8 Pitino Court, Osborne Park Western Australia 6017 PO Box 1262, Osborne Park Western Australia 6916 Tel: +61 (0) 8 9445 4010 Fax: +61 (0) 8 9445 4055 imdex@imdexlimited.com www.imdexlimited.com ABN 78 008 947 813 17 February 2014 ASX Limited Company Announcements Office Exchange Centre 20 Bridge Street SYDNEY NSW 2001 BY ELECTRONIC LODGEMENT Dear Sirs ASX APPENDIX 4D AND INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013. Please find attached Imdex Limited s Appendix 4D and Interim Financial Report for the Half Year Ended 31 December 2013, inclusive of the Auditors Review Report and Independence declaration. Yours faithfully Imdex Limited Paul Evans Company Secretary Providing innovative drilling fluids and advanced down hole instrumentation worldwide.
ABN 78 008 947 813 ASX Appendix 4D Half Year Report and Interim Directors Report & Financial Report for the Half Year ended 31 December 2013 The ASX Appendix 4D Half Year Report is provided to ASX in accordance with Listing Rule 4.2A for announcement to the market. Current Reporting Period: 31 December 2013 Previous Corresponding Reporting Period: 31 December 2012 The Financial Report had been subject to review and is not subject to dispute or qualification. The auditors review report is included herein. The interim Financial Report has been prepared in accordance with International Financial Reporting Standards ( IFRS ). The interim Financial Report does not include all the notes of the type normally included in an annual Financial Report and hence should be read in conjunction with the latest annual report of Imdex Limited, being for the financial year ended 30 June 2013. In addition, reference should be made to any public announcements made by Imdex Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 (Cth).
APPENDIX 4D HALF YEAR REPORT 31 DECEMBER 2013 Consolidated Half Year Ended Half Year Ended % Change 31 Dec 2013 31 Dec 2012 Notes up / (down) $ 000's $ 000's Revenue from ordinary activities (i) (28%) 92,152 127,612 Profit from ordinary activities after tax attributable to members (i),(iii) (7%) 15,333 16,573 Net profit for the period attributable to members (i),(iii) (7%) 15,333 16,573 Interim dividend (cents per share) - 2.50 Final dividend (cents per share) (ii) 0.40 4.00 Net tangible assets per ordinary security (cents) 66.58 56.40 (i) The announcement made to ASX on 17 February 2014 by the Chairman of Imdex Limited provides an explanation of the Group's financial results and operating performance for the half year ended 31 December 2013. (ii) The FY13 final fully franked dividend was declared on 16 August 2013 with a record date of 11 October 2013 and a payment date of 25 October 2013. (iii) The Group's profit for the half year ended 31 December 2013 includes a gain on disposal in Sino Gas and Energy Holdings Ltd (SEH) of $20.1m, net of transaction costs.
DIRECTORS REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013 The Directors of Imdex Limited submit herewith the financial report of Imdex Limited and its subsidiaries (the Group) for the half year ended 31 December 2013. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: Directors The Directors of the Company during or since the end of the Half Year are: Name Mr Ross Kelly AM, Non Executive Chairman Period of Directorship Appointed as Non Executive Director on 14 January 2004 and appointed as Non Executive Chairman on 15 October 2009 Mr Bernie Ridgeway, Managing Director Appointed 23 May 2000 Mr Magnus Lemmel, Non Executive Director Appointed 19 October 2006 Mr Kevin Dundo, Non Executive Director Appointed 14 January 2004 Ms Elizabeth Donaghey, Non Executive Director Appointed 28 October 2009 Review of Operations Consolidated Half Year Ended Half Year Ended 31 Dec 2013 31 Dec 2012 $ 000 $ 000 Total Revenue 92,152 127,612 Profit after tax for the half year 15,333 16,573 Basic earnings per share - continuing operations 7.29 7.93 The Consolidated Entity s profit after tax was $15.3 million for the half year ended 31 December 2013 (prior period: $16.6 million). The result was achieved on total revenue of $92.2 million (prior period: $127.6 million). During the reporting period the Consolidated Entity disposed of 130,000,000 SEH shares at a market value of 18.5c per share resulting in cash proceeds (net of selling expenses) of $23.6m, and resulting in a gain on disposal of $20.1m recognised in the Income Statement. Earnings per share from total operations was 7.29 cents per share (prior period: 7.93 cents per share) Further details on the operations and overall results are contained in the Financial Report and the announcement made to the ASX on 17 February 2014 by the Chairman of Imdex Limited regarding the Group s financial results and operating performance for the half year ended 31 December 2013. Page 1 of 18
