REG - SDI Group PLC - Interim Results
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RNS Number : 9673J SDI Group PLC 03 December 2025
SDI Group plc
("SDI", the "Company", or the "Group")
Interim results for the six months ended 31 October 2025
Strong results with strategy progressing well and significant contract wins
3 December 2025 - SDI Group plc (https://sdigroup.com/) , the buy and build
group, focused on companies which design and manufacture specialist lab
equipment, industrial & scientific sensors and industrial & scientific
products, announces its interim results for the six months to 31 October 2025
("H1 FY26").
Operational and Strategic highlights
· Significant contract wins across the portfolio for delivery in H2
FY26
· Completed earnings-enhancing acquisition within Lab Equipment of
Severn Thermal Solutions Limited ("Severn")
· Continued focus on commercial collaboration between portfolio
businesses and driving greater synergies across the Group
· New products launched last financial year now generating
revenues, reinforcing focus on innovation across the portfolio
· Strengthened senior management team, with two Divisional Managing
Directors now in place to support the delivery of sustainable, long-term
growth
· Positive progress against both the organic and inorganic growth
strategy
Financial summary
· Revenues increased by 10.1% to £34.0m (H1 FY25: £30.9m)
· Organic revenue growth of 3.2%, 3.0% on a constant currency
basis, 6.9% growth from acquisitions (£2.1m)
· Gross margins (on materials only) improved to 66.3% (H1 FY25:
65.4%)
· Adjusted operating profit* up 17.7% to £4.6m (H1 FY25: £3.9m)
and reported operating profit up 32.2% to £3.2m (H1 FY25: £2.4m)
· Adjusted profit before tax* increased 21.7% to £3.8m (H1 FY25:
£3.2m) and reported profit before tax up 46% at £2.5m (H1 FY25: £1.7m)
· Adjusted diluted EPS* improved to 2.77p (H1 FY25: 2.37p) and
reported diluted EPS up to 1.70p (H1 FY25: 1.18p)
· Cash generated from operations of £4.2m (H1 FY25: £4.7m)
· Post period end, renewed and expanded committed loan facility
with HSBC to £25m, with an accordion option for an additional £15m
Outlook
· Acquisition pipeline remains active, potential for further
M&A in FY26
· Stable strategy in place and the diversity of the portfolio
ensures the Group is well placed for the future growth
· FY26 expected to be in line with market expectations**, with
first half / second half weighting of profits similar to FY25, and good
visibility
Stephen Brown, Chief Executive Officer of SDI Group, said:
"We have delivered a great set of results despite challenging market
conditions, which is testament to our operating model, our strategy and the
determination of our team. Whilst we do not expect these conditions to improve
significantly in the near term, we remain on track to meet full-year market
expectations** and have secured several significant new contracts for delivery
in the second half of the year.
"The breadth of our portfolio helps us navigate volatility, and we continue to
drive inorganic growth through our acquisition pipeline. We are increasingly
seeing attractive opportunities to add to our proven track record of
value-enhancing acquisitions by adding profitable businesses in high-growth
niche markets.
"With the addition of Divisional Managing Directors supporting our portfolio
management teams, we have the leadership structure in place to sustain our
inorganic growth as well as delivering innovation, synergies and organic
growth. We are confident that our strategy, our structure, and our people
position us well to achieve our long-term objectives."
A presentation for investors and shareholders via the Investor Meet Company
platform will be held today on Wednesday, 3 December 2025 at 2.00 p.m. GMT.
Investors can register for the presentation via the following
link:https://www.investormeetcompany.com/sdi-group-plc/register-investor
(https://www.investormeetcompany.com/sdi-group-plc/register-investor)
A copy of the shareholder presentation will also be made available on the
Company's website www.sdigroup.com/investors/reports-presentations/
(http://www.sdigroup.com/investors/reports-presentations/) later today.
* Before share based payments, acquisition costs, reorganisation costs and
amortisation of acquired intangible assets.
** Analysts from SDI's 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. Being for FY26; Revenue of
£75.2m, Adjusted Operating Profit of £11.4m and Adjusted Profit Before Tax
of £9.8m.
