REG - SDI Group PLC - Interim Results
07/12/2021 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211207:nRSG7523Ua&default-theme=true
RNS Number : 7523U SDI Group PLC 07 December 2021
SDI Group plc
("SDI", "SDI Group", the "Company", or the "Group")
Interim results for the six months ended 31 October 2021
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 announce another strong set of results and
solid operational progress for the six months to 31 October 2021.
Financial Highlights
· Revenue increased by 75% to £24.7m (FY21 H1: £14.1m), including
42% organic growth
o Continued strong contribution from Atik Cameras due to one-time
COVID-19-related contracts, expected to complete by January 2022
o £4.6m sales contribution from Monmouth Scientific and Uniform
Engineering, acquired in FY21 H2
o Organic sales growth in all other businesses averaged 22%
· Reported operating profit increased by 105% to £5.2m (FY21 H1:
£2.5m)
o Adjusted operating profit* for the period increased by 82% to £5.8m (FY21
H1: £3.2m)
· Reported profit before tax increased by 115% to £5.1m (FY21 H1:
£2.4m)
o Adjusted profit before tax* increased by 89% to £5.7m (FY21 H1: £3.0m)
· Reported diluted EPS increased by 76% to 3.43p (FY21 H1: 1.95p)
o Adjusted diluted EPS* increased 59% to 3.92p (FY21 H1: 2.47p)
· Cash generated from operations decreased by 6% to £4.4m (FY21
H1: £4.7m)
o Prior year included a substantial build-up of customer down payments
related to the one-time COVID-19-related contracts
· Net cash** at 31 October 2021 of £1.1m (30 April 2021: £0.8m)
o Deferred consideration outstanding was £nil (30 April 2021: £2.35m)
* before reorganisation costs, acquisition costs, amortisation of acquired
intangibles and share based payment costs
** cash and cash equivalents less bank finance
Operational Highlights
· Our FY21 acquisitions of Monmouth Scientific and Uniform Engineering
have performed ahead of management's expectations and have been fully
integrated into the Group
· On 1 November 2021, we renewed and expanded our committed loan
facility with HSBC to £20m, with a further accordion option of an additional
£10m (at the discretion of HSBC), which, with our current net cash position
and strong cash flow, provides sufficient funding for acquisition
opportunities
Ken Ford, Chairman of SDI Group, said:
"We are pleased to report yet another strong set of financial results. SDI
Group continues to execute on its business model, investing in quality
businesses that are able to grow while generating cash. We look forward to
delivering a full year performance in line with market expectations1."
(1) Analysts from our Broker finnCap Limited and from Progressive Equity
Research regularly provide research on the Company, and the Group considers
the average of their forecasts to represent market expectations for FY 2022
being Revenue of £45.05m and Adjusted(2) Profit Before Tax of £9.2m
Enquiries
SDI Group
plc
01223 320480
Ken Ford, Chairman
Mike Creedon, CEO
Jon Abell, CFO
www.thesdigroup.net
finnCap
Ltd
020 7220 0500
Ed Frisby/Kate Bannatyne/Milesh Hindocha - Corporate Finance
Andrew Burdis/Sunila de Silva - ECM
JW
Communications
07818 430877
Julia Wilson - Investor & Public Relations
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, manufacturing, precision optics and art conservation.
SDI operates through its company divisions: Atik Cameras, Synoptics,
Graticules Optics, Sentek, Astles Control Systems, Applied Thermal Control,
MPB Industries, Chell Instruments, Monmouth Scientific and Uniform
Engineering.
SDI continues to grow by developing its own technology advancements and by
improving its global sales channels, as well as through pursuing strategic,
complementary acquisitions. www.thesdigroup.net (http://www.thesdigroup.net)
Chairman's statement
With the world having only partially adapted to the coronavirus pandemic, it
is pleasing to be able to report a broad-based return to levels of activity
that are higher than those we saw before it started. All, however, is not
yet calm. The businesses are cogs in a machine that is trying to cope with
changes in demand patterns caused by the pandemic, but also by longer term
upheavals including a focus on healthcare, technological advancement, climate
change and Brexit.
