Executive Summary
SDI Group plc is a specialist in the design, build and support of warehouse handling systems in the international retail and order fulfillment sectors. SDI provides consultancy services and designs its customers' warehousing and distribution systems with end products including sortation and picking systems, automated retrieval systems and conveyor systems, together with the supporting IT infrastructure. SDI's main operations are in the UK and the USA but it also has a growing presence in other jurisdictions including France, Germany, Italy, Spain, the Netherlands and Chile.
Company History
SDIG floated in Jul-07 at 49p per share.
In Apr-08 SDIG acquired four companies from P.E.P. Beteiligungsgesellschaft mbH in Germany for a total consideration of €2.76m. The four companies brought customers that include C&A in Germany, DHL in Germany and Denmark, JBC in Belgium and La Poste in France. In the year to 31-Dec-07, the four companies produced a combined profit before tax of €393k and had net assets of €1.85m as at 31-Dec-07.
The Group’s US subsidiaries were sold in Dec-08 to a consortium led by the US management for a total consideration of $6.55m. The Board’s decision to sell the Group’s US subsidiaries was as a result of increasing losses generated by the US businesses. These losses impacted heavily on the remainder of the Group.
In essence, the recent sale of their US business for just under £5m killed two birds with one stone - securing the Company's future and offloading a subsidiary that was responsible for 94% of company losses with the remaining business trading at near break even.
Current Events
In May-09, SDIG announced a number of recent contract wins, together totalling approximately £8m, which will be recognised in the financial year to 31-Mar-10.
In its Oct-09 trading statement for the half-year to 30-Sep, the board of SDIG stated that it expects revenue and profit to be in line with market expectations, and whilst the number of enquiries being received is still strong, they cautioned that these might not convert to capital project commitments in the run-up to Christmas. The Interims are due out in the second half of November.
Business Model
Products/Services
• Sortation systems
• Automated Storage and Retrieval Systems
• Picking Systems
• Warehouse & Equipment Services
• IT Systems
• Conveyor Systems
Segments/Customers
• Matalan
• Asda George
• M&S Mode
• WH Smith
• Primark
• TNT…
