SciDev (ASX:SDV) - Managing Director & CEO, Lewis Utting
Managing Director & CEO, Lewis Utting
Source: Switzer Financial Group
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  • Chemistry technology developer SciDev (SDV) has spiked today after announcing record quarterly sales for the first quarter of the 2021 financial year
  • Sales for the September quarter came in at $9.4 million — a healthy increase on the June quarter’s $5.5 million
  • The sales numbers underpinned an unaudited net profit for the quarter of roughly $500,000
  • SciDev Managing Director and CEO Lewis Utting says the quarterly numbers are particularly pleasing given the impact of COVID-19 on the June quarter
  • Investors seem impressed with the numbers, too, with SciDev shares up over 10 per cent this afternoon and currently trading for 75 cents each

SciDev (SDV) has spiked today after announcing record quarterly sales for the first quarter of the 2021 financial year.

The company told shareholders this morning quarterly sales came in at $9.4 million for the September quarter — a healthy increase on the June quarter’s $5.5 million.

In fact, sales in the month of September were the second-highest in company history at $4.6 million.

The strong sales numbers underpinned a $500,000 net profit for the quarter, according to SciDev, though it’s important to note that this figure is unaudited.

SciDev produced chemistry and water separation tech for four key sectors: mining and mineral processing, oil and gas, construction and infrastructure, and water and wastewater.

Over the September quarter, $93 per cent of company revenue was split relatively evenly across the mining, oil and gas, and construction industries, together with pulling in just under $8.7 million. The remaining seven per cent came from water and wastewater treatment.

Of course, on an operation level, the company’s $5.6 million in cash receipts were outweighed by $10.85 million in manufacturing and operating costs.

Nevertheless, SciDev said a quarterly reduction in accounts payable and increase in accounts receivables means it technically went cashflow positive for the quarter when excluding inventory and growth items.

SciDev Managing Director and CEO Lewis Utting said the September quarter was “outstanding” for the company.

“After a COVID impacted June quarter, our growth across all verticals in the September quarter was exceptionally pleasing,” he said.

“With our range of contracts with Bluechip customers and numerous field qualifications scheduled to commence in the December quarter the outlook for the company is strong,” he said.

Looking ahead, SciDev said its second-quarter focus for the 2021 financial year will be on further boosts to sales and cash conversion and progressing commercial discussions across several business development opportunities.

At the end of September, SciDev had $5.6 million in the bank and $7.5 million in unused finance facilities.

Shareholders seem impressed with today’s report, with SciDev shares up 10.29 per cent at 2:17 pm AEDT and trading for 75 cents each. The company has a $114.17 million market cap.

SDV by the numbers
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