IMDEX Posts 84% Profit Surge Despite 10% Revenue Dip in H1 FY25
IMDEX Limited reported a significant 84% increase in net profit for the half-year ended December 31, 2024, even as revenue declined by 10%. The company declared a steady interim dividend, underscoring confidence amid mixed financial signals.
- Net profit rose 84% to $31.0 million despite 10% revenue decline
- Revenue decreased to $212.0 million from $235.3 million in prior year
- Basic earnings per share nearly doubled to 6.05 cents
- Interim fully franked dividend maintained at 1.5 cents per share
- Acquisition of Globaltech Corporation added valuable intellectual property
Financial Overview
IMDEX Limited delivered a robust half-year performance for the period ending December 31, 2024, with net profit soaring 84% to $30.98 million, up from $16.8 million in the prior corresponding period. This profit growth was achieved despite a 10% decline in total revenue, which fell to $212.0 million from $235.3 million a year earlier. Basic earnings per share nearly doubled to 6.05 cents, reflecting improved operational efficiency and cost management.
The company declared an interim fully franked dividend of 1.5 cents per share, consistent with the previous year’s payout, signaling management’s confidence in the underlying business despite the revenue contraction.
Segment and Operational Insights
IMDEX’s revenue mix showed a shift with sales of goods, rentals, and software contributing to the total. The Americas segment remained a strong contributor, while Asia Pacific and Africa/Europe segments also delivered solid results. The company’s investment in research and development remained significant at $13.6 million, supporting ongoing innovation in mining technology solutions.
Notably, the acquisition of Globaltech Corporation Pty Ltd was completed during the period, adding valuable patents and trademarks to IMDEX’s intellectual property portfolio. This acquisition followed a legal settlement and is expected to enhance the company’s competitive positioning in mining technology.
Cost and Expense Management
IMDEX successfully reduced employee benefits expenses by approximately 13% to $60.6 million, reflecting tighter cost controls and operational efficiencies. Other expenses, including consulting, legal, and provisions, also decreased, contributing to the improved profitability.
The company reported an exceptional litigation income of $9.1 million related to the Globaltech settlement, which materially boosted the half-year profit. Excluding this one-off item, the underlying profit growth remains notable given the revenue pressures.
Balance Sheet and Cash Flow
IMDEX’s balance sheet remains solid with net assets increasing to $607.3 million. Cash and cash equivalents rose to $54.5 million, supported by strong operating cash flow of $70.2 million. The company also refinanced part of its debt facilities, drawing down $13.6 million from a new HSBC Australia facility to repay existing borrowings.
Capital expenditure included $17.5 million on property, plant, and equipment and $7.0 million on intangible assets, reflecting ongoing investment in growth and technology development.
Looking Ahead
While the revenue decline poses questions about market demand or pricing pressures, IMDEX’s ability to significantly lift profit and maintain dividends suggests resilience. The integration of Globaltech’s intellectual property and continued R&D investment position the company well for future growth opportunities in mining services and technology.
Bottom Line?
IMDEX’s profit surge amid revenue softness highlights operational strength but invites scrutiny on sustaining growth momentum.
Questions in the middle?
- What factors contributed to the 10% revenue decline despite strong profit growth?
- How will the Globaltech acquisition impact IMDEX’s competitive edge and future earnings?
- Can IMDEX sustain dividend payouts if revenue pressures persist?
