Scientific Digital Imaging reported higher interim revenues but foreign exchange movements exacerbated a fall in the digital imaging instrument supplierís profit.
Revenues rose 7% to £3.42m in the six months to October 2009.The profit dropped from £255,000 to £43,000. Stripping out currency and Aim flotation costs, the fall in profit was from £187,000 to £75,000. SDI has already built a base on which it can add acquisitions.
The Synbiosis microbiology division has launched a newly redesigned product for the sector. This should help boost second half revenues.
Net cash is £163,000. There is cash in the bank of £602,000 and most of the debt is loan stock repayable in 2013. Management is confident that it will be able to raise additional cash if it finds an acquisition.
SDI is seeking acquisitions but hasnít found anything suitable since floating on AIM. Management is confident that they will find an acquisition this year. SDI wants to be a consolidator in the scientific instruments sector. Nearly all the potential targets are small private businesses. Price expectations remain high and that has hampered progress. SDI could look at acquiring competitors or businesses in related areas.
SDI was introduced to Aim at 12p a share and is trading at 13.5p a share, which values the company at £2.43m.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.