I am more convinced than ever that SDI's business model, involving smaller
niche businesses operating with a high degree of autonomy in technical,
scientific and medical and life science market segments, offers a route to
sustained value creation, and allows us to respond rapidly to events.
Trading
Our larger OEM customers have been ordering at good levels for some time now,
with strong demand in healthcare, beverage can production and automotive
racing in particular. Interest from customers for new products to be designed
in and for capital equipment purchases for general laboratory use has remained
subdued, although the restarting of trade fairs and exhibitions suggests that
this too will bounce back now. Service activity is still hampered by travel
restrictions but has lately been improving.
Supply chain issues have become a drain on management time, and our businesses
are having to work hard to source components, modify designs for missing ones,
and also to adapt to customer demand changes. However, they are managing
well.
The subsidiaries all worked hard to adapt to the changes in the half year,
which was appreciated by the Board, and, I am sure, by shareholders.
Revenues
Group revenues increased by 75% to £24.7m (FY21 H1: £14.1m). The increase
was driven by 3 major factors:
- Our Atik Cameras business continued to deliver, at a higher rate
than in previous periods, cameras for use by a global OEM in RT PCR machines,
which are (amongst other uses) the gold standard instrument for COVID-19
testing. We expect current orders, paid for in advance of shipment, to be
fulfilled by January 2022, and we have no visibility of further orders.
- The businesses we acquired in FY21 H2, Monmouth Scientific and
Uniform Engineering, delivered £4.6m of sales, which was ahead of our
expectations.
- Our other businesses performed very well, recording collectively 22%
sales growth compared with FY21 H1, which was of course affected by
pandemic-related reductions in customer purchases. All of these businesses
have rebounded substantially, with the exception of the ventilator-related
sales at MPB industries.
Organic revenue growth across the business was 42%. Compared with the same
period of two years ago, FY20 H1, sales of those businesses in the Group at
the time have increased by 59%. Excluding the exceptional 218% growth at Atik
Cameras, all of those businesses have grown, at an average two-year growth of
16%.
Sales in our Digital Imaging segment grew by 64% to £11.4m (FY21 H1: £6.9m)
and sales in Sensors & Control were 85% higher at £13.3m (FY21 H1:
£7.2m).
Profits
Gross margin was lower than in FY21 H1, due essentially to the evolution of
product mix, including the effect of below-average margins at Monmouth
Scientific (acquired in FY21 H2) and on the Atik Camera orders. We have had to
increase prices to offset the impacts of both labour cost increases and
component and raw material price increases across the Group, and generally we
have seen customer acceptance of this.
Overheads are higher than the comparative period which benefited from furlough
receipts and from a virtual stop to travel costs, but we are seeing the
benefit of efficiency gains realised over the past year.
Group profit before tax increased by 115% to £5.1m (FY21 H1: 2.4m), driven by
the organic revenue growth and the contribution of the FY21 H2 acquired
businesses.
Our tax charge has increased by 288% to £1.5m (FY21 H1: £0.4m), essentially
due to a £0.6m charge to align certain deferred tax assets and liabilities
(except for deferred tax assets related to share options) to the new UK
corporate tax rate of 25% from April 2023. A £0.3m favourable impact from
aligning the deferred tax asset for future share option gains to current share
prices and tax rates has been booked directly to equity.
In addition to the GAAP results, the Group also provides adjusted results in
which certain one-time and non-cash charges are excluded, to help shareholders
understand the underlying operating performance. Adjusted profit before tax
increased by 90% to £5.7m (FY21 H1: £3.0m). Adjustments for the period
were for the amortisation of acquired intangible assets and for share based
payments totalling £0.6m (FY21 H1: £0.5m). No acquisition-related costs or
reorganisation costs were recorded in the period (FY21 H1: £0.1m of
reorganisation expense).
