TIDMSDI
RNS Number : 0454W
Scientific Digital Imaging Plc
20 December 2013
Scientific Digital Imaging plc
("SDI" or the "Company")
(AIM: SDI)
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 31 OCTOBER
2013
The Board of Scientific Digital Imaging plc, the AIM quoted
group focused on the application of digital imaging technology to
the needs of the scientific community, is pleased to announce its
unaudited interim results for the six months ended 31 October
2013.
Highlights
-- Successful equity fund raising of GBP850,000 to enable
repayment of a loan and to reinvest in the business
-- Loss before tax GBP74,000 (2012: profit GBP11,000)
-- The Board expects improvements in the second half of the year
as new product sales come through
-- ProReveal (a patented protein detection test) launched internationally
o 24 units being evaluated worldwide
o Appointment of five new international distributors
o New leasing capability put in place
o New secondary market in the washer and detergent sector
Ken Ford, Chairman of SDI, commented:
"The Board anticipates that the new products released during
this first half of our year together with on-going cost
efficiencies, should result in an improvement in margins and
profitability which should be reflected in the second half of this
financial year.
Enquiries
Scientific Digital Imaging plc 01223 727144
Ken Ford, Chairman
Mike Creedon, CEO
www.scientificdigitalimaging.com
finnCap 020 7220 0500
Ed Frisby/ Ben Thompson - Corporate Finance
Simon Starr - Corporate Broking
Copies of the interim report are being sent to shareholders and
can also be viewed on the Company's website:
www.scientificdigitalimaging.com
Scientific Digital Imaging plc ("SDI") is focused on the
application of digital imaging technology to the needs of the
scientific community.
SDI's subsidiaries are Synoptics and Artemis CCD are world class
businesses with broad product portfolios, design and engineering
capabilities.
SDI plans to continue to grow through its own technology
advancements as well as strategic, complementary acquisitions.
Interim highlights
-- Successful equity fund raising of GBP850,000 to enable
repayment of a loan and to reinvest in the business
-- Loss before tax GBP74,000 (2012: profit GBP11,000)
-- The Board expects improvements in the second half of the year
as new product sales come through
-- ProReveal internationally launched
o 24 units being evaluated worldwide
o Appointment of five new international distributors
o New leasing capability put in place
o New secondary market in the washer and detergent sector
-- ProReveal 2 launched in Q4 2013 at the Medica show
-- Three new touch screen versions of low cost PXi gel documentation equipment launched
-- Introduction of new versions of the G:BOX with better
performance and significantly lower build costs
-- Synbiosis launched aCOLyte 3, a new version of its well established automated colony counter
Synoptics
The principal subsidiary of SDI is Synoptics which designs and
manufactures special-purpose, innovative instruments and systems
for use in the life science industry. The Company exploits digital
imaging technologies for a range of disciplines and offers its
products through four brands:
-- Syngene - produces equipment for life scientists to image and
analyse electrophoresis gels used for DNA and protein analysis
-- Synbiosis - produces equipment for microbiologists to automate microbial colony counting
-- Syncroscopy - provides systems that apply digital imaging
techniques to microscopy applications, such as life and material
sciences
-- Synoptics Health - focuses on imaging techniques within the
hospital and clinical environments using their unique ProReveal
product
Artemis CCD
Artemis designs and manufactures high sensitivity cameras for
deep-sky astronomical and life science imaging under the Atik and
Artemis CCD brands.
Chairman's statement
OVERVIEW
In July 2013 SDI successfully raised GBP850,000 before expenses
(GBP760,000 net of expenses) by way of a placing of shares for cash
to enable it to repay a loan note and to reinvest in the business.
The new funding has ensured that we are able to fulfil our forward
orders, particularly for the ProReveal system, for which global
demand has increased. A number of units are now being demonstrated
both in the UK and internationally and we continue to receive
positive feedback.
SDI's revenue was GBP3,537,000 in the six months to 31 October
2013 (a reduction of GBP210,000, relative to revenue of
GBP3,747,000 for the six months to 31 October 2012). This was
predominantly due to a reduction in Synoptics revenues of
GBP353,000, despite Artemis CCD revenues increasing by GBP143,000.
Gross margin percentage increased due to sales mix and
re-engineering of products within the Synoptics division and
administrative expenses reduced to GBP2,151,000 (2012:
GBP2,165,000).