DIRECTORS REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013 Auditor s Independence Declaration Section 307C of the Corporations Act 2001 requires the auditor, Deloitte Touche Tohmatsu, to provide the Directors of Imdex Limited with an Independence Declaration in relation to the review of the Half Year Financial Report. The Independence Declaration is on the next page. Rounding of Amounts The Company is of a kind referred to in Class Order 98/100 issued by the Australian Investments and Exchange Commission dated 10 July 1998 and in accordance with that Class Order, amounts in the Financial Report and the Directors Report have been rounded off to the nearest thousand dollars, unless otherwise stated. Signed in accordance with a resolution of the Directors pursuant to s.306(3) of the Corporations Act 2001. Dated at Perth, 14 February 2014 Ross Kelly AM Chairman Page 2 of 18
The Board of Directors Imdex Limited 8 Pitino Court Osborne Park WA 6017 Deloitte Touche Tohmatsu ABN 74 490 121 060 Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia DX 206 Tel: +61 (0) 8 9365 7000 Fax: +61 (0) 8 9365 7001 www.deloitte.com.au 14 February 2014 Dear Directors Imdex Limited In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Imdex Limited. As lead audit partner for the review of the half year financial statements of Imdex Limited for the half year ended 31 December 2013, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. Yours sincerely DELOITTE TOUCHE TOHMATSU AT Richards Partner Chartered Accountants Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited
Deloitte Touche Tohmatsu ABN 74 490 121 060 Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia Independent Auditor s Review Report to the members of Imdex Limited Tel: +61 8 9365 7000 Fax: +61 (0) 9365 7001 www.deloitte.com.au We have reviewed the accompanying half-year financial report of Imdex Limited, which comprises the condensed statement of financial position as at 31 December 2013, and the Condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of cash flows and the condensed consolidated statement of changes in equity for the half-year ended on that date, selected explanatory notes and, the directors declaration of the consolidated entity comprising the company and the entities it controlled at the end of the half-year or from time to time during the half-year as set out on pages 7 to 18. Directors Responsibility for the Half-Year Financial Report The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the halfyear financial report that is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the halfyear financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity s financial position as at 31 December 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Imdex Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Auditor s Independence Declaration In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Imdex Limited, would be in the same terms if given to the directors as at the time of this auditor s review report. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited
Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Imdex Limited is not in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the consolidated entity s financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. DELOITTE TOUCHE TOHMATSU A T Richards Partner Chartered Accountants Perth, 14 February 2014
DIRECTORS DECLARATION The Directors declare that: (a) in the Directors opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and (b) in the Directors opinion, the attached Financial Report and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the Consolidated Entity. Signed in accordance with a resolution of the Directors made pursuant to s. 303(5) of the Corporations Act 2001. Dated at Perth, 14 February 2014 Ross Kelly AM Chairman Page 6 of 18
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2013 Half Year Ended Half Year Ended 31 Dec 2013 31 Dec 2012 Notes $ 000 $ 000 Continuing operations Revenue from sale of goods and operating lease rental 92,116 127,583 Other revenue from operations 36 29 Total revenue 92,152 127,612 Other income 29 83 Gain on the disposal of shares in Sino Gas and Energy Holdings Ltd (SEH) 3 20,139 - Raw materials and consumables used (42,244) (53,789) Employee benefit expense (26,282) (26,417) Depreciation expense (4,112) (3,447) Amortisation expense (732) (1,510) Finance costs (1,489) (1,849) Share of profit of associate 4 271 1,389 Other expenses 2 (19,878) (19,209) Profit before tax 17,854 22,863 Income tax expense (2,521) (6,290) Profit for the period 15,333 