Unaudited Interim Results to 31 October 2012

RNS Number : 3053T

Scientific Digital Imaging Plc

12 December 2012

 



11 December 2012

Scientific Digital Imaging plc

("SDI" or the "Company")

(AIM: SDI)

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 31 OCTOBER 2012

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 2012.

Highlights

·      Sales increased by 13.2% to £3.7m (2011: £3.3m)

·      Gross margin increased to 58.9% (2011: 55.2%)

·      Operating profit £43,000 (2011: £159,000 (loss) )

·      Basic profit per share 0.06p (2011: (1.00)p (loss))

·      Synoptics introduced a new division, Synoptics Health to market and supply a system for testing the cleanliness of surgical instruments post washing

Ken Ford, Chairman of SDI, commented:

"Life Science markets are beginning a tentative recovery and with the introduction of a new Synoptics division and a number of innovative systems in this period, our current sales pipeline continues to grow. The Board anticipates that further new products to be released during 2013 together with on-going cost efficiencies will result in steady growth and an improvement in margins. For these reasons the Board remains confident in the outlook for 2013."

Enquiries

Scientific Digital Imaging plc                                                               01223 727144

Ken Ford, Chairman

Mike Creedon, CEO

www.scientificdigitalimaging.com 

finnCap                                                                                                  020 7220 0500

Ed Frisby/ Rose Herbert - 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

 

CHAIRMAN'S STATEMENT

OVERVIEW

At the half way stage of the year there has been positive progress for Scientific Digital Imaging plc ('SDI') and we are beginning to reap the rewards of our repositioned business strategy and corporate restructuring. Although global recession continues to affect our and other international businesses, we are seeing a recovery in terms of increasing demand for our products and positive sales growth in many territories.

SDI's infrastructure in terms of staffing and its technology portfolio is now established, allowing the Company to achieve a steady rate of development.

SDI's revenue is £3,747,000 in the six months to 31 October 2012 (13.2% increase relative to revenue of £3,309,000 for the six months to 31 October 2011).

Gross margin percentage increased from 55.2% to 58.9% due to the cost reduction programmes undertaken in 2011 by the Synoptics divisions.     

Administrative expenses increased to £2,155,000 (2011: £1,943,000), mainly due to an increased sales force, launch of the new Synoptics Health division and the change in accounting treatment of warranty costs and consumables.

Basic and fully diluted profit per share were both 0.06p (2011: basic and fully diluted loss per share 1.00p)

The Group's cash position decreased by £116,000 to £169,000 over the period, mainly due to investment in IT systems and increased inventory levels and trade receivables. The latter are short term effects which arose from high levels of trading in October 2012 and the purchase of component stocks for the new products, PXi and ProReveal.

PRODUCT PORTFOLIO

During the six months, the Synoptics Group has introduced the new division of Synoptics Health to market and supply a system for testing the cleanliness of surgical instruments post washing. This fluorescence imaging technology, known as ProReveal which is the result of our successful four year strategic collaboration with Queen Mary University of London, was launched in Q4 at major trade show, Medica and there is already considerable interest in this product.  The launch of the new division will allow Synoptics a first mover advantage in a number of untapped healthcare market sectors.

I am pleased to report there have also been advances in SDI in-house product development programmes in our other areas and we have several new automated systems in our portfolio, launched in the past six months.

The Syngene division continues to be successful with its recently introduced budget level gel documentation equipment (on which Syngene now generates improved gross margins). A new addition to the premium end of the market is the PXi system together with a touch screen version which is being launched in Q1 of 2013. This product utilises Syngene's particular expertise in the imaging of samples using its own novel lighting technology.

In  the Synbiosis division, our high end colony counter launched in 2012 continues to be popular and we will shortly launch a product extension to this line which will recognise not only colony numbers but also identify different types of microorganisms. In the coming year, we expect this innovation will provide another first mover advantage as no other commercial colony counter currently in the microbiology market is able to perform this task. To ensure we offer the full spectrum of products, Synbiosis will be re-designing its low end automated colony counter for launch in 2013, to provide a cost-effective system for use in the large clinical and academic markets.

Artemis CCD has launched a new camera range aimed at the life sciences industry and has in the period signed an OEM agreement with an instrument manufacturer to supply the camera for use in raman spectroscopy equipment, for which there is a global demand within the pharmaceutical market.

