IMDEX LIMITED — Interim / Quarterly Report 2014

Feb 16, 2014

==> picture [153 x 77] intentionally omitted <==

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 Limite d ’s Appendix 4D and Interim Financial Report f or the Half Year Ended 31 December 2013, inclusiv e of the Auditors Review Report and Independ e nce declaration.

Yours faithfully

Imdex Limited

Paul Evans

Company Secretary

==> picture [40 x 40] intentionally omitted <==

==> picture [39 x 38] intentionally omitted <==

==> picture [38 x 37] intentionally omitted <==

Providing innovative drilling fluids and adv a nced down hole instrumentation worldwide.

==> picture [153 x 77] intentionally omitted <==

IMDEX LIMITED 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).

IMDEX LIMITED and its controlled entities

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 ASXon 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.

and its controlled entities

IMDEX LIMITED

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

Period of Directorship

Mr Ross Kelly AM, Non Executive Chairman

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

Ms Elizabeth Donaghey, Non Executive Director

Appointed 14 January 2004 Appointed 28 October 2009

Review of Operations

	Consolidated	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 halfyear	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

IMDEX LIMITED

and its controlled entities

DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEM B ER 2013

Auditor’s Independence Declaration

Section 307C of the Corporations Act 200 1 requires the auditor, Deloitte Touche Tohmatsu, to pro v ide the Directors of Imdex Limited with an Independence Declaration in relation to the review of the Half Year Fi n ancial Report. The Independence Declaration is on the next p a ge.

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 a ccordance with that Class Order, amounts in the Fina n cial Report and the Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated.

Signed in accordance with a resolution of t h e Directors pursuant to s.306(3) of the Corporations Act 2 001.

Dated at Perth, 14 February 2014

Ross Kelly AM Chairman

Page 2 of 18

==> picture [130 x 26] intentionally omitted <==

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

The Board of Directors Imdex Limited 8 Pitino Court Osborne Park WA 6017

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

==> picture [147 x 50] intentionally omitted <==

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

==> picture [130 x 25] intentionally omitted <==

Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

Tel: +61 8 9365 7000 Fax: +61 (0) 9365 7001 www.deloitte.com.au

Independent Auditor’s Review Report to the members of Imdex Limited

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

==> picture [92 x 18] intentionally omitted <==

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

IMDEX LIMITED and its controlled entities

DIRECTORS’ DECLARATIO N

The Directors declare that:

• (a) in the Directors’ opinion, there are rea s onable grounds to believe that the Company will be abl e to pay its debts as and when they become due and paya b le; and

• (b) in the Directors’ opinion, the attached Financial Report and notes thereto are in accordance w ith the Corporations Act 2001, including compliance with a ccounting standards and giving a true and fair view of the financial position and performance of the Consolidated E ntity.

Signed in accordance with a resolution of t h e Directors made pursuant to s. 303(5) of the Corporatio n s Act 2001.

Dated at Perth, 14 February 2014

Ross Kelly AM Chairman

Page 6 of 18

and its controlled entities

IMDEX LIMITED

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2013

Notes Continuing operations Revenue from sale of goods and operating lease rental Other revenue from operations Total revenue Other income Gain on the disposal of shares in Sino Gas and Energy Holdings Ltd (SEH) 3 Raw materials and consumables used Employee benefit expense Depreciation expense Amortisation expense Finance costs Share of profit of associate 4 Other expenses 2 Profit before tax Income tax expense Profit for the period 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 Exchange differences arising on the translation of foreign operations Other comprehensive income for the period, net of income tax Total comprehensive income for the period Profit attributable to owners of the parent Total comprehensive income attributable to owners of the parent Earnings per share Basic earings per share (cents) Diluted earnings per share (cents)	Half Year Ended Half Year Ended 31 Dec 2013 31 Dec 2012 $’000 $’000 92,116 127,583 36 29
	92,152 127,612
	29 83 20,139 - (42,244) (53,789) (26,282) (26,417) (4,112) (3,447) (732) (1,510) (1,489) (1,849) 271 1,389 (19,878) (19,209)
	17,854 22,863 (2,521) (6,290)
	15,333 16,573
	1,009 7,936 3,294 (1,999)
	4,303 5,937
	19,636 22,510
	15,333 16,573
	19,636 22,510
	7.29 7.93 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

