Imdex Limited (ASX: IMD) shares are leaping higher in early morning trade after the mining technology company released its results for the first half of the 2021 financial year (H1 FY21). At the time of writing, the Imdex share price has jumped 8.7% to $1.87.
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What did Imdex report?
The Imdex share price is on the move after the company revealed this morning it will maintain its dividend despite a drop in revenue from the previous corresponding period.
Imdex reported revenue of $124.3 million for H1 FY21. That was 3% lower than the $127.7 million revenue figure for H1 FY20.
Earnings per share (EPS) of 3.42 cents also slid, down 28%. Net profit after taxes (NPAT) was $13.5 million, down 26% from the $18.2 million reported in the first half of 2020's financial year.
Earnings before income, tax, depreciation and amortisation (EBITDA) was up 6% from H1 FY20, to $33.1 million.
The company also reported a 33% lift in cash from operations and an 84% increase in its net cash position, to $47 million.
Imdex declared a fully franked interim dividend of 1.0 cent per share (CPS).
Commenting on the results, Imdex CEO Paul House said:
Activity increased in the majority of our regions, underpinned by strong industry fundamentals. While COVID continued to disrupt operations it heightened demand for our cloud-connected technologies.
The uplift in earnings reflects three key factors: an increasing percentage of revenue from our higher margin rentals and software business; leveraging the benefits of our digital transformation; and our ongoing focus on streamlining operations.
The strength of our balance sheet enables us to accelerate targeted R&D in line with demand and leverage opportunities for acquisitive growth.
Looking ahead, House added:
While the short-term risks associated with COVID remain, we have a resilient business and a strategy focused on delivering sustainable earnings growth for shareholders.
The company pointed to strong commodity prices supporting its clients, and said resource companies and drilling contractors are turning to new technologies to increase productivity and safety.
Imdex share price snapshot
Incorporating this morning's intraday gains, the Imdex share price is up 10% so far in 2021.
That compares to a 2.8% gain on the All Ordinaries Index (ASX: XAO).
Over the past 12 months, Imdex shares have gained 36.5% and more than 140% since the lows from 25 March last year.
