Scidev Ltd - SciDev (ASX:SDV) Announces Stellar Half Year Results Delivering an Inaugural Net Profit of A$0.4m
Scidev Ltd (ASX:SDV)

SciDev (ASX:SDV) Announces Stellar Half Year Results Delivering an Inaugural Net Profit of A$0.4m


What has happened?

SciDev released their results for the half-year period ending 31 December 2020. They reported favourable results with an inaugural net profit of A$0.4m for the period. In the report, they also highlighted record half-yearly results with a +300% increase in net profit versus 1HFY20, and cash receipts from customers up by +290% compared to 1HFY20. They also announced their expansion into the infrastructure sector, along with continued revenue growth in the mining sector.

What are the key highlights?

  • In their latest announcement to shareholders, SciDev reported a total comprehensive profit for the half-year of A$0.432m, compared to a loss of (A$0.298m) for 1HFY20 and (A$0.626m) for 1HFY19, suggesting the accomplishment of key company milestones.
  • The revenue reported for SciDev was up almost +300% to A$18.3m compared to the first half results of FY20. Similar results were observed for receipts from customers which showed an impressive increase of +315% to A$15.86m compared to the results released in 1HFY20.
  • SciDev also almost doubled the amount of cash and cash equivalents on the books compared to 1HFY20, with the amount for 1HFY21 clocking in at A$7.107M. The company also reported a strengthening gross margin of 23% compared to a 17% profit margin for FY20.
  • In regards to the operational highlights, the Company displayed a strong development pipeline with field qualification underway across all sectors. There has also been a continued expansion into the infrastructure sector, which along with their strong cash position could potentially provide opportunities for global growth.
  • Finally, SciDev reported strong revenue growth in their mining sector division with sales stemming from a range of larger and more reliable blue-chip customers. Along with the revenue growth in mining, new offerings in Oil and Gas showed strong momentum as activities continue to rebound.


What does this announcement mean?

SmallCapInsider from Mawson Graham provides perspective on this recent announcement.
Written by SmallCapInsider
Published Feb 08, 2021

What does this mean?

The latest announcement out from SciDev seems to illustrate that the Company is gaining traction as cash receipts from customers skyrocketed to record highs of A$15.86m and revenues likewise increased to an eyewatering $A18.33m for 1HFY21. These are significant figures for a company with a market cap of only 114.92M. Revenue for 1HFY21 of A$18.3m (1HFY20: A$6.1) reflects business development growth across all the Company’s four sectors of mining & mineral processing, oil & gas, construction & infrastructure, and water & wastewater.

Although the cash receipts from customers is leagues ahead when compared to 1H20 levels of A$3.8m, cash from operating activities was down by (A$4.6m) for the period. The negative operating cashflow is reflective of timing differences between revenue and costs and a product inventory build as the Company gears up to deliver on growth.

Cash-at-bank for the end of the period was A$7.1m compared to A$3.1m at 31 December 2019. With expansion in the infrastructure sector along with growth across all other operational divisions, SciDev’s strong balance sheet position could potentially provide the company with enough capital to execute business development initiatives as well as possibly serve as a springboard for future company growth.

In regards to SciDev’s future outlook, they are currently seeking to capitalise on the market recovery in the North American Oil and Gas Sector and are also looking to drive additional growth in the infrastructure sector both locally and globally. The Company is also focussing on increasing sales and cash conversations in all operational regions.

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Mawson Graham
Mawson Graham

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