Financial and operational performance update for 1H FY24

SciDev Ltd (ASX: $SDV) has released its financial and operational performance update for the six months ended 31 December 2023. The company reported a revenue of $50.3m, reflecting a 1.5% increase from the previous corresponding period. The underlying EBITDA surged by 29.4% to $3.2m compared to 1H FY23. SciDev also achieved a net profit after tax of $57k, a significant improvement from the $27k profit in 1H FY23. The company maintained a positive operating cashflow of $0.5m and had cash and cash equivalents of $5.8m with $8.1m in inventory as of 31 December 2023.

Executive commentary on 1H FY24 performance

SciDev CEO Seán Halpin expressed satisfaction with the company's performance in 1H FY24, stating, 'We continue to experience growing global demand for our Chemical Services and Water Technologies, which underpins our financial growth. Importantly, we are seeing strong demand for our chemistry solutions in the North American and European markets, opening up further avenues of growth for our Company. The improving profitability of our business through the 1H FY24 reflects the leverage we have in our business, and with a strong pipeline, we anticipate to continue delivering improved financial performance in coming periods.'

Outlook and future strategies

SciDev delivered a record EBITDA of $3.2m, reflecting the business's growing scale and operational leverage. The company secured several major new contracts and expanded its client base, positioning SciDev well for further growth in 2H FY24 and beyond. With a growing portfolio of major new contracts and strong demand across its end markets, SciDev is well-positioned to continue to grow its operational and financial footprint across FY24. The company's key areas of focus include ongoing emphasis on the health and safety of its employees, expansion of market share in the global mining sector, diversification of its Oil and Gas industry client base, and delivering the Water Technologies' current order book while developing business systems and processes to enable sustainable growth. SciDev also aims to utilize its proven technologies, FluorofIXTM and RegenIXTM, to generate revenue from its developing North American PFAS pipeline, explore opportunities to accelerate growth in Europe, and continue executing business development opportunities in the domestic and overseas construction sector.