The West

Imdex managing director Bernie Ridgeway. Picture: Gerald Moscarda/The West Australian.
Imdex managing director Bernie Ridgeway. Picture: Gerald Moscarda/The West Australian.

UPDATE 2.30pm: Imdex has posted a $5.3 million full-year loss on the back of a slowdown in the mining sector and asset writedowns.

The drilling fluids and instrumentation company experienced a 21 per cent decline in revenue over the period to $183.5 million.

Revenue from its core minerals division was off 31 per cent.

The company's bottom line $5.3 million loss compared with a $19.4 million profit in the previous year.

Imdex's managing director Bernie Ridgeway said the company's performance over the 2014 financial year was adversely affected by subdued activity in the minerals sector, underscoring the importance of its diversification strategies.

He said the company's oil & gas division generated record revenue for the year (up 19 per cent).

However the division was not profitable because of losses associated with a falling out with customer Origin Energy over asbestos contained in a Chinese product Imdex was selling to it.

Mr Ridgeway said the oil & gas division had been profitable in July and he was confident it would make a meaningful contribution to the company's earnings in the future.

Imdex also gave a more positive outlook for the minerals market in 2015.

"Fourth quarter performance of the minerals division provides evidence of improving market conditions and provides confidence that market activity will continue to strengthen over the next 12 months," the company said.

"Imdex's strategy of continuing to invest through the cycle means we are well positioned to benefit from an upturn in the minerals sector," Mr Ridgeway said.

Imdex shares closed up three cents, or 4.38 per cent, at 71.5 cents.

The West Australian

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