Basic earnings per share increased by 78% from 2.03p to 3.61p; diluted
earnings per share increased by 76% to 3.43p (FY21 H1: 1.95p). Adjusted
diluted EPS increased by 59% to 3.92p (FY21 H1: 2.47p).
Cash flow
Cash generated from operations reduced by 6% to £4.4m (FY21 H1: £4.7m).
The very strong cash flow of the previous year was strongly influenced by the
build-up of advanced payments for the COVID-19-related orders at Atik Cameras
(as reported at the time). In the current period, these have reduced by
about £1.1m, with consequent reduction to cash flow. The remaining £1.8m
is expected to unwind in the remaining months of the year as the orders are
shipped.
During this period, we paid the deferred consideration element of £2.35m on
the acquisition of Monmouth Scientific.
Net cash, or cash less bank debt, increased to £1.1m at 31 October 2021 from
£0.8m at 30 April 2021.
On 01 November 2021, directly following the period end, we renewed and
expanded our committed loan facility with HSBC to £20m, with a further
accordion option of an additional £10m (at the discretion of HSBC), which,
with our current net cash position and strong cash flow, provides sufficient
funding for acquisition opportunities. The new facility has been tailored to
our business model with fewer restrictions on acquisitions and allows for
higher leverage if necessary.
Operations
This half year has been a challenging one for our operations teams, with
relatively short-term changes in customer demand, usually upwards but also
impacted by customers' ability to source other key components, and with
upstream shortages of our own components and materials. Significant management
time has been expended in negotiating additional supplies and finding
alternative sources or designing in substitute components. We expect this
situation to endure for some time, and we have also increased purchases in
many cases to secure key inputs.
Labour availability has been less of a problem, with generally low turnover as
usual, but some vacancies taking time to fill.
We are seeing cost increases in both material and labour, but we are generally
able to pass these on to customers.
As part of a rolling programme of upgrading facilities, we have been investing
in an upgrade and capacity expansion at Graticules Optics to create a modern
factory that is able to expand into new areas and have made further
investments at Uniform Engineering for efficiency, capacity and quality. We
have been strengthening the Portugal-based team at Atik Cameras so that they
can directly handle all day-to-day interaction with the global customer-base,
leaving Norwich as the centre of excellence for product development, marketing
and new business.
Our business units have only recently started to attend and exhibit at trade
fairs and exhibitions after a difficult period of demonstrating and marketing
products via videoconference. Design-in activity with OEM customers is also
picking up again, whereas research and development has continued throughout
the pandemic period within our business units.
Acquisitions
No major acquisition took place in the period, but in August 2021, we
purchased the Clean Tent trade and assets from Moorfield Technology, for a
cash consideration of £150,000, which was integrated into Monmouth
Scientific. Clean Tents are portable and temporary cleanroom facilities, which
are complementary to the Monmouth Scientific range and we are very pleased
with this purchase.
The Group continues to look for complementary acquisitions fitting our
criteria, and we would hope to close at least one in the financial year.
Outlook
As we have previously disclosed, we expect sales and therefore profit in the
second half of the year to be lower than in the first half, as the
COVID-19-related orders at Atik have been mostly completed. Apart from this,
we expect a continuation of favourable trading conditions seen in the first
half and look forward to delivering a full year performance in line with
market expectations.
