SDV - SciDev Limited

[Dona Ferentes]

and a couple of recent wins

1. SDV will participate in a commercial trial with Fortescue Metals Group Limited (ASX:FMG), one of the world's leading producers of iron ore, to be conducted at Fortescue's Solomon Hub, located in the Pilbara region of Western Australia.
SciDev progressed through a competitive tender process and have been invited to participate in a one week field qualification trial, representing A$60,000 in revenue. The field qualification will focus on the performance of the MaxiFlox® chemistry under plant operating conditions for water treatment solutions.
.... Small but with potential


2. SciDev Limited is pleased to announce that it has signed a contract for supply of its MaxiFlox chemistry with SLN, a subsidiary of Eramet, the world’s number one producer of ferronickel, a key raw material input to the stainless steel market.
The commercial supply will begin in FY21 for SLN’s Nepoui and Tiebaghi nickel operations. SciDev progressed through laboratory and field qualifications in early FY21. The Company’s MaxiFlox® chemistry and OptiFlox® technology will be used onsite to improve operational efficiency and water use.
.... Not sure how big.

 

[Dona Ferentes]

and another acquisition (mainly scrip based)


SciDev to Acquire Haldon Industries extending its presence in the Water and PFAS sector

• Strategic acquisition of Haldon Industries Pty Ltd, an Australian based environmental engineering solutions company focussed on the water and persistent organic pollutant sectors; the acquisition will have a maximum consideration of A$16.9m, with Equity on completion and Cash subject to future milestones.
• SciDev shares will be issued to Haldon principals at A$0.80 per share with a cash payment of A$1.7m on completion subject to a working capital adjustment. Additional cash payments will be made from Haldon delivered cashflow pending FY21, FY22 and FY23 performance and is subject to revenue and minimum EBITDA targets.
• Haldon have a created a strong presence providing innovative solutions in the Per- and Polyfluoroalkyl (PFAS) market in Australia via their mobile treatment plants. Haldon’s PFAS solution is world class removing PFAS to undetectable levels while reducing the waste volume by c.20,000 times, which is 100 times greater than existing commercial alternatives.
• In FY20 Haldon delivered A$8.13m of revenue and generated an EBITDA of more than A$3m on an unaudited, cash basis. Haldon’s people, products and services are highly complementary to SciDev. Haldon founders Sean Halpin and Jake Reardon to take senior leadership roles with SciDev and the remaining Haldon employees to join operational roles in the water segment.
• The acquisition of Haldon provides SciDev with presence and scale in the infrastructure, and water and wastewater verticals via Haldon’s key services of water treatment, remediation, groundwater dewatering and onsite liquid waste treatment.

 

[Garpal Gumnut]

Thanks again @Dona Ferentes and @Faramir . SDV is using its legs over this week. Touched the $1.00 mark, last I looked.

gg

 

[Dona Ferentes]

SciDev record quarterly revenue + 183% on pcp, net cash from operations A$1.4m, record FY21 revenue of A$42.7m

Quarterly Activities Report: Q4 FY2021 Highlights

▪ Strong finish to the year with Q4FY21 delivering record quarterly cash receipts of A$14.7m and sales of A$13.2m (versus A$11.3m and A$11.2m respectively in Q3FY21)
▪ FY21 revenue of A$42.7m up 133% versus FY20 (A$18m)
▪ Gross profit margin for Q4FY21 remains in line with previous quarters at c.23%
▪ Net cashflow from operations of A$1.4m, net cash at the end of the quarter of A$7.0m
▪ Acquisition of Haldon Industries Pty Ltd completed, renamed SciDev Water Services
▪ A$1.5-$2m contract with Sydney Gateway Road Project water treatment plant
▪ New PFAS water treatment contract awarded with a major state fire and emergency service
▪ MaxiFlox® field and technical qualifications completed in Canadian oilsands and with FMG
▪ Strong business development pipeline with ongoing field qualifications across numerous sites

 

[Dona Ferentes]

Chemical engineering solutions company SciDev is raising $20 million to upgrade and consolidate its NSW facilities and fund the milestone payments for acquired company Water Services, which over delivered on its EBITDA target.

The business, which focuses on solutions for wastewater reduction from industrial processes, is raising $18 million from institutional investors, while also undertaking a $2 million share purchase plan.

