IMDEX (ASX: IMD) expects higher revenues in FY24 due to acquisition synergies; CEO hikes stake

4 min read | September 18, 2023 09:54 PM AEST | By Team Kalkine Media

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IMDEX (ASX: IMD) expects higher revenues in FY24 due to acquisition synergies; CEO hikes stake — Image source: © Wrightstudio | Megapixl.com

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Highlights

IMDEX is a mining-tech company that mainly caters to drilling contractors and resource companies.

Recently, IMD’s CEO has increased his stake in the firm by 80k shares, taking the total to 1.19 million shares.

In FY24, the company expects constant demand across all regions.

IMDEX Limited (ASX:IMD) is a mining technology company which allows resource companies and drilling contractors to manage their operations with precision and speed. The company provides real-time rock knowledge and quality data through its drilling optimization products and cloud-connected sensors.

The company is focused on continuous investment, and in the financial year 2023 (FY23), it acquired Devico, a mining-tech company which offers directional core drilling solutions and sensor technologies. Moreover, the company had invested in Krux Analytics, a drilling analytics software company and Datarock, an image analysis AI analytics provider.

Through an ASX filing, the company informed that its CEO, Paul House, has increased its stake in the firm. He has acquired 80,000 shares between 11 – 15 September 2023 at an average price of AUD 1.59 apiece. After this recent share purchase, House holds over 1.19 million shares in IMDEX.

Financial Insights

In FY23, the company registered 20.3% YoY growth in revenue to AUD 411.4 million and 50.4% YoY growth in pre-tax operating cash flow to AUD 105 million. The revenue growth is underpinned by the acquisition of mining-tech company Devico.

The period saw a 21.7% decline in net profit after tax to AUD 35 million due to integration and acquisition costs.

Here is the historical financial trend of IMD.

Top 10 shareholders of IMD

The top 10 shareholders of IMD have nearly 40.32% shareholding in the company, while the top four have around 28.14% shareholding. L1 Capital Pty Ltd. and Vanguard Investments Australia Ltd. Have the highest stake in the firm with a shareholding of ~16.00% and ~5.01%, respectively.

Recent business update

Through an ASX update dated 15 September 2023, the company shared the decision of Ivan Gustavino to retire as non-executive director of IMD.

The company also shared that it is set to hold its 2023 annual general meeting (AGM) on 19 October 2023.

Outlook

In FY24, the company expects constant demand across all regions and is committed to tapping selling opportunities in Africa and North America.

Over the medium to long term, the company is focused on revenue synergies from Devico products’ integration, fueling the adoption of new business model offerings and boosting revenue from software and sensors.

Share performance of IMD

IMD shares closed 3.19% down at AUD 1.48 apiece on 18 September 2023 with a market cap of AUD 778.54 million. With this, in the past 12 months, IMD share price has dropped by 27.27% and in the last nine months, it has declined by 32.80%.

The 52-week high of IMD is AUD 2.640 apiece, recorded on 2 February 2023. Meanwhile, the 52-week low is AUD 1.475 apiece, recorded on 28 August 2023. Worth mentioning here is today’s closing price is 44.13% lower than its 52-week high.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 18 September 2023. The reference data in this report has been partly sourced from EODHD/Others.

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