On behalf of the IMDEX Board of Directors I’m pleased to present the company’s Annual Report for the 2017 financial year. It was a positive year and I have enjoyed being part of the dynamic team at IMDEX.
During the first half of FY17 we successfully addressed the sub-optimal capital structure of the company by way of an equity raising and new debt facility. Details can be found in the Managing Director’s Report on page 27. We further divested the majority of the company’s oil and gas interests and wrote off the balance.
These outcomes allowed our Management Team to focus clearly on our core minerals business, where we have a significant competitive advantage due to our cutting edge R&D, global presence, market leading solutions and IMDEXHUB-IQ™ enabled technologies.
Our minerals business generated $176.2 million in revenue, a 23% increase on the company’s 2016 result. Group EBITDA from these continuing operations was $31.5 million, pleasingly a 55% increase on the previous year.
Our commitment to technology leadership is enabling IMDEX to significantly upgrade our customer value proposition. Our end-to-end IMDEX Solution Sets, incorporating both our AMC products and REFLEX connected technologies, provide critical outcomes that enhance the efficiency of clients’ operations and support key decision making for exploration, mining and production.
IMDEX’s safety performance for the year was, however, disappointing. Our internal target for the year was a 5% reduction on our FY16 total reportable injury frequency rate (TRIFR), which was 4.11 injuries per million hours worked. Unfortunately we did not achieve this target. Keeping our people safe is absolutely critical, hence the Board and Management Team will heighten its focus on safety performance for the balance of FY18 and beyond.
In addition to leveraging improving market conditions and pursuing strong organic growth, we have identified exciting opportunities for significant growth through market extension within the minerals industry. This potential involves leveraging our established R&D capabilities and key client relationships in order to support the mining and production phases of our clients’ operations.
We will of course remain alert to acquisitions that complement both our core business and our growth strategies, always with the objective of delivering sustainable earnings growth.
These growth initiatives will be pursued with close attention to administrative efficiencies and operating leverage. I would like to acknowledge the expertise and counsel that the Board has contributed to the progression of IMDEX throughout the year. Similarly, my thanks to our leadership team and employees, led by Managing Director, Bernie Ridgeway.
Importantly, on behalf of the Board, I would like to express our gratitude to the valued shareholders of IMDEX. Whilst the company will not be issuing a dividend for the 2017 financial year we remain committed to returning to an attractive dividend policy in the very near future.