Scidev Ltd - SciDev (ASX:SDV) Cash Receipts Up +194% PCP in Latest Quarterly Activities Report
Scidev Ltd (ASX:SDV)

SciDev (ASX:SDV) Cash Receipts Up +194% PCP in Latest Quarterly Activities Report

Question   What Does It Mean?
Document   View Announcement

Highlights

What has happened?

Today SciDev (ASX:SDV) announced their quarterly activities report for the period ending 31 March 2021. The report highlighted a +195% increase in cash receipts vs PCP, along with coverage of their recently acquired exposure to PFAS through the acquisition of Haldon Industries. The Company also reported net cash from operating activities for the period of A$1.46m.

What are the key highlights?

  • SciDev announced a record quarterly cash receipt of A$11.3m and sales revenue of A$11.2m for Q3 FY21. These results are significant as the cash receipts have jumped +194% PCP.
  • The Company also reported a net cash flow from operations of A$1.5m, with an overall cash balance at the end of the period of A$8.1m.
  • SciDev noted that the quarter's gross profit margin was on target and in line with previous quarters at ~23%.
  • During the quarter, SciDev acquired Haldon Industries, which allows the Company to potentially achieve strategic growth in the water and (PFAS) polyfluoroalkyl substances sector.
  • SciDev also announced some big deals in the quarter with the signing of the MaxiFlox® supply agreement with Eramet subsidiary SLN in new Caledonian Nickel.
  • Furthermore, during the quarter, the Company announced that it would be doing MaxiFlox® field qualifications at Fortescue Metal Group's Solomon Hub.
  • The report also highlighted the Company's solid business development pipeline, along with ongoing field qualifications in several sectors.

file

What does this announcement mean?

SmallCapInsider from Mawson Graham provides perspective on this recent announcement.
SmallCapInsider
Written by SmallCapInsider
Published Apr 12, 2021

What does this mean?

There is a lot to unpack in this quarterly report as the company has been bustling this past quarter. Firstly, addressing the elephant in the room, we can observe that SciDev’s cash receipts from customers have jumped a mammoth +194% PCP, and revenues are also up compared to last quarter. The company has maintained a stable gross profit of ~23%, which is in line and on target with last quarters.

Overall, group revenue increased 25% in the December quarter following continued sales growth in the Oil sector of 21% and the recommencement of significant project activities in Construction. Revenue in Mining was down 30% due to the resupply cycle of major new projects, and revenue into Water was 63% up on the December quarter. The March quarter delivered positive net cash flow from operations of A$1.5m, which reflects both the solid gross profit margin of the business and the leverage of cash flow to growing revenue.

Primary working capital increased during the quarter, with trade receivables and trade payables broadly in line with the previous quarter. The end of period inventory position was A$3.3m. With positive cash flow and A$8.1m in net cash at the end of the quarter, SciDev may be well-positioned to continue executing its growth plans.

file

During the quarter, SciDev signed an agreement to acquire Haldon Industries Pty Ltd (Haldon), an Australian based environmental engineering and solutions company focused on the water treatment, remediation and persistent organic pollutant sectors. Haldon has created a strong presence providing innovative solutions in the PFAS market in Australia via their mobile treatment plants.

file

Haldon’s PFAS solution is world-class in removing PFAS to undetectable levels while reducing the waste volume by c.20,000 times, which is 100 times greater than existing commercial alternatives. The Company is encouraged by the recent regulatory focus on PFAS and is now well placed to execute on this emerging market in the Water segment.

file

SciDev is also currently in the process of a board rejuvenation with Mr Dan O’Toole joining the Board in early February 2021, as an independent, non-executive Director. Mr Trevor Jones, SciDev’s non-executive Chair, has resigned from the Board, effective 30 June 2021 or on earlier identification and appointment of a replacement Chair.

The information within this section has been provided by Mawson Graham Pty Ltd and is for general information purposes only and is not intended to reflect any recommendations or financial advice. The information in this section has been prepared without taking into account your objectives, financial situation or needs. For this reason, you should consider the appropriateness of the advice or recommendation in light of your own personal circumstances, relevant risk factors, the nature and extent of your risk of loss, as well as the legal and accounting consequences before acting making an investment or trading decision regarding any Financial Product mentioned herein. While it is believed that all information sourced and contained within this section to be accurate at the time of publication, liability for any errors, omissions, accuracy or completeness of the information (except any statutory liability which cannot be excluded) is specifically excluded by Mawson Graham Pty Ltd, its associates, officers, directors, employees and agents. Past performance is not a reliable indicator of future performance. Important Disclosure: Mawson Graham Pty Ltd, its directors, associates and employees advise that they may hold securities, may have an interest in and/or earn brokerage, investor relations fees, corporate fees, and other benefits or advantages, either directly or indirectly from client transactions arising from any information mentioned within this section and in documents published within this section.
Mawson Graham
Mawson Graham

Managing Director's Summary

Lewis Utting

The March quarter continues SciDev’s track record of quarterly revenue growth and, importantly, positive cashflow generation. Our acquisition of Haldon affords us the ability to provide the world with a unique end-to-end solution to the global polyfluoroalkyl substances (PFAS) problem which is exciting for the Company. Through the Haldon transaction, SciDev now have immediate scale in the water treatment vertical complementing our mining, oil & gas and infrastructure businesses.

Lewis Utting
Managing Director, Scidev Ltd
Lewis Utting

SciDev’s organic business development continues, the contract with SLN/Eramet and trial with Fortescue extends our presence with blue-chip mining companies. In oil & gas, our team continue to engage with major global exploration and production companies and the provision of professional services and know-how direct to customers continues to deliver growth.

Lewis Utting
Managing Director, Scidev Ltd
Lewis Utting

The whole team at SciDev is pleased to see our first material Social project progress where we can improve the learning outcomes of over two hundred students in the Great Victorian Desert through our Schools Plus Programme. We made significant headway in the March quarter on our corporate programmes with Board rejuvenation underway and governance projects progressing.

Lewis Utting
Managing Director, Scidev Ltd
Lewis Utting

With our combination of blue-chip global growth opportunities, new team members and existing highly skilled work force the growth outlook for SciDev remains exciting for the remainder of 2021 and beyond.

Lewis Utting
Managing Director, Scidev Ltd
Question   Ask Lewis Utting a question...

Download Announcement

View this announcement as well as our full profile on the company.
Document   View Announcement
View SDV's Full Profile Arrow Forward

How do I invest?

Considering investing in Scidev Ltd?
Here's how to get started.
Low Cost Brokerage ASX Cheapest ASX Trading Platform
  1. 1

    Create account

    Open an account with an online broker of your choice. If you do not have an existing broker, consider Vested Equities' A$9.50 flat fee platform.

    Sign up now »
  2. 2

    Search for ASX:SDV

    On your online investment platform search for the stock ticker code ASX:SDV to bring up the company's shares.

  3. 3

    Buy shares

    Place your order however you wish. If you need advice on buying or selling, you should seek the assistance of a full service financial adviser experienced in small cap equities.

Trade for $9.50 Arrow Forward
Up