TIDMSDI
RNS Number : 2038C
Scientific Digital Imaging Plc
15 January 2015
Scientific Digital Imaging plc
("SDI", the "Company" or the Group)
(AIM: SDI)
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 31 OCTOBER
2014
The Board of Scientific Digital Imaging plc, the AIM quoted
group focused on the application of digital imaging technology for
use in life sciences, healthcare, astronomy, and art conservation,
is pleased to announce its unaudited interim results for the six
months ended 31 October 2014.
Highlights
-- Opus Instruments contributed sales revenue and profitable trading
-- Adjusted operating loss* of GBP20,000 (2013: loss GBP45,000)
-- The Board expects trading improvements in the second half of
the year with the reorganisation of Synoptics completed in 2014
-- Artemis CCD continuing to report sales and profitability above budget
" *Adjusted operating loss is operating loss before aborted
transaction costs, reorganisation costs and share based
payments"
Ken Ford, Chairman of SDI, commented:
"The Board anticipates that Opus Instruments and Artemis CCD
will continue to make positive contributions to SDI. The new
Synoptics products released in the last quarter of 2014, together
with our other Group subsidiaries are expected to provide a sound
base to make further acquisitions in due course."
Enquiries
Scientific Digital Imaging plc 01223 727144
Ken Ford, Chairman
Mike Creedon, CEO
www.scientificdigitalimaging.com
finnCap Ltd 020 7220 0500
Ed Frisby/Simon Hicks - Corporate Finance
Mia Gardner- 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
About SDI:
Scientific Digital Imaging plc designs and manufactures digital
imaging technology for use in the life sciences, healthcare,
astronomy, and art conservation through Synoptics brands (Syngene,
Synoptics Health, Synbiosis and Syncroscopy), the Artemis CCD
company brands (Atik Cameras and Artemis CCD Cameras) and the Opus
Instruments brand (Osiris).
SDI plans to grow through its own technology advancements as
well as strategic, complementary acquisitions.
Interim highlights
-- Operating loss GBP20,000 (2013: loss GBP45,000) before
aborted transaction costs, reorganisation costs and share based
payments.
-- The Board expects trading improvements in the second half of
the year with the reorganisation of Synoptics completed in 2014,
which provides a significant reduction in the cost base
-- New acquisition, Opus Instruments contributed sales revenue and profitable trading
-- Syngene launched a mid-range gel documentation system,
T:Genius featuring an integrated tablet PC
-- Synbiosis launch ProtoCOL 3 Chromogenic ID software for the
Rapid Microbiology Market in October 2014
-- Artemis CCD continuing to report sales and profitability above budget
Synoptics
Synoptics 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 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.
Opus Instruments
Opus designs and manufactures an infrared camera, Osiris, which
is used to examine works of art, utilising infrared camera
technology with other potential digital imaging applications.
Chairman's statement
OVERVIEW
In the six month period ended 31 October 2014 the new
acquisition, Opus Instruments, made a positive impact on trading
alongside our established Artemis CCD Division which reported
increased sales revenue.
During the period, we were also involved in reverse acquisition
negotiations that were ultimately unsuccessful.
SDI revenue was GBP3.2m in the six months to 31 October 2014
(reduction of GBP349,000, relative to revenue GBP3.5m for the six
months to 31 October 2013). The reduction in SDI revenue arose from
Synoptics, whose revenue reduced due to falling sales in North and
South America. We have addressed this by introducing a new
mid-range competitive unit, T:Genius. Additionally we have invested
in Synoptics US by recruiting a new VP for Sales and Marketing in
November 2014.
The effect of the shortfall in revenue has meant that SDI
reported an operating loss of GBP20,000 before aborted transaction
costs, reorganisation costs and share based payments (2013: loss
GBP45,000).
Basic and fully diluted losses per share were both 0.82p (2013:
basic and fully diluted loss 0.33p)
The Group's cash position reduced by GBP223,000 to GBP316,000
over the period, mainly due to reduced sales revenue from the
Synoptics Group during the financial period.
PRODUCT PORTFOLIO
Syngene remains the largest of the Synoptics brands. Over the
past year, Syngene has experienced aggressive pricing competition
in the DNA imaging sector, especially in North America, the largest
life sciences market. This issue is being addressed by Syngene with
the introduction of a number of new products.
In the period, the new ProtoCOL 3 Chromogenic ID software for
identification of colonies on CHROMagar was launched. This new
software is stimulating interest in ProtoCOL 3 within the rapid
microbiology identification market, especially in the food
microbiology sector and Synbiosis believes this will translate into
sales growth in 2015.