16,573 Other comprehensive income Items that may be reclassified subsequently to profit or loss Fair value adjustment on investment in Sino Gas and Energy Holdings Ltd (SEH), (net of income tax) 3 1,009 7,936 Exchange differences arising on the translation of foreign operations 3,294 (1,999) Other comprehensive income for the period, net of income tax 4,303 5,937 Total comprehensive income for the period 19,636 22,510 Profit attributable to owners of the parent 15,333 16,573 Total comprehensive income attributable to owners of the parent 19,636 22,510 Earnings per share Basic earings per share (cents) 7.29 7.93 Diluted earnings per share (cents) 7.22 7.79 The Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. Page 7 of 18
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 31 De c 2013 30 Jun 2013 Note s $ 000 $ 000 Curre nt Asse ts Cash and Cash E quivalents 14,877 9,979 Trade and Other Receivables 35,995 45,231 Inventories 56,150 53,356 Current Tax A ssets 3,369 2,661 Other 4,322 5,909 114,713 117,136 Financial Asset Held for S ale 3 24,382 26,450 Tota l Curre nt Asse ts 139,095 143,586 Non Curre nt Asse ts Property, Plant and E quipm ent 40,287 40,701 Deferred Tax A ssets 4,875 8,632 Goodwill 62,057 61,782 Other Intangible Assets 4,925 5,610 Other Receivables 957 - Investm ents in A ssociates 4 25,826 25,555 Tota l Non Curre nt Asse ts 138,927 142,280 Tota l Asse ts 278,022 285,866 Curre nt Lia bilitie s Trade and Other Payables 17,541 25,776 B orrowings 5 5,754 14,738 Current Tax Liabilities 2,782 1,900 P rovisions 3,564 4,681 Tota l Curre nt Lia bilitie s 29,641 47,095 Non Curre nt Lia bilitie s B orrowings 5 39,705 49,248 P rovisions 1,554 1,071 Tota l Non Curre nt Lia bilitie s 41,259 50,319 Tota l Lia bilitie s 70,900 97,414 Ne t Asse ts 207,122 188,452 Equity Issued Capital 6 89,269 89,269 Shares Reserved for P erform ance Rights P lan 6 (64) (952) Foreign Currency Translation Reserve (7,873) (11,167) Investm ent Revaluation Reserve 3 14,763 13,754 Em ployee Equity-S ettled B enefits Reserve 5,787 6,087 M andatory Issuable Capital 990 990 Retained E arnings 104,250 90,471 Tota l Equity 207,122 188,452 The Condensed Consolidated Statem ent of Financial Position should b e read in conjunction with the accom panying notes. Page 8 of 18
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2013 Fully Paid Ordinary Shares Shares reserved for Performance Rights Plan Foreign Currency Translation Reserve Investment Revaluation Reserve Employee Equity-Settled Benefits Reserve Mandatory Issuable Capital Retained Earnings Total Attributable to Equity Holders of the Entity Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2012 86,069 (3,740) (17,703) 10,227 6,385 990 85,838 168,066 Exchange differences on translation of foreign operations after taxation - - (1,999) - - - - (1,999) Fair value adjustment on available for sale financial asset net of tax - - - 7,936 - - - 7,936 Profit for the period - - - - - - 16,573 16,573 Total comprehensive income for the period - - (1,999) 7,936 - - 16,573 22,510 Issue of shares as part consideration for the acquisition of ioglobal 6 3,200 - - - - - - 3,200 Share based payments - performance rights - - - - 1,270 - - 1,270 Granting/settlement of performance rights - 2,623 - - (1,519) - (1,104) - Dividend Paid 7 - - - - - - (8,329) (8,329) Balance at 31 December 2012 89,269 (1,117) (19,702) 18,163 6,136 990 92,978 186,717 Balance at 1 July 2013 89,269 (952) (11,167) 13,754 6,087 990 90,471 188,452 Exchange differences on translation of foreign operations after taxation - - 3,294 - - - - 3,294 Fair value adjustment on available for sale financial asset net of tax 3 - - - 1,009 - - - 1,009 Profit for the period - - - - - - 15,333 15,333 Total comprehensive income for the period - - 3,294 1,009 - - 15,333 19,636 Share based payments - performance rights - - - - 340 - - 340 Granting/settlement of performance rights - 1,352 - - (640) - (712) - Shares purchased on market to satisfy performance rights - (464) - - - - - (464) Dividend Paid 7 - - - - - - (842) (842) Balance at 31 December 2013 89,269 (64) (7,873) 14,763 5,787 990 104,250 207,122 The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. Page 9 of 18