Enquiries:
SDI Group plc +44 (0)1223 727144
Stephen Brown, Chief Executive Officer www.sdigroup.com (http://www.sdigroup.com)
Amitabh Sharma, Chief Financial Officer
Cavendish Capital Markets Ltd (NOMAD & Joint Corporate Broker) +44 (0)20 7220 0500
Ed Frisby / Seamus Fricker - Corporate Finance
Andrew Burdis / Sunila de Silva - ECM
Stifel (Joint Corporate Broker) +44 (0) 20 7710 7600
Fred Walsh / Brough Ransom / Ben Good
Vigo Consulting (Financial Communications) +44 (0)20 7390 0230
Tim McCall / Rozi Morris / Fiona Hetherington SDIGroup@vigoconsulting.com (mailto:SDIGroup@vigoconsulting.com)
About SDI Group plc
SDI Group plc is a group of small to medium size companies with specialist
industrial and scientific products in growth sector niches which help solve
customers' key challenges.
It specialises in the acquisition and development of companies that design and
manufacture specialist products for use in lab equipment, industrial &
scientific sensors and industrial & scientific products.
Its portfolio of businesses supplies the life sciences, healthcare, plastics
and packaging, manufacturing, precision optics and measurement instrumentation
markets.
SDI aims to continue its growth through driving the organic growth of its
portfolio companies and by the acquisition of complementary technology
businesses with established reputations in global markets.
For more information, please see: www.SDIGroup.com (http://www.SDIGroup.com)
Chief Executive Officer's statement
The Group delivered significant operational progress across H1 FY26. Our teams
have continued to execute on our strategy of driving both organic and
inorganic growth, against a backdrop of challenges in certain markets,
particularly within industrial sectors.
While the imposition of US tariffs has introduced some uncertainty across our
end markets, our portfolio companies have not experienced any noticeable
direct impact. The breadth of the diversified portfolio has also underpinned
the performance, with stronger delivery from certain businesses offsetting
those navigating short term slowdowns in their end markets. Our focus,
therefore, has remained on executing our strategy, delivering tangible results
from both our organic initiatives and strengthening the portfolio through our
proven buy-and-build model.
Operations
Our focus on innovation is organically translating directly into commercial
traction. The new industrial scanner range from Chell Instruments ('Chell'),
launched in April 2025, has been very well received and is already generating
strong revenues. This is just one of many recent product launches, which
include Applied Thermal Control's development of its G and H series to meet
new environmental regulations, expanded autoclave ranges at LTE Scientific
('LTE') and Atik Camera's ('Atik') xGbE 60 camera.
We continue to identify and foster greater commercial synergies across the
Group. Collaborations between portfolio businesses are opening up new
international markets, with Fraser Anti-Static Techniques ("Fraser") and
InspecVision working together commercially to expand further into the EV
sector. Furthermore, following the success of last year's event, in October,
five SDI businesses presented for the second time from a single stand at UK
Lab Innovations, the UK's leading laboratory industry trade show.
We have continued to invest in a strong digital presence - recognising the
importance of this in converting sales - with new websites launched at six of
our businesses, and successful rebrands at Atik Cameras, Monmouth Scientific
and Collins Walker.
To support our growth, we continue to invest in scalable infrastructure and
talent. New IT system implementations at Fraser and Peak are progressing well
and will provide a blueprint for rollouts at LTE and Chell, driving future
efficiencies. We have also strengthened our senior leadership at Group level,
welcoming two new Divisional Managing Directors, to oversee the Laboratory
Equipment Division and Industrial & Scientific Products Division, with the
primary objective to support operational efficiencies and drive further
organic growth.
The trend for a second half weighting seen in FY25 as forecast has continued
into this financial year. We have good visibility on the orders for the second
half, with multiple significant contracts to be executed in H2 FY26,
including:
· Safelab Systems ('Safelab') has received a £1.3m government
contract to supply high performance fume cabinets, to be delivered in Q4 FY26.
· Chell received £0.9m in orders from a customer for the supply of
two gas-meter calibration machines for flow calibration and leak testing,
scheduled for delivery in Q4 FY26.
· Severn has two furnaces in production for a nuclear customer, due
to be shipped in the second half, with a total value of £0.3m.
· Atik continues to execute its US$4m professional astronomy
project. Deliveries for the project commenced in July 2025, with the balance
of the contract to be delivered in the second half.
· Sentek are expected to receive their recurring annual order for
c£2m worth of blood gas sensors from their OEM customer in January 2026,
which they will continue to execute over 2026.
Acquisition
In June 2025, we announced the acquisition of Severn for a net consideration
of £4.8m. This significantly enhances our capabilities in advanced material
processing and testing. Severn's established expertise in designing systems
capable of operating at extreme temperature ranges - from near absolute zero
to over 3000°C - highly complements our existing portfolio.
