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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Sdi Group Plc | LSE:SDI | London | Ordinary Share | GB00B3FBWW43 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -1.00 | -1.89% | 52.00 | 51.00 | 53.00 | 53.20 | 51.50 | 53.00 | 405,898 | 15:18:53 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Coml Physical, Biologcl Resh | 67.58M | 3.87M | 0.0372 | 13.84 | 53.59M |
From May 2019 to May 2024
TIDMSDI
RNS Number : 7475K
Scientific Digital Imaging Plc
18 December 2018
Scientific Digital Imaging plc
("SDI", the "Company" or the "Group")
(AIM: SDI)
Unaudited Interim Results for the six months to 31 October 2018
Scientific Digital Imaging plc, the AIM quoted group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications, including life sciences, healthcare, astronomy, manufacturing and art conservation, is pleased to announce its unaudited interim results for the six months ended 31 October 2018.
Highlights
-- Revenue increased by 23% to GBP8,047,000 (H1 2017: GBP6,552,000)
-- Revenue growth driven by organic (11%) and acquisitions (12%); organic revenue growth notably at the Atik Cameras and Sentek divisions with growth from acquisitions delivered by Applied Thermal Controls, Quantum Scientific Imaging and Fistreem
-- Adjusted operating profit* increased by 31% to GBP1,494,000 (H1 2017: GBP1,137,000) -- Adjusted profit before tax* increased by 32% to GBP1,464,000 (H1 2017: GBP1,110,000) -- Profit before tax increased by 42% to GBP1,199,000 (H1 2017: GBP846,000) -- Cash generated from operations increased by 103% to GBP1,531,000 (H1 2017: GBP755,000) -- In September 2018, SDI acquired Fistreem International for consideration of GBP756,000
* before acquisition and fundraising costs, amortisation of acquired intangibles, reorganisation costs and share based payments
Ken Ford, Chairman of SDI, commented:
"This has been a record-breaking six-month period with 23% sales growth and 31% growth in adjusted operating profit."
"All our businesses are in good health and are prepared to trade profitably through any potential turbulence, while also developing new opportunities. The Board remains confident in the outlook for the year as current trading remains robust and comfortably in line with market expectations. SDI is continuing to review acquisition opportunities of profitable businesses and intends to add other companies to the Group. The Board hopes to add at least one other company to the Group before the end of the financial year as we continue with our successful strategy of organic and acquisitive growth."
Enquiries:
Scientific Digital Imaging plc 01223 320480 Ken Ford, Chairman Mike Creedon, CEO Jon Abell, CFO www.scientificdigitalimaging.com finnCap Ltd 020 7220 0500 Ed Frisby/Kate Bannatyne - Corporate Finance Andrew Burdis/Sunila de Silva - Corporate Broking JW Communications 07818 430877 Julia Wilson - Investor & Public Relations
About SDI:
Scientific Digital Imaging plc ("SDI") designs and manufactures scientific and technology products for use in digital imaging and sensing and control applications including life sciences, healthcare, astronomy, manufacturing and art conservation. SDI operates through its company divisions: Applied Thermal Control, Astles, Atik Cameras, Sentek and Synoptics, as well as the recently acquired, Fistreem.
SDI continues to grow by developing its own technology advancements and by improving its global distribution footprint, as well as through pursuing strategic, complementary acquisitions.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
The interim report can also be viewed on the Company's website: www.scientificdigitalimaging.com
Chairman's statement
OVERVIEW
This has been a record-breaking six-month period with 23% sales growth and 31% growth in adjusted operating profit, together with welcoming a new acquisition, Fistreem International ('Fistreem'), to our portfolio of companies in September this year. The Group will continue to seek to acquire firms which have complementary technologies alongside growing its existing businesses.
SDI revenue was GBP8,047,000 in the six months to 31 October 2018 compared with GBP6,552,000 for the six months to 31 October 2017. The revenue increase was balanced between organic growth of 11%, notably at the Atik Cameras and Sentek divisions, and the contribution of revenues from Applied Thermal Control ("ATC") (acquired in August 2017), Quantum Scientific Imaging ("QSI") (acquired January 2018) and Fistreem acquired businesses in months in which they were not part of the Group in the prior year.
