REG - SDI Group PLC - Trading Update

SDIAnnouncement

20/05/2024 07:00

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RNS Number : 9861O  SDI Group PLC  20 May 2024

 

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 a trading update for the year
ended 30 April 2024.

Financial results

Subject to finalisation of the accounts and audit, we expect revenues to be in
line with current market expectations(1) at approximately £65.9m (FY23:
£67.6m). In addition to the acquired business Peak Sensors (November 2023)
there was a full year's contribution from both LTE Scientific (acquired July
2022) and Fraser Anti-Static Techniques (acquired October 2022). Adjusted
Operating Profit(2) is expected to be in the region of £9.6m (FY23: £12.8m)
with Adjusted Profit Before Tax(2) approximately £8.0m (FY23: £11.8m), both
in line with current market expectations(1).

Business overview

As expected, the Group saw improved profitability and cash generation from
operations over the second half of the financial year. As noted at the half
year, Atik Cameras received a camera order from their major OEM customer in
November which benefitted the second half of the financial year. Monmouth and
Chell Instruments experienced a strong second half, with the former seeing
increased clean room and cabinet sales, the latter seeing improved demand for
its DAQ product range. Fraser Anti-Static Techniques also saw a pickup in
revenues. Scientific Vacuum Services ("SVS"), as expected, saw a slower period
of trading after delivering a large contract in the first half of the year.

Our focus on cash generation has yielded results with the net debt position
maintained in the second half at £13.2m (31 Oct 23: £13.2m), despite £3.3m
of cash outflow in the period for acquisitions (Peak Sensors: £2.3m, SVS
earnout: £1.0m). Gross debt at the end of the year was £14.6m leaving
£10.4m in headroom within our revolving credit facility, alongside an
additional £5m accordion option with HSBC.

After a review, SDI disposed of Uniform Engineering for a nominal sum at the
end of February 2024. This disposal resulted in a loss of £0.2m, which will
be classified as a non-recurring item. Uniform had external revenues of
£0.45m and recorded a small loss over the ten months to February 2024.

We continue to invest in our existing businesses and in acquiring
complementary businesses and we expect to continue our buy and build strategy
in FY25.

 

Ken Ford, Chairman of SDI, commented: "I am pleased to report that the Group
had a good finish to the financial year, with better trading performances at a
number of SDI businesses. Stephen Brown, our new CEO, has settled into his
role well and is already making an impact. The Group's cash generation from
operations improved over the second half which leaves us well placed to
continue our buy and build strategy."

 

1. Analysts from our 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 for FY24 being Revenue of £64.9m,
Adjusted Operating Profit of £9.5m and Adjusted Profit Before Tax of £7.9m.

2. Before reorganisation costs, acquisition costs, profit or loss on disposal
of subsidiaries, amortisation of acquired intangibles and share based payment
costs.

 

Enquiries

SDI Group plc
 
            01223 727144

Ken Ford, Chairman

Stephen Brown, CEO

Ami Sharma, CFO

www.sdigroup.com

 

Cavendish Capital Markets Limited
                                    020
7220 0500

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

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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