Strategically, this acquisition accelerates our expansion into the controlled
environment market and provides deeper access to a diverse, global blue-chip
customer base in high-growth sectors, including nuclear, aerospace, and
semiconductors. We see strong opportunities to leverage Severn's international
footprint across 25 countries to drive cross-selling synergies across the
Group.
Since joining the Group, the cultural integration of Severn has already
exceeded our expectations, with the team showing a strong alignment with our
core values, rapidly fostering the collaborative spirit across the portfolio.
The gross consideration for the acquisition was £8.4m, which included £3.6m
of acquired cash, the latter including £2.8m of loans from the sellers. The
acquisition was funded from the Group's revolving credit facility with HSBC UK
Bank ('HSBC').
Financials and segment breakdown
Group revenues increased by 10.1% to £34.0m (H1 FY25: £30.9m). Severn,
acquired in early June 2025, together with the new acquisitions made in FY25,
InspecVision and Collins Walker, contributed inorganic revenues of £2.1m
(6.9%). Organic revenue growth was 3.2% in total, 3.0% on a constant currency
basis.
Laboratory Equipment revenues increased by 12.0% to £12.2m (H1 FY25: £10.9m)
following the acquisition of Severn. Organically, the division grew by 5.9%.
Monmouth's revenue growth accelerated over the first half, significantly ahead
of last year.
Sales in Industrial & Scientific Sensors increased organically by 5.6% to
£8.9m (H1 FY25: £8.4m). Sentek had a very strong first half, experiencing
significant growth in demand for its pH sensors from both new and existing OEM
customers. Astles Control Systems saw increased momentum as demand for its
chemical dosing systems recovered from a slower FY25. This will continue into
the second half as it executes on a strong first half order intake. Chell saw
improved revenues over the half and excellent order intake, which it will also
execute over H2 FY26.
Revenues in Industrial & Scientific Products increased by 11.5% to £13.0m
(H1 FY25: £11.7m). Organically, the division was broadly flat, showing a
slight decline of 1.2%. Atik had a strong first half as it commenced
deliveries for a large professional astronomy contract, with the remainder of
the contract to be executed in the second half.
Improved cost control at Fraser led to increased profitability in a flat
market. Scientific Vacuum Systems saw a slower period than last year due to
the comparative period including the production of two systems, compared to
one in H1 FY26. Applied Thermal Control ("ATC") continued to experience a
chiller market slow-down largely due to regulatory changes relating to bans in
refrigerant fluorinated "(F)" gases, with new ATC products being released to
market over 2025 and 2026 to address these changes.
Profits
Gross margins (on materials only) improved to 66.3% (H1 FY25: 65.4%), which
was encouraging, as the Group sought to maintain margin discipline. Overheads
and wage growth grew above inflation when excluding acquisitions due to the
increase in employers' national insurance, increased bonus provisions and
strengthened central team.
In addition to the performance measures defined under IFRS, 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. These adjustments totalled £1.4m (H1 FY25: £1.5m).
Adjusted Group profit before tax increased to £3.8m (H1 FY25: £3.2m).
Statutory Group profit before tax increased to £2.5m (H1 FY25: £1.7m).
The effective tax rate on statutory PBT is unchanged at 26.8% (H1 FY25:
26.8%).
Basic earnings per share increased to 1.73p (H1 FY25: 1.19p); diluted earnings
per share increased to 1.70p (H1 FY25: 1.18p). Adjusted diluted earnings per
share increased by 16.9% to 2.77p (H1 FY25: 2.37p).
Cash flow
Cash generated from operations reduced to £4.2m (H1 FY25: £4.7m). Working
capital increased by £1.3m mainly due to an increase in inventories of
£1.25m over the half. This was largely due to Atik and Safelab building up
stock for impending customer deliveries over the second half. Customer
advances were flat on a like for like basis over the six months compared to
April 2025, and higher year on year at £2.9m (H1 FY25: £2.0m). Working
capital as a percentage of sales increased to 21.2% excluding acquisitions.
Deferred consideration of £0.5m (H1 FY25: £0.5m) was outstanding at the end
of the half, relating to the acquisition of InspecVision. This was paid after
the period end.
The Severn acquisition costs were £4.8m total net cash consideration.