IMDEX LIMITED

and its controlled entities

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

Note s Curre nt Asse ts Cash and Cash Equivalents Trade and Other Receivables Inventories Current Tax Assets Other Financial Asset Held for Sale 3 Tota l Curre nt Asse ts Non Curre nt Asse ts Property, Plant and Equipm ent Deferred Tax Assets Goodwill Other Intangible Assets Other Receivables Investm ents in Associates 4 Tota l Non Curre nt Asse ts Tota l Asse ts Curre nt Lia bilitie s Trade and Other Payables Borrowings 5 Current Tax Liabilities Provisions Tota l Curre nt Lia bilitie s Non Curre nt Lia bilitie s Borrowings 5 Provisions Tota l Non Curre nt Lia bilitie s Tota l Lia bilitie s Ne t Asse ts Equity Issued Capital 6 Shares Reserved for Perform ance Rights Plan 6 Foreign Currency Translation Reserve Investm ent Revaluation Reserve 3 Em ployee Equity-Settled Benefits Reserve M andatory Issuable Capital Retained Earnings Tota l Equity	31 De c 2013 30 Jun 2013 $’000 $’000 14,877 9,979 35,995 45,231 56,150 53,356 3,369 2,661 4,322 5,909
	114,713 117,136 24,382 26,450
	139,095 143,586
	40,287 40,701 4,875 8,632 62,057 61,782 4,925 5,610 957 - 25,826 25,555
	138,927 142,280
	278,022 285,866
	17,541 25,776 5,754 14,738 2,782 1,900 3,564 4,681
	29,641 47,095
	39,705 49,248 1,554 1,071
	41,259 50,319
	70,900 97,414
	207,122 188,452
	89,269 89,269 (64) (952) (7,873) (11,167) 14,763 13,754 5,787 6,087 990 990 104,250 90,471
	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

IMDEX LIMITED

and its controlled entities

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2013

		Fully Paid	Shares	Foreign	Investment	Employee	Mandatory	Retained	Total
		Ordinary	reserved for	Currency	Revaluation	Equity-Settled	Issuable	Earnings	Attributable to
		Shares	Performance	Translation	Reserve	Benefits	Capital		Equity Holders
			Rights Plan	Reserve		Reserve			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

IMDEX LIMITED

and its controlled entities

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2013

Notes Cash Flows From Operating Activities Receipts from customers Payments to suppliers and employees Interest and other costs of finance paid Income tax refunded/(paid) Net cash provided by Operating Activities Cash Flows From Investing Activities Interest received Proceeds from the sale of SEH shares, net of costs 3 Payment for property, plant and equipment Payment for development costs capitalised Payment for shares in ioGlobal net of cash acquired Net cash provided by/(used in) Investing Activities Cash Flows From Financing Activities Shares purchased on market to satisfy performance rights Hire purchase and lease payments Proceeds from borrowings Repayment of borrowings Dividend paid to owners of the Company 7 Net cash used in Financing Activities Net increase/(decrease) in Cash and Cash Equivalents Held Cash and Cash Equivalents At The Beginning Of The Period Effects of exchange rate changes on the balance of cash and cash equivalents held in foreign currencies Cash and Cash Equivalents At The End Of The Period	Half Year Ended Half Year Ended 31 Dec 2013 31 Dec 2012 $’000 $’000 112,537 148,755 (106,863) (110,985) (1,470) (1,849) 2,243 (14,214)
	6,447 21,707
	36 29 23,649 - (5,535) (17,191) - (758) - (3,874)
	18,150 (21,794)
	(464) - (133) (290) - 13,924 (18,664) (6,146) (842) (8,329)
	(20,103) (841)
	4,494 (928)
	9,979 11,232 404 (256)
	14,877 10,048

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Page 10 of 18

IMDEX LIMITED and its controlled entities 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

IMDEX LIMITED and its controlled entities NOTES TO THE FINANCIAL REPORT

2. Other Expenses

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

			31 Dec 2013	30 Jun 2013
		Notes	$’000	$’000
Current
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 Balance at beginning of the financial period Net gain arising on revalution of SEH shares to market value Income tax relating to gain arising on revalution of SEH shares to market value Cumulative loss reclassified to profit or loss on sale of SEH shares Balance at the end of the financial period	31 Dec 2013 30 Jun 2013 $’000 $’000 13,754 10,227 21,981 5,038 (6,594) (1,511) (14,378) -
	14,763 13,754

Page 12 of 18

IMDEX LIMITED and its controlled entities 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%.

