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SDI LIMITED Capital/Financing Update 2007
65759_rns_2007-05-21_e3617c9c-8fbc-4c62-a936-e4ef8a9682f6.pdf
Capital/Financing Update
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SDI Limited
AC.N. 008 075 581 . A.B.N. 27 008 075 581
Head Office 5-9 Brunsdon St Bayswater, P.O. Box 314 | fax: +61 3 8727 7222 .Victoria, 3153 Australia toll free 1 800 337 003 vww.sdi.com.au
| ph: +61 3 8727 7111 [email protected]
Company Sales and Profit Update
SDI Limited wishes to advise the market that it expects that sales for the financial year ending 30 June 2007 will be approximately 7% greater than the previous year.
The lower than expected sales is predominately due to the slower roll-out of the Riva product range and the effect of the Company's strategy of smoothing sales to reduce seasonal factors, particularly in the May and June months. Additional to this, the devaluation of the US Dollar against the Australian Dollar is expected to have an adverse effect on reported sales.
The Company now believes that Riva (the Glass Ionomer Cement product range), will take 3 to 5 years to have a substantial impact on the Company's sales due to its complex nature and the need to attain brand awareness for this product in the market place.
The devaluation of the US Dollar against the Australian Dollar is also expected to produce an expected loss (unrealised) on foreign currency of approximately $500k.
Given the above factors, it is anticipated that SDI will deliver an after tax profit of approximately $4.0m to $5.0m for the year ending 30 June 2007.
The Company will provide a further update in early July, once the annual sales are confirmed.
For further information, please contact:
Gerry Bullon INSOR Investor Relations 0418 106 675
22 May 2007