BUSINESS OPERATIONS

Both the Synoptics Group and Artemis CCD have recruited further sales and marketing staff both in Europe and the USA. Synoptics has signed an agreement with an experienced North American distributor of research instrumentation, which we believe will help us penetrate the lucrative Canadian life science market. The new Synoptics Health Division has appointed a well-established UK supplier of decontamination products for UK and Ireland and will actively seek additional global distributors for the ProReveal technology in 2013. The expansion of our sales force and the addition of new distributors, mean SDI is in an excellent position to leverage the Company's first mover advantage with the product ranges in our portfolio, thus securing the next phase of revenue growth.

OUTLOOK

Life science markets are beginning a tentative recovery and with the introduction of a new Synoptics division and a number of innovative systems in this period, our current sales pipeline continues to grow. The Board anticipates that new products released during 2013 together with the on-going cost efficiencies will result in continued growth and an improvement in margins. For these reasons the Board remains confident in the outlook for 2013. 

Ken Ford, Chairman                                                                                     

11 December 2012

CONSOLIDATED INCOME STATEMENT

		Note		6 months to 31 October 2012	6 months to 31 October 2011	12 months to 30 April 2012
				Unaudited	Unaudited	Audited
				£'000	£'000	£'000
Revenue				3,747	3,309	7,170
Costs of sales				(1,539)	(1,483)	(3,090)
Gross profit				2,208	1,826	4,080
Currency exchange (loss)/gain				(10)	(4)	2
Administrative expenses				(2,155)	(1,943)	(3,925)
Reorganisation costs				-	(38)	(73)
Total administrative expenses				(2,165)	(1,985)	(3,996)
Operating profit/ (loss)				43	(159)	84
Financial income				-	-	1
Financial expenses				(31)	(31)	(65)
Profit/ (loss) before taxation				12	(190)	20
Income tax expense/ (credit)				1	(11)	-
Profit/ (loss) for the period				11	(179)	20

Earning per share
Basic earnings/ loss per share		2		0.06p	(1.00)p	0.11p
Diluted earnings/ loss per share				0.06p	(1.00)p	0.10p

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

				6 months to 31 October 2012	6 months to 31 October 2011	12 months to 30 April 2012
				Unaudited	Unaudited	Audited
				£'000	£'000	£'000
Profit/(loss) for the period				11	(179)	20
Other comprehensive income
Exchange differences on translating foreign operations				(6)	44	(21)
Total comprehensive profit/ (loss) for the period				5	(135)	(1)

CONSOLIDATED BALANCE SHEET

	Note		31 October      2012	31 October 2011	30 April      2012
			Unaudited	Unaudited	Audited
			£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment			459	449	386
Intangible assets			718	731	726
Deferred tax asset			107	129	113
			1,284	1,309	1,225
Current assets
Inventories			934	756	826
Trade and other receivables			1,607	1,285	1,527
Cash and cash equivalents			169	256	285
			2,710	2,297	2,638
Total assets			3,994	3,606	3,863
Liabilities
Current liabilities
Trade and other payables			1,394	1,171	1,282
Provisions for warranty			22	17	17
Borrowings	3		529	90	114
			1,945	1,278	1,413
Non-current liabilities
Borrowings	3		23	424	423
Deferred tax liability			132	148	138
			155	572	561
Total liabilities			2,100	1,850	1,974
Net assets			1,894	1,756	1,889
Equity
Share capital			194	187	187
Merger reserve			2,606	2,606	2,606
Share premium account			335	263	262
Foreign exchange reserve			(79)	(8)	(73)
Own shares held by Employee Benefit Trust			(85)	(85)	(85)
Other reserves			96	176	176
Retained earnings			(1,173)	(1,383)	(1,184)
Total Equity			1,894	1,756	1,889

CONSOLIDATED STATEMENT OF CASH FLOWS

	6 months to 31 October 2012	6 months to 31 October 2011	12 months to 30 April 2012
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Operating activities
Profit/ (loss) for the period	11	(179)	20
Depreciation and amortisation	246	231	457
Finance expense	31	31	64
Taxation expense/ (credit) recognised in the income statement	1	(11)	-
(Increase) / Decrease  in inventories	(108)	25	(45)
Increase in warranty provision	5	-	-
Foreign exchange loss	(6)	43	(26)
Operating cash flow before movement in working capital	180	140	470
Changes in trade and other receivables	(80)	119	(136)
Changes in trade and other payables	110	101	228
Cash generated from operations	210	360	562
Interest paid	(27)	(15)	(56)
Income taxes paid	-	-	5
Cash generated from operating activities	183	345	511
Cash flows from investing activities
Purchase of property plant and equipment	(179)	(76)	(155)
Investment in development	(132)	(108)	(229)
Proceeds from sale of property, plant and equipment	-	-	41
Net cash used in investing activities	(311)	(184)	(343)
Cash flows from financing activities
Capital element of finance leases	(7)	(12)	(21)
Issues of shares and warrants	-	3	2
Bank borrowings	19	(54)	(25)
Net cash used in financing activities	12	(63)	(44)
Net changes in cash and cash equivalents	(116)	98	124
Cash and cash equivalents, beginning of period	285	158	158
Foreign currency movements on cash balances	-	-	3
Cash and cash equivalents, end of period	169	256	285

