Scientific Digital Imaging : 26 July 2017 - Final results for the year ended 30 April and Directorate Appointment Download

SCIENTIFIC DIGITAL IMAGING PLC Final Results for the year ended 30 April 2017 and Directorate Appointment

The Board of Scientific Digital Imaging plc, the AIM quoted group focused on the design and manufacture of scientific and technology products for use by the life science, healthcare, astronomy, consumer manufacturing and art conservation markets, is pleased to announce its final audited results for the year ended 30 April 2017.

Financial Highlights

• Revenue increased to £10.7m (2016: £8.5m)

• Gross margin increased to 64.3% (2016: 61.1%)

• Adjusted profit before tax* increased to £1,309,000 (2016: £779,000)

• Profit before tax increased to £903,000 (2016: 496,000)

• Basic earnings per share 1.17p (2016: 1.17p)

• before acquisition costs, amortisation of acquired intangibles, reorganisation costs and share based payments

  Operational Highlights

  • Continued the buy and build policy with a third acquisition in less than three years. Successful

£3.1m equity fundraising enabled us to acquire Astles Control Systems Limited

Directorate Appointment

The Company also announces the appointment of David Tilston as Non-Executive Director, with immediate effect.

David has over 30 years' experience in finance functions within public companies. Most recently, David held the role of Interim Group CFO at the LSE Main Market listed company Consort Medical plc. Prior to that, David held senior finance roles at Innovia Group, Mouchel Group plc, Findel plc, SABMiller plc and SThree plc.

Ken Ford, Chairman of SDI said:

"The Board expects SDI to make good progress over the coming financial year as we continue to pursue our strategy of organic and acquisitive growth. The positive contribution of Sentek and Artemis CCD via their global OEM business, as well as direct sales of Synbiosis and Astles products, are expected to drive continued growth and profitability."

FOR FURTHER INFORMATION

Scientific Digital Imaging Plc Ken Ford, Chairman Mike Creedon, Chief Executive Officer www.scientificdigitalimaging.com	01223 727144
finnCap Ltd Ed Frisby/Kate Bannatyne - Corporate Finance Mia Gardner/Camille Gochez - Corporate Broking	020 7220 0500

JW Communications Julia Wilson - Investor & Public Relations

07818 430 877

About SDI:

Scientific Digital Imaging plc designs and manufactures scientific and technology products for use in applications including life sciences, healthcare, astronomy, consumer manufacturing and art conservation. SDI intends to continue to grow through its own technology advancements as well as strategic, complementary acquisitions.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

The following disclosures are required regarding David Tilston's appointment pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies:

Full Name: David Frank Tilston FCA Age: 59

Current directorships and partnerships:

Hexameter Services Limited

Past directorships and partnerships held over the last 5 years:

CCL Secure (Holding) Limited CCL Secure Limited

Consort Medical plc

Innovia Group (Finance) Ltd Innovia Group (Finance 1) Ltd Innovia Group (Finance 2) Ltd Innovia Group (Holding 1) Ltd Innovia Group (Holding 2) Ltd Innovia Group (Holding 3) Ltd Innovia Group (Holding 2014) Ltd Sepura plc

David has no shareholding in the Company.

No further disclosure is required under AIM Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies with respect to David Tilston.

Chairman's Statement Performance

The financial year to 30 April 2017 was a successful year for Scientific Digital Imaging plc ("SDI") with increased turnover, profit and earnings per share. We completed another successful fundraising and acquired Astles Control Systems Limited 'Astles', a major supplier of chemical dosing and control equipment with a useful recurring revenue stream. The addition of a profitable business which uses

products from Sentek, one of our other recent acquisitions, will further balance our portfolio of technologies and exposure to risk.

Having raised £3.1 million in 2016, we are continuing to pursue our successful buy and build strategy. We have identified several potential acquisitions with technologies which will complement our existing portfolio.

SDI has increased the footprint and in-house capabilities of its manufacturing facilities and continues to invest in research and development to maintain the Company's technology expertise and output capacity.

Astles did not contribute a full year's revenue in FY17 because the firm was only acquired in January 2017 but we expect our new acquisition will enhance earnings for the Group in its first full year of ownership.

