Imdex FY08 earnings jump 137%

The sale of mining services group Surtron has boosted West Perth-based Imdex Ltd's earnings for the 2008 financial year, jumping by 137 per cent to $32 million.

Late last year, Imdex sold Surtron to the Wyllie-backed private equity group Virbunu, Funds Pty Ltd, and reported a profit from discontinued operations of $10.9 million in its annual report.

The Surtron disposal was part of Imdex's decision to focus its efforts on selling drilling fluids and the selling and rending of down hole instrumentation.

Over the financial year, Imdex made four acquisitions and strengthened its presences in Canada, Latin America, Africa and Asia Pacific.

Total revenue for fiscal 2008 from continuing operations was up from $105 million from the previous year to $143 million, while basic earnings per share from both continuing and discontinuing operations was up from 8.74 cents to 17.04c.

Final dividend was up 50 per cent to 2.25c fully franked, bringing the full year distribution to 4c, up 60 per cent on the previous year.

Looking forward, Imdex managing director Bernie Ridgeway said the company is well positioned for revenue growth of in the 2009 financial year of between 15-20 per cent.

"With a global footprint, a world leading position in drilling fluids and down hole instrumentation for the resources sector, a streamline business and attractive business model, Imdex is uniquely positioned for strong growth in revenue and earnings across both of our divisions," Mr Ridgeway said.