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REG - SDI Group PLC - Trading Update

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RNS Number : 0203Z  SDI Group PLC  11 May 2023

 

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 2023.

Financial results

Subject to finalisation of the accounts and audit, we expect revenues to be
approximately £69m (FY22: £49.7m). We are also pleased with the
contributions from acquired businesses LTE Scientific (acquired July 2022),
Fraser Anti-Static Techniques (acquired October 2022), and a full year's
contribution from both Scientific Vacuum Systems (January 2022) and Safelab
Systems (March 2022). Adjusted Profit Before Tax(2) is expected to be in the
region of £11.8m (FY22: £11.8m), in line with current market
expectations(1).

Strength of the business model and prospects for 2024

FY23 continued the pattern seen over recent years, with the after-effects of
Brexit, COVID and a war in Ukraine creating uncertainty and generating supply
chain and recruitment difficulties alongside unwelcome inflationary cost
pressures. It is pleasing to report that some of the supply chain issues eased
over the second half. Atik Cameras' trading in FY23 included sales of c.£8.5m
supplying PCR cameras to a specific OEM customer. We do not currently expect
any further PCR contracts from this customer, and as a result have removed all
related revenues from FY24 forecasts. The Group's federated structure and our
hard-working staff continue to allow us to respond to these various challenges
and we forecast a good year of organic growth when excluding this previous
one-off business. FY24 revenues are expected to be ahead of FY23. We continue
to invest in our existing businesses and in acquiring complementary businesses
and we expect to continue our buy and build strategy in FY24.

Ken Ford, Chairman of SDI, commented: "2022 was a busy calendar year for SDI,
with four new businesses joining the Group, all of whom have contributed to an
excellent financial year. We have executed once again on all facets of our buy
and build strategy, delivering a record Adjusted Operating Profit performance
in FY23. Whilst we have previously highlighted to the market that the Atik PCR
OEM sales were of a one off nature, it is disappointing that there are not
likely to be any more PCR camera or other product sales to this customer; we
have adjusted the FY24 outlook and we look forward to delivering sustainable
profits and cashflows in FY24 and beyond."

 

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 FY23 being Revenue of
£66.3m and Adjusted Profit Before Tax of £11.8m.

2. Before reorganisation costs, acquisition costs, amortisation of acquired
intangibles and share based payment costs.

 

Enquiries

SDI Group plc
 
            01223 727144

Ken Ford, Chairman

Mike Creedon, CEO

Ami Sharma, CFO

www.sdigroup.com

 

finnCap
Ltd
020 7220 0500

Ed Frisby/Seamus Fricker/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, 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, Uniform Engineering, Scientific Vacuum Systems, Safelab
Systems, LTE Scientific and Fraser Anti-Static Techniques.

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.

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