IMDEX has revealed record September-quarter revenue of A$126.1 million ($79.4 million) as the group continues to benefit from the recent acquisition of Devico.
Revenue was up 19% on the same time last year, with Devico contributing about A$18.2 million, or 17%, of the increase. Organically, excluding Devico, revenue was A$107.9 million, a 2% increase on the same time last year.
Devico has delivered A$38.8 million in revenue in the seven months since completion of the acquisition, against average revenue for seven months in calendar 2022 of A$35.9 million, IMDEX noted.
“We are extremely pleased with the performance of the business that has delivered growth in spite of the clear market pressures in key regional markets such as Canada and Australia,” Paul House, CEO of IMDEX, said. “We are successfully introducing DeviGyros into our IMDEX network, displacing competing tools in the process.
“We have achieved a 25% increase in DeviGyros deployments across our IMDEX network and doubled the number of Devico sensors on hire in the US. Our Devico directional core drilling business has demonstrated consistent growth post-completion.”
He added: “The combination of Devico and IMDEX is a highly strategic investment that positions our business very well for the long term. It represents a substantial enhancement in our capability, our reach and our technology. “It secures a market-leading position in Europe, delivers leadership in directional core drilling and strongly complements our leadership position in survey tools, as evidenced by the financial performance since completion.”
Across the regions, consolidated revenue was:
- Up 38% in the Americas (IMDEX revenue alone was up 14%), with strong activity in parts of South America including Chile and Argentina and steady growth in Brazil;
- Up 16% in Africa and Europe (IMDEX up 2%), with solid growth in central and eastern Africa and strong demand for fluids and directional core drilling in Europe; and
- Down 6% (IMDEX down 13%) in Asia Pacific, with strong activity in Asia and the east coast of Australia being offset by lower rig use and project delays in Western Australia.
House said: “For Q1 (September quarter), excluding the Devico fleet, average sensors on hire were up 8% on the prior quarter, but they remained down 9% on the same time last year.
“The impact of the combined IMDEX and Devico businesses on our product mix now means the higher margin sensors and software solutions in our portfolio represented 63% of Q1 2024 (September quarter) revenue. This is up from 60% at the full year.
“Overall, we expect market demand to remain steady throughout FY24 as resource companies continue to respond to the high-cost environment, where the baked in increase in labour rates is likely to extend the recovery phase – particularly in regions such as Western Australia.
“Importantly, however, mid-tier and major resource companies remain well-funded and capital raisings have shown some signs of improvement for juniors.”