Imdex defiant amid pandemic pressures

07/02/2022 - 15:39

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Mining tech company Imdex reported solid revenue and profit increases during the past six months but has indicated that labour restrictions and delivery delays frustrated its pace of growth.

Imdex defiant amid pandemic pressures
Imdex chief executive Paul House said his company had delivered record half-year results.Photo: Attila Csaszar

Mining tech company Imdex reported solid revenue and profit increases during the past six months but has indicated that labour restrictions and delivery delays frustrated its pace of growth.

Net profits after tax were up 80.8 per cent on compared to the first half of the financial year, to reach $24.4 million.

The group also booked record half-year revenues of $167.8 million, a 34.9 per cent increase on the prior half.

Rentals and Software as a Service subscriptions represented nearly 60 per cent of its income.

Imdex is also set to shell out a fully franked interim dividend of 1.5 cents per share, which will be paid in late March this year.

Chief executive Paul House said the company had delivered a strong performance during a demanding and ever-changing market.

“The combination of 35 per cent revenue growth, 55 per cent EBITDA growth and 81 per cent NPAT growth, is the strongest possible statement of the underlying quality of the IMDEX business and the IMDEX business model,” Mr House said in a statement.

Broadly, activity increased across all Imdex regions throughout the half year, which the company said was underpinned by strong industry fundamentals as demand for its drilling optimisation fluids rock knowledge and software.

But the company said this pace of growth had been tempered by labour restrictions and wider industry pressures including longer delivery times for rigs and parts.

“IMDEX anticipates COVID-19 related industry challenges will remain in some form for the next one to two years,” it said in a statement.

“The company is in its strongest position, however, to mitigate the risks and leverage increasing demand for mining technologies and software that enable remote operations.”

Looking ahead, Imdex flagged additional expenses on account of inflation as well as increased travel and marketing costs as mobility restrictions eased.

Imdex shares closed the day down 2.36 per cent to trade at $2.89.

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