Despite the fall in Synoptics revenues, progress has been made
with new products that have yet to be reflected in sales revenues.
We have also aligned our costs with our revenues and are confident
these improvements should be reflected in financial results in the
second half of the year.
The overall effect of the reduced sales but increased gross
margin and reduced cost of sales and administrative expenses was a
loss of GBP74,000 (2012: profit GBP11,000). The basic and fully
diluted loss per share was 0.33p (2012: basic and fully diluted
earnings per share 0.06p)
The successful fund raising in July 2013 strengthened the
Group's cash position from GBP388,000 at 30 April 2013 to
GBP541,000 at 31 October 2013 (after the repayment of a loan note
of GBP368,000 which matured on 31 July 2013).
PRODUCT PORTFOLIO
In the past six months, Synoptics Health has continued the
phased international launch of ProReveal, a fluorescence test to
detect proteins on surgical instruments, and has appointed a
worldwide network of dealers. There are currently 24 ProReveal
systems being demonstrated in the UK and internationally and the
system is being included in the budget cycle of several overseas
hospitals, where we are expecting orders in 2014.
To make it easier for wash room personnel to choose how they
wish to detect proteins on surgical instruments, Synoptics Health
has re-developed the ProReveal system software, and the new
ProReveal 2 launched in Q4 2013 at the major trade show,
Medica.
A secondary new market where we expect ProReveal sales to grow
is the washer and detergent sector. A ProReveal system has been
sold in the period to a leading healthcare detergent manufacturer
to help improve the efficacy of their detergent. Synoptics Health
is planning a promotion campaign to capitalise on this niche
application of the ProReveal in this sector in Q4 2013 and Q1
2014.
Syngene remains the largest of the Synoptics brands. The three
new touch screen versions of its PXi budget gel documentation
equipment were launched in the period. To ensure that the higher
end G:BOX imaging systems remain competitively priced in relation
to the PXi, Syngene has streamlined the range and introduced new
versions of the G:BOX which have a better performance and
significantly lower build cost. These will be promoted in 2014 and
should ensure the brand continues to provide a high margin revenue
stream in the latter half of the financial year.
Synbiosis launched a low end automated colony counter, aCOLyte 3
and is seeing steady sales growth in clinical and academic markets.
The high end colony counter ProtoCOL 3 continues to sell well in
the US and in emerging markets.
Artemis CCD is concentrating on its in house efforts to sell
cameras to OEM customers. It is in negotiation with a number of
potential OEM customers and expects to see the rewards in 2014.
While developing its life science OEM business, Artemis CCD
continues to work closely with Synoptics, providing cameras which
power the high performance advantage of many of Synoptics' systems,
thus maintaining cost-efficiency across the SDI group.
Under its original Atik brand, sales of established products to
amateur astronomers have grown steadily in the first half of the
year. This growth has been spread evenly across our major
territories in Europe and North America.
BUSINESS OPERATIONS
The Synoptics US group is being restructured to ensure that our
Syngene US dealer representative network is being fully utilised
and to assess new US distributors for both the Synbiosis and
Syngene Divisions. This will result in a significant cost reduction
in our US operations and a better coverage of the US market, where
Synbiosis products are increasingly sought after. The Synoptics
Health Division has added five new international distributors in
the period and has put in place a leasing agreement to allow
hospitals to rent the ProReveal system. This offers an alternative
for many hospitals to accessing the capital equipment budget; a
time consuming process, and enable them to assess the
technology.
The restructuring of our US office, the addition of new
Synoptics Health international distributors and new leasing
capabilities sets SDI in good stead to leverage the Company's
advantage with the superior product ranges in our portfolio and
secure growth for our stakeholders.
OUTLOOK
The Board anticipates that the new products released during this
half of our year, together with on-going cost efficiencies, should
result in an improvement in margins and profitability which should
be reflected in the second half of this financial year.
