Against a challenging backdrop mining technology business IMDEX (ASX:IMD) delivered a strong 1H21 result. IMDEX materially beat market expectations with stronger revenues as exploration regions opened and cost discipline drove solid margin growth.
Demonstrating how nimble the business is as a technology company, IMDEX delivered strong gross margins from higher revenue from instruments and software and EBITDA margins increased benefiting from product mix, digital transformation and ongoing focus on streamlined operations. Cash from operations also increased, up 33 per cent from the prior corresponding period.
IMDEX’s CEO Paul House joined Dominic Rose to discuss the company’s differentiated business model compared to traditional mining services businesses, the outlook for the industry and how conditions will evolve to IMDEX’s benefit.
“One of the four levers IMDEX pulls as a business is the technical leadership that our products command in the market because of the R&D spending we do. This means we should be able to win market share in any given market.” Paul House, IMDEX CEO
The Montgomery Small Companies Fund owns shares in IMDEX. This video was prepared 17 March with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade IMDEX you should seek financial advice.