SDI Group
plc
("SDI", "SDI Group", the
"Company", or the "Group")
Trading
Update
SDI Group 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 provide a trading update for the year
ended 30 April 2024.
Financial results
Subject to finalisation of the
accounts and audit, we expect revenues to be in line with current
market expectations1 at approximately £65.9m (FY23:
£67.6m). In addition to the acquired business Peak Sensors
(November 2023) there was a full year's contribution from both LTE
Scientific (acquired July 2022) and Fraser Anti-Static Techniques
(acquired October 2022). Adjusted Operating Profit2 is
expected to be in the region of £9.6m (FY23: £12.8m) with Adjusted
Profit Before Tax2 approximately £8.0m (FY23: £11.8m),
both in line with current market
expectations1.
Business overview
As expected, the Group saw improved
profitability and cash generation from operations over the second
half of the financial year. As noted at the half year, Atik Cameras
received a camera order from their major OEM customer in November
which benefitted the second half of the financial year. Monmouth
and Chell Instruments experienced a strong second half, with the
former seeing increased clean room and cabinet sales, the latter
seeing improved demand for its DAQ product range. Fraser
Anti-Static Techniques also saw a pickup in revenues. Scientific
Vacuum Services ("SVS"), as expected, saw a slower period of
trading after delivering a large contract in the first half of the
year.
Our focus on cash generation has
yielded results with the net debt position maintained in the second
half at £13.2m (31 Oct 23: £13.2m), despite £3.3m of cash outflow
in the period for acquisitions (Peak Sensors: £2.3m, SVS earnout:
£1.0m). Gross debt at the end of the year was £14.6m leaving £10.4m
in headroom within our revolving credit facility, alongside an
additional £5m accordion option with HSBC.
After a review, SDI disposed of
Uniform Engineering for a nominal sum at the end of February 2024.
This disposal resulted in a loss of £0.2m, which will be classified
as a non-recurring item. Uniform had external revenues of £0.45m
and recorded a small loss over the ten months to February
2024.
We continue to invest in our existing
businesses and in acquiring complementary businesses and we expect
to continue our buy and build strategy in FY25.
Ken
Ford, Chairman of SDI, commented: "I
am pleased to report that the Group had a good finish to the
financial year, with better trading performances at a number of SDI
businesses. Stephen Brown, our new CEO, has settled into his role
well and is already making an impact. The Group's cash generation
from operations improved over the second half which leaves us well
placed to continue our buy and build strategy."
1. Analysts from our Broker Cavendish
Capital Markets Limited and from Progressive Equity Research
regularly provide research on the Company, accessible from our
website, and the Group considers the average of their forecasts to
represent market expectations for FY24 being Revenue of £64.9m,
Adjusted Operating Profit of £9.5m and Adjusted Profit Before Tax
of £7.9m.
2. Before reorganisation costs,
acquisition costs, profit or loss on disposal of subsidiaries,
amortisation of acquired intangibles and share based payment
costs.
Enquiries
SDI
Group plc
01223
727144
Ken Ford, Chairman
Stephen Brown, CEO
Ami Sharma, CFO
www.sdigroup.com
Cavendish
Capital Markets
Limited
020 7220 0500
Ed Frisby/Seamus Fricker - Corporate
Finance
Andrew Burdis/Sunila de Silva -
ECM
About
SDI Group plc:
SDI designs and manufactures
scientific and technology products for use in digital imaging and
sensing and control applications including life sciences,
healthcare, astronomy, plastics and packaging, manufacturing,
precision optics, measurement instrumentation and art conservation.
SDI operates through its subsidiaries: Atik Cameras, Synoptics,
Graticules Optics, Sentek, Astles Control Systems, Applied Thermal
Control, MPB Industries, Chell Instruments, Monmouth Scientific,
Scientific Vacuum Systems, Safelab Systems, LTE Scientific, Fraser
Anti-Static Techniques and Peak Sensors.
Corporate expansion is via organic growth within its subsidiary companies
and through the acquisition of complementary, niche technology
businesses with established reputations in global
markets.
The information contained within this
announcement is deemed to constitute inside information as
stipulated under the retained EU law version of the Market Abuse
Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Company's
obligations under Article 17 of the UK MAR. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.