They are in the best position to succeed with PFAS - Just need a...

They are in the best position to succeed with PFAS - Just need a big deal

https://veye.com.au/blog/asx-penny-stocks-with-earnings-growth-potential

Two such stocks are :-

SciDev Limited (ASX: SDV)

In FY24, SciDev made notable progress across its divisions. The Water Technologies division developed FluorofIX™ pilot plants in Europe and North America and secured a $4.7 million two-year extension for PFAS treatment with a major Australian mining client. Additionally, the company won a $2 million Build, Own & Operate (BOO) contract with Ventia for a temporary water treatment plant in Victoria and received a $9.35 million contract from a Tier 1 construction company to design and construct three water treatment plants for a new tunnel project in NSW.

In Chemical Services, SciDev supported eight completion fleets across four North American oil and gas basins, saw a 51.5% increase in CatChek™ sales, and secured a two-year contract with Thunderbird Minerals Sands Project, expected to generate around $7.0 million in sales. The company expanded its international footprint with MaxiFlox® chemistry sales through resellers in Turkey and Mexico and established a joint venture in Singapore with Nuoer Group.

In FY24, SciDev achieved a record revenue of $109.2 million, a 22% increase from the previous year, driven by 88% growth in Water Technologies and 11% growth in chemistry sales. The company reported an underlying EBITDA of $8.8 million and a net profit after tax of $2.1 million, up from $4.1 million and $0.3 million in FY23, respectively. The company also invested $1.3 million in acquiring Haldon Industries, reflecting its continued expansion and strong financial position.

SciDev is poised for significant growth in FY25, driven by its expanding portfolio of new contracts and strong market demand. The company's strategic initiatives include leveraging a $10 million finance facility secured with Westpac to enhance its balance sheet and flexibility. SciDev plans to capitalize on new USA EPA PFAS regulations by advancing its North American PFAS pipeline, while aiming to boost its presence in thethrough direct sales, local licensing, and partnerships, particularly with Nuoer Chemicals. Additionally, the company is set to diversify its Oil & Gas client base, with increasing acceptance of its CatChek and XSlik products. Overall, with its strategic focus and market positioning, SciDev is well-equipped to drive operational and financial expansion.

https://www.adelaidenow.com.au/business/*/criterion-hunting-for-reportingseason-pearls-among-the-ignored-small-caps/news-story/1dab57ed2f892bf20c5f6da3d802381d

The $90 million market cap SciDev (ASX:SDV) isn’t quite at the dividend-paying stage, but warrants a mention because of its Fluorofix product that cleans up ‘forever chemicals’ known as Per- and poly-fluoroalkyl substances (PFAS).

Commonly used in firefighting foam, the substances have been linked with maladies including cancer, organ damage and infertility.

SciDev’s full-year revenue grew 22 per cent to $109.2 million, driven by an 88 per cent sales surge for the water technologies (PFAS) arm. Net profit came in at $2.2 million and strong contract wins coupled with endless demand bode well for another strong year.

Without going full Julie Andrews, these stocks are ‘a few of our favourite things’ – other than fluffy kittens of course – with plenty more small cap gems to be uncovered from unexpected quarters.

Cheers
M.oz