20th May 2014 11:44
LONDON (Alliance News) - Scientific Digital Imaging PLC said Tuesday it expects to report a return to profit for the full-year after benefiting from the implementation of on-going cost efficiencies.
The AIM-listed scientific digital imaging technology firm said it expects to report a profit before and after tax for the full-year to April 30, 2014 despite a small loss previously reported at the half-year.
In a trading update for the year to April 30, 2014, Scientific Digital Imaging said that while its revised management expectations are below previous calls, the firm has achieved a second-half and full-year profit through the implementation of on-going cost efficiencies. The company said it expects these efficiencies to benefit trading in the new financial year.
Revenues during the period were down slightly on the previous year, mainly due to pressure experienced in sales of its Syngene instrumentation, said the firm. Syngene has experienced pricing competition in the market place but this is being combated by SDI with the introduction of a new lower cost unit in the new financial year.
The Synoptics Health division, which focuses on imaging technologies within the clinical environment, has made further sales of its ProReveal medical washroom product, said the company, with 26 demonstration units sold around the world so far. After reporting a decline in revenues in the Synopytics business in the previous half-year, Scientific Digital said it expects to make further progress in the current financial year with a view to penetrating this market.
"The Company's recent successful acquisition of Opus Instruments demonstrates SDI's commitment to its long-term buy and build strategy. The second half profit and full year profit which we expect to report, together with the ongoing investment in the continued evolution of the Company's product range, gives the Board reason to remain cautiously optimistic for trading in this new financial year," said Chairman Ken Ford.
The firm noted that the recent acquisition of Opus Instruments completed near the end of its financial period and accordingly Opus's trading will first have a full-year effect in 2014/5.
In December the company said it had swung to a loss in its first-half as sales declined, although it predicted improved trading in the second-half as new product sales come through. The group reported a pretax loss of GBP74,000 for the six months to October 31, compared with a pretax profit of GBP11,000 a year earlier, as revenues fell to GBP3.5 million, from GBP3.7 million.
The firm will release its preliminary results for the year to 30 April 2014 in July 2014.
Shares in Scientific Digital Imaging were trading 28.02% lower at 15.02 pence per share Tuesday afternoon, the third heaviest faller on AIM.
By Alice Attwood; [email protected]; @AliceAtAlliance
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