Ken Ford, Chairman
6 December 2021
Consolidated income statement
Unaudited for the six months ended 31 October 2021
6 months to 6 months to 12 months to
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
Note £'000 £'000
£'000
Revenue 24,655 14,126 35,076
Costs of sales (8,783) (4,724) (12,206)
Gross Profit 15,882 9,402 22,870
Other operating income 20 7 21
Operating expenses (10,695) (6,874) (16,960)
Operating profit 5,207 2,535 5,931
Net financing expense (105) (164) (287)
Profit before taxation 5,102 2,371 5,644
Income tax charge 8 (1,526) (393) (936)
Profit for the period 3,576 1,978 4,708
Earnings per share 5
Basic earnings per share 3.61p 2.03p 4,81p
Diluted earnings per share 3.43p 1.95p 4.58p
Consolidated statement of comprehensive income
Unaudited for the six months ended 31 October 2021
6 months to 6 months to 12 months to
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000
£'000
Profit for the period 3,576 1,978 4,708
Other comprehensive income
Exchange differences on translating foreign operations
(161) 48 (96)
Total comprehensive profit for the period
3,415 2,026 4,612
Consolidated balance sheet
Unaudited at 31 October 2021
Note 31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000
£'000
Assets
Non-current assets
Intangible assets 25,730 21,110 26,237
Property, plant and equipment 4,225 3,584 4,131
Deferred tax asset 8 1,660 219 1,697
31,615 24,913 32,065
Current assets
Inventories 6,957 4,087 6,059
Trade and other receivables 7,786 4,456 6,743
Cash and cash equivalents 3,513 3,436 3,836
18,256 11,979 16,638
Total assets 49,871 36,892 48,703
Liabilities
Non-current liabilities
Borrowings 6 1,029 2,400 1,714
Lease liabilities 6 1,936 2,211 2,050
Deferred tax liability 8 2,993 2,037 2,479
5,958 6,648 6,243
Current liabilities
Trade and other payables 9,727 5,412 12,826
Provisions 230 85 230
Borrowings 6 1,371 1,371 1,371
Lease liabilities 6 498 562 509
Current tax payable 1,165 510 750
12,991 7,940 15,686
Total liabilities 18,949 14,588 21,929
Net assets 30,922 22,304 26,774
Equity
Share capital 996 978 984
Merger reserve 2,606 2,606 2,606
Merger relief reserve 424 424 424
Share premium account 9,359 8,805 9,092
Share-based payment reserve 728 619 714
Foreign exchange reserve (76) 229 85
Retained earnings 16,885 8,643 12,869
Total equity 30,922 22,304 26,774
Consolidated statement of cash flows
Unaudited for the six months ended 31 October 2021
Note 6 months to 6 months to 12 months to
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000
£'000
Operating activities
Net profit for the period 3,577 1,978 4,708
Depreciation and amortisation 1,315 1,096 2,562
Finance costs and income 105 164 287
Impairment of intangibles - 18 130
Changes in provisions - - (15)
Taxation expense in the income statement 1,526 393 936
Employee share-based payments 159 152 305
Operating cash flow before movement in working capital 3,801 8,913
6,682
Changes in inventories (886) (400) (977)
Changes in trade and other receivables (573) (745) (2,363)
Changes in trade and other payables (808) 2,059 6,137
Cash generated from operations 4,415 4,715 11,710
Interest paid (105) (164) (287)
Income taxes paid (735) (493) (1,166)
Cash generated from operating activities 3,575 4,058 10,257
Cash flows from investing activities
Capital expenditure on fixed assets (510) (109) (667)
Sale of property plant and equipment 32 - 67
Expenditure on development and other intangibles (115) (116) (367)
Acquisition of subsidiaries, net of cash 7 (2,500) - (4,057)
Net cash used in investing activities (3,093) (225) (5,024)
Cash flows from financing activities
Payments of lease liabilities (296) (224) (489)
Proceeds from bank borrowings - - 5,404
Repayment of borrowings (686) (5,562) (11,652)
Issues of shares & proceeds from option exercises 278 - 155
Net cash (used in)/from financing activities (704) (5,786) (6,582)
Net (decrease)/increase in cash and cash equivalents (1,349)
(222) (1,953)
Cash and cash equivalents, beginning of period 3,836 5,290 5,290
Foreign currency movements on cash balances (101) 99 (105)
Cash and cash equivalents, end of period 3,513 3,436 3,836