In digital imaging, Atik Cameras expanded revenues and profitability through both OEM and direct camera sales. The business has been enhanced by the acquisition of the QSI camera brand in 2018. Synoptics has continued to focus its product portfolio relative to the different international markets, which has led to the division maintaining profitability during the period.
In sensors and control, Sentek has again achieved a significant increase in revenue, and has expanded staffing and begun the expansion of its manufacturing facility. Astles also increased revenues, and ATC has now completed a full year of profitable trading within the Group.
We expect Fistreem, our most recent acquisition, to be earnings enhancing in this financial year.
During the period, SDI recruited a new CFO, Jon Abell and his appointment is allowing Mike Creedon, the Company's CEO who was covering the role, to concentrate on acquisitions and operational improvements for a growing business.
Basic earnings per share was 1.12p (2017: 0.98p). Fully diluted earnings per share was 1.10p (2017: 0.95p).
The Group has adequate working capital reserves and bank facilities that can be used, with its steady cashflow, to acquire new companies with complementary technologies and SDI expects to announce further expansion of the Group with the addition of at least another new company by the end of the financial year.
PRODUCT PORTFOLIO
DIGITAL IMAGING
The digital imaging portfolio consists of two companies, Atik Cameras and Synoptics. Atik Cameras designs and manufactures sensitive cameras for deep-sky astronomical and life science imaging applications under the Artemis, Atik, and QSI brands, as well as art conservation via Opus Instruments. Synoptics designs and manufactures innovative digital imaging systems for use in the life science and clinical markets via its Syngene, Synbiosis and Synoptics Health brands and utilises some of the Atik range in its products. These digital imaging companies delivered an 18% increase in sales revenue compared with the prior period.
Atik Cameras
During the period, Atik Cameras reported strong sales and profitability with a mix of organic and acquisitive growth. OEM sales of cameras with customers including a major life science imaging company, an Asian manufacture of qPCR systems and the Synoptics group remained robust. OEM sales have been strengthened by the successful integration of QSI, which was acquired in February 2018. Atik has continued to work with all QSI's OEM customers to ensure existing products meet their requirements, as well as developing new QSI high-specification camera technology for use in life sciences.
Atik has also introduced a new version of the Opus Instruments Infrared Reflectography camera, APOLLO, into the art conservation market in 2018 which has seen strong reviews from the early buyers of the camera.
The division continues to develop new cameras which contain less-expensive CMOS (Complementary Metal-Oxide-Semiconductor) sensors instead of CCDs (Charge Coupled Devices), with a view to replacing CCDs in many of its ranges by 2025.The Board believes the demand for Atik's products by life science OEMs, as well as the art conservation and amateur astronomy markets, will ensure Atik maintains its positive contribution to the SDI Group throughout 2019.
Synoptics
Syngene is continuing to market smaller, competitively priced DNA imaging systems, which are selling well across all territories. The division will offer a new high-end, multi-application G:BOX system with a 12 megapixel camera (the only one of its type in the world) in 2019. The Board believes this new system will be popular in European and North American markets and will also generate intra-group revenues and profit at Atik Cameras.
Sales revenue of Synbiosis' automated colony counters continued to grow in the period. Synbiosis is developing a high-value, fully-automated, plate-feeder and colony counter/zone measurement system designed for pharmaceutical companies that are testing new antibiotics and vaccines which will be launched in 2019.
Synoptics Health ProReveal, in-situ fluorescence test to detect proteins on surgical instruments, is being routinely used in 11 teaching hospitals and several decontamination companies across the UK. These hospitals are advocating ProReveal as best practice for detecting proteins on surgical instruments and are purchasing the consumables that are required to operate their systems, which are providing some sales growth with this product. However, because the NHS is not yet enforcing the new HTM 01-01 regulations, which state a test must be able to detect protein to <=5 ug in situ on an instrument's surface, the uptake of ProReveal across the NHS is slow.