Net debt (excluding lease liabilities and deferred consideration), or bank
debt less cash, increased to £18.0m at 31 October 2025 compared to £13.8m at
30 April 2025 and £17.1m at 31 October 2024. This represents a net debt:
EBITDA ratio (including deferred consideration) of c1.3x (rolling last 12
months calculation basis). At 31 October 2025, the Group had £5.5m of
headroom within its £25m committed loan facility with HSBC. A further £5m
accordion option remained available to the Group (at the discretion of HSBC).
After the period end, on 27 November 2025, the Group renewed and expanded its
committed loan facility with HSBC to £25m, with an accordion option of an
additional £15m. The renewed facility has a repayment date of 27 November
2028 and is extendable for two further years. Both the accordion option and
the extensions are at HSBC's discretion.
The Group has sufficient access to funds, alongside its cash flow, both to
execute on its acquisition pipeline and provide further investment in our
current portfolio of businesses.
Outlook
Although we anticipate continued challenging market conditions, we remain on
track to meet full-year market expectations**. We anticipate a stronger second
half, driven by orders we have already received that are set to be delivered
later this financial year.
Our priorities are to capitalise on the management structure we now have in
place to drive synergies and organic growth through the portfolio, whilst
continuing to deliver our inorganic strategy, building on our proven track
record of delivering value-enhancing acquisitions, and exploring new
high-growth niche markets.
We are confident that these combined strategies, the breadth of our portfolio,
the resilience of our companies, the niche markets in which we operate and the
innovative high-quality products we produce, will deliver our long-term growth
objectives.
Stephen Brown, Chief Executive Officer
3 December 2025
* Analysts from SDI's Joint corporate 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. Being for FY26; Revenue
of £75.2m, Adjusted Operating Profit of £11.4m and Adjusted Profit Before
Tax of £9.8m.
Consolidated income statement
Unaudited for the six months ended 31 October 2025
6 months to 6 months to 12 months to
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
Note £'000 £'000
£'000
Revenue 34,026 30,911 66,177
Other operating income 203 150 577
Other operating expenses 5 (31,012) (28,627) (59,822)
Net operating expenses (30,809) (28,477) (59,245)
Operating profit 3,217 2,434 6,932
Net financing expense (741) (738) (1,470)
Profit before taxation 2,476 1,696 5,462
Income tax charge (664) (454) (1,424)
Profit for the period 1,812 1,242 4,038
Attributable to:
Equity holders of the parent company
1,815 1,214 3,984
Non-controlling interest (3) 28 54
Profit for the period 1,812 1,242 4,038
Earnings per share 6
Basic earnings per share 1.73p 1.19p 3.86p
Diluted earnings per share 1.70p 1.18p 3.81p
Consolidated statement of comprehensive income
Unaudited at 31 October 2025
6 months to 6 months to 12 months to
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Profit for the period 1,812 1,242 4,038
Other comprehensive income
Items that will subsequently be reclassified to profit and loss:
Exchange differences on translating foreign operations
5 (81) (141)
Total comprehensive profit for the period 1,817 1,161 3,897
Attributable to:
Equity holders of the parent company 1,820 1,133 3,843
Non-controlling interest (3) 28 54
Total comprehensive profit for the period 1,817 1,161 3,897
Consolidated balance sheet
Unaudited at 31 October 2025
Note 31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Assets
Non-current assets
Intangible assets 52,681 47,217 48,027
Property, plant and equipment 8,265 8,311 8,151
Right-of-use leased assets 5,928 6,342 6,243
Deferred tax asset 88 142 86
66,962 62,012 62,507
Current assets
Inventories 12,579 11,629 11,079
Trade and other receivables 12,777 11,205 13,116
Corporation tax asset - 292 216
Cash and cash equivalents 1,508 1,195 1,313
26,864 24,321 25,724
Total assets 93,826 86,333 88,231
Non-current liabilities
Borrowings 7 (25,115) (24,173) (21,070)
Provisions (250) (235) (281)
Deferred tax liability (4,976) (5,595) (4,900)
(30,341) (30,003) (26,251)
Current liabilities
Trade and other payables (10,748) (8,584) (11,331)
Provisions (119) (53) (68)
Borrowings 7 (952) (953) (906)
Corporation tax liability (219) - -
(12,038) (9,590) (12,305)
Total liabilities (42,379) (39,593) (38,556)
Net assets 51,447 46,740 49,675
Equity
Share capital 1,046 1,046 1,046
Merger reserve 2,606 2,606 2,606
Merger relief reserve 424 424 424
Share premium account 10,863 10,858 10,858
Share-based payment reserve 922 914 902
Foreign exchange reserve 7 61 2
Retained earnings 35,618 30,789 33,803
Total equity due to shareholders 51,486 46,698 49,641
Non-controlling interest (39) 42 34
Total equity 51,447 46,740 49,675
Consolidated statement of cash flows