In the past six months, Synoptics Health has continued to
develop ProReveal, a fluorescence test to detect proteins on
surgical instruments for the cleaning validation market and has
appointed a new dealer in North America. In October, ProReveal was
reviewed by the UK Government's Rapid Review Panel (RRP) and
recommended for use in NHS England for optimising cleaning
protocols, endorsing the technology as a validation tool. With 30
ProReveal systems demonstrated in the UK and internationally, the
test continues to be purchased by companies and institutes in the
decontamination equipment sector. ProReveal is not yet being
adopted by the larger hospital sterile service departments due to
statutory decontamination standards not yet being in place. SDI has
revised its investment and promotional strategy for this product in
2015 with further emphasis being placed on bringing down the price
point of the hardware in order to widen the immediate addressable
market.
Since acquiring Opus Instruments in 2014 and introducing a touch
screen version of the Osiris camera, sales growth for the division
has been positive. With interest in this new camera growing, the
Board believes Opus Instruments will continue to achieve sales
forecasts, making a positive contribution to SDI's trading in
2015.
Artemis CCD introduced a new scanning camera in the period.
Artemis is maintaining its strategy of selling cameras to OEM
customers. This is helping Artemis CCD to make an increasing
contribution to the SDI Group thanks to both intra-group revenues
from Synoptics and growth in its OEM sales.
BUSINESS OPERATIONS
We have actively reduced our cost base. Administrative costs in
the period were GBP1.8m, down 13% compared to GBP2.1m in the same
period last year. We have further reviewed costs in the last three
months and additional cost savings will be realised in the second
half of the financial year.
The North American life science market is recovering and to
capitalise on this, SDI is investing in the Synoptics US group with
the appointment of a new US VP Sales and Marketing, as well as
increased sales and product training to ensure that our Syngene and
Synbiosis US dealer representative network is being fully utilised
in this large market. This will result in a better coverage of the
US, where Syngene and Synbiosis products have previously sold well.
The Synoptics Health Division has also appointed a North American
distributor, which is actively promoting the product and means it
will be easier for many decontamination equipment suppliers to
assess the technology in this major market.
Investing in our US operations and focusing our promotional
efforts on the established Syngene and Synbiosis brands means SDI
is well placed to increase sales revenue in its Synoptics Division
in 2015.
ACQUISITIONS
SDI is actively seeking profitable scientific and technology
based companies. Acquisitions in the GBP1m to GBP10m range would be
appropriate and are currently being sought.
OUTLOOK
Renewed commercial efforts in North America and the introduction
of new systems to appeal to this market are expected to help the
Synoptics division return to sales growth in 2015. The Board
anticipates that Opus Instruments and Artemis CCD will continue to
make positive contributions to SDI. The new Synoptics products
released in the last quarter of 2014, together with a focused sales
strategy are expected to result in sales and profit growth in
2015.Profitable stable current subsidiaries should then provide a
sound base to make further acquisitions in due course.
Ken Ford, Chairman
15 January 2015
Consolidated income statement
Unaudited for the six months ended 31 October 2014
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2014 2013 2014
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------- ----- ------------ ------------ ----------
Revenue 3,188 3,537 7,037
----------
Costs of sales (1,353) (1,436) (3,021)
------------------------- ----- ------------ ------------ ----------
Gross profit 1,835 2,101 4,016
----------
Currency exchange
loss (12) (22) (66)
----------
Administrative expenses (1,843) (2,124) (3,893)
----------
Share based payments (5) (5) (6)
----------
Acquisition costs - - (28)
----------
Aborted transaction (131) - -
costs
----------
Reorganisation costs (51) - (22)
------------------------- ----- ------------ ------------ ----------
Total administrative
expenses (2,042) (2,151) (4,015)
------------------------- ----- ------------ ------------ ----------
Operating (loss)/profit (207) (50) 1
----------
Financial income - - -
----------
Financial expenses (20) (24) (39)
------------------------- ----- ------------ ------------ ----------
(Loss)/Profit before
taxation (227) (74) (38)
----------
Income tax expense - - -
------------------------- ----- ------------ ------------ ----------
(Loss)/profit for
the period (227) (74) (38)
------------------------- ----- ------------ ------------ ----------
Earnings per share
----------
Basic (loss)/earnings
per share 2 (0.82p) (0.33p) (0.16p)
------------------------- ----- ------------ ------------ ----------
Diluted (loss)/earnings
per share (0.82p) (0.33p) (0.16p)
------------------------- ----- ------------ ------------ ----------