SENSORS & CONTROL
The sensors and control segment of SDI currently encompasses three acquired companies; Applied Thermal Control (ATC), Astles Control Systems (Astles), and Sentek. ATC manufactures, and supplies chillers, coolers and heat exchangers used within scientific instruments. Astles is a supplier of chemical dosing and control systems to different manufacturing industries. Sentek manufactures and markets off-the shelf and custom-made, reusable and single-use electrochemical sensors for use in laboratory analysis, food, beverage, pharmaceutical and personal care manufacturing, as well as the leisure industry. The sensing and control companies, ATC, Astles and Sentek together delivered a 27% increase in sales revenue compared to the previous period.
Astles Control Systems
Astles' chemical dosing and control systems equipment utilises many of Sentek's electrochemical sensors and has continued to sell into its existing markets and contributed to intra-group revenues during the period. The division has appointed Hal Stephenson as its new CEO, with the company founder Peter Astles taking on a business development role going forward.
Applied Thermal Control
Applied Thermal Control (ATC) is continuing to sell chillers into the life science sector, as well as into digital printing and laser lithography markets worldwide and has been earnings enhancing for the SDI Group during the period. ATC has redesigned one of its chiller systems to comply with new EU regulations on equipment containing fluorinated greenhouse gas and is testing these products in bioprocess automation.
Sentek
Sentek further increased sales turnover in the period, driven by sales growth of its reusable and single-use sensor portfolio. The single-use electrode business remains buoyant, with Sentek continuing to be a large OEM supplier to two global life science and healthcare companies. Sales of the automated systems made by these companies are increasing year on year and sales of the electrodes continue to grow as a consequence. To ensure the division meets quality and production demands, Sentek has recruited additional staff, and has leased and is refurbishing an additional building to increase the size of its manufacturing footprint. The new facilities will be ready for production by April 2019.
ACQUISITIONS
In September 2018, SDI acquired Fistreem, a manufacturer of water purification products and vacuum ovens. Its Cyclon Water Still water purifier is recognised as a world leading brand for scientific and healthcare applications. The Board believes that the integration risk relating to the acquisition is low and will increase SDI's business revenue by utilising its current staff level and premises. This is a complementary fit to the SDI Group, providing potential areas for market penetration and growth. The acquisition is expected to be earnings enhancing in its first full year of ownership.
OUTLOOK
Going forward, all our businesses are in good health and are prepared to trade profitably through any potential turbulence, while also developing new opportunities. The Board remains confident in the outlook for the year as current trading remains robust and comfortably in line with market expectations. SDI is continuing to review acquisition opportunities of profitable businesses and intends to add other companies to the Group. Alongside our existing portfolio of businesses serving global markets with niche technologies, we believe new acquisitions will maintain a good balance for continued growth and profitability. The Board hopes to add at least one other company to the Group before the end of the financial year as we continue with our successful strategy of organic and acquisitive growth.
Ken Ford, Chairman
17 December 2018
Consolidated income statement
Unaudited for the six months ended 31 October 2018
Hot Features
Premium
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
----------------------------- ----- ------------ ------------ ----------
Revenue 8,047 6,552 14,496
----------
Costs of sales (2,736) (2,163) (4,954)
----------------------------- ----- ------------ ------------ ----------
Gross Profit 5,311 4,389 9,542
----------
Administrative expenses (3,970) (3,384) (7,473)
----------------------------- ----- ------------ ------------ ----------
Reorganisation costs (4) (7) (63)
----------
Share based payments (48) (5) (65)
----------
Acquisition and fundraising
costs (60) (120) (165)
----------
Operating profit 1,229 873 1,776
----------
Net financing expense (30) (27) (63)
----------------------------- ----- ------------ ------------ ----------
Profit before taxation 1,199 846 1,713
----------
Income tax credit (charge) (203) 25 (98)
----------------------------- ----- ------------ ------------ ----------
Profit for the period 996 871 1,615
----------------------------- ----- ------------ ------------ ----------
Earnings per share
----------
Basic earnings per share 5 1.12p 0.98p 1.81p
----------------------------- ----- ------------ ------------ ----------
Diluted earnings per share 1.10p 0.95p 1.79p