Unaudited for the six months ended 31 October 2025
6 months to 6 months to 12 months to
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Operating activities
Profit for the year 1,812 1,242 4,038
Depreciation 1,003 1,017 2,133
Amortisation 1,334 1,030 2,038
Finance costs and income 741 738 1,470
Impairment of intangible assets - - 31
Increase in provisions 21 21 82
Taxation in the income statement 664 454 1,424
Employee share-based payments 20 150 338
Operating cash flows before movement in working capital
5,595 4,652 11,554
(Increase)/decrease in inventories (1,249) (414) 156
Decrease in trade and other receivables 542 2,128 430
(Decrease)/increase in trade and other payables (639) (1,685) 719
Cash generated from operations 4,249 4,681 12,859
Interest paid (741) (738) (1,470)
Income taxes paid (1,016) (912) (2,091)
Cash generated from operating activities 2,492 3,031 9,298
Investing activities
Capital expenditure on fixed assets (687) (589) (1,238)
Sale of property, plant and equipment 50 50 187
Expenditure on development and other intangibles (513) (321) (641)
Repayment of loan - 750 750
Payment of deferred consideration (145) - -
Acquisition of subsidiaries, net of cash (4,814) (6,393) (8,090)
Net cash used in investing activities (6,109) (6,503) (9,032)
Financing activities
Leases repayments (422) (357) (706)
Dividends paid to non-controlling interests in subsidiaries
(70) - (34)
Proceeds from bank borrowing 6,850 6,925 8,895
Repayment of borrowings (2,485) (3,250) (8,360)
Issues of shares and proceeds from option exercise 5 - -
Net cash from/(used in) financing 3,878 3,318 (205)
Net changes in cash and cash equivalents 261 (154) 61
Cash and cash equivalents, beginning of period 1,313 1,430 1,430
Foreign currency movements on cash balances (66) (81) (178)
Cash and cash equivalents, end of period 1,508 1,195 1,313
Consolidated statement of changes in equity
Unaudited for the six months ended 31 October 2025
6 months to 31 October 2025 - unaudited Share Merger Foreign Share Share-based payment reserve Retained Total equity due to shareholders Non-controlling interest
capital reserve Merger relief reserve exchange premium £'000 earnings £'000 £'000 Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 April 2025 1,046 2,606 424 2 10,858 902 33,803 49,641 34 49,675
Share issued - - - - 5 - - 5 - 5
Share based payments - - - - - 20 - 20 - 20
Dividends paid - - - - - - - - (70) (70)
Transactions with owners - - - - 5 20 - 25 (70) (45)
Profit for the period - - - - - - 1,815 1,815 (3) 1,812
Other comprehensive income for the year:
Foreign exchange on consolidation of subsidiaries
- - - 5 - - - 5 - 5
Total comprehensive income for the period
- - - 5 - - 1,815 1,820 (3) 1,817
Balance at 31 October 2025 1,046 2,606 424 7 10,863 922 35,618 51,486 (39) 51,447
6 months to 31 October 2024 - unaudited Share Merger Foreign Share Share-based payment reserve Retained Total equity due to shareholders Non-controlling interest
capital reserve Merger relief reserve exchange premium £'000 earnings £'000 £'000 Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 April 2024 1,046 2,606 424 143 10,858 764 29,575 45,416 14 45,430
Share based payments - - - - - 150 - 150 - 150
Transactions with owners - - - - - 150 - 150 - 150
Profit for the period - - - - - - 1,214 1,214 28 1,242
Other comprehensive income for the year:
Foreign exchange on consolidation of subsidiaries
- - - (82) - - - (82) - (82)
Total comprehensive income for the period
- - - (82) - - 1,214 1,132 28 1,160
Balance at 31 October 2024 1,046 2,606 424 61 10,858 914 30,789 46,698 42 46,740
Consolidated statement of changes in equity (continued)
Unaudited for the six months ended 31 October 2025
12 months to 30 April 2025 - audited Share Merger Foreign Share Share-based payment reserve Retained Total equity due to shareholders Non-controlling interest
capital reserve Merger relief reserve exchange premium £'000 earnings £'000 £'000 Total
£'000 £'000 £'000 £'000 £'000 £'000
£'000
Balance at 30 April 2024 1,046 2,606 424 143 10,858 764 29,575 45,416 14 45,430
Tax in respect of share options - - - - - - 44 44 - 44
Share based payment transfer - - - - - (200) 200 - - -
Share based payment charge - - - - - 338 - 338 - 338
Dividends paid - - - - - - - - (34) (34)
Transactions with owners - - - - - 138 244 382 (34) 348
Profit for the year - - - - - - 3,984 3,984 54 4,038
Other comprehensive income for the year:
Foreign exchange on consolidation of subsidiaries
- - - (141) - - - (141) - (141)
Total comprehensive income for the period
- - - (141) - - 3,984 3,843 54 3,897
Balance at 30 April 2025 1,046 2,606 424 2 10,858 902 33,803 49,641 34 49,675
Notes to the interim financial statements
1. General information and basis of preparation
SDI Group 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
2025 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 2025. 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 2(nd) December 2025.
