Imdex Ltd (ASX: IMD) shares are having a day to remember on Monday.
In morning trade, the ASX All Ords share is up 20% to $1.93.
This follows the release of the mining technology company's half-year results.
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ASX All Ords share jumps on results
- Revenue up 18.4% to $235.3 million (16% in constant currency)
- Normalised EBITDA up 13% to $71 million (14% in constant currency)
- Net profit after tax down 26% to $16.8 million
- Normalised net profit after tax up 7.5% to $32.8 million
- Fully franked interim dividend flat at 1.5 cents per share
What happened during the half?
For the six months ended 31 December, Imdex reported an 18.4% increase in revenue to $253.3 million. This was driven almost entirely from the acquisition of Devico, which contributed revenue of $36.1 million. The core Imdex business reported a modest 0.2% lift in revenue to $199.2 million.
Also growing was the company's normalised EBITDA, which rose 13% to a record of $71 million. This excludes Devico integration costs and the non-cash impairment of Maghammer.
It was these one-offs that meant that its net profit after tax was down 26% to $16.8 million on a reported basis but up 7.5% on a normalised basis.
And judging by the ASX All Ords share's performance today, it seems the market is more focused on the normalised result than the reported result.
Management commentary
Imdex CEO, Paul House, was pleased with the half. He said:
We are very pleased that this half has demonstrated the resilience of the IMDEX business model and our strategy to put together end-to-end solutions that deliver value to customers and gain market share in what has been a contracting market.
We generated record revenues, record EBITDA and margin improvement. We concurrently completed the Devico operational integration, thereby unlocking further revenue and cost synergies in the longer-term. This is a wonderful acknowledgement of the hard work by our teams around the world.
Outlook
Management remains optimistic on the company's prospects in 2024 despite the potential for lower mining exploration spending. It said:
S&P Market Intelligence has reported exploration spend for CY24 is likely to be in line with or marginally down (<5%) on CY23. The high-cost operating environment presents opportunities for IMDEX's innovative end-to-end solutions, integrated product offering, orebody knowledge and directional drilling to improve drilling productivity.
Customer activity globally is anticipated to remain steady during 2H24. The Company's mid to major customers are well funded and are expected to maintain, and in some regions expand drilling programs.
As of 15 February, the ASX All Ords share revealed that the number of sensors on hire were up approximately 5% on the prior corresponding period. This reflects the addition of some of the Devico sensors as Imdex progresses the systems integration globally.
