On behalf of the IMDEX Board of Directors I’m pleased to present the company’s Annual Report for the 2019 financial year (FY19).
FY19 was another positive year for IMDEX. The underlying business performed strongly, and the company progressed with its strategy to deliver sustainable earnings growth for our shareholders.
Noteworthy examples of this progress included: successful client trials with the company’s drilling productivity and mining technologies; operational efficiency improvement due to the internal digital transformation project; and maturing of One IMDEX – the company’s integrated value proposition for clients.
Safety performance remained a key focus. Whilst IMDEX continued to consolidate and build on the significant improvement achieved in FY18, it did not meet its Lost Time Incident Frequency Rate (LTIFR) target of 2.18. Further information regarding IMDEX’s safety targets and initiatives can be found on pages 27 - 28 of this report.
Improving IMDEX’s sustainable safety performance – and ultimately achieving zero harm – will remain a key priority during FY20.
Increased Revenue and Earnings
IMDEX benefited from increasing activity within the global minerals market and improvement in the quality of the company’s rental fleet whilst focussing very closely on the underlying cost base.
Revenue was $243.7 million, which represented a 12% increase on the previous year, and IMDEX improved margin performance achieving EBITDA of $52.3 million, a 23% increase on FY18.
A fully-franked final dividend of 1.4 cents per share was declared, which represents a 30% FY19 NPAT payout ratio. This brings the full-year dividend to 2.2 cents per share.
Dividend record and payment dates are 1 October 2019 and 15 October 2019 respectively.
The company is committed to a sustainable dividend policy, whilst continuing to invest in new technologies which have the potential to deliver substantial long-term growth.
Sustainable Earnings Growth for our Shareholders
IMDEX remains focussed on delivering sustainable earnings growth for shareholders.
Central elements of this strategy include: focussed organic growth of the company’s core business; close attention to cost management; disciplined research and development; focussed technology acquisition; and the pursuit of growth across the mining value chain.
Board & Senior Management Team
The Board of IMDEX continues to enjoy an excellent working relationship with the company’s senior leadership team – a balance between ensuring governance and accountability and providing collaborative strategic input and direction.
Each of my fellow Board members have been tremendously responsive and participated strongly at all levels throughout FY19. The senior leadership team has remained very focussed on the strategic direction set for IMDEX with absolute commitment to delivering underlying earnings performance.
It was a pleasure working with them all and I look forward to further progress in FY20.
Our Valued Shareholders
In conclusion, on behalf of IMDEX’s Board, I would like to thank our valued shareholders for their support. IMDEX is an exciting company with which to be involved.