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 2025 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 2025 and for the six months ended 31 October 2024 has not been audited
or reviewed by the auditors pursuant to the Financial Reporting Council's
relevant guidance.
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
2025.
The accounting policies have been applied consistently throughout the Group
for the purposes of preparation of these interim financial statements.
Going Concern
The consolidated interim financial information has been prepared on a going
concern basis.
The Board has considered the potential of a downturn given the current
economic environment. The Group is in a strong financial position with
available facilities, sufficient headroom on all covenants associated with the
revolving credit facility (see note 7), good profitability, and a strong
future order book, enabling it to face any reasonable likely challenge of the
continued uncertain global economic environment. The Board has reviewed
forecasts for the period to 30 April 2027, evaluated a severe downside
scenario and performed a sensitivity analysis, all of which the Board
considers extremely unlikely. In the event of a more severe scenario (without
applying any mitigations), both covenants would come under some (but not
severe) stress. However, mitigations would be obviously applied should this
unlikely scenario present itself, such as (but not restricted to) further cost
cutting, sale and leaseback of freehold property and potential disposal of
assets. This would not cause any significant challenges to the Group's
continued existence.
The Board therefore has a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future and
therefore continues to adopt the going concern basis in preparing the interim
financial information.
3. Alternative Performance Measures
The Group uses gross profit (on materials only), 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). Some items,
e.g. impairment of intangibles, are both non-cash and exceptional.
APM Description
Gross profit (on materials only) Gross profit excluding any labour costs
Adjusted operating profit Reported profit excluding any recurring but non-cash charges or exceptional
items
Adjusted profit before tax
Adjusted diluted EPS Total net income divided by the weighted average number of shares outstanding
and dilutive shares
Net operating assets The total of all assets directly linked to the main operations minus all
operational liabilities
The following table is included to define the term gross profit (on materials
only):
6 months to 6 months to 12 months to
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 34,026 30,911 66,177
Cost of purchases (11,453) (10,699) (23,251)
Gross Profit (on materials only) 22,573 20,212 42,926
Gross Margin (on materials only) 66.3% 65.4% 64.9%
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
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Operating Profit (as reported) 3,217 2,434 6,932
Adjusting items (all costs):
Non-underlying items
Share based payments 20 150 338
Amortisation of acquired intangible assets 1,046 796 1,725
Exceptional items
Reorganisation costs 164 265 398
Acquisition costs 136 249 564
Total adjusting items 1,366 1,460 3,025
Adjusted Operating Profit 4,583 3,894 9,957
Adjusted profit before tax is defined as follows:
6 months to 6 months to 12 months to
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Profit Before Tax (as reported) 2,476 1,696 5,462
Adjusting items (as above) 1,366 1,460 3,025
Adjusted Profit Before Tax 3,842 3,156 8,487
Adjusted diluted EPS is defined as follows:
6 months to 6 months to 12 months to
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Profit for the Period (as reported) 1,812 1,242 4,038
Adjusting items (as above) 1,366 1,460 3,025
Less: taxation on adjusting items calculated at the UK statutory rate
(219) (199) (503)
Adjusted profit for the period 2,959 2,503 6,560
Divided by diluted weighted average number of shares in issue (note 6) 106,713,142 105,586,140 106,097,371
Adjusted Diluted EPS 2.77p 2.37p 6.18p
Net operating assets is defined as follows:
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Net Assets 51,447 46,740 49,675
Deferred tax asset (88) (142) (86)
Corporation tax asset - (292) (216)
Cash and cash equivalents (1,508) (1,195) (1,313)
Borrowings and lease liabilities (current and non-current)
26,066 25,126 21,571
Deferred & contingent consideration 500 500 645
Deferred tax liability 4,976 5,595 4,900
Current tax payable 219 - -
Total adjusting items 30,165 29,592 25,501
Net Operating Assets 81,612 76,332 75,176
4. Segmental analysis
On 1 May 2024, the Group implemented a new strategy, with the SDI businesses
being re-segmented into the following divisions:
· Laboratory Equipment, comprising Safelab Systems, Monmouth
Scientific, LTE Scientific, Synoptics and Severn Thermal Solutions;
· Industrial & Scientific Sensors, comprising Chell
Instruments, Astles Control Systems, Sentek, MPB Industries and Peak Sensors;
and
· Industrial & Scientific Products, comprising Atik Cameras,
Fraser Anti-Static Techniques, Applied Thermal Controls, Graticules Optics,
Scientific Vacuum Systems, InspecVision and Collins Walker.
