REG - SDI Group PLC - Trading Update

SDIAnnouncement

06/05/2022 07:00

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RNS Number : 5348K  SDI Group PLC  06 May 2022

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 an update on trading for the year
ended 30 April 2022.

Financial results ahead of expectations

Subject to finalisation of the accounts and audit, we expect revenues and
profits for the year to materially exceed current market expectations(1).
Sales are expected to be approximately £49m (FY2021: £35.1m).  We expect
organic sales growth(2) for the year to be in excess of 20%, which further
builds on last year's 19% organic growth. We are also pleased with the
additional sales contributions from acquired businesses Monmouth Scientific
(acquired December 2020), Uniform Engineering (February 2021), Scientific
Vacuum Systems (January 2022) and Safelab Systems (March 2022). Adjusted
Profit Before Tax(3) is expected to be at least £10.5m (FY2021: £7.4m). We
also expect to report very strong operational cashflows, significantly ahead
of market expectations.

Strength of the business model and prospects for 2023

The past year has presented unprecedented operational challenges, with an
intermittent COVID-19 recovery, the after-effects of Brexit and a war in
Ukraine all creating uncertainty and generating significant supply chain
difficulties and unwelcome inflationary cost pressure. The Group's federated
structure and our diligent staff have allowed us to respond to the challenge
with record output and improved profitability, providing customers with the
products they need. Our Atik Camera business continues to see strong demand
from PCR OEM manufacturers. We have no material direct exposure to Ukraine or
Russia. Having continued to invest in our current businesses and in acquiring
complementary businesses, we expect FY2023 to be the Group's best year yet,
also ahead of current market expectations.

Ken Ford, Chairman of SDI, commented: "We have executed again on all facets of
our buy and build strategy, delivering record performance in FY2022 and
setting up what looks like another record year in FY2023."

 

1. Analysts from our Broker finnCap 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 (prior to this Trading Update) for FY2022 being Revenue of
£46.65m and Adjusted Profit Before Tax of £9.65m.

2. Organic sales growth is the year-on-year change in sales for all of our
businesses starting from their 13th month within the Group, expressed as a
percentage of the Group's prior year sales.

3. Before reorganisation costs, acquisition costs, amortisation / impairment
of acquired intangibles and share based payment costs.

 

Enquiries

SDI Group plc
 
            01223 320480

Ken Ford, Chairman

Mike Creedon, CEO

Jon Abell, CFO

www.sdigroup.com

 

finnCap
Ltd
020 7220 0500

Ed Frisby/Kate Bannatyne/Milesh Hindocha - 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, 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, Uniform Engineering
and Safelab Systems.

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.sdigroup.com

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.

 

 

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