Sentek exceeded its sales forecast and this is due in part to an expansion of the OEM side of the business, where large contracts have been negotiated for the supply of sensors with major life science and healthcare firms.

Atik Cameras also exceeded its forecast, driven mainly by sales of bespoke and off-the-shelf cameras to OEM customers in the life science sector. Synbiosis has seen good sales growth of its ProtoCOL 3 system in pharmaceutical markets for vaccine and antibiotic testing where the division has added new analysis software.

Opus, the camera for the art market, generated good steady sales.

Synbiosis, the colony counting division of Synoptics also showed growth in sales. Synoptics reduced its cost base towards the end of the financial year which we should see the benefit of in the current year.

People

On behalf of the Board, I would like to thank all our staff for their hard work in ensuring that our products are manufactured to budget targets and meet our OEM and direct customers' current and future needs.

Outlook

The Board expects SDI to make good progress over the coming financial year as we continue to pursue our strategy of organic and acquisitive growth. The positive contribution of Sentek and Atik via their global OEM business, as well as direct sales of Synbiosis and Astles products, are expected to drive continued growth and profitability. The Board is confident that SDI is now in an excellent position for profitable growth through increased revenue and the potential for additional acquisitions in 2017/18. The Board views the current financial year very positively.

Ken Ford Chairman 25 July 2017

Chief Executive's Operating Report

SDI designs and manufactures scientific products for use in applications including life sciences, healthcare, astronomy and art conservation, through its Synoptics Divisions (Syngene, Synbiosis and Synoptics Health), and its Atik Cameras brands (Atik, Artemis CCD and Osiris). SDI also develops and manufactures electrochemical sensors through Sentek, as well as chemical dosing and control equipment via Astles.

Atik Cameras

Atik Cameras designs and manufactures highly sensitive cameras. These are marketed for life science and industrial applications under its Artemis brand and for deep-sky astronomy imaging as Atik cameras. During the year, development and manufacturing of Opus Instruments' OSIRIS camera for art conservation and restoration has been taken in-house by Atik Cameras. Integrating a complementary imaging technology into the Atik Cameras portfolio, ensures economies of scale in terms of overheads and development costs will be achieved going forward.

Atik Cameras has continued to increase sales and profitability of its CCD cameras in the life science industry this year. Sales of cameras to OEM customers, including intra-company sales to SDI's Synoptics group now account for around 80% of turnover. Atik Cameras' strategy of offering a bespoke approach to potential OEM customers has resulted in an agreement with one of the world's leading life science companies, to design and supply high quality CCD cameras for new high-end laboratory analysis systems. These are aimed at the US market and are expected to sell well throughout 2017/18 and provide a steady revenue stream. Atik Cameras is seeking additional opportunities with new OEM clients.

Sales to amateur astronomers have also grown. To expand the portfolio, at the end of 2016, Atik Cameras introduced a high-resolution astrophotography camera, the Atik 16200. This offers astronomers who have used an entry level Atik camera the choice of a high specification camera from a brand they trust that enables them to capture more detailed star images.

The company is assessing using CMOS (Complementary Metal-Oxide-Semiconductor) sensors instead of CCDs in some of its cameras. These are less expensive than CCD-based sensors, offering the opportunity to increase profitability of some camera products without compromising on image quality. Atik Cameras will be introducing prototype cameras with CMOS sensors later in 2017.

To keep pace with the increase in new product development and manufacturing, Atik Cameras has increased the size of its facility in Lisbon and has successfully attained ISO 9001 accreditation to demonstrate that it can provide cameras that meet major life science customers' high specifications and regulatory requirements. The division has also invested in software design staff and in-house CAD engineering capabilities to ensure customer driven product development can be fulfilled.

Opus Instruments

The Opus OSIRIS camera was developed as a collaboration with the National Gallery. The camera is now a world leader in the field of Infrared Reflectography and is now being manufactured by Atik Cameras. Demand for the OSIRIS camera throughout the year remained steady and sales to prestigious institutions, including the Van Gogh Museum in The Netherlands, continue.

Atik Cameras is developing an upgraded, higher specification version of the OSIRIS camera which it expects to launch in 2018. This will be marketed to customers who have the first-generation OSIRIS camera as many have expressed the need for this type of camera.