Imdex (ASX: IMD) CEO Paul House said the fundamentals underpinning mining and exploration sectors were "excellent" after recording a record first-half FY22 performance. The company's stock rallied 6.4% as the market opened.
The mining-technology company reported a 34.9% increase in revenue to $167.8m and an 80.8% jump in net profit to $24.4m.
The figures came ahead of Bell Potter and Citi net profit forecasts of $24m and well above consensus estimates of $22.6m.
Imdex said that the business experienced strong demand for drilling optimisation fluids, rock knowledge sensors and software, with the Americas and Australian regions operating at or near fully capacity.
Imdex declared a fully franked interim dividend of 1.5 cents per share, up 50% compared to last year. The payout represents a payout of 24% of first-half profits.
The dividend record and payments dates are 10 and 24 March respectively.
Index said that the pace of its growth was tempered by labour restrictions and longer delivery times for rigs and parts.
The company anticipates these challenges to remain in some form for the next 1-2 years.
Looking over at the second-half, Imdex said it expects higher expenses due to the "inflation environment". As well as increased travel and marketing costs as covid restrictions ease.
Profit takers have come into play after Imdex shares are down -1.7% at 11:30 am AEDT.
This might reflect a broader risk-off attitude in wake of looming interest rate hikes.
Investors might want to take note if this theme continues as February reporting season ramps up.
Finance Writer & Social Media
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