This $3.1 million profit on $48.2 million revenue, includes the write down of $1.4 million for the sale of Imdex Minerals on July 1, the company said in a presentation made to brokers today.

“Sale of the loss-making Imdex Minerals has facilitated a reduction in debt and provided the cash to acquire Samchem,” said managing director Bernie Ridgeway.

Also on July 1, Imdex announced it had agreed to buy the South African drilling fluids and chemicals mud company, Samchem, for A$6.9 million.

Since the purchase and sale, Imdex has reported total assets of A$38,138 and cash assets of $1148 as at June 30 2005, which it said was increasing monthly.

The company said the Samchem sale had allowed Imdex to expand its core mining, oil and gas business in South Africa. It also reported that the sale had enhanced its R&D capability and provided an upside in clay chemicals, or the brick industry.

Imdex’s total revenue increase of $7.4 million included a 30% growth of drilling products and services to $5.1 million, an 8.6% increase in drilling fluids and chemicals; as well a total $348 000 in minerals processing.

Almost one year ago, in October 2004, the company reduced its stake in its Saudi Arabian joint venture to 20%, receiving a US$1.5 million in cash and the cancellation of 10 million shares.

At that time, Imdex attributed the sale to poor gross margins, which meant it had been operating at a loss since it was set up in 2001, despite strong sales.

Looking ahead into 2006, the report said Imdex would expand its global standing, by achieving upside gains through the Samchem expansion in mining, oil and gas, and clay chemicals. It also expects to add to its coalbed methane base in Australia and the US.

Financially, Imdex projects a revenue growth of 15% with increased margins, a strong cash flow and better shareholder returns over the current financial year.