On behalf of the IMDEX Board of Directors I’m pleased to present the company’s Annual Report for the 2018 financial year (FY18).
FY18 was a positive year for the company. Safety performance improved, revenue and earnings grew substantially and IMDEX made good progress internally with its objective to achieve sustainable earnings growth for shareholders.
Improved Safety Performance
Whilst there are still substantial gains to be made, the company’s safety performance improved steadily throughout the year and encouragingly, has become ‘front of mind’ within the organisation. During FY18 the Lost Time Incident Frequency Rate (LTIFR) was 2.57, a 25% improvement on the previous year. Further information regarding IMDEX’s safety initiatives can be found on page 24 of this report.
Increased Revenue and Earnings
IMDEX took advantage of improving market conditions and achieved strong top line growth. Pleasingly, the company also maintained solid margin performance. The revenue result of $218.5 million represented a 24% increase on FY17 and Group EBITDA was $42.4 million, a 35% increase on the previous year.
Sustainable Earnings Growth for our Shareholders
The company maintained its clear objective of delivering sustainable earnings growth for shareholders. As a result, IMDEX remained focused on a two-tiered strategy; focused organic growth of the core business and pursuit of transformational growth across the mining value chain.
Key elements of this strategy include maintaining the company’s clear technology leadership, delivering unrivalled solutions for clients and driving operational excellence. Progress throughout the year included: the commercialisation of new leading products; securing the option to acquire the CoreVIBE™ and MagHAMMER™ technologies; solid progress with the digital transformation program and; the establishment of global partnerships with major resource companies and drilling contractors for our integrated solutions.
The IMDEX Board and leadership team have rigorously assessed these investments – both organic and transformational – applying a balanced yet healthy sense of urgency. All of the company’s investment decisions and development projects are subject to this gateway process.
Board & Leadership Team
Our Board and leadership team have continued to work very well together. Throughout the year we refined and strengthened our leadership team to support our corporate progression. The Board is confident the company has a strong and talented team in place and on behalf of the IMDEX Board, I would like to thank Bernie Ridgeway and the leadership team for their strong performance in FY18.
I would also like to thank my fellow Board members. The Board has diverse yet complementary skills and in FY18 each Director has made significant contributions to the development, long-term growth and governance of our company. During FY19 our Board will continue to place great emphasis on ensuring IMDEX is a safe, high performing and welcoming workplace.
During FY18 the Board acquired the option to invest in transformational technologies that have the potential to deliver substantial long term growth for the business. As a result IMDEX will not be paying a dividend for FY18.
Our Valued Shareholders
Importantly, on behalf of the Board, I would like to express our gratitude to the valued shareholders of IMDEX.