Like many readers, we have been keen to see the installation of a new CEO, and resumed focus on business growth, at Infomedia. We saw some progress on this front last week, with the announcement that Jonathan Rubinsztein will assume the role from 14 March, 2016.
Infomedia (ASX: IFM) has been going through a difficult period recently. At the time of releasing its full year results in August, it also announced the resignation of CEO Andrew Pattinson, effective immediately, and the retirement of long-serving NED Myer Herszberg. The company found itself in the awkward position of having a somewhat disappointing set of numbers to present, and no CEO to present them.
On 6 January 2015, Infomedia (ASX: IFM) announced the loss of a Superservice Menus contract with Jaguar and Land Rover Limited (Jaguar Land Rover). After discussions with management, we feel confident that the long-term prospects of Infomedia remain intact.
Michael Lewis’ 2003 book, Moneyball: The Art of Winning an Unfair Game, describes the approach taken by the Oakland Athletics baseball team in the early 2000s. Essentially, the approach involved determining which performance measures contributed the most to the outcome of a baseball game, and recruiting players that rated highly against those measures. Compared with the subjective talent scouting approach employed by other teams, this afforded the Athletics a big advantage.
Infomedia has lost the Jaguar Land Rover contract – a biggie – and UBS has cut its target price to 85c from 95c and three-year earnings per share compound annual growth rate over FY16-19 to 14% from 19%.