The Board of directors reviews operational results of these segments on a
monthly basis and decides on resource allocations to the segments and is
considered the Group's chief operating decision maker.
6 months to 6 months to 12 months to
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Revenues
Lab Equipment 12,154 10,850 24,007
Industrial & Scientific Products 12,998 11,659 25,135
Industrial & Scientific Sensors 8,874 8,402 17,035
Group 34,026 30,911 66,177
Adjusted operating profit
Lab Equipment 1,416 782 2,703
Industrial & Scientific Products 2,804 2,310 4,950
Industrial & Scientific Sensors 1,924 1,832 4,493
Central costs (1,561) (1,030) (2,189)
Group 4,583 3,894 9,957
Amortisation of acquired intangible assets
Lab Equipment (305) (193) (384)
Industrial & Scientific Products (451) (313) (759)
Industrial & Scientific Sensors (290) (290) (582)
Group (1,046) (796) (1,725)
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.
4. Segmental analysis (continued)
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Operating Assets excluding acquired intangible assets
Lab Equipment 18,862 18,037 18,595
Industrial & Scientific Products 13,717 12,607 13,193
Industrial & Scientific Sensors 7,424 6,618 6,723
Central costs 1,128 1,497 1,132
Group 41,131 38,759 39,643
Acquired intangible assets
Lab Equipment 13,452 8,343 8,294
Industrial & Scientific Products 25,481 24,878 25,830
Industrial & Scientific Sensors 12,166 12,722 12,444
Group 51,099 45,943 46,568
Operating Liabilities
Lab Equipment (3,761) (3,989) (4,625)
Industrial & Scientific Products (3,271) (1,649) (3,442)
Industrial & Scientific Sensors (2,897) (2,277) (2,466)
Central costs (689) (455) (502)
Group (10,618) (8,370) (11,035)
Net Operating Assets
Lab Equipment 28,553 22,391 22,264
Industrial & Scientific Products 35,927 35,836 35,581
Industrial & Scientific Sensors 16,693 17,063 16,701
Central costs 439 1,042 630
Group 81,612 76,332 75,176
Net operating assets has been defined in note 3.
5 Operating costs
31 October 31 October 30 April
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000
£'000
Raw materials and consumables 11,453 10,699 23,251
Staff costs 13,210 12,040 24,574
Other administrative expenses 6,349 5,888 11,997
31,012 28,627 59,822
6. 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
for the period average per share
£'000 number of amount in
shares
pence
Basic earnings per share:
Period ended 31 October 2025 1,812 104,555,473 1.73
Period ended 31 October 2024 1,242 104,551,326 1.19
Year ended 30 April 2025 4,038 104,551,326 3.86
Dilutive effect of share options:
Period ended 31 October 2025 2,157,669
Period ended 31 October 2024 1,034,814
Year ended 30 April 2025 1,546,045
Diluted earnings per share:
Period ended 31 October 2025 1,812 106,713,142 1.70
Period ended 31 October 2024 1,242 105,586,140 1.18
Year ended 30 April 2025 4,038 106,097,371 3.81
7. Borrowings
31 October *31 October 2024 30 April
2025 Unaudited 2025
Unaudited £'000 Audited
£'000
£'000
Within one year
Lease liabilities 952 953 906
952 953 906
After one and within five years
Bank finance 19,500 18,275 15,135
Lease liabilities 2,673 2,532 2,803
22,173 20,807 17,938
After more than five years
Lease liabilities 2,942 3,366 3,132
2,942 3,366 3,132
Total borrowings 26,067 25,126 21,976
*A restatement has been made to split out the lease liabilities after more
than five years, which were included in the lease liabilities after one year
and within five years previously. The total borrowings remain unchanged.