----------------------------- ----- ------------ ------------ ----------
Consolidated statement of comprehensive income
Unaudited for the six months ended 31 October 2018
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------- ------------ ------------ ----------
Profit for the period 996 871 1,615
----------
Other comprehensive income
----------
Exchange differences on translating
foreign operations 50 (5) (30)
------------------------------------- ------------ ------------ ----------
Total comprehensive profit for the
period 1,046 866 1,585
------------------------------------- ------------ ------------ ----------
Consolidated balance sheet
Unaudited at 31 October 2018
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------- ----- ----------- ----------- ---------
Assets
---------
Non-current assets
---------
Intangible assets 11,299 10,609 10,727
Property, plant and equipment 370 503 431
Deferred tax asset 27 47 37
------------------------------- ----- ----------- ----------- ---------
11,696 11,159 11,195
Current assets
Inventories 2,200 1,963 2,090
Trade and other receivables 2,858 2,186 2,221
Cash and cash equivalents 2,307 1,143 2,007
------------------------------- ----- ----------- ----------- ---------
7,365 5,292 6,318
------------------------------- ----- ----------- ----------- ---------
Total assets 19,061 16,451 17,513
------------------------------- ----- ----------- ----------- ---------
Liabilities
---------
Non-current liabilities
---------
Borrowings 6 1,378 1,171 1,391
---------
Deferred tax liability 1,033 1,015 969
------------------------------- ----- ----------- ----------- ---------
2,411 2,186 2,360
------------------------------- ----- ----------- ----------- ---------
Current liabilities
---------
Trade and other payables 2,392 1,907 2,309
---------
Provisions for warranty 11 19 11
---------
Borrowings 6 34 332 29
---------
Current tax payable 494 229 244
------------------------------- ----- ----------- ----------- ---------
2,931 2,487 2,593
---------
Total liabilities 5,342 4,673 4,953
------------------------------- ----- ----------- ----------- ---------
Net assets 13,719 11,778 12,560
------------------------------- ----- ----------- ----------- ---------
Equity
---------
Share capital 896 896 896
Merger reserve 3,030 3,030 3,030
Share premium account 6,390 6,390 6,390
Own shares held by Employee
Benefit Trust (17) (85) (82)
Other reserves 196 88 148
Foreign exchange reserve 159 134 109
Retained earnings 3,065 1,325 2,069
------------------------------- ----- ----------- ----------- ---------
Total equity 13,719 11,778 12,560
------------------------------- ----- ----------- ----------- ---------
Consolidated statement of cash flows
Unaudited for the six months ended 31 October 2018
6 months to 6 months 12 months
31 October to to
2018 31 October 30 April
Unaudited 2017 2018
GBP'000 Unaudited Audited
GBP'000 GBP'000
---------------------------------------- ------------ ------------ ----------
Operating activities
----------
Profit for the period 996 871 1,615
Depreciation and amortisation 579 306 1,076
Impairment of capitalised development 50 -
assets -
Finance costs and income 30 27 63
(Decrease) / increase in provisions - - (8)
Taxation expense in the income
statement 203 (25) 98
Employee share based payments 47 5 65
---------------------------------------- ------------ ------------ ----------
Operating cash flow before movement
in working capital 1,905 1,184 2,909
(Increase)/decrease in inventories (34) (62) (134)
Changes in trade and other receivables (529) (119) (106)
Changes in trade and other payables 189 (248) 185
---------------------------------------- ------------ ------------ ----------
Cash generated from operations 1,531 755 2,854
Interest paid (30) (27) (63)
Income taxes (received)/paid (8) - (198)
---------------------------------------- ------------ ------------ ----------
Cash generated from operating
activities 1,493 728 2,593
Cash flows from investing activities
Capital expenditure on fixed
assets (69) (165) (184)
Sale of property plant and equipment 35 34 3
Expenditure on development and
other intangibles (273) (32) (620)
Acquisition of subsidiaries,
net of cash (744) (926) (1,341)
---------------------------------------- ------------ ------------ ----------
Net cash used in investing activities (1,051) (1,089) (2,142)
Cash flows from financing activities
Finance leases repayments net (8) (21) (33)
Proceeds from bank borrowings - 450 1,370
Deferred consideration paid (152) (1,353) (1,201)
Exchange difference - (4) (24)
Repayment of borrowings - (120) (1,111)
Issues of shares - 197 200
---------------------------------------- ------------ ------------ ----------
Net cash from/(used in) financing
activities (160) (851) 799
---------------------------------------- ------------ ------------ ----------
Net (decrease)/increase in cash
and cash equivalents 282 (1,212) (348)
Cash and cash equivalents, beginning
of period 2,007 2,355 2,355
Foreign currency movements on
cash balances 18 - -