Consolidated statement of comprehensive income
Unaudited for the six months ended 31 October 2014
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2014 2013 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------- ------------ ------------ ----------
(Loss)/profit for the period (227) (74) (38)
----------
Other comprehensive income
Items that will be reclassified
subsequently
to profit and loss
----------
Exchange differences on translating
foreign operations 38 (30) (75)
------------------------------------- ------------ ------------ ----------
Total comprehensive (loss)/profit
for the period (189) (104) (113)
------------------------------------- ------------ ------------ ----------
Consolidated balance sheet
Unaudited at 31 October 2014
31 October 31 October 30 April
2014 2013 2014
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
----------------------------- ----- ----------- ----------- ---------
Assets
---------
Non-current assets
---------
Property, plant and
equipment 379 392 419
Intangible assets 2,064 884 2,085
Deferred tax asset 99 125 99
----------------------------- ----- ----------- ----------- ---------
2,542 1,401 2,603
Current assets
Inventories 1,059 1,061 1,117
Trade and other receivables 1,344 1,327 1,286
Current tax assets - - 16
Cash and cash equivalents 316 541 539
----------------------------- ----- ----------- ----------- ---------
2,719 2,929 2,958
----------------------------- ----- ----------- ----------- ---------
Total assets 5,261 4,330 5,561
----------------------------- ----- ----------- ----------- ---------
Liabilities
---------
Current liabilities
---------
Trade and other payables 1,527 1,213 1,427
---------
Provisions for warranty 17 17 17
---------
Borrowings 3 143 115 199
---------
Current tax payable - - 35
----------------------------- ----- ----------- ----------- ---------
1,687 1,345 1,678
---------
Non-current liabilities
---------
Borrowings 3 198 35 272
---------
Trade and other payables 138 - 189
---------
Deferred tax liability 169 164 169
----------------------------- ----- ----------- ----------- ---------
505 199 630
----------------------------- ----- ----------- ----------- ---------
Total liabilities 2,192 1,544 2.308
----------------------------- ----- ----------- ----------- ---------
Net assets 3,069 2,786 3,253
----------------------------- ----- ----------- ----------- ---------
Equity
---------
Share capital 278 250 278
Merger reserve 3,030 2,606 3,030
Share premium account 1,063 1,040 1,063
Foreign exchange
reserve (71) (64) (109)
Own shares held by
Employee Benefit
Trust (85) (85) (85)
Other reserves 70 105 65
Retained earnings (1,216) (1,066) (989)
----------------------------- ----- ----------- ----------- ---------
Total equity 3,069 2,786 3,253
----------------------------- ----- ----------- ----------- ---------
Consolidated statement of cash flows
Unaudited for the six months ended 31 October 2014
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2014 2013 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------ ----------
Operating activities
----------
(Loss)/profit for the
period (227) (74) (38)
Depreciation and amortisation 282 252 595
Finance costs and income 20 24 39
Taxation expense in the
income statement - - -
Exchange difference - (38) -
Employee share based payments 5 5 6
-------------------------------- ------------ ------------ ----------
Operating cash flow before
movement in working capital 80 169 602
Increase in inventories 58 (114) (88)
Changes in trade and other
receivables (52) 140 199
Changes in trade and other
payables 103 (210) (190)
-------------------------------- ------------ ------------ ----------
Cash (used in)/generated
from operations 189 (15) 523
Interest paid (20) (24) (26)
Income taxes (received)/paid (35) - 7
-------------------------------- ------------ ------------ ----------
Cash (used in)/generated
from operating activities 134 (39) 504
Cash flows from investing
activities
Capital expenditure on
fixed assets (62) (96) (257)
Expenditure on development
and other intangibles (159) (121) (540)
Acquisition of subsidiaries,
net of cash - - (273)
Proceeds from sale of
property, plant and equipment - - 64
-------------------------------- ------------ ------------ ----------
Net cash used in investing
activities (221) (217) (1,006)
Cash flows from financing
activities
Movement in finance leases (12) 17 (34)
Loan stock repayment - (243) (204)
Issue of shares net of
costs - 635 636
Repayment of borrowings (118) - (27)
Proceeds from bank borrowings - 8 300
-------------------------------- ------------ ------------ ----------
Net cash (used in)/from
financing activities (130) 417 671
-------------------------------- ------------ ------------ ----------
Net changes in cash and
cash equivalents (217) 161 169
Cash and cash equivalents,
beginning of period 539 388 388
Foreign currency movements
on cash balances (6) (8) (18)
-------------------------------- ------------ ------------ ----------
Cash and cash equivalents,
end of period 316 541 539
-------------------------------- ------------ ------------ ----------
Consolidated statement of changes in equity
Unaudited for the six months ended 31 October 2014
6 months to 31 October Own shares