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2013 Half Year Ended Half Year Ended 31 Dec 2013 31 Dec 2012 Notes $ 000 $ 000 Cash Flow s From Operating Activities Receipts from customers 112,537 148,755 Payments to suppliers and employees (106,863) (110,985) Interest and other costs of finance paid (1,470) (1,849) Income tax refunded/(paid) 2,243 (14,214) Net cash provided by Operating Activities 6,447 21,707 Cash Flow s From Investing Activities Interest received 36 29 Proceeds from the sale of SEH shares, net of costs 3 23,649 - Payment for property, plant and equipment (5,535) (17,191) Payment for development costs capitalised - (758) Payment for shares in ioglobal net of cash acquired - (3,874) Net cash provided by/(used in) Investing Activities 18,150 (21,794) Cash Flow s From Financing Activities Shares purchased on market to satisfy performance rights (464) - Hire purchase and lease payments (133) (290) Proceeds from borrowings - 13,924 Repayment of borrowings (18,664) (6,146) Dividend paid to owners of the Company 7 (842) (8,329) Net cash used in Financing Activities (20,103) (841) Net increase/(decrease) in Cash and Cash Equivalents Held 4,494 (928) Cash and Cash Equivalents At The Beginning Of The Period 9,979 11,232 Effects of exchange rate changes on the balance of cash and cash equivalents held in foreign currencies 404 (256) Cash and Cash Equivalents At The End Of The Period 14,877 10,048 The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. Page 10 of 18
NOTES TO THE FINANCIAL REPORT 1. Summary of Significant Accounting Policies Statement of Compliance The half year report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report. Basis of Preparation The half year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2013, other than for the impact of the adoption of new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to the consolidated entity and effective for annual reporting periods beginning on or after 1 July 2013. Adoption of new and revised Accounting Standards New and revised standards and amendments thereof and interpretations effective for the current half-year that are relevant to the Group include: AASB 13 Fair Value Measurement and AASB2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 119 Employee Benefits (2011) and AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (2011) The adoption of new and revised Standards and Interpretations has not affected the amounts reported for the current or prior year. However the application of AASB 13 has resulted in a change to the Group s disclosure in its half year report, with additional disclosures included in note 10. Page 11 of 18
NOTES TO THE FINANCIAL REPORT 2. Other Expenses Half Year Ended Half Year Ended 31 Dec 2013 31 Dec 2012 $ 000 $ 000 Other expenses for the period include: Bad debts 1,807 782 Foreign exchange loss/(gain) 654 (292) Obsolete stock 548 504 3. Other Financial Assets Current 31 Dec 2013 30 Jun 2013 Notes $ 000 $ 000 Financial Asset Held for Sale Investment in Sino Gas and Energy Holdings Ltd (i) 24,382 26,450 (i) Comprises 121,908,446 fully paid ordinary shares in Sino Gas and Energy Holdings Ltd (SEH) held at fair value (2012: 251,908,446 shares). This amounts to 7.97% of the issued share capital of SEH (30 June 2013: 20.11%). This asset is non-core and accordingly, this investment has been classified as a Financial Asset Held for Sale and is carried at fair value. During the period Imdex disposed of 130,000,000 SEH shares at a market value of 18.5c per share resulting in cash proceeds (net of selling expenses) of $23.6m, and resulting in a gain on disposal of $20.1m recognised in the Statement of Profit or Loss. SEH shares have previously been accounted for as a financial asset held for sale, with revaluation gains/losses recorded within other comprehensive income (net of tax). Historical revaluation gains up to the date of disposal of $14.4m (net of tax) have been reclassified at the date of disposal from Other Comprehensive Income to the Statement of Profit or Loss. The above transaction has had the following impact on the Investment Revaluation Reserve: Investment Revaluation Reserve 31 Dec 2013 30 Jun 2013 $ 000 $ 000 Balance at beginning of the financial period 13,754 10,227 Net gain arising on revalution of SEH shares to market value 21,981 5,038 Income tax relating to gain arising on revalution of SEH shares to market value (6,594) (1,511) Cumulative loss reclassified to profit or loss on sale of SEH shares (14,378) - Balance at the end of the financial period 14,763 13,754 Page 12 of 18