Ken Ford, Chairman
19 December 2013
Consolidated income statement
Unaudited for the six months ended 31 October 2013
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2013 2012 2013
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------- ----- ------------ ------------ ----------
Revenue 3,537 3,747 7,665
----------
Costs of sales (1,436) (1,539) (3,304)
------------------------------- ----- ------------ ------------ ----------
Gross profit 2,101 2,208 4,361
----------
Currency exchange loss (22) (10) (2)
----------
Administrative expenses (2,124) (2,155) (4,061)
----------
Share based payments (5) - (4)
----------
Reorganisation costs - - (14)
------------------------------- ----- ------------ ------------ ----------
Total administrative expenses (2,151) (2,165) (4,081)
------------------------------- ----- ------------ ------------ ----------
Operating (loss)/profit (50) 43 280
----------
Financial income - - -
----------
Financial expenses (24) (31) (67)
------------------------------- ----- ------------ ------------ ----------
(Loss)/Profit before taxation (74) 12 213
----------
Income tax expense - 1 21
------------------------------- ----- ------------ ------------ ----------
(Loss)/profit for the period (74) 11 192
------------------------------- ----- ------------ ------------ ----------
Earnings per share
----------
Basic (loss)/earnings per
share 2 (0.33p) 0.06p 1.05p
------------------------------- ----- ------------ ------------ ----------
Diluted (loss)/earnings
per share (0.33p) 0.06p 1.01p
------------------------------- ----- ------------ ------------ ----------
Consolidated statement of comprehensive income
Unaudited for the six months ended 31 October 2013
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2013 2012 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------------------- ------------ ------------ ----------
(Loss)/profit for the period (74) 11 192
----------
Other comprehensive income
Items that will be reclassified subsequently
to profit and loss
----------
Exchange differences on translating
foreign operations (30) (6) 39
----------------------------------------------- ------------ ------------ ----------
Total comprehensive (loss)/profit
for the period (104) 5 231
----------------------------------------------- ------------ ------------ ----------
Consolidated balance sheet
Unaudited at 31 October 2013
31 October 31 October 30 April
2013 2012 2013
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------- ----- ----------- ----------- ---------
Assets
---------
Non-current assets
---------
Property, plant and equipment 392 459 415
Intangible assets 884 718 896
Deferred tax asset 125 107 125
------------------------------- ----- ----------- ----------- ---------
1,401 1,284 1,436
Current assets
Inventories 1,061 934 947
Trade and other receivables 1,327 1,607 1,467
Cash and cash equivalents 541 169 388
------------------------------- ----- ----------- ----------- ---------
2,929 2,710 2,802
------------------------------- ----- ----------- ----------- ---------
Total assets 4,330 3,994 4,238
------------------------------- ----- ----------- ----------- ---------
Liabilities
---------
Current liabilities
---------
Trade and other payables 1,213 1,394 1,423
---------
Provisions for warranty 17 22 17
---------
Borrowings 3 115 529 472
------------------------------- ----- ----------- ----------- ---------
1,345 1,945 1,912
---------
Non-current liabilities
---------
Borrowings 3 35 23 38
---------
Deferred tax liability 164 132 164
------------------------------- ----- ----------- ----------- ---------
199 155 202
------------------------------- ----- ----------- ----------- ---------
Total liabilities 1,544 2,100 2,114
------------------------------- ----- ----------- ----------- ---------
Net assets 2,786 1,894 2,124
------------------------------- ----- ----------- ----------- ---------
Equity
---------
Share capital 250 194 194
Merger reserve 2,606 2,606 2,606
Share premium account 1,040 335 335
Foreign exchange reserve (64) (79) (34)
Own shares held by Employee
Benefit Trust (85) (85) (85)
Other reserves 105 96 100
Retained earnings (1,066) (1,173) (992)
------------------------------- ----- ----------- ----------- ---------
Total equity 2,786 1,894 2,124
------------------------------- ----- ----------- ----------- ---------
Consolidated statement of cash flows
Unaudited for the six months ended 31 October 2013
12 months
6 months to 6 months to to
31 October 31 October 30 April
2013 2012 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------------- -------------- ------------ ----------
Operating activities
----------
(Loss)/profit for the period (74) 11 192
Depreciation and amortisation 252 246 492
Profit on sale of property, plant
and equipment - - (2)
Finance costs and income 24 31 67
Taxation expense recognised in
the income statement - 1 21
Increase in provision - 5 -
Exchange difference (38) (6) 39
Employee share based payments 5 - 4
----------------------------------------- -------------- ------------ ----------
Operating cash flow before movement
in working capital 169 288 813
Increase in inventories (114) (108) (139)
Decrease in trade and other receivables 140 (80) 48
Decrease in trade and other payables (210) 110 153
----------------------------------------- -------------- ------------ ----------