The business will also use part of the proceeds to fund green chemistry initiatives designed to displace oil-based chemistries, which it believes is an $11 billion market.

The offer is priced at 65¢, representing a 9.7 per cent discount to its last trading price.

 

[Dona Ferentes]

SDV has been lagging; still under 60c. I guess it isn't glamorous actually putting in the hard work.

Financial Highlights*
▪ Q2 FY22 revenue of A$13.7m a 32% uplift on Q1 FY22 with cash receipts of A$9.77m
▪ The December quarter saw a return of one-off project and services revenue as COVID related travel restrictions eased in some Australian states
▪ Operating cashflow in 2nd quarter was negative $1.9M primarily due to a planned inventory build, taking advantage of prevailing market prices and to insulate from seasonal supply chain risks
▪ The company successfully raised $17.4M in additional capital to be used to accelerate the growth of the business
▪ Cash and cash equivalents of A$16.4m as 31 December 2021

 

[Dona Ferentes]

SDV has been lagging; still under 60c. I guess it isn't glamorous actually putting in the hard work.

and down 30%, to 28c . CEO pulled the plug.

During the quarter, the Company delivered a net operating cash outflow of A$2.6m. The reduction in cashflow through the period was a result of:
• Timing of working capital payments to build inventory
• Increase in debtors associated with elevated March sales in the Water Treatment vertical
• Timing of cash receipts from revenue associated with the strong activity levels in March. SciDev typically works on a 60-90 day cash conversion cycle

Financial Highlights
▪ Quarterly EBITDA of A$1.8m (unaudited)
▪ Q3 FY22 revenue of A$13.1m with cash receipts of A$13.7m
▪ Gross profit margin of 44%, an improvement on the 22% in the prior period as the Company benefited from high-margin, one-off revenue generated by the exceptional rainfall across the Eastern Seaboard of Australia in March.
▪ SDV remains focussed on driving sustainable margin improvement as the Company’s business mix continues to transition to higher-margin environmental solutions.
▪ Operating cashflow outflow of A$2.6m due to the timing impacts of payments made to build inventory to reduce supply chain risk and the timing of cash receipts from the strong revenue in March. The working capital trend is expected to reverse in Q4 FY22.
▪ Cash and cash equivalents of A$12.6m at 31 March 2022 with a further A$5.8m in inventory.

Outlook
Management focus for FY22 will include:
▪ Reversal of the working capital cycle that existed in Q3 FY22 to drive a positive cashflow period for the June quarter and maximising operating cashflow for FY22 and maintaining positive EBITDA for the year.
▪ Growth of the water treatment business focusing on solving clients' complex water treatment needs reducing contaminants to levels acceptable for drinking water or discharge to the environment in line with the most stringent guidelines.
▪ Driving SciDev's position as a technology and solution provider in the growing PFAS market.

 

[Dona Ferentes]

and down 30%, to 28c . CEO pulled the plug.

Even though 2021 saw SDV turn earnings positive, the market isn't pricing in much of a story. Now down to 18c, just off the low of 16c in June.

The last news was an Outlook late April, when it was 40c . A negative was that during the quarter, the Company delivered a net operating cash outflow of A$2.6m. The reduction in cashflow through the period was a result of:
• Timing of working capital payments to build inventory
• Increase in debtors associated with elevated March sales in the Water Treatment vertical
• Timing of cash receipts from revenue associated with the strong activity levels in March. SciDev typically works on a 60-90 day cash conversion cycle.

At the same time, and contributing to the malaise, the CEO went, after 3 years in the role. Sean Halpin, currently the Commercial Director of Water Services for SciDev, has been appointed as the interim CEO while a search is completed for the new CEO. Three months later, and nothing.

 

[Telamelo]

Even though 2021 saw SDV turn earnings positive, the market isn't pricing in much of a story. Now down to 18c, just off the low of 16c in June.

The last news was an Outlook late April, when it was 40c . A negative was that during the quarter, the Company delivered a net operating cash outflow of A$2.6m. The reduction in cashflow through the period was a result of:
• Timing of working capital payments to build inventory
• Increase in debtors associated with elevated March sales in the Water Treatment vertical
• Timing of cash receipts from revenue associated with the strong activity levels in March. SciDev typically works on a 60-90 day cash conversion cycle.

