I’m pleased to present the Company’s Annual Report for the 2020 financial year (FY20).
The Company enjoyed a positive start to FY20 with increasing activity and demand for IMDEX’s leading technologies. Like many businesses, however, this uplift was interrupted in the fourth quarter by COVID-19.
I am immensely proud of how IMDEX’s global team was able to remain focused on protecting its people and the continuity of its business during these unprecedented times. The collaborative efforts of the Executive Leadership Team, Crisis Management Team and all employees globally, was outstanding. Together they accepted new ways of working, provided remote support to clients and continued to drive our strategy for sustainable growth.
Enhancing the Company’s safety performance remained a key focus throughout FY20. At the same time, IMDEX heightened its support for employee mental health and well-being and implemented new training and safety engagement initiatives.
The Company unfortunately did not meet its Lost Time Incident Frequency Rate (LTIFR) target of < 2.52. Improving safety performance – and achieving zero harm – will remain a key priority during FY21.
Further information regarding IMDEX’s safety targets and initiatives can be found in this report.
Revenue and Earnings
The Company generated revenue of $237.7 million, which represented a 2% decrease on the previous year. Our EBITDA was $54.4 million – including AASB 16 adjustments and excluding gains on the sale of VES.
These are solid results given the severe impact of COVID-19 on the macro environment and demonstrate the strength of the business.
IMDEX remains committed to a sustainable dividend policy, while continuing to invest in new technologies that have the potential to deliver sustainable earnings growth for shareholders.
During FY20 the Company paid a fully franked interim dividend of 1.0 cent per share and a fully-franked special dividend of 2.0 cents per share following the sale of its interest in non-core asset Vaughn Energy Services.
Directors have also declared a fully-franked final dividend of 0.7 cents per share. This brings the full year dividend to 1.7 cents per share, which represents a 30% FY20 NPAT payout ratio. Dividend record and payment dates are 29 September 2020 and 13 October 2020 respectively.
Sustainable Earnings Growth for our Shareholders
IMDEX has a consistent strategy of delivering sustainable earnings growth for shareholders, which includes growth of the Company’s core business and extension into the larger and less-cyclical mining and production market.
Throughout FY20 IMDEX pursued this strategy through focused technology acquisitions, disciplined research and development, and industry collaboration. Notable examples include the acquisition of AusSpec International and further development of IMDEX BLASTDOG™ with METS Ignited partners, Orica, Anglo America and Teck Resources.
At the same time IMDEX continued to pay very close attention to cost management and strengthening its resilience in all market conditions.
Transition to New CEO
On 1 July 2020, IMDEX officially confirmed Bernie Ridgeway’s retirement as Managing Director and welcomed Paul House as Chief Executive Officer.
Both Bernie and Paul should be complimented on this transition. It was planned and well-considered to ensure 100% business continuity and the seamless execution of our long-term growth strategy.
On behalf of IMDEX’s Board of Directors, I would like to acknowledge Bernie’s strong leadership and dedication to the Company over the past twenty years. It has been a pleasure working with him and IMDEX has indeed evolved as a leading global Mining-Tech company.
I would also like to express the Board’s full support for Paul and the members look forward to building on our excellent relationship with all of IMDEX’s Executive Leadership Team in FY21.
A Responsive Board
My sincere thanks to my fellow Board members for their commitment throughout FY20. At all times each member has ensured a high-level of governance and accountability while contributing to the success of IMDEX’s growth strategy.
In line with the revised ASX Corporate Governance Principles and Recommendations, IMDEX will consider future appointments of additional Directors to complement the Board’s skills, diversity and areas of expertise.
Our Valued Shareholders
On behalf of IMDEX’s Board, I would like to thank our valued shareholders for their ongoing support.