---------------------------------------- ------------ ------------ ----------
Cash and cash equivalents, end
of period 2,307 1,143 2,007
---------------------------------------- ------------ ------------ ----------
Consolidated statement of changes in equity
Unaudited for the six months ended 31 October 2018
6 months to 31 October Own shares
2018 - unaudited Share Merger Foreign Share held by Other Retained
capital reserve exchange premium EBT reserves earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Balance at 1 May 2018 896 3,030 109 6,390 (82) 148 2,069 12,560
Share based payments - - - - - 48 - 48
Release of shares
on option exercise - - - - 65 - - 65
Transactions with
owners - - - - 65 48 - 113
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Profit for the period - - - - - - 996 996
Foreign exchange on
consolidation of
subsidiaries - - 50 - - - - 50
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Total comprehensive
income for the period - - 50 - - - 996 1,046
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Balance at 31 October
2018 896 3,030 159 6,390 (17) 196 3,065 13,719
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
6 months to 31 October Own shares
2017 - unaudited Share Merger Foreign Share held by Other Retained
capital reserve exchange premium EBT reserves earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Balance at 1 May 2017 889 3,030 139 6,200 (85) 83 454 10,710
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Share based payments - - - - - 5 - 5
Issue of share capital 7 - - 190 - - - 197
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Transactions with
owners 7 - - 190 - 5 - 202
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Profit for the period - - - - - - 871 871
Foreign exchange on
consolidation of
subsidiaries - - (5) - - - - (5)
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Total comprehensive
income for the period - - (5) - - - 871 866
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Balance at 31 October
2017 896 3,030 134 6,390 (85) 88 1,325 11,778
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
12 months to 30 April Own shares
2018 - audited Share Merger Foreign Share held by Other Retained
capital reserve exchange premium EBT reserves earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Balance at 1 May 2017 889 3,030 139 6,200 (85) 83 454 10,710
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Shares issued 7 - - 190 3 - - 200
Share based payments - - - - - 65 - 65
Transactions with
owners 7 - - 190 3 65 - 265
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Profit for the year - - - - - - 1,615 1,615
---------
Foreign exchange on
consolidation of
subsidiaries - - (30) - - - - (30)
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Total comprehensive
income - - (30) - - - 1,615 1,585
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Balance at 30 April
2018 896 3,030 109 6,390 (82) 148 2,069 12,560
------------------------- --------- --------- ---------- --------- ----------- ---------- ---------- ---------
Notes to the interim financial statements
1. General information and basis of preparation
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 2018 comprise the Company and its subsidiaries (together referred to as the "Group").
The Group has determined that, from the current financial year, it is appropriate to provide an analysis of its activities in two distinct operating segments, Digital Imaging and Sensors & Control, and this analysis is provided in Note 4, including comparative information from previous periods.
The unaudited consolidated interim financial statements are for the six months ended 31 October 2018. 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 2018 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 17 December 2018.
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 2018 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 2018 and for the six months ended 31 October 2017 has not been audited.
2. 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 2018, except that the Group has implemented IFRS 15 ("Revenues from Contracts with Customers") with effect from 1 May 2018. No restatement to prior period comparatives was required.
Segment reporting
Until 30 April 2018, management considered that the Group constituted a single operating segment.
During the period, the Group has started to analyse its operating performance for management reporting purposes into two distinct segments, under the names Digital Imaging and Sensors & Control, and has concluded that it is appropriate to report these as operating segments under IFRS8.
The segment Digital Imaging incorporates the Synoptics brands Syngene, Synbiosis and Synoptics Health, and the Atik brands Atik Cameras, Opus and Quantum Scientific Imaging. These businesses use digital imaging to provide detailed analysis and images broadly to the biotechnology and amateur astronomy sectors. Revenues derive from the sale of instruments, major components for OEM customers' instruments, and from accessories and service.
