The share price of mining technology provider Imdex Limited (ASX: IMD) suffered today following the release of the company's results for the first half of financial year 2022.
As of Monday's close, the Imdex share price is $2.89, 2.36% lower than it was at the end of last week.
However, earlier in the day the company's stock reached $3.15, representing a 6.4% gain.
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Imdex share price slips despite record revenue and profits
- $167.8 million of revenue – 34.9% more than in the first half of financial year 2021
- Record earnings before interest, tax, depreciation, and amortisation (EBITDA) of $51.5 million – up 55.1%
- $24.4 millon of net profit after tax, an 80.8% increase
- $30 million of cash at the end of the half, 31% more than at the end of the prior comparable period
- Fully franked 1.5 cent interim dividend
Over the course of the 6 months ended 31 December, the company saw its activity increase in all regions, particularly Australia and the Americas.
Further, 35% more of the company's sensors were on hire during the half compared to the prior comparable period.
However, its pace of growth was hampered by labour restrictions and wider industry pressures.
Due to said pressures, the company increased its manufacturing capabilities and inventory levels to ensure it can continue supporting its clients.
Finally, IMDEX HUB-IQ's connected revenue increased by 46% last half.
The fully franked 1.5 cent interim dividend declared today represents a 24% payout ratio. It's also 50% more than the company handed out through its previous interim dividend.
What else happened during the first half?
Over the half just gone, Imdex acquired the MinePortal software from DataCloud International for around $20 million. It expects the acquisition will boost its growth within the mining production market.
It also acquired a 30% interest in Datarock Holdings for $5.5 million. The purchase will allow Imdex to offer image analysis software, artificial intelligence (AI) capabilities, and additional answer products.
The number of client sites trialling IMDEX BLAST DOG including integration with both IMDEX HUB-IQ and MinePortal software was expanded last half.
Imdex also released an IMDEX HUB-IQ software-as-a-service (SaaS) module for quality assurance survey data and next generation aiSIRIS software.
The company also released its first sustainability report.
What did management say?
Imdex CEO Paul House commented on the company's results for the first half, saying:
The combination of 35% revenue growth, 55% EBITDA growth, and 81% NPAT growth, is the strongest possible statement of the underlying quality of the Imdex business and the Imdex business model.
Our significant uplift in earnings reflected strong demand across all regions, particularly for our higher margin sensors and software.
What's next?
Those interested in the Imdex share price might be excited to learn the company's plan to grow in the future.
To achieve sustainable earnings growth, it will be growing its core business in resources-focussed exploration and development and expanding its technologies within the adjacent mining production market.
It will also be investing further into research and development and leveraging its capabilities in the mining production market.
Finally, it will be looking for more acquisition or collaboration opportunities to build on its geoscience analytics, AI, and computer visualisation capabilities.
It expects drivers of growth will include new innovations, discoveries, decarbonisation, and strong commodity prices.
Looking to the remainder of financial year 2022, Imdex expects additional expenses to come from the inflationary environment.
It also anticipates that COVID-19-induced challenges will remain in some form for another year or two. Though, it states it's in "its strongest position" to face the risks front on.
Imdex share price snapshot
The Imdex share price has slipped 0.6% year to date.
However, over the 6 months ended 31 December, it has gained 44%.
It is also currently 56% higher than it was this time last year.