	national (VES), in exchange for granting an S is registered in the British Virgin Islands mdex Limited. a US based oil & gas services provider. o 30%.
Notes Total Revenue Total Profit/(Loss) for the Period (i) Total Assets Total Liabilities Net Assets Share of Net Assets of Associate Opening cost of investment in Associate Share of profit of Associate (i) Closing cost of investment in Associate Financial information in respect of the Associate is set out below: The Investment in Associate comprises the follow ing:	Half Year Ended 31 Dec 2013 Half Year Ended 31 Dec 2012 $’000 $’000 32,384 26,604
	437 (5,801)
	31 Dec 2013 30 Jun 2013 $’000 $’000 136,970 126,115 (25,018) (25,516)
	111,952 100,599
	34,257 30,180
	25,555 24,255 271 1,300
	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

IMDEX LIMITED and its controlled entities NOTES TO THE FINANCIAL REPORT

5. Borrowings

5. Borrowings
Notes Current borrowings Secured At amortised cost Club Facility - AUD Tranche (i.a) Club Facility - USD Tranche (i.b) Club Facility - CAD Tranche (i.c) Hire purchase liabilities (ii) Non-current borrowings Secured At amortised cost Club Facility - AUD Tranche (i.a) Club Facility - USD Tranche (i.b) Club Facility - CAD Tranche (i.c) Hire purchase liabilities (ii)	31 Dec 2013 30 Jun 2013 $’000 $’000 4,476 7,056 216 5,372 850 2,065 212 245
	5,754 14,738
	32,647 21,089 1,456 23,082 5,423 4,817 179 260
	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

IMDEX LIMITED and its controlled entities NOTES TO THE FINANCIAL REPORT

6. Issued Capital and Shares reserved for Performance Rights Plan

Notes Issued and Paid Up Capital - Fully paid ordinary shares (i)	31 Dec 2013 30 Jun 2013 $’000 $’000 89,269 89,269
Number $'000 Ordinary shares Balance at beginning of the period 210,473,188 89,269 Issue of shares as part consideration for the acquisition of ioGlobal - - 31 Dec 2013	Number $'000 208,235,426 86,069 2,237,762 3,200 30 Jun 2013
Closingbalance at end of theperiod 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.
31 Dec 2013 30 Jun 2013 $’000 $’000 Shares reserved for Performance Rights Plan 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.	31 Dec 2013 30 Jun 2013 $’000 $’000 (952) (3,740) 888 2,788
	(64) (952)

	31 Dec 2013 30	Jun 2013
	$’000	$’000
Shares reserved for Performance Rights Plan
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

and its controlled entities NOTES TO THE FINANCIAL REPORT

IMDEX LIMITED

7. Dividends

7. Dividends
Notes Recognised amounts Fully paid ordinary shares - final dividend franked to 30% Unrecognised amounts Fully paid ordinary shares - interim dividend franked to 30% Adjusted franking account balance Impact on franking account of dividends not recognised	Cents per share Total $’000 Cents per share Total $’000 0.40 842 4.00 8,329 Half Year Ended Half Year Ended 31 Dec 2013 31 Dec 2012
	- - 2.50 5,262
	Half Year Ended Half Year Ended 31 Dec 2013 $’000 55,381 $’000 52,830 31 Dec 2012
	0 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

IMDEX LIMITED and its controlled entities 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

	sale of down hole instrume oil & gas and geothermal in
Notes Minerals Oil & Gas Total of all segments Interest income (b) Segment Profit Minerals Oil & Gas (i) Total of all segments Central administration costs (ii) Gain on the disposal of shares in SEH 3 Profit before income tax expense Income tax expense Profit attributable to ordinary equity holders of Imdex Total revenue	Half Year 31 Dec 13 Half Year 31 Dec 12 $'000 $'000 63,653 102,051 28,463 25,532 Total
	92,116 127,583 36 29
	92,152 127,612
	4,900 28,490 (2,671) (149)
	2,229 28,341 (4,514) (5,478) 20,139 -
	17,854 22,863 (2,521) (6,290)
	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 Minerals Oil & Gas Total of all segments Consolidated (i) Unallocated assets comprise the investment in Sino Gas & Ener Unallocated (i)	31 Dec 13 30 Jun 13 $'000 $'000 171,847 182,412 81,793 77,004 Assets
	253,640 259,416 24,382 26,450
	278,022 285,866
	gy Holdings Ltd.

Page 17 of 18

IMDEX LIMITED and its controlled entities 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 as at	Fair value hierarchy	Valuation technique and key inputs
	31/12/2013	31/12/2012
Financial asset held for sale	Listed equity securities in Sino Gas and Energy Holdings Ltd (SEH) - $24,382,000	Listed equity securities in Sino Gas and Energy Holdings Ltd (SEH) - $32,748,000	Level 1	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