Regarding leaseThe consolidated entity leases water treatment...

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veeone

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20/04/24

19:55

Post #: 73440315
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Originally posted by saintex: ↑

Interesting to remind today's management team has been created between Aug 2021 (new chairman) and April 22 (arrival of interim CEO, Sean, who became later CEO). The new CFO began in Dec 2021.
Sean (CEO) was the co-founder of Haldon Industry, bought by Scidev in May 2021.
Haldon was a very successful company, showing both growth and high profitability (EBITDA margin of 38 % before the acquisition).

What's more surprising is that insiders have been relatively quiet, despite the recent recovery of the business.
The last purchase by insiders were done by the chairman who bought 150,000 shares at 0.265 $ in Sept 23.

According to the information I could find, Sean owns 3.2 % of the capital (including the shares owned by the previous owners of Haldon Industries ?), while the CFO does not own any share.
The 5.1 million Scidev shares owned by Haldon Industries (2.7 % of the capital) are escrowed until 15/9/24.

Other interesting element related to Haldon Industries acquisition : part of the deal was that Scidev took 5 m$ of lease from Haldon Industries.
It seems to have ended in FY 23, so it could have a significant impact on Scidev free cash flow* from FY 24.
During H1 24, Scidev repayment of lease was only 0.5 m$ vs 1.4 m$ during H1 23.

* I always calculate the free cash flow after repayment of lease.

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Regarding lease
The consolidated entity leases water treatment equipment under a lease from Haldon Industries Pty Limited
that expires on 30 June 2023. On that date, upon payment of $1 consideration, the legal and beneficial title
of the asset will transfer to SciDev Limited. The lease is secured over the individual asset the lease relates to.

In addition, there are other leases for vehicles and equipment that extend beyond 30 June 2023.

SDV Price at posting: 38.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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