Why IMDEX has a strong core business in all market conditions
Against a challenging backdrop mining technology business IMDEX (ASX:IMD) delivered a strong 1H21 result. IMDEX materially beat market expectations with stronger revenues as exploration regions opened and cost discipline drove solid margin growth.
Demonstrating how nimble the business is as a technology company, IMDEX delivered strong gross margins from higher revenue from instruments and software and EBITDA margins increased benefiting from product mix, digital transformation and ongoing focus on streamlined operations. Cash from operations also increased, up 33 per cent from the prior corresponding period.
IMDEX’s CEO Paul House joined Dominic Rose to discuss the company’s differentiated business model compared to traditional mining services businesses, the outlook for the industry and how conditions will evolve to IMDEX’s benefit.
“One of the four levers IMDEX pulls as a business is the technical leadership that our products command in the market because of the R&D spending we do. This means we should be able to win market share in any given market.” Paul House, IMDEX CEO
Rewarded by another eventful reporting season, the Montgomery Small Companies Fund has continued its bright start into 2021, outperforming the S&P/ASX Small Ordinaries Accumulation Index benchmark by 18.95% since inception. Portfolio Managers Gary Rollo and Dominic Rose will spotlight some of the Montgomery Small Companies Fund’s top stock holdings in a live webinar 30 March 2021 at 6pm, you can register here.
The Montgomery Small Companies Fund owns shares in IMDEX. This video was prepared 17 March with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade IMDEX you should seek financial advice.
Dominic Rose is the Portfolio Manager of the Montgomery Small Companies Fund. Dominic joined Montgomery in August 2019 after spending thirteen years specialising in smaller companies in portfolio management and equities research. Most recently, Dominic was a Portfolio Manager and Senior Research Analyst at MHOR Asset Management in Sydney for three years. Prior to this, he ran Deutsche Bank’s Small Caps Equity Research Team in Sydney for six years. He was also previously Head of Research at Foster Stockbroking.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
