Scidev Ltd - Scidev (SDV:ASX) Delivers Promising Quarterly Activity & Cashflow Results

What happened?

What's happened?

SciDev Limited (ASX:SDV, “SciDev”) released its Quarterly Activities and Cashflow report for the period ended 31 December 2020.

What are the key highlights?

• SciDev Achieved a record net cash flow from operations of AUD 1.8M for Q2 FY2021 spurred by the recovery of the US Oil and Gas sector.

• Record quarterly cash receipts of AUD 10.2M and sales of AUD 8.9M due to a stellar 81.03% increase in receipts from customers since last quarter.

• Mining & Mineral processing sales revenue increased 43.41% and Oil & Gas are up by 33.77% on top of previous quarter highs which are amazing results from the SciDev team. This is a truly substantial increase since these two operational segments constitute 94% of company-wide revenues, suggesting prudent management of core business revenue drivers.

• More good news from Oil and Gas, with a major exploration and production company continuing their purchasing of Highland Fluid Technology and services into 2021, with additional contract wins also anticipated.

• Great news from Europe with SciDev’s core Optiflox® technology Patent being granted and validation of that patent in key jurisdictions currently underway. This marks a substantial milestone in safeguarding SciDev’s large investments in R&D and also serves as a guiding rod for future patent applications in other global jurisdictions.

• SciDev’s bespoke MaxiDry® chemistry will also be utilized on the second Tunnel Boring drive for the Melbourne Metro Tunnel project in H1 2021 which will hopefully see a rebound in construction and infrastructure related revenue.

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What does it all mean?

Given the phenomenal increase in sales from core revenue streams within SciDev, it appears that earnings are on an upward trend. With the ongoing recovery of the US Oil and Gas Sector and the continuing growth of their mining and mineral processing division, the outlook for SciDev looks promising.

Additionally, the securing of the patent for Optiflox® technology in Europe could lead the way for more patent approvals in jurisdictions across the globe and ultimately provide long term security of R&D investments.

Managing Director's summary

Lewis Utting Managing Director of Scidev Ltd has provided a statement.

Lewis Utting

Managing Director, Scidev Ltd

"The December quarter has followed on the strength of the previous two quarters, delivering excellent revenue and unaudited gross profit consistency. I am particularly pleased at the recovery we are seeing in the US Oil and Gas sector which reflects the extraordinary work of the team and the bespoke solutions we are delivering to customers.

We are particularly excited by the relationships being developed with several major oil and gas companies. The improving activity levels in oil & gas combined with the range of contracts and blue-chip customers across our other operational sectors and business development opportunities provides a very strong outlook for FY2021 and beyond.

Our investment in organisational capability during CY2020 is yielding results, with SciDev capturing an increasing amount of market share."