SciDev’s Revenue Falls 4% as Underlying EBITDA Drops to $1.1M
SciDev Limited posted a $2.14 million loss for the half-year ending December 2025, impacted by restructuring costs and a failed acquisition. Despite a 4% revenue dip, the company secured a major $19.5 million contract and maintains a strong balance sheet.
- Half-year loss widened to $2.14 million from $68,000
- Revenue declined 4% to $47.9 million
- Underlying EBITDA fell to $1.1 million due to restructuring and acquisition costs
- Secured $19.5 million groundwater treatment contract at Rum Jungle Mine
- Maintains $7.5 million cash and $6 million unused debt facilities
Financial Performance and Loss Drivers
SciDev Limited has revealed a significant increase in its half-year loss after tax, reporting a $2.14 million deficit for the six months ended 31 December 2025, compared to a modest $68,000 loss in the prior corresponding period. This sharp downturn was accompanied by a 4% decline in revenue, which fell to $47.9 million from $49.9 million the previous year.
The company’s underlying EBITDA also contracted markedly, dropping to $1.1 million from $3.4 million. Management attributed this decline primarily to $0.7 million in restructuring and redundancy expenses, alongside a $0.8 million charge for due diligence costs related to a potential acquisition that ultimately did not proceed. These one-off costs weighed heavily on earnings quality during the period.
Operational Highlights and Segment Performance
Despite the financial setbacks, SciDev’s core operations showed pockets of strength. The Chemical Services segment experienced growth, notably with a 75% increase in clients purchasing its flagship CatChek product within Energy Services. Process Chemistry also achieved record revenues, driven by large-scale tunnelling projects linked to metro and road infrastructure developments.
Meanwhile, the Water Technologies division secured a substantial $19.5 million contract to design and construct a multi-stage groundwater treatment plant addressing contamination from legacy uranium mining at the former Rum Jungle Mine. However, international operations in this segment faced rising cost pressures, prompting a strategic pivot from direct investment to a lower-cost channel partner model. This move is expected to reduce annual costs by nearly $3 million while preserving access to key overseas markets.
Balance Sheet and Liquidity Position
SciDev maintained a robust balance sheet with $7.5 million in cash reserves and $7.7 million in inventory at the half-year mark. The company also holds $6 million in unutilised debt facilities, providing financial flexibility to support ongoing operations and potential growth initiatives. Operating cash flow was negative $0.7 million, impacted by the aforementioned acquisition-related expenses and restructuring costs.
Outlook and Strategic Considerations
The directors expressed confidence in the company’s operational foundations and its ability to meet financial obligations despite the current loss. The strategic joint venture with Nuoer Chemicals is expected to enhance manufacturing capabilities and global competitiveness in the Chemical Services segment. Meanwhile, the cost restructuring in Water Technologies aims to improve profitability and sustain long-term growth prospects.
However, the absence of dividends and the significant loss raise questions about near-term profitability and the impact of non-recurring expenses. Investors will be watching closely for signs of recovery in earnings and the successful execution of new contracts and strategic initiatives.
Bottom Line?
SciDev’s half-year results underscore a challenging transition period, balancing restructuring costs with promising contract wins and strategic realignments.
Questions in the middle?
- How will SciDev’s restructuring and cost-cutting measures impact profitability in the next half-year?
- What are the prospects and timelines for the potential acquisition that was under due diligence?
- How will the shift to a channel partner model affect international Water Technologies revenue and margins?