Cash (used in)/generated from
operations (15) 210 875
Interest paid (24) (27) (67)
Income taxes paid - - -
----------------------------------------- -------------- ------------ ----------
Cash generated from operating
activities (39) 183 808
Cash flows from investing activities
Capital expenditure (96) (179) (356)
Investment in development (121) (132) (430)
Proceeds from sale of property,
plant and equipment - - 93
----------------------------------------- -------------- ------------ ----------
Net cash used in investing activities (217) (311) (693)
Cash flows from financing activities
Capital element of finance leases 17 (7) (12)
Loan stock repaid (243) - -
Issue of shares net of costs 635 - -
Bank borrowings 8 19 -
----------------------------------------- -------------- ------------ ----------
Net cash used in financing activities 417 12 (12)
----------------------------------------- -------------- ------------ ----------
Net changes in cash and cash
equivalents 161 (116) 103
Cash and cash equivalents, beginning
of period 388 285 285
Foreign currency movements on (8) -
cash balances -
----------------------------------------- -------------- ------------ ----------
Cash and cash equivalents, end
of period 541 169 388
----------------------------------------- -------------- ------------ ----------
Consolidated statement of changes in equity
Unaudited for the six months ended 31 October 2013
6 months to 31 October Own shares
2013 - unaudited Share Merger Share held by Other Foreign Retained
capital reserve premium EBT reserves exchange earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Balance at 1 May 2013 194 2,606 335 (85) 100 (34) (992) 2,124
Share based payments - - - - 5 - - 5
Shares issue 56 - 705 - - - - 761
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Transactions with owners 56 - 705 - - - - 766
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Profit for the period - - - - - - (74) (74)
Foreign exchange on
consolidation
of subsidiary - - - - - (30) - (30)
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Total comprehensive
income for
the period - - - - - (30) (74) (104)
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Balance at 31 October
2013 250 2,606 1,040 (85) 105 (64) (1,066) 2,786
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
6 months to 31 October Own shares
2012 - unaudited Share Merger Share held by Other Foreign Retained
capital reserve premium EBT reserves exchange earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Balance at 1 May 2012 187 2,606 262 (85) 176 (73) (1,184) 1,889
---------
Shares issued as
deferred payment 7 - 73 - (80) - - -
------------------------ ---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Transactions with
owners 7 - 73 - (80) - - -
------------------------ ---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Profit for the period - - - - - - 11 11
---------
Foreign exchange on
consolidation
of subsidiary - - - - - (6) - (6)
------------------------ ---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Total comprehensive
income for
the period - - - - - (6) 11 5
------------------------ ---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Balance at 31 October
2012 194 2,606 335 (85) 96 (79) (1,173) 1,894
------------------------ ---------- --------- --------- ----------- ---------- ---------- ---------- ---------
12 months to 30 April Own shares
2013 - audited Share Merger Share held by Other Foreign Retained
capital reserve premium EBT reserves exchange earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Balance at 1 May 2012 187 2,606 262 (85) 176 (73) (1,184) 1,889
Shares issued as
deferred payment 7 - 73 - (80) - - -
Share based payments - - - - 4 - - 4
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Transactions with owners 7 - 73 - (76) - - 4
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Profit for the year 192 192
---------
Foreign exchange on
consolidation
of subsidiaries - - - - - 39 - 39
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Total comprehensive
income - - - - - 39 192 231
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Balance at 30 April 2013 194 2,606 335 (85) 100 (34) (992) 2,124
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Notes to the interim financial statements
Unaudited for the six months ended 31 October 2013
The accompanying accounting policies and notes form an integral
part of these interim financial statements.
Reporting entity
Scientific Digital Imaging plc (the "Company"), a public limited
company, is the Group's ultimate parent. It is registered in
England and Wales. The consolidated interim financial statements of
the Company for the period ended 31 October 2013 comprise the
Company and its subsidiaries (together referred to as the
"Group").
Basis of preparation
The unaudited consolidated interim financial statements are for
the six months ended 31 October 2013. These interim financial
statements have been prepared using the recognition and measurement
principles of International Accounting Standards, International
Financial Reporting Standards and Interpretations adopted for use
in the European Union (collectively EU IFRS). The financial
information for the year ended 30 April 2013 is based upon the
audited statutory accounts for that year.