The Sensors & Control segment combines our Sentek, Astles Control Systems and Applied Thermal Control entities. All of these businesses enable accurate control of scientific and industrial equipment. Their revenues also derive from the sale of instruments, major components for OEM customers' instruments, and from accessories and service.
The Board of Directors reviews operational results of these segments on a monthly basis, and decides on resource allocations to the segments and is considered the Group's chief operational decision maker. Historical but unaudited financial information for these segments is available for the year 2017-18, and is therefore presented below in addition to the information for the current period.
The Board has not yet allocated the newly-acquired Fistreem International unit to either of the segments, but would expect to have done so by the end of the financial year.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.
3. Alternative Performance Measures
The Group uses Adjusted Operating Profit and Net Operating Assets as supplemental measures of the Group's profitability and investment in business-related assets, in addition to measures defined under IFRS. The Group considers these useful due to the exclusion of specific items that are considered to hinder comparison of underlying profitability and investments of the Group's segments and businesses. The following tables are included to define the terms Adjusted Operating Profit and Net Operating Assets used in this report.
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
------------------------------------- ------------ ------------ -----------
Operating Profit 1,229 873 1,776
-----------
Reorganisation costs 4 7 63
-----------
Share based payments 48 5 65
-----------
Acquisition and fundraising costs 60 120 165
-----------
Amortisation of acquired intangible
assets 153 132 277
------------------------------------- ------------ ------------ -----------
Total adjusting items within
Operating Profit 265 264 570
-----------
Adjusted Operating Profit 1,494 1,137 2,346
------------------------------------- ------------ ------------ -----------
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------- ----------- -----------
Net assets 13,719 11,778 12,560
-----------
Deferred tax asset 27 47 37
-----------
Cash and cash equivalents 2,307 1,143 2,007
-----------
Borrowings (current and non-current) (1,412) (1,503) (1,420)
-----------
Deferred tax liability (1,033) (1,015) (969)
-----------
Current tax payable (494) (229) (244)
-------------------------------------- ----------- ----------- -----------
Total adjusting items within
Net assets (605) (1,557) (589)
-----------
Net Operating Assets 14,324 13,335 13,149
-------------------------------------- ----------- ----------- -----------
4. Segmental analysis
6 months 6 months 12 months
to to to
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
------------------------------------- ------------ ------------ -----------
Revenues
-----------
Digital Imaging 4,305 3,659 7,647
-----------
Sensors & Control 3,672 2,893 6,849
-----------
Fistreem / Other 70 - -
------------------------------------- ------------ ------------ -----------
Group 8,047 6,552 14,496
-----------
Adjusted Operating Profit
-----------
Digital Imaging 1,007 555 969
-----------
Sensors & Control 915 805 1,978
-----------
Fistreem / Other (428) (223) (601)
------------------------------------- ------------ ------------ -----------
Group 1,494 1,137 2,346
-----------
Amortisation of acquired intangible
assets
-----------
Digital Imaging 7 3 7
-----------
Sensors & Control 146 129 270
-----------
Fistreem / Other - - -
------------------------------------- ------------ ------------ -----------
Group 153 132 277
------------------------------------- ------------ ------------ -----------
A reconciliation of Adjusted Operating Profit to Operating Profit is provided in Note 3.
The Fistreem / Other category includes revenues and costs for the newly acquired Fistreem International entity, plus costs which cannot be allocated to the other segments.
31 October 31 October 30 April
2018 2017 2018
Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
------------------------------------- ----------- ----------- -----------
Operating assets excluding acquired
intangible assets
-----------
Digital Imaging 4,395 4,097 3,976
-----------
Sensors & Control 2,036 1,694 1,966
-----------
Fistreem / Other 118 428 20
------------------------------------- ----------- ----------- -----------
Group 6,549 6,219 5,962
-----------
Acquired intangible assets
-----------
Digital Imaging 1,352 1,139 1,360
-----------
Sensors & Control 8,003 7,903 8,148
-----------
Fistreem / Other 824 - -
------------------------------------- ----------- ----------- -----------
Group 10,179 9,042 9,508
-----------
Liabilities
-----------
Digital Imaging (999) (899) (1,148)
-----------
Sensors & Control (1,082) (640) (845)
-----------
Fistreem / Other (323) (387) (328)
------------------------------------- ----------- ----------- -----------
Group (2,404) (1,926) (2,321)
-----------
Net operating assets
-----------
Digital Imaging 4,749 4,337 4,188
-----------
Sensors & Control 8,956 8,957 9,269
-----------
Fistreem / Other 619 41 (308)
------------------------------------- ----------- ----------- -----------
Group 14,324 13,335 13,149
------------------------------------- ----------- ----------- -----------
A reconciliation of net operating assets to net assets is provided in Note 3.
