18/02/2019 - 12:02

Imdex profit up 27%

18/02/2019 - 12:02

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Mining equipment supplier Imdex has announced a half-year profit of $13.5 million, compared with $10.6 million in the corresponding period last year.

Managing director Bernie Ridgeway said the company’s strong revenue growth was largely due to improved conditions in the mining industry.

Mining equipment supplier Imdex has announced a half-year profit of $13.5 million, compared with $10.6 million in the corresponding period last year.

Revenue for the period was $125 million, a rise of 19 per cent from the same period in 2018, while underlying earnings were $25.2 million, representing a 25 per cent increase relative to last year.

Its earnings per share was 3.65 cents, up 26 per cent from the corresponding period in 2018, and its directors declared a fully-franked interim dividend of 0.8 cents per share, which represents 22 per cent first-half net profit payout ratio.

Imdex managing director Bernie Ridgeway said the company’s strong revenue growth was largely due to improved conditions in the mining industry across the globe.

He also said the company anticipated investment costs and employment costs would fall in the upcoming periods.

The company said the investment costs primarily comprised the development of its drill and blast project, and its Corevibe and Maghammer technologies.

“As previously reported, we anticipate our net investment in these initiatives to be circa $8 million for the full year and to reduce substantially from the 2020 financial year,” Mr Ridgeway said.

“First-half earnings were also impacted by additional personnel; principally engaged in the second half of 2018, to support our growth strategy and increasing activity.

“No material increase in headcount is expected during this financial year.”

Imdex also announced its drill and blast project is progressing, with commercial prototypes expected to be trialled with clients during the second half of this year.

Last week, the company extended its option to purchase New Zealand-based Flexidrill and its patented technologies, the Corevibe and Maghammer, to the end of 2019.

Shares in Imdex were down 0.83 per cent to trade at $1.20 each at 2.20pm AEDT.

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