Imdex registers $5m loss

Drilling services and products supplier Imdex has been hurt by subdued activity in the minerals sector, with a net loss after tax of $5.3 million.

Statutory revenue was down 21 per cent to $183.5 million, with a 31 per cent decline in the minerals division and a 19 per cent increase in oil and gas.

Balance sheet adjustments and non-recurring items dragged Imdex’s EBITA to a loss of $2.8 million, almost $40 million lower than in the 12 months to June 2013.

Writedowns and closure costs included the closure of AMC Oil & Gas Kazakhstan, an impairment of AMC Minerals South America and a write-off of research and development costs relating to the MEMS Gyro development, together totalling $18.2 million.

The company also recorded a reduced, but still positive, operating cash flow of $2.9 million, down from $39 million previously.

Imdex said it had largely maintained its gross margins and had reduced gearing, with a net debt/capital ratio of 18.5 per cent.

Last month, Imdex raised $17 million by selling its stake in Sino Gas & Energy Holdings.

Managing director Bernie Ridgeway said the result underscored the importance of the company’s diversification strategies.

“It is pleasing to note our oil and gas division generated record revenue for the year in line with these (diversification) strategies,’’ he said.

“Unfortunately the division was not profitable due to the product containment incident that impacted revenue and earnings in the fourth quarter of 2014.

“As we move into fiscal year 2015, we are seeing evidence that the minerals market is improving, with month-on-month increase in minerals revenue during the fourth quarter of 2014.

“Imdex’s strategy of continuing to invest through the cycle means we are well positioned to benefit from an upturn in the minerals sector.”

Imdex was up 5.1 per cent to 72 cents at the time of writing.