Consolidated statement of changes in equity
Unaudited for the six months ended 31 October 2021
6 months to 31 October 2021 - unaudited Share Merger Foreign Share Share-based payment reserve Retained
capital reserve Merger relief reserve exchange premium £'000 earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
£'000
Balance at 1 May 2021 984 2,606 424 85 9,092 714 12,869 26,774
Shares issued 12 - - - 267 - - 279
Tax in respect to share options - - - - - - 295 295
Share-based payments transfer - - - - - (145) 145 -
Share based payments - - - - - 159 - 159
Transactions with owners 12 - - - 267 14 440 733
Profit for the period - - - - - - 3,576 3,576
Foreign exchange on consolidation of subsidiaries
- - - (161) - - - (161)
Total comprehensive income for the period
- - - (161) - - 3,576 3,415
Balance at 31 October 2021 996 2,606 424 (76) 9,359 726 16,885 30,922
6 months to 31 October 2020 - unaudited Share Merger Foreign Share Share-based payment reserve Retained
capital reserve Merger relief reserve exchange premium £'000 earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
£'000
Balance at 1 May 2020 975 3,030 - 181 8,746 467 6,665 20,064
Shares issued 3 - - - 59 - - 62
Share based payments - - - - - 152 - 152
Transactions with owners 3 - - - 59 152 - 214
Profit for the period - - - - - - 1,978 1,978
Foreign exchange on consolidation of subsidiaries
- - - 48 - - - 48
Total comprehensive income for the period
- - - 48 - - 1,978 2,026
Balance at 31 October 2020 978 3,030 - 229 8,805 619 8,643 22,304
12 months to 30 April 2021 - audited Share Merger Foreign Share Share-based payment reserve Retained Total
capital reserve Merger relief reserve exchange premium £'000 earnings
£'000
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 April 2020 975 3,030 - 181 8,746 467 6,665 20,064
Restatement - (424) 424 - - - - -
Adjusted balances at 30 April 2020 975 2,606 424 181 8,746 467 6,665 20,064
Shares issued 9 - - - 346 - - 355
Tax in respect to share options - - - - - - 1,438 1,438
Share-based payments transfer - - - - - (58) 58 -
Share based payments - - - - - 305 - 305
Transactions with owners 9 - - - 346 247 1,496 2,098
Profit for the year - - - - - - 4,708 4,708
Foreign exchange on consolidation of subsidiaries
- - - (96) - - - (96)
Total comprehensive income - - - (96) - - 4,708 4,612
Balance at 30 April 2021 984 2,606 424 85 9,092 714 12,869 26,774
Notes to the interim financial statements
1. General information and basis of preparation
SDI Group plc (formerly known as Scientific Digital Imaging plc (the
"Company")), a public limited company, is the Group's ultimate parent. It is
registered in England and Wales. The consolidated interim financial statements
of the Company for the period ended 31 October 2021 comprise the Company and
its subsidiaries (together referred to as the "Group").
The unaudited consolidated interim financial statements are for the six months
ended 31 October 2021. These interim financial statements have been prepared
using the recognition and measurement principles of International Accounting
Standards in conformity with the requirements of the Companies Act 2006. The
consolidated interim financial information has been prepared under the
historical cost convention, as modified by the recognition of certain
financial instruments at fair value. The consolidated interim financial
statements are presented in British pounds (£), which is also the functional
currency of the ultimate parent company.
The consolidated interim financial information was approved by the Board of
Directors on 6 December 2021
The financial information set out in this interim report does not constitute
statutory accounts as defined in section 435 of the Companies Act 2006. The
figures for the year ended 30 April 2021 have been extracted from the
statutory financial statements of SDI Group plc which have been filed with the
Registrar of Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under section 498(2) or 498(3) of
the Companies Act 2006. The financial information for the six months ended 31
October 2021 and for the six months ended 31 October 2020 has not been
audited.
