Scientific Digital Imaging : 31 August 2016 - Annual Report 2016 Download

Scientific Digital Imaging plc

Annual Report & Accounts 2016

Scientific Digital Imaging plc ("SDI") designs and manufactures scientific and technology products for use in applications including life sciences, healthcare, astronomy, consumer manufacturing and art conservation.

SDI plans to continue to grow through its own technology advancements as well as strategic, complementary acquisitions.

Highlights for the year

Financial Highlights

•Revenue £8.5m (2015: £7.0m) •Increased gross margin 61.1% (2015: 59.2%) •Operating profit £536,000 (2015: £59,000) •Adjusted operating profit £792,000 before costs of reorganisation,

acquisition costs, amortisation of acquired intangibles and share based payments

(2015: £420,000)

•Basic earnings per share 1.17p (2015: 0.15p)

Operational Highlights

•Successful £2.5m equity fundraising enabled us to make the earnings enhancing acquisition of Sentek Limited •Atik sales and profitability exceeded budget

Post balance sheet

•The Department of Health's new guidance confirms that protein levels on a surgical instrument should be measured directly on the surface rather than by swabbing or

other commonly used methods. ProReveal, our highly sensitive fluorescence-based patented protein detection test, is the only marketed product of which we are aware that can adhere to these stringent guidelines. It allows the testing of the whole instrument for protein, rather than just a small, swabbed area, and will be invaluable to the Sterile Services Departments in hospitals throughout the UK and overseas

Contents

For more information, visit:

www.scientificdigitalimaging.com

Strategic report

02 • Chairman's statement

04 • Chief executive's operating report

07 • Strategic report

09 Report of the directors

11 Corporate governance statement

1. Directors' remuneration report

2. Directors' responsibilities

3. Report of the independent auditor

4. Consolidated income statement

1. Consolidated statement of comprehensive income

2. Consolidated balance sheet

3. Consolidated statement of cash flows

4. Consolidated statement of changes in equity

5. Notes to the consolidated financial statements

1. Report of the independent auditor on the company financial statements

2. Company balance sheet

3. Company statement of changes in equity

4. Company statement of cash flows

5. Notes to the company financial statements

52 Company advisors

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2016 Annual Report Scientific Digital Imaging plc

STRATEGIC REPORT

Chairman's statement "During the year SDI has seen continued growth in its Synbiosis and Synoptics Health brands alongside high levels of growth in Artemis CCD. Together with the acquisition of Sentek, these have been the major contributors to the Group's improved profitability. As well as investing in its current operations, SDI will continue to assess new businesses with complementary products and plans to add further new companies to the Group."

Ken Ford

Chairman

Overview

The year to 30 April 2016 was a turning point for Scientific Digital Imaging Plc ("SDI"), A successful fundraising enabled us to acquire the earnings enhancing company, Sentek Limited ("Sentek") and we are continuing to grow a diversified Group with increasing revenue streams.

Having raised £2.5 million in the year, we will continue to pursue our buy and build strategy and have identified a number of potential acquisitions that have complementary technologies.

The Board is confident that SDI is now in an excellent position for continued growth through increased revenue and the potential for further acquisitions in 2016/17.

Financial Results

Revenue for the year ended 30 April 2016 was £8.5m (2015: £7.0m). This has resulted in an operating profit for the year of £738k before acquisition, fund raising costs and share based payments. This result is inclusive of currency losses. Basic earnings per share were 1.17p (2015: 0.15p) and diluted earnings per share were

1.15p (2015: 0.15p).

Strategy

During the year SDI has seen continued growth in its Synbiosis and Synoptics Health brands alongside high levels of growth in Artemis CCD. Together with the acquisition of Sentek, these have been the major contributors to the Group's improved profitability.

SDI continues to assess new businesses with complementary products and plans to add further new companies to the Group by the end of 2016/17. SDI will also continue to invest in its current operations.

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Scientific Digital Imaging plc 2016 Annual Report