The consolidated interim financial information has been prepared
on the historical cost basis.
The consolidated interim financial statements are presented in
British pounds (GBP), which is also the functional currency of the
ultimate parent company.
The consolidated interim financial information was approved by
the Board of Directors on 19 December 2013.
The financial information set out in this interim report does
not constitute statutory accounts as defined in section 435 of the
Companies Act 2006. The figures for the year ended 30 April 2013
have been extracted from the statutory financial statements of
Scientific Digital Imaging plc which have been filed with the
Registrar of Companies. The auditor's report on those financial
statements was unqualified and did not contain a statement under
section 498(2) or 498(3) of the Companies Act 2006. The financial
information for the six months ended 31 October 2013 and for the
six months ended 31 October 2012 is unaudited.
1. Principal accounting policies
The principal accounting policies adopted in the preparation of
the condensed consolidated interim information are consistent with
those followed in the preparation of the Group's financial
statements for the year ended 30 April 2013.
The accounting policies have been applied consistently
throughout the Group the purposes of preparation of these interim
financial statements.
2. Earnings per share
The calculation of the basic (loss)/earnings per share is based
on the (losses)/profits attributable to the shareholders of
Scientific Digital Imaging plc divided by the weighted average
number of shares in issue during the year, excluding shares held by
the Synoptics Employee Benefit Trust. All (loss)/profit per share
calculations relate to continuing operations of the Group.
(Loss)/Profit Basic
attributable Weighted (loss)/earnings
to average per share
shareholders number of amount in
GBP'000 shares pence
------------------------------ -------------- ----------- -----------------
Period ended 31 October 2013 (74) 22,098,744 (0.33)
-----------------
Period ended 31 October 2012 11 18,051,793 0.06
-----------------
Year ended 30 April 2013 192 18,323,464 1.05
------------------------------ -------------- ----------- -----------------
The calculation of diluted earnings per share is based on the
profits attributable to the shareholders of Scientific Digital
Imaging plc divided by the weighted average number of shares in
issue during the year, as adjusted for dilutive share options,
dilutive deferred consideration and shares held by the Synoptics
Employee Benefit Trust.
Diluted
(loss)/earnings
per share
amount in
pence
------------------------------ -----------------
Period ended 31 October 2013 (0.33)
-----------------
Period ended 31 October 2012 0.06
-----------------
Year ended 30 April 2013 1.01
------------------------------ -----------------
The reconciliation of average number of ordinary shares used for
basic and diluted earnings is as below:
31 October 30 October 30 April
2013 2012 2013
------------------------------------- ----------- ----------- -----------
Weighted average number of ordinary
shares used
for basic earnings per share 22,098,744 18,051,793 18,323,464
Weighted average number of ordinary
shares under option 1,004,233 191,672 659,063
------------------------------------- ----------- ----------- -----------
Weighted average number of ordinary
shares used
for diluted earnings per share 23,102,977 18,243,465 18,982,527
------------------------------------- ----------- ----------- -----------
Due to the loss generated in the period ended 31 October 2013,
the diluted loss per share for that period is the same as the
undiluted loss per share.
3. Borrowings
31 October 31 October 30 April
2013 2012 2013
GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ----------- ---------
Within one year:
---------
Bank finance 84 110 76
Finance leases 31 47 28
Loan stock - 372 368
-------------------------------- ----------- ----------- ---------
115 529 472
-------------------------------- ----------- ----------- ---------
After one year and within five
years:
Loan stock - - -
Finance leases 35 23 38
-------------------------------- ----------- ----------- ---------
35 23 38
-------------------------------- ----------- ----------- ---------
Over five years:
Finance leases - - -
-------------------------------- ----------- ----------- ---------
Total borrowings 150 552 510
-------------------------------- ----------- ----------- ---------
The Group utilises short-term facilities to finance its
operation. The Group has one principal banker with an invoice
discounting facility of up to GBP500,000. At the end of the period
the Group had utilised GBP84,000 of this facility.
During the period GBP243,000 of loan stock was repaid and the
balance of GBP125,000 was converted into shares
Scientific Digital Imaging plc
Beacon House
Nuffield Road
Cambridge
CB4 1TF
UK
Telephone: +44 (0)1223 727144
Fax: +44 (0)1223 727101
Email: info@scientificdigitalimaging.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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