2014 - unaudited Share Merger Share held Other Foreign Retained
capital reserve premium by 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 2014 278 3,030 1,063 (85) 65 (109) (989) 3,253
Share based payments - - - - 5 - - 5
Transactions with owners - - - - 5 - - 5
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Profit for the period - - - - - - (227) (227)
Foreign exchange on
consolidation
of subsidiary - - - - - 38 - 38
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Total comprehensive
income
for the period - - - - - 38 (227) (189)
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Balance at 31 October
2014 278 3,030 1,063 (85) 70 (71) (1,216) 3,069
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
6 months to 31 October Own shares
2013 - unaudited Share Merger Share held Other Foreign Retained
capital reserve premium by 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) (1,086) 2,786
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
12 months to 30 April Own shares
2014 Share Merger Share held Other Foreign Retained
- audited capital reserve premium by 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
Shares issued 84 424 728 - - - - 1,236
Share based payments - - - - 6 - - 6
Transfer of equity on
consolidation
of shares - - - - (41) - 41 -
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Transactions with owners 84 424 728 - (35) - 41 1,242
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Loss for the year - - - - - - (38) (38)
---------
Foreign exchange on
consolidation
of subsidiaries - - - - - (75) - (75)
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Total comprehensive
income - - - - - (75) (38) (113)
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Balance at 30 April 2014 278 3,030 1,063 (85) 65 (109) (989) 3,253
------------------------- --------- --------- --------- ----------- ---------- ---------- ---------- ---------
Notes to the interim financial statements
Unaudited for the six months ended 31 October 2014
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 2014 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 2014. 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 2014 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 15 January 2015.
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 2014
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, but did contain
an emphasis of matter paragraph outlining the existence of a
material uncertainty which may cast significant doubt over the
group's ability to continue as a going concern. The financial
information for the six months ended 31 October 2014 and for the
six months ended 31 October 2013 has not been audited or reviewed
by the auditors.
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 2014.
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.
Basic
(Loss)/Profit (loss)/earnings
attributable Weighted per share
to average amount
shareholders number of in
GBP'000 shares pence
----------------- -------------- ----------- -----------------
Period ended 31
October 2014 (227) 27,777,308 (0.82)
-----------------
Period ended 31
October 2013 (74) 22,098,744 (0.33)
-----------------
Year ended 30
April 2014 (38) 24,471,226 (0.16)
----------------- -------------- ----------- -----------------
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.
Diluted
(loss)/earnings
per share
amount
in
pence
------------------------------ -----------------
Period ended 31 October 2014 (0.82)
-----------------
Period ended 31 October 2013 (0.33)
-----------------
Year ended 30 April 2014 (0.16)
------------------------------ -----------------
The reconciliation of average number of ordinary shares used for
basic and diluted earnings is as below:
31 October 30 October 30 April
2014 2013 2014
--------------------------- ----------- ----------- -----------
Weighted average number
of ordinary shares used
for basic earnings per
share 27,777,308 22,098,744 24,471,226
Weighted average number
of ordinary shares under
option 933,000 1,004,233 993,000
--------------------------- ----------- ----------- -----------
Weighted average number
of ordinary shares used
for diluted earnings
per share 28,710,308 23,102,977 25,464,226
--------------------------- ----------- ----------- -----------
Due to the loss generated in the period ended 31 October 2014,
the diluted loss per share for that period is based on the
undiluted loss per share.
3. Borrowings
31 October 31 October 30 April
2014 2013 2014
GBP'000 GBP'000 GBP'000
--------------------------- ----------- ----------- ---------
Within one year:
---------
Bank finance 100 84 168
Finance leases 43 31 31
143 115 199
--------------------------- ----------- ----------- ---------
After one year and within
five years:
Bank finance 133 - 183
Other loan 50 - 50
Finance leases 15 35 39
--------------------------- ----------- ----------- ---------
198 35 272
--------------------------- ----------- ----------- ---------
Total borrowings 341 150 471
--------------------------- ----------- ----------- ---------
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 GBP80,668 of this facility.
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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