The Fistreem / Other category includes assets and liabilities of the newly acquired Fistreem International entity, plus operating assets and liabilities which cannot be allocated to the other segments.
5. Earnings per share
The calculation of the basic 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 period. All profit per share calculations relate to continuing operations of the Group.
Profit
attributable Weighted Earnings
to average per share
shareholders number of amount in
GBP'000 shares pence
----------------------------- -------------- ----------- -----------
Basic earnings per share:
-----------
Period ended 31 October
2018 996 89,115,396 1.12
-----------
Period ended 31 October
2017 871 89,152,003 0.98
-----------
Year ended 30 April 2018 1,615 89,391,064 1.81
-----------
Dilutive effect of share
options:
-----------
Period ended 31 October
2018 1,568,842
-----------
Period ended 31 October
2017 2,300,652
-----------
Year ended 30 April 2018 723,173
-----------
Diluted earnings per share:
-----------
Period ended 31 October
2018 996 91,202,266 1.10
-----------
Period ended 31 October
2017 871 91,452,655 0.95
-----------
Year ended 30 April 2018 1,615 90,114,237 1.79
----------------------------- -------------- ----------- -----------
6. Borrowings
31 October 31 October 30 April
2018 2017 2018
GBP'000 GBP'000 GBP'000
--------------------------- ----------- ----------- ---------
Within one year:
Bank finance - 302 -
Finance leases 34 30 29
34 332 29
--------------------------- ----------- ----------- ---------
After one year and within
five years:
Bank finance 1,370 1,139 1,370
Finance leases 8 32 21
--------------------------- ----------- ----------- ---------
1,378 1,171 1,391
--------------------------- ----------- ----------- ---------
Total borrowings 1,412 1,503 1,420
--------------------------- ----------- ----------- ---------
Bank finance for 31 October 2018 relates to amounts drawn down under the Group's revolving bank facility with HSBC Bank plc. The Group has a GBP3,000,000 facility with an accordion option of an additional GBP2,000,000. The termination date of the facility is 3 April 2021, with options to extend for a further two years.
7. Business combinations
On 24 September 2018, the Company acquired the entire share capital of Fistreem International Limited, a company incorporated in England and Wales, for consideration payable in cash.
The provisional allocation of fair values of assets and liabilities acquired is as follows:
Book value Provisional Fair Value
Fair Value
GBP000 adjustment GBP000
GBP000
Assets
Non-current assets
Fixed assets 1 - 1
Intangible assets - trade
names - 24 24
Intangible assets - customer
relationships - 430 430
Total non-current assets 1 454 455
Current assets
Stock 107 (50) 57
Debtors 35 (2) 33
Cash at bank 12 - 12
Liabilities
Trade and other payables (35) (5) (40)
Taxation (45) - (45)
Deferred tax on intangibles
assets (86) (86)
----------- ------------ -----------
Net assets acquired 75 311 386
Goodwill 370
-----------
Consideration and cost of
investment 756
-----------
Fair value of consideration
transferred
Cash paid in year 756
756
-----------
The fair value of the net assets acquired are net of the cash in the business at the acquisition date (GBP862,000) which was paid directly back to the previous owners under the conditions of the purchase agreement.
Fistreem International Limited contributed GBP70,000 revenue and GBP16,000 to the Group's profit for the period between the date of acquisition and the interim balance sheet date, excluding acquisition costs. The goodwill of GBP370,000 arising from the acquisition primarily relates to expected future profitability and growth expectations. Acquisition costs were GBP60,000 and these have been recognised on the face of the consolidated income statement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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