Yahoo Finance

• Revenue: $212 million, down 10% year-over-year.

• Reported EBITDA: Up 28% compared to 1H '24.

• IBD Margin: 30.2%, consistent with 1H '24.

• Operating Cash Flow Conversion: 96%.

• Net Debt: Reduced to $15 million.

• Interim Dividend: $1.5 per share.

• Normalized NPAT: $21.9 million.

• Normalized NPATA: $26.5 million.

• Full-Time Employees: Decreased to 823.

• SaaS Revenue Growth: Datarock up 107%, Krux up 46%.

• IMT Revenue Growth: Up 72% compared to 1H '24.

• Net Debt Leverage Ratio: 0.2 times.

• Interest Coverage Ratio: 7 times.

• Warning! GuruFocus has detected 8 Warning Sign with IMDXF.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Imdex Ltd (IMDXF) demonstrated resilience by executing its growth strategy despite a 19% contraction in industry activity, achieving a revenue of $212 million, only a 10% decline from the prior corresponding period.

• Reported EBITDA increased by 28% compared to 1H '24, reflecting the successful resolution of the Globaltech claims.

• The company's IBD margin remained strong at 30.2%, consistent with 1H '24, showcasing disciplined cost management and synergy delivery.

• Operating cash flow conversion was exceptionally strong at 96%, significantly above historical targets.

• Imdex Ltd (IMDXF) declared an interim fully franked dividend of $1.5 per share, aligning with its capital management policy.

Negative Points

• Revenue declined by 10% compared to the prior corresponding period, reflecting subdued global exploration activity.

• Normalized EBITDA declined in line with lower revenue, despite half-on-half growth.

• The Americas, the largest revenue-contributing region, saw an 11% revenue decline compared to 1H '24.

• The company's fluid engineering business, sensitive to raw activity, experienced a 14.5% revenue decline.

• The effective tax rate was higher than usual at 36% for the first half, expected to normalize in the second half.

Q & A Highlights

Q: Hi team, you mentioned operational efficiencies at various points through the presentation. Could you provide more color on where these have been achieved and if these initiatives may impact the speed of possible ramp as operating conditions improve? A: Paul House, CEO: We achieved a net $16 million improvement in OpEx through synergies from the Devico acquisition, organizational redesign savings, early-stage digital transformation investments, and saved legal fees from the Globaltech claims resolution. We are well-positioned and scalable, expecting incremental margins to drop through as the top line increases without compromising margins.