NOTES TO THE FINANCIAL REPORT 4. Investment in Associate On 1 July 2011, Imdex Limited acquired 50% of the issued share capital of VES International (VES), in exchange for granting an exclusive global licence over its oil and gas surveying instruments and technology. VES is registered in the British Virgin Islands and operates an oil and gas services business using the technology licensed to it by Imdex Limited. Effective 1 January 2012 VES purchased the business of Vaughn Energy Services, a US based oil & gas services provider. Following this transaction Imdex Limited s shareholding in VES decreased from 50% to 30%. Financial information in respect of the Associate is set out below : Half Year Ended Half Year Ended 31 31 Dec 2013 Dec 2012 Notes $ 000 $ 000 Total Revenue 32,384 26,604 Total Profit/(Loss) for the Period (i) 437 (5,801) 31 Dec 2013 30 Jun 2013 $ 000 $ 000 Total Assets 136,970 126,115 Total Liabilities (25,018) (25,516) Net Assets 111,952 100,599 Share of Net Assets of Associate 34,257 30,180 The Investment in Associate comprises the follow ing: Opening cost of investment in Associate 25,555 24,255 Share of profit of Associate (i) 271 1,300 Closing cost of investment in Associate 25,826 25,555 (i) The prior period share of Associate reflects 30% of the underlying profit of VES, the effect of adjustments to eliminate unrealised intercompany profits and fair value adjustments related to the acquisition of Vaughn Energy Services, including a gain arising on dilution and an adjustment to the amortisation of intangibles. Page 13 of 18
NOTES TO THE FINANCIAL REPORT 5. Borrowings Current borrowings 31 Dec 2013 30 Jun 2013 Notes $ 000 $ 000 Secured At amortised cost Club Facility - AUD Tranche (i.a) 4,476 7,056 Club Facility - USD Tranche (i.b) 216 5,372 Club Facility - CAD Tranche (i.c) 850 2,065 Hire purchase liabilities (ii) 212 245 5,754 14,738 Non-current borrowings Secured At amortised cost Club Facility - AUD Tranche (i.a) 32,647 21,089 Club Facility - USD Tranche (i.b) 1,456 23,082 Club Facility - CAD Tranche (i.c) 5,423 4,817 Hire purchase liabilities (ii) 179 260 39,705 49,248 On 7 October 2011 a clubbed banking facility involving Westpac Banking Corporation and HSBC was put in place. This facility replaced commercial bills and Canadian bank loans in place at that date. In December 2013, this facility was subsequently renewed for a further three years. As at 31 December 2013: (i.a) AUD denominated borrowings includes an amortising facility that is repayable in equal monthly installments of $0.4 million to 31 December 2016 on which date the balance remaining is payable, and a revolving facility that is fully repayable on 31 December 2016. Both facilities bear interest at floating rates. (i.b) USD denominated borrowings includes an amortising facility that is repayable in equal monthly installments of $0.1 million to 31 December 2016 on which date the balance remaining is payable, and a revolving facility that is fully repayable on 31 December 2016. Both facilities bear interest at floating rates. (i.c) CAD denominated borrowings include an amortising facility that bears interest at a floating rate and is repayable in equal monthly installments of $0.1 million to 31 December 2016 on which date the balance remaining is payable. The club facility is secured by the assets of entities in Australia, Canada, Chile, South Africa and The Netherlands. At 31 December 2013, the Group had unused banking facilities totaling AUD$14.0 million, comprising AUD$13.3 million and ZAR6.7 million (AUD$0.7 million). (ii) Hire purchase liabilities are secured over the assets to which they relate, the carrying value of which exceeds the value of the hire purchase liability. The Group does not hold title to the equipment under the hire purchase pledged as security. The weighted average interest rate applicable to these liabilities is 6.32% (30 June 2013: 6.52%). Page 14 of 18
NOTES TO THE FINANCIAL REPORT 6. Issued Capital and Shares reserved for Performance Rights Plan 31 Dec 2013 30 Jun 2013 Notes $ 000 $ 000 Issued and Paid Up Capital - Fully paid ordinary shares (i) 89,269 89,269 Ordinary shares 31 Dec 2013 30 Jun 2013 Number $'000 Number $'000 Balance at beginning of the period 210,473,188 89,269 208,235,426 86,069 Issue of shares as part consideration for the acquisition of ioglobal - - 2,237,762 3,200 Closing balance at end of the period 210,473,188 89,269 210,473,188 89,269 (i) Fully paid ordinary shares carry one vote per share and the right to dividends. (ii) Shares issued in satisfaction of Performance Rights No shares were issued in the current or prior years in satisfaction of performance rights. Performance rights obligations were settled by the purchase of existing shares on market. Shares reserved for Performance Rights Plan 31 Dec 2013 30 Jun 2013 $ 000 $ 000 Balance at beginning of the period (952) (3,740) Net movement 888 2,788 Balance at the end of the period (64) (952) Through a corporate trustee, the Company holds certain shares in Trust for employees under the Performance Rights Plan. Page 15 of 18
