Acquisition of MPB Industries
Scientific Digital Imaging plc
("SDI", the "Company" or the "Group")
Acquisition of MPB Industries Limited
The Board of Scientific Digital Imaging plc, the AIM quoted group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications, is pleased to announce the acquisition on 4 April 2019 of MPB Industries Limited ("MPB") for a consideration of £1,586,000 (the "Acquisition").
· MPB designs and manufactures flowmeters and process control instrumentation, with applications in water treatment, oil and gas production, medical anaesthesia, scientific analysis and many other areas
· MPB will become part of the Group's Sensors & Control operating segment
· For the year ended 31 December 2018, MPB achieved revenues of £1.90m, gross profit of £1.28m and PBIT of £0.31m (unaudited)
· The Acquisition marks a continuation of the Group's strategy of acquiring profitable complementary businesses characterised by their leadership in niche segments of the scientific and industrial instrumentation sector, with good presence in export markets together with strong management
· The Acquisition is expected to be earnings enhancing in SDI's next financial year commencing 1 May 2019
Ken Ford, Chairman of SDI said:
"We are delighted to welcome MPB into the SDI family. MPB's flowmeters are recognised for their quality across a broad set of end markets, and their technology and applications nicely complement those of other businesses in our Sensors & Control segment. MPB is SDI's fourth significant acquisition in this financial year which has seen the Group expand across its two principal operating segments and highlights our position as an acquirer of choice in our sector."
About MPB Industries
MPB designs and manufactures flowmeters, flow alarms, flow indicators, flow switches, calibration cylinders and sight glasses for the measurement of liquids and gases by well-known industrial and scientific users. MPB operates across a broad range of applications including water treatment, oil and gas production, medical anaesthesia, and scientific analysis. Most of its sales are designed specifically to its customers' requirements. MPB was founded in 1986, employs 22 staff, and is based in East Peckham, Kent.
For the year ended 31 December 2018 the Company had revenues of £1.90m, gross profit of £1.28m and profit before interest and tax of £0.31m (unaudited).
Approximately 54 per cent. of MPB's sales (2018) were to the UK, 32 per cent. were to the rest of Europe, and 14 per cent. were to the rest of the world.
The Acquisition is in line with the Group's strategy of acquiring complementary businesses in niche segments of the scientific and industrial instrumentation sector. The Board believes that MPB will contribute positively to the development of the Group's Sensors & Control segment. The Acquisition is expected to be earnings enhancing in the next financial year commencing 1 May 2019.
Consideration for the Acquisition
Total consideration for the Acquisition, paid in cash at completion, was £1,586,000. SDI has funded the consideration from existing cash resources.
Scientific Digital Imaging plc 01223 320480
Ken Ford, Chairman
Mike Creedon, CEO
Jon Abell, CFO
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Andrew Burdis/Sunila de Silva - ECM
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Julia Wilson - Investor & Public Relations
Scientific Digital Imaging plc ("SDI") designs and manufactures scientific and technology products for use in digital imaging and sensing and control applications including life sciences, healthcare, astronomy, manufacturing, precision optics and art conservation. SDI operates through its company divisions: Applied Thermal Control, Astles, Atik Cameras, Sentek and Synoptics, as well as the recently acquired, Fistreem, Thermal Exchange and Graticules Optics.
SDI continues to grow by developing its own technology advancements and by improving its global distribution footprint, as well as through pursuing strategic, complementary acquisitions.
No statement in this announcement is intended to be a profit forecast or estimate and no statement in this announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
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