At the same time, and contributing to the malaise, the CEO went, after 3 years in the role. Sean Halpin, currently the Commercial Director of Water Services for SciDev, has been appointed as the interim CEO while a search is completed for the new CEO. Three months later, and nothing.

It's cheap for a reason but perhaps worthy of adding to watchlist for possible turnaround story..

 

[Dona Ferentes]

been a bit of a rebuild for SDv ... the work's there but ... but ..

Q1 FY23 Financial Highlights
▪ Record revenue of A$25.6m (+40% on pcp) and record cash receipts of A$23.6m (+24% on pcp)
▪ Improved quarterly EBITDA result of A$1.7m
▪ Gross profit margin of 23%
▪ Breakeven cashflow from operations with cashflow impacted by working capital movements, primarily in Energy Services, as SciDev engages directly with Tier-1 drilling companies
▪ Strong balance sheet with cash and cash equivalents of A$12.4m at 30 September 2022, with a further A$6.4m in inventory.

"Our water business delivered a strong quarter demonstrating the ongoing acceptance of our PFAS technology. During the period, we treated PFAS-contaminated water on seven sites for clients across various industries and continue to engage with multiple blue-chip mining and infrastructure companies to provide sustainable solutions for their PFAS challenges.

"In mining, our Maxiflox technology continues to deliver process efficiencies for our clients while reducing their waste footprints. This, along with the roll-out of our high actives suspension technology, has resulted in several new orders and contracts as our momentum continues to build in this space.

"Energy Services continues to benefit from the strong oil price, and we continue to extend our client base in this market. Notably, we are seeing increased demand from Tier-1 drilling and E&P companies for our range of specialty chemistries which we expect will continue to drive baseline growth even when oil prices and activity levels normalise.

 

[Dona Ferentes]

And maybe awaking ... from 30c to 36c in the last few days since announcement:

SciDev secures major BOO Contract to treat PFAS impacted leachate
Highlights
• SciDev has secured a contract with Cleanaway to deploy a Build Own Operate water treatment plant in Queensland to treat PFAS-impacted leachate.
• The contract has a minimum value of $2.15m with material upside potential. The minimum contract value is based on a fixed volume threshold of leachate to be treated. The upside to the contract value will be recognised as volumes of leachate in excess of this threshold.
• SciDev will commence detailed design and off-site construction of the WTP immediately and will mobilise to site in February 2023, ...

... got to think there could be more to come

 

[Dona Ferentes]

this would have to be the modern equivalent of a motherhood stock. The more recovered, the better, and Cleanaway is the biggest operator.

... with material upside potential. The minimum contract value is based on a fixed volume threshold of PFAS-impacted leachate to be treated. The upside to the contract value will be recognised as volumes of leachate in excess of this threshold.

 

[Dona Ferentes]

And maybe awakening ... from 30c to 36c in the last few days since announcement:

Now 43c, putting in the grunt work, picking up contracts. Hope the margins are holding and costs don't blow out .

 

[Dona Ferentes]

back to 31c ... picking up work, and probably a few more like this down the track.

 

[Garpal Gumnut]

back to 31c ... picking up work, and probably a few more like this down the track.

View attachment 157059

This is the story of SDV.

I remember trading it in 2020, it never really takes off and consolidates up, but can provide tidy profits on the trend.

Perhaps worth a one-eyed dart atm. though.

The 5 year chart is interesting.




gg

 

[Dona Ferentes]

still languishing... 27c.
.
SciDev delivers 62% revenue growth in FY23 .. but ..

FY23 Financial Highlights

• FY23 revenue of A$89.8m (+62% vs FY22) and underlying EBITDA of A$4.1m (FY22: $1.9m)
• Secured contracts with clients with a total contract value in excess of A$50m
• Operating cash inflow of A$4.8m
• Reported loss after tax of $A0.3m
• Cash and cash equivalents at 30 June 2023 of A$7.7m with A$6.9m in inventory