2. Principal accounting policies
The principal accounting policies adopted in the preparation of the condensed
consolidated interim information are consistent with those followed in the
preparation of the Group's financial statements for the year ended 30 April
2021.
The accounting policies have been applied consistently throughout the Group
for the purposes of preparation of these interim financial statements.
3. Alternative Performance Measures
The Group uses Adjusted Operating Profit, Adjusted Profit Before Tax, Adjusted
Diluted EPS and Net Operating Assets as supplemental measures of the Group's
profitability and investment in business related assets, in addition to
measures defined under IFRS. The Group considers these useful due to the
exclusion of specific items that are considered to hinder comparison of
underlying profitability and investments of the Group's segments and
businesses and is aware that shareholders use these measures to evaluate
performance over time. The adjusting items for the alternative measures of
profit are either recurring but non-cash charges (share-based payments and
amortisation of acquired intangible assets) or exceptional items
(reorganisation costs and acquisition costs).
The following table is included to define the term Adjusted Operating Profit:
6 months to 6 months to 12 months to
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000
£'000
Operating Profit (as reported) 5,207 2,535 5,931
Adjusting items (all costs):
Non-underlying items
Share based payments 159 152 305
Amortisation of acquired intangible assets 465 379 1,153
Exceptional items
Reorganisation costs - 129 132
Acquisition and fundraising costs - - 179
Total adjusting items within Operating Profit 624 660 1,769
Adjusted Operating Profit 5,831 3,195 7,700
Adjusted Profit Before Tax is defined as follows:
6 months to 6 months to 12 months to
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000
£'000
Profit Before Tax (as reported) 5,102 2,371 5,644
Adjusting items (as above) 624 660 1,769
Adjusted Profit Before Tax 5,726 3,031 7,413
3. Alternative Performance Measures (continued)
Adjusted EPS is defined as follows:
6 months to 6 months to 12 months to
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000
£'000
Profit for the Period (as reported) 3,576 1,978 4,708
Adjusting items (as above) 624 660 1,769
Less: taxation on adjusting items calculated at the UK statutory rate
(119) (125) (336)
Adjusted profit for the period 4,081 2,513 6,141
Divided by diluted weighted average number of shares in issue (Note 5) 104,138,768 101,611,426 102,799,084
Adjusted Diluted EPS 3.92p 2.47p 5.97p
Net Operating Assets is defined as follows:
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000
£'000
Net Assets 30,922 22,304 26,774
Deferred tax asset 1,660 219 1,697
Corporation tax asset 486 79 17
Cash and cash equivalents 3,513 3,436 3,836
Borrowings (current and non-current) (4,834) (6,544) (5,644)
Deferred consideration - - (2,350)
Deferred tax liability (2,993) (2,037) (2,479)
Current tax payable (1,165) (510) (750)
Total adjusting items within Net Assets (3,333) (5,357) (5,673)
Net Operating Assets 34,255 27,661 32,447
4. Segmental analysis
6 months to 6 months to 12 months to
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenues
Digital Imaging 11,373 6,940 15,778
Sensors & Control 13,292 7,186 19,288
Group 24,665 14,126 35,076
Adjusted Operating Profit
Digital Imaging 4,253 2,075 5,165
Sensors & Control 2,505 1,569 4,360
Other (927) (449) (1,825)
Group 5,831 3,195 7,700
Amortisation of acquired intangible assets
Digital Imaging (92) (92) (175)
Sensors & Control (377) (291) (978)
Group (469) (383) (1,153)
Adjusted Operating Profit has been defined in Note 3.
Analysis of amortisation of acquired intangible assets has been included
separately as the Group considers it to be an important component of profit
which is directly attributable to the reported segments.
The Other category includes costs which cannot be allocated to the other
segments and consists principally of Group head office costs.