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

6 months to 31 October 2012 - unaudited

	Share    capital	Merger reserve	Share premium	Own shares held by EBT	Other reserves	Foreign exchange	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'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

6 months to 31 October 2011 - unaudited

	Share capital	Merger reserve	Share premium	Own shares held by EBT	Other reserves	Foreign exchange	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 May 2011	187	2,606	260	(85)	176	(52)	(1,204)	1,888
Share based payments	-	-	3	-	-	-	-	3
Transactions with owners	-	-	3	-	-	-	-	3
Loss for the period	-	-	-	-	-	-	(179)	(179)
Foreign exchange on consolidation of subsidiary	-	-	-	-	-	44	-	44
Total comprehensive income for the period	-	-	-	-	-	44	(179)	(135)
Balance at 31 October 2011	187	2,606	263	(85)	176	(8)	(1,383)	1,756

12 months to 30 April 2012 - audited

	Share capital	Merger reserve	Share premium	Own shares held by EBT	Other reserves	Foreign exchange	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 May 2011	187	2,606	260	(85)	176	(52)	(1,204)	1,888
Shares options issued		-	2	-		-	-	2
Transactions with owners		-	2	-	-	-	-	2
Profit for the year	-	-	-	-	-	-	20	20
Foreign exchange on consolidation of subsidiary	-	-	-	-	-	(21)	-	(21)
Total comprehensive income	-	-	-	-	-	(21)	20	(1)
Balance at 30 April 2012	187	2,606	262	(85)	176	(73)	(1,184)	1,889

NOTES TO THE INTERIM FINANCIAL STATEMENTS

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 2012 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 2012.  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 2012 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 (£), which is also the functional currency of the ultimate parent company.

The consolidated interim financial information was approved by the Board of Directors on 11 December 2012.                 

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 2012 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 2012 and for the six months ended 31 October 2011 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 2012.

The accounting policies have been applied consistently throughout the Group for the purpose of preparation of these interim financial statements.

             2. EARNINGS/ (LOSs) per share

The calculation of the basic earnings/(loss) per share is based on the profits/(losses) 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 profit/(loss) per share calculations relate to continuing operations of the Group.

			Profit/(loss) attributable to shareholders £'000	Weighted average number of shares	Basic earnings/ (loss) per share amount in pence
Period ended 31 October 2012			11	18,051,793	0.06
Period ended 31 October 2011			(179)	17,982,260	(1.00)
Year ended 30 April 2012			20	17,989,257	0.11

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 earnings/ (loss) per share amount  in pence
Period ended 31 October 2012					0.06
Period ended 31 October 2011					(1.00)
Year ended 30 April 2012					0.10

The reconciliation of average number of ordinary shares used for basic and diluted earnings is as below:

	31 October 2012	30 October 2011	30 April  2012
Weighted average number of ordinary shares used for basic earnings per share	18,051,793	17,982,260	17,989,257
Weighted average number of ordinary shares used as deferred consideration	-	-	666,500
Weighted average number of ordinary shares under option	191,672	-	370,927
Weighted average number of ordinary shares used for diluted earnings per share	18,243,465	17,982,260	19,026,684

Due to the loss generated in the period ended 31 October 2011, the dilutive loss per share for that period is the same as the undiluted loss per share.

           3. Borrowings

	31 October   2012	31 October 2011	30 April 2012
	£'000	£'000	£'000
Within one year:
Bank finance	110	62	91
Finance leases	47	28	23
Loan stock	372	-	-
	529	90	114
After one year and within five years:
Loan stock	-	364	368
Finance leases	23	52	40
	23	416	408
Over five years:
Finance leases	-	8	15
Total borrowings	552	514	537

The Group utilises short-term facilities to finance its operation. The Group has one principal banker with an invoice discounting facility of up to £500,000. At the end of the period the Group had utilised £110,000 of this facility.

 

END

 

 

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