FY23 Operational Highlights

• Awarded a three-year contract agreement with First Quantum Minerals at the Ravensthorpe Nickel Operations, expected to generate A$9.5m in sales
• Awarded contracts with Iluka Resources with a total contract value of over A$28m
• Continued supply of SciDev's proprietary suspension polymer technology, Xslik 620, to major US E&P companies
• Secured two PFAS treatment contracts with Cleanaway Waste Management with a combined value of A$5.3M
• Awarded an Operation and Maintenance contract for 98 remote water quality monitoring units across multiple mines in WA
• Operated on ten PFAS treatment projects throughout 2023, generating A$7.8m in revenue.
• Secured a trademark for our proprietary PFAS treatment technology - FluorofIX™
• Appointed Vice President – Europe for Water Technologies. This role will be responsible for implementing strategic initiatives to drive the growth of our Water Technologies vertical in the European market.

 

[Dona Ferentes]

This is the story of SDV.
I remember trading it in 2020, it never really takes off and consolidates up, but can provide tidy profits on the trend.

and a recent run, from a lower base.

- A Contract last week, and quarterly today

Q3 FY24 Financial Highlights
- Revenue of $29.1m, up 38% on Q3 FY23 (previous corresponding period) and cash receipts of $31.3m
-Cashflow from operations of $3.8m and underlying EBITDA of $3.6m
- Stronger gross profit margin of 30% driven by growing demand for proprietary chemistry solutions, particularly in Energy and improved profitability in the Water Technologies business
- Cash and cash equivalents at 31 March 2024 of $9.1m ($5.8m at 31 December 2023).

YTD FY24 Financial Highlights
- YTD FY24 revenue of $79.4m and unaudited underlying EBITDA of $6.8m, up 12% and 62%, respectively, on the same period in FY23
-Positive operating cashflow of $4.3m.

Q3 FY24 Operational Highlights
- Successfully executed field trial of MaxiFlox® chemistry to a major global gold producer in Central America
- Nuoer SciDev JV Pte Ltd incorporation established in Singapore, expanding on the current partnership with Nuoer Group to take the MaxiFlox® chemical solutions to the global mining industry
- Operated on nine PFAS treatment projects through Q3, generating $3.0m in revenue
- Post quarter end, SciDev executed a contract with an initial value of approximately $2m with Ventia Utility Services Pty Ltd for the supply of a Build Own Operate water treatment plant using FluorofIX™ to remediate a PFAS contaminated site in Victoria.

 

[Dona Ferentes]

- A Contract last week, and quarterly today
Q3 FY24 Financial Highlights.

And it would appear that contract and the Q have moved SDV along, of late.

10th April 2024
SciDev awarded new PFAS water treatment contract in Victoria

Highlights
- SciDev has secured a contract with Ventia to supply a Build Own Operate temporary water treatment plant in Victoria to treat PFAS contaminated surface water.
-The contract has an initial value of approximately $2m in revenue which is anticipated to be generated across a 6-month period.
- The water treatment plant will utilise SciDev’s proprietary, market leading PFAS treatment technology - FluorofIX™.

 

[Dona Ferentes]

at a high for the last 2 years, now 45c and lifting 10 per cent on Q data...
.
Q4 FY24 Financial Highlights
• Strong group revenue of $29.9m, up 56% on Q4 FY23 (previous corresponding period) with cash receipts of $32.6m
• Cashflow from operations of $2.2m and underlying EBITDA of $2.1m
• Cash and cash equivalents at 30 June 2024 of $9.4m ($9.1m at 31 March 2024)
• Growth in group revenue reflects continued growth in both Water Technologies and Chemical Services.

Q4 FY24 Operational Highlights
• Chemical Services operated across four Oil & Gas basins in North America, supporting an average of 8 completion fleets during the quarter
• Water Technologies awarded a contract of an initial value of approximately $2m with Ventia to supply a Build Own Operate water treatment plant in Victoria to treat PFAS contaminated surface water.
• Water Technologies secured a second contract with Acciona Construction Australia Pty Ltd to design and construct a water treatment plant to support the construction of the Western Harbour Tunnel in Sydney, with a headline contract value of $4.75m
• New purchase orders received for supply of MaxiFlox® flocculant and coagulant for continual trials in Central America.

FY24 Financial Highlights
• Record annual revenue in FY24 of $109.3m up 22% on FY23
• Unaudited underlying EBITDA of $8.9m up 118% on FY23
• Positive operating cashflow of $6.5m for the full year