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 1 November 2021 the Group renewed and expanded its committed loan facility
with HSBC to £20m, with an accordion option of an additional £10m and with a
termination date of 1 November 2024 extendable for two further years. On 30
November 2022, the Group reached an agreement with HSBC to exercise £5m of an
available £10m accordion option, which increased the committed loan facility
from £20m to £25m. The balance of the accordion option (£5m) remains
available to the Group (at the discretion of HSBC) for future exercise. In
April 2024, HSBC approved an extension of the repayment date by one year to
November 2026.
At the end of the period to 31 October 2025 the Group had drawn down £19.5m
of its revolving credit facility, leaving £5.5m in headroom (excluding the
£5m accordion option).
On 27 November 2025 the Group renewed and expanded its committed loan facility
with HSBC to £25m, with an accordion option of an additional £15m and with a
repayment date of 27 November 2028 extendable for two further years. Both the
accordion option and the extensions are at HSBC's discretion.
8. Taxation
The Group has estimated an effective tax rate on statutory PBT of 26.8% (H1
FY25: 26.8%) for the year and has applied this rate to the profit before tax
for the period.
9. Business combinations
On 5 June 2025, the Company acquired 100% of the share capital of Severn
Thermal Solutions Limited, a company incorporated in England and Wales, for a
consideration payable in cash.
The assets and liabilities acquired were as follows:
Fair Value
Book value adjustment Fair Value
£'000 £'000 £'000
Assets
Non-current assets
Intangible assets - 1,491 1,491
Property, plant & equipment 16 - 16
Right of use asset - 45 45
Total non-current assets 16 1,536 1,552
Current assets
Inventories 250 - 250
Trade and other receivables 2,969 - 2,969
Cash and cash equivalents 869 - 869
Liabilities
Trade and other payables (306) 36 (270)
Corporation tax liability (489) - (489)
Lease liabilities - (45) (45)
Deferred tax liability - (372) (372)
Net assets acquired 3,309 1,155 4,464
Goodwill 3,984
Consideration and cost of investment 8,448
Fair value of consideration transferred
Cash paid 5,683
Less: cash acquired (869)
Net cash paid in year (see cash flow) 4,814
Non-cash item: Acquired receivable netted off on consolidation against SDI
loan payable
2,765
Cash acquired 869
8,448
Severn Thermal Solutions is a designer and manufacturer of high temperature
furnace systems and environmental chambers for advanced material processing
and testing.
Severn Thermal Solutions Limited contributed £664k revenue and approximately
£222k to the Group's profit before tax for the period between the date of
acquisition and the balance sheet date, not including £112k of acquired
intangible asset amortisation.
If the acquisition of Severn Thermal Solutions Limited had been completed on
the first day of the financial year, the additional impact on group revenues
for the period are estimated to have been £230k and the additional impact on
group profit before tax is estimated to have been £114k, before an additional
£22k of amortisation expense.
The goodwill of £3,984k arising from the acquisition relates to the assembled
workforce and to expected future profitability, synergy and growth
expectations.
A third-party expert performed a detailed review of the acquired intangible
assets and recognised acquired customer relationships, orderbook and brand.
The customer relationships intangible asset was valued using a multi-period
excess earnings methodology. The estimated fair value of the customer
relationships therefore reflects the present value of the projected stream of
cash flows that are expected to be generated by existing customers going
forwards, net of orders on hand at the date of acquisition. Key assumptions
are the discount rate and attrition rate. Values of 12.5% and 20% were
selected. After consulting with management to discuss their findings,
management agreed with the inputs used and results obtained.
The deferred tax liability has been calculated on the amortisable intangible
assets using the current enacted statutory tax rate of 25%.
The last financial year for Severn Thermal Solutions Limited was to 30
September 2025. The current financial year has been extended by seven months
to 30 April 2026 to align with that of SDI Group plc.
10. Post balance sheet events
Subsequent to the balance sheet date, the Group renewed and expanded its
committed loan facility with HSBC. Please refer to note 7 for more details.
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