SciDev : Appendix 4D - Interim Report

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SciDev Limited Directors' report 31 December 2021

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of SciDev Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.

onlyDirectors

The following persons were directors of SciDev Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Vaughan Busby (appointed a Director and Non-executive Chairman on 9 August 2021) Lewis E Utting

Simone Watt

J n Gourlay

Dan O'Toole (appointed a Director on 3 February 2021 and Acting Chairman from 30 June 2021 to 9 August 2021)

usePrincipal activities

The principal activity of the consolidated entity is delivery of process control, professional services, equipment design and construction (including build, own operate services) and chemistry in the Mining and Mineral Processing, Infrastructure and Con truction, Water Treatment and Oil & Gas markets.

Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Review of operations

personalThe loss for the consolidated entity after providing for income tax amounted to $2,298,000 (31 December 2020: profit of $427,000).

H1 FY22 revenue at $24.1M was up $5.8M or 32% year on year on H1 FY21 sales of $18.3M. Strong sales performance occurred in the USA Oil & Gas market year on year which offset lower activity in the Australian construction sector while Water Services revenue had a solid performance.

Pre tax loss in H1 of $2.3M was down $2.88M pcp as higher profits from Oil & Gas and Water year on year were offset by l wer outcomes at Mining & Construction and higher Corporate costs.

Ca h flow from operations in the first half was negative $1.33M vs $4.23M in H1 FY21. H1 FY22 operational cash flows were impacted by a planned inventory build to take advantage of market prices in the second quarter and insulate the business against any supply chain risks in Q3.

The company undertook a equity issue for a $18M capital raise in the first half and closing at Bank 31/12/21 was $16.4M.

Significant changes in the state of affairs

On 15 September 2021, SciDev Limited issued 513,000 new ordinary shares at $0.60 to the vendors of ProSol Australia Pty Ltd (refer note 15). The shares issued represented the fair value of the contingent consideration to be settled by the issue of SciDev Limited shares.

ForOn 9 November 2021, SciDev Limited announced the placement of 27,692,308 new ordinary shares with institutional investors at an issue price of $0.65 per share (refer note 15).

On 29 November 2021, SciDev Limited issued 527,671 new ordinary shares at $0.65 per share pursuant to a Share Purchase Plan (SPP) (refer note 15).

During the half-year, the consolidated entity paid contingent consideration of $2,922,039 (refer note 14) and deferred consideration of $879,685 to the vendors of Haldon Industries. The consolidated entity also paid contingent consideration of $313,000 to the vendor of ProSol Australia Pty Ltd (refer note 14).

There were no other significant changes in the state of affairs of the consolidated entity during the financial half-year.

Matters subsequent to the end of the financial half-year

No matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

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