The recent acquisition of Devico looks responsible for most of the half year growth for IMD, nice little price pump this morning off Half Yearly presentation:

2924-02773703-6A1194309 (markitdigital.com)

Disc: Held IRL

The CEO of Imdex has now made 3 separate purchases of Imdex at prices between $1.58-1.59. The recent low was $1.39. He now owns a total of 1,271,553 shares.

31/8-1/9 - bougth 100000 shares at $1.59

11-15/9 - bought 80000 shares at $1.58

23-27/10- bought 80000 shares at $1.59

Fairly positive sign that the Devico aquisition is being assimilated well and that he sees a positive turnaround happening in the drilling and sensors market.

Worth a listen for overview - The journey to being a leader in global Mining Tech: Paul House CEO of IMDEX - Euroz Hartleys Ltd | Livewire (livewiremarkets.com)

Interestingly also highlights the shortage in copper as well.

slight miss to consensus and the blastdog contract seems a bit light... im sure initially they were talking multiples of what the tools are on hire for and I think thats around $10k!? Long term I think its a good bet, would take advantage of weakness

Hi @mbry9625 - I don't follow $IMD, but from a quick look I think the reaction might be explained by:

1. Slight miss vs. consensus (NPAT of $44.7m vs. $48.6m (n=6, marketscreener.com); EPS of 11.3cps vs 11.9cps on FN Arena (n=2)
2. No forward guidance that I can see on the the presentation

These pullbacks on minor undershoot v. consensus are great buying opportunities for long term holders if you think its overdone.

Disc: I am not bullish on mining services and not following.

@ endean, good write up of the H1 report. I also think it was a good one and they are clearly progressing their strategy well. My valuation is pretty similiar to yours.

I'm curious why you think EPS in FY21 will be 13c but will drop back to 12.8c next year. I am thinking that H2 FY22 will be less than H1. From the outlook statement-

During 2H22 IMDEX anticipates some additional expenses due to the inflationary environment, together with

increased travel and marketing costs as mobility restrictions ease.

This make me think we will get less than 6.15eps in H2 FY22, and I will be happy with EPS of >12c (FY22), but would hope that FY 23 will be >13c as we start to get some of the earnings benefits from the recent Mineportal aquisition etc. and the Covid slowdowns will hopefully be less of a problem. Eitherway the outlook looks good for continued growth by Imdex

New YouTube interview of IMDEX CEO Paul House by Dominic Rose from Roger Montgomery's fund.

IMDEX (ASX:IMD) delivered a very strong set of results for FY21 which materially beat expectations and led to good broker forecast upgrades. The key points from the update include revenue growth of 11 per cent and EBITDA was up 39 per cent. IMDEX is seeing very strong activity in Canada, the US and Australia in particular with resource companies allocating increasing budgets and having a very strong commitment to exploration spending. IMDEX’s CEO Paul House joined Dominic Rose to discuss the company’s focus on digital transformation, the recent acquisition of MinePortal software and the outlook for the business going forward. The trend towards decarbonisation and the growth and demand for battery metals Copper, Cobalt, Nickel and Lithium mean that in areas like copper we are going to consume more Copper in the next 12 years than we have in the last 100 years. And the sheer need to prove up supply through exploration drilling and bringing those mines into production just to meet that demand and meet what we think is a irreversible trend paint a very positive picture in terms of that longer cycle. – Paul House, IMDEX CEO The Montgomery Small Companies Fund owns shares in IMDEX.

Cracking result from Imdex as they recover from the covid period. Some highlights....

Revenue $264.4m up 11.2% on 2020 (18% constant currency basis) 

EBITDA $75.5m up 38.8% on pcp 

EBITDA margin was 28.5% up on 22.5% in 2020 (2h 30%) - demonstrating strong operating leverage 

Strong net cash position of $47m

Div + special declared 

Organic growth evident as avg products per customer grew from 2.25 to 3.25, and sensors on rent up 35% from pre-covid peak. Some headway with the new tools - 3 new joint developments signed although this is still proving a much longer process than anticipated pre covid

Outlook strong with tool hire up 6% to date and continued focus on new production tools + solution selling. Supportive operating environment as global reserves continue to diminish.

Happy holder for the long term as they continue to demonstrate decent organic growth and we wait to see the impact of the new production tools on the bottom line.

@ Rhin20 - I am also a big fan of Imdex. Ticks a lot of boxes and I think management are excellent (although I would really like to see a higher level of ownership from them). I was also fortunate enough to take advantage of the sell down last year and will likely be a long term holder. 

The company is able to demonstrate organic revenue growth as their tool fleet transitions to the cloud (more expensive vs traditional fleet). Pricing has not changed so there is a lever they can pull here. Customer feedback is very good, and the product is exceptionally sticky - once the tools are imbedded in your workflow its very hard to transition to something else. They are also one of the only competitors to offer a full suite of products.

On top of all this, their "new tools" have yet to come to market and expect once covid has passed and testing can resume in a meaningful way these will add another chunk of earnings to the bottom line. A free option at this stage