.
Battery Ventures’ offer is non-binding and indicative and would be funded from its existing funds, according to Infomedia’s board which revealed the bid in Friday morning’s ASX filings.
It’s higher than TA Associates and Viburnum Funds’s $1.70 a share offer, which has secured it access to preliminary due diligence information.
Also understood to be in the data room, with access to limited historical financial information, is US private equity firm Genstar Capital-owned auto software business OEConnection which is yet to put in an offer.
JohnDe
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The floodgates have well and truly opened for Infomedia. Within just over a month of receiving its first takeover offer from US private equity firm TA Associates Management (TA) and activist fund manager Australian Viburnum Funds, another two offers have been tabled.
The first offer comes from American technology-focused investment firm, Battery Ventures, which has provided a conditional, non-binding indicative proposal to acquire 100% of the company’s shares for a price of $1.75 per share.
The deal has a few conditions including completion of due diligence, entry into an exclusive agreement, and is also pending approval of Infomedia’s board.
Infomedia’s share price increased a further 6% following the announcement to $1.72 per share, on top of the 38% increase since the TA offer back on May 13, however it has since pulled back to $1.65.
The second offer comes from US-based automotive risk management software company Solera Holdings, which has provided a similar non-binding indicative proposal to acquire 100% of the company’s shares for a price of $1.70 per share. The offer comes with the same conditions as the previous two offers.
It’s difficult to say at this stage whether there will be further offers tabled in the coming weeks, however, interest from additional parties is certainly a good thing for the company (and for us as shareholders).
Shortly after the TA offer we made the decision to place Infomedia on a Hold rating. If you own shares in Infomedia, we recommend that you hang on to them. We retain our Hold rating on Infomedia.
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IFM up 11% currently intraday @ 1.31.
A far cry from the 1.75 - 1.70 being mooted by conditional takeover entities in the above post.
Seems overvalued to me based on the last 3 years of earnings. I'd need to assume it will return to previously consistent high ROE years to be interested.
But when the low +10% ROE years started in 2020 there was a coincident jump in book value and more than 60m shares added. So maybe there is an assumption of a latency period (3 years?!) till synergies or whatever to kick in from what I guess was a big acquisition. Prior to fy20 Infomedia was scores ROEs twice that of the last 3 years.
Taking a long view of the chart maybe it has just been slowly consolidating the parabolic rise that took place 2016 - 2019?
Or then again, maybe I'm talking out of my highly regular colon - shout out to green ladyfinger resistant starch (Natural Evolution foods)
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A far cry from the 1.75 - 1.70 being mooted by conditional takeover entities in the above post.
Seems overvalued to me based on the last 3 years of earnings. I'd need to assume it will return to previously consistent high ROE years to be interested.
But when the low +10% ROE years started in 2020 there was a coincident jump in book value and more than 60m shares added. So maybe there is an assumption of a latency period (3 years?!) till synergies or whatever to kick in from what I guess was a big acquisition. Prior to fy20 Infomedia was scores ROEs twice that of the last 3 years.
Taking a long view of the chart maybe it has just been slowly consolidating the parabolic rise that took place 2016 - 2019?
Or then again, maybe I'm talking out of my highly regular colon - shout out to green ladyfinger resistant starch (Natural Evolution foods)
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JohnDe
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Chart with possibilities? Looks like it could be moving to challenge $1.80 resistance level again.
Fund manager with Perpetual likes it on recent livewire featuring small/med cap managements.
www.livewiremarkets.com
"Infomedia (ASX: IFM)
Nathan Hughes: Creme de la creme? Well, it's a bit of a sleeper. We have a really high opinion of Jens Monsees at Infomedia. He's not just a tech CEO, but we think he's doing a really good job there. He's got form in turnarounds before, but he's a really passionate guy. He gets out, he pounds the pavements, he knows the customer well and he's super highly motivated, and we think that's exactly what the business needed. We think he's doing a fantastic job."
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WEEKLY
Fund manager with Perpetual likes it on recent livewire featuring small/med cap managements.
The 13 best small and mid-cap management teams on the ASX
In this episode of Buy Hold Sell, Hayborough's Ben Rundle and Perpetual's Nathan Hughes name the ASX's most skilled leadership teams.
"Infomedia (ASX: IFM)
Nathan Hughes: Creme de la creme? Well, it's a bit of a sleeper. We have a really high opinion of Jens Monsees at Infomedia. He's not just a tech CEO, but we think he's doing a really good job there. He's got form in turnarounds before, but he's a really passionate guy. He gets out, he pounds the pavements, he knows the customer well and he's super highly motivated, and we think that's exactly what the business needed. We think he's doing a fantastic job."
Not Held
WEEKLY
Dona Ferentes
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IFM provides an updated revenue guidance range of $142m to $149m.
The previous guidance issued with the FY2024 result in August 24 was $144 million to $154 million with stable margins subject to an unchanged macro-economic environment in FY2025.
While the Company still expects a stronger second half FY2025 performance, changing macro-economic conditions have contributed to a more conservative view around the ability to migrgate the impact of a customer churn event of approximately $4 million that occurred in October, DMS integration delays due to lower availability of partner IT resources following a cyber security incident at the partner, and foreign exchange movements.
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down 5 per cent, to $1.38. all the up for the year now gone