4. Segmental analysis (continued)
31 October 31 October 30 April
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating Assets excluding acquired intangible assets
Digital Imaging 9,612 6,942 7,895
Sensors & Control 9,757 5,825 9,683
Other (257) 331 131
Group 19,112 13,098 17,709
Acquired intangible assets
Digital Imaging 5,107 5,282 5,195
Sensors & Control 19,978 14,777 20,251
Group 25,085 20,059 25,446
Operating Liabilities
Digital Imaging (4,650) (3,051) (5,439)
Sensors & Control (4,192) (2,200) (4,204)
Other (1,101) (245) (1,064)
Group (9,943) (5,496) (10,707)
Net Operating Assets
Digital Imaging 10,069 9,173 7,650
Sensors & Control 25,543 18,402 25,731
Other (1,357) 86 (934)
Group 34,255 27,661 32,447
Net operating assets has been defined in Note 3.
5. Earnings per share
The calculation of the basic earnings per share is based on the profits
attributable to the shareholders of SDI Group plc divided by the weighted
average number of shares in issue during the period. All profit per share
calculations relate to continuing operations of the Group.
Profit Weighted Earnings
attributable to average per share
shareholders number of amount in
£'000 shares
pence
Basic earnings per share:
Period ended 31 October 2021 3,576 99,120,392 3.61
Period ended 31 October 2020 1,978 97,582,755 2.03
Year ended 30 April 2021 4,708 97,852,313 4.81
Dilutive effect of share options:
Period ended 31 October 2021 5,018,376
Period ended 31 October 2020 4,028,671
Year ended 30 April 2021 4,946,771
Diluted earnings per share:
Period ended 31 October 2021 3,576 104,138,768 3.43
Period ended 31 October 2020 1,978 101,611,426 1.95
Year ended 30 April 2021 4,708 102,799,084 4.58
6. Borrowings
31 October 31 October 30 April
2021 2020 2021
£'000 £'000
£'000
Within one year:
Bank finance 1,371 1,371 1,371
Leases 498 562 509
1,869 1,933 1,880
After one year and within five years:
Bank finance 1,029 2,400 1,714
Leases 1,065 1,297 2,050
2,094 3,697 3,764
After more than five years:
Leases 871 914 -
Total borrowings 4,834 6,544 5,644
Bank finance relates to amounts drawn down under the Group's bank facility
with HSBC Bank plc, which is secured against all assets of the Group.
On 01 November, directly after the period end, the Group agreed a new £20m
revolving loan facility with HSBC, committed for 3 years, with covenants
relating to leverage (net debt to EBITDA) and interest coverage. The
£2,400,000 of short term and long-term bank finance shown above was
transferred to the new facility.
7. Acquisitions
During the previous financial year, the Group completed the acquisition of
Monmouth Scientific Limited for which contingent consideration of £2.35
million was outstanding at 30 April 2021. This amount was settled in cash in
the current period.
On 12 August 2021, Monmouth Scientific acquired the trade and assets of the
Clean Tent business, for a cash consideration of £150,000.
8. Taxation
The Group has estimated an effective tax rate of 18.1% for the year and has
applied this rate to the profit before tax for the period. The Group has
further booked a charge of £597,000 to align certain deferred tax assets and
liabilities to the new statutory tax rate of 25% enacted for periods from
March 2023. A gain of £295,000 resulting from changes to the estimate of
future tax relief from share option exercises, including the estimated effect
of changes in the tax rate, has been booked directly to equity.
SDl Group plc
Beacon House
Nuffield Road
Cambridge
CB4 1TF
UK
Telephone: +44 (0)1223 727144
Fax: +44 (0)1223 727101
Email: info@thesdigroup.net
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR UPGUPPUPGPGQRecent news on SDI
See all newsREG - SDI Group PLC - Holding(s) in Company
AnnouncementREG - SDI Group PLC - Director / PDMR Shareholding
AnnouncementREG - SDI Group PLC - Acquisition of Collins Walker
AnnouncementRCS - SDI Group PLC - News from Portfolio Companies
AnnouncementREG - SDI Group PLC - Director/PDMR Shareholding
Announcement