NOTES TO THE FINANCIAL REPORT 7. Dividends Notes Cents per share Half Year Ended Half Year Ended 31 Dec 2013 31 Dec 2012 Total Cents per $ 000 share Total $ 000 Recognised amounts Fully paid ordinary shares - final dividend franked to 30% 0.40 842 4.00 8,329 Unrecognised amounts Fully paid ordinary shares - interim dividend franked to 30% - - 2.50 5,262 Half Year Ended 31 Dec 2013 $ 000 Adjusted franking account balance 52,830 Impact on franking account of dividends not recognised 0 Half Year Ended 31 Dec 2012 $ 000 55,381 2,255 8. Acquisitions There have been no acquisitions in the six month period ended 31 December 2013, nor have there been any fair value adjustments during the period in relation to prior year acquisitions. Page 16 of 18
NOTES TO THE FINANCIAL REPORT 9. Segment Information The Group comprises the following reportable segments which are based on the Group's internal management reporting system: (i) Minerals Division: This segment comprises the manufacture, sale and rental of down hole instrumentation, the manufacture and sale of drilling fluids and chemicals and related equipment and the provision of innovative cloud-based data management solutions to the mining and mineral exploration industry globally; and (ii) Oil & Gas Division: This segment comprises the manufacture and sale of down hole instrumentation and manufacture and sale of drilling fluids and chemicals and related equipment to the oil & gas and geothermal industries globally; (a) Segment Revenues Total Half Year 31 Dec 13 Half Year 31 Dec 12 Notes $'000 $'000 Minerals 63,653 102,051 Oil & Gas 28,463 25,532 Total of all segments 92,116 127,583 Interest income 36 29 Total revenue 92,152 127,612 (b) Segment Profit Minerals 4,900 28,490 Oil & Gas (i) (2,671) (149) Total of all segments 2,229 28,341 Central administration costs (ii) (4,514) (5,478) Gain on the disposal of shares in SEH 3 20,139 - Profit before income tax expense 17,854 22,863 Income tax expense (2,521) (6,290) Profit attributable to ordinary equity holders of Imdex 15,333 16,573 (i) Includes the share of profit of Associate of $0.3 million (31 December 2012: $1.4 million) (ii) Central administration costs comprise net financing costs for the Group and the corporate portion of head office costs. Head office costs attributable to operations are allocated to reportable segments in proportion to the revenues earned from those segments. Segment profit represents the profit earned by each segment without allocation of central administration costs, directors salaries, net finance costs and income tax expense. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance. The prior period allocation of corporate overhead costs to the Mineral and Oil & Gas segments has been adjusted to align with the transfer pricing policy of the Group. (c) Segment Assets Assets 31 Dec 13 30 Jun 13 $'000 $'000 Minerals 171,847 182,412 Oil & Gas 81,793 77,004 Total of all segments 253,640 259,416 Unallocated (i) 24,382 26,450 Consolidated 278,022 285,866 (i) Unallocated assets comprise the investment in Sino Gas & Energy Holdings Ltd. Page 17 of 18
NOTES TO THE FINANCIAL REPORT 10. Financial Instruments The fair value of the Group s financial assets and liabilities are determined on the following basis: Financial Assets and Financial Liabilities that are measured at fair value on a recurring basis Subsequent to initial recognition, at fair value financial instruments are grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Levels are defined as follows: Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs other than quoted prices included with Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). At 31 December 2013, the Group has listed equity securities which are classified as level 1 fair value measurements. There were no transfers between levels in the period. Financial Instruments Fair value as at Fair value hierarchy Financial asset held for sale 31/12/2013 31/12/2012 Listed equity securities in Listed equity securities in Sino Gas and Energy Sino Gas and Energy Holdings Ltd (SEH) - Holdings Ltd (SEH) - $24,382,000 $32,748,000 Level 1 Valuation technique and key inputs Quoted bid prices in an active market The Group has no significant financial assets and liabilities grouped as level 2 or level 3 fair value measurements. Financial Assets and Financial Liabilities that are measured at fair value on a non-recurring basis At 31 December 2013, the carrying amount of financial assets and financial liabilities for the Group is considered to approximate their fair values. 11. Contingent Liabilities and Contingent Assets There are no contingent assets or liabilities at the current or prior balance dates. 12. Subsequent Events There are no matters or circumstances that have arisen since the end of the half-year which will significantly affect, or may significantly affect the state of affairs or operations of the reporting entity in future financial periods. Page 18 of 18