Western Australia is often touted as a sound test market for companies with bigger long-term plans.
This is certainly true of Infomedia, a listed Sydney-based company with the bulk of its operations in Perth.
The company, which has automotive dealer management software as its mainstay, last year chose Perth as the test site for its $1 million technology showcase targeting the Asia-Pacific.
Now, a year after launching it in West Perth, Infomedia is preparing to develop the concept and establish similar showcases in Sydney and Melbourne.
Infomedia is also focused on developing interests in Europe – taking on multinationals such as Ford in the process.
Infomedia has three divisions – electronic catalogues, data management and business systems – the last of these (and the largest) based in Perth.
The Perth-based business systems division is the result of Infomedia’s acquisition of Subiaco-based Online Computing in late 2000 and now employs the bulk of the company’s staff.
This followed the acquisition of Melbourne-based Datateck Publishing Pty Ltd, which now forms Info-media’s data management division.
Its Electronic Catalogues system is based in Sydney and the company has established a wholly owned subsidiary, IFM Europe Ltd, in Cambridge, England, which distributes and provides support for Microcat, the company’s flagship product.
Published in 24 languages and used in 144 countries, Microcat is an electronic parts catalogue that includes details of leading car manufacturers.
Infomedia business systems general manager Damon Fieldgate told WA Business News that, while Infomedia had about 20 per cent market share in Australia, the company had experienced some significant growth in the past 12 months thanks to the development work done in Perth.
“It is important that it is recognised that Perth is supporting the national operation for dealer management systems,” Mr Fieldgate said. “We’ve grown our user base in the last nine months by over 30 per cent.”
He said the showcase was part of the company’s marketing arsenal that was geared towards simplifying the decision-making process.
“Typically, the investigation for purchasing a new dealer management system can be quite lengthy and the process is disjointed,” Mr Fieldgate said.
“Different stakeholders often hear different representations and promises from the potential suppliers, these are not cross-referenced back to form a whole picture.
“This process lacks transparency and often leads to a flawed decision, where expectations are unfulfilled and unexpected costs appear.
“Infomedia’s Future Motors Showcase shows the automotive retailer all of Infomedia’s products working together as a complete and integrated technology solution.
“We’ve been focusing on the support aspect of the business; we know the way to increase our number of clients is to provide superior products and exceptional customer support.
“One of the biggest influences on prospective clients when considering a new system is the opinion and experience of currently satisfied customers – these are our best references.
“I think the market is very buoyant at the moment and there is a major paradigm shift occurring; dealers are willing to move to a better system with better support.”
Infomedia, which listed on the Australian Stock Exchange in August 2000, has made several successful deals recently. These include a five-year contract with Cadillac Europe for the exclusive supply of the Microcat system, and agreements with New South Wales’ largest automotive dealers, AC McGraths & Co and The Bradstreet Motor Group, which purchased the Autoledgers dealer management system.
And despite the effects of a strong Australian dollar on profits, a fluctuating share price, and a legal battle in Europe, the company continues to push into new markets.
Speaking to WA Business News prior to the launch of the showcase, founder and CEO Richard Graham attributed the company’s success to a willingness to be transparent.
“I let our products be clever and our business principles be transparent,” Mr Graham said.
Infomedia released its annual results last week which showed an eighth consecutive year of growth.
Infomedia’s revenue from ordinary activities increased 16.5 per cent for the 2002-02 financial year to $73 million, while net profit after tax increased 12.9 per cent over the previous financial year to $20.6 million.
New subscriptions grew by 10.6 per cent, which came primarily from new sales in North America and Europe.
Infomedia’s share price reached a 12-month high of $1.14 in October last year but fell to a 12-month low of 64 cents a share last week.
