Imdex grows earnings, cash

Mining tech company Imdex has lifted its first-half earnings to $33.1 million following an increase in demand for the business’s remote working solutions in response to COVID-19.

Imdex’s earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 5.8 per cent in the six months to December 31, from $31.3 million last year.

Chief executive Paul House attributed the rise to increasing percentage of revenue from Imdex’s rentals and software business, its digital transformation, and continued focus on streamlining operations.

Meanwhile, Imdex’s revenue slid 3.4 per cent in the first half to $124.3 million, while its net profit dropped 26 per cent to $13.5 million in relation to asset write-downs and recent acquisitions.

Imdex acquired spectral mineralogy business AusSpec for $8.5 million in July last year and New Zealand drilling tech business Flexidrill for $NZ37 million in December 2019.

Mr House said Imdex had done well under the duress of COVID-19, outperforming industry growth rates.

“Activity increased in the majority of our regions, underpinned by strong industry fundamentals,” he said.

“Whilst COVID continued to disrupt operations, it heightened demand for our cloud-connected technologies.

“While the short-term risks associated with COVID remain, we have a resilient business and a strategy focussed on delivering sustainable earnings growth for shareholders.”

Imdex ended the first half with a strong cash position of $47 million, surging 84 per cent on 1H20.

The company was trading 6.4 per cent higher at 3:46pm AEDT to $1.84.