REG - SDI Group PLC - Trading Update

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RNS Number : 1624F  SDI Group PLC  21 May 2026

SDI Group plc

("SDI", the "Company", or the "Group")

 

Trading Update

 

21 May 2026 - 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,
provides a trading update for the year ended 30 April 2026 ("FY26").

 

The Company expects full year earnings to be in line with current market
expectations(1), with strong trading over the second half of the year, despite
the broader macroeconomic challenges. The year saw an improvement in operating
margin delivering in-line earnings, with revenue at the lower end of
expectations. The Group generated stronger organic growth in FY26,
particularly during the second half of the financial year.

 

At 30 April 2026, following the acquisition of PRP Optoelectronics, the Group
had net debt of £24.0m (excluding deferred consideration of £0.7m) and
£4.0m of undrawn bank facility (excluding a £9.0m accordion option).

 

The Group has a strong order book moving into FY27 and looks forward to
providing shareholders with a comprehensive update at the full year results,
which are expected to be announced in late July.

 

Operational Update

 

The Group strategy is to drive growth by acquiring and developing niche
industrial and scientific businesses that address critical customer
challenges, whilst supporting organic growth within the portfolio through
strategic initiatives, maximising synergies, operational efficiencies and
cross-sell opportunities where appropriate.

 

Organic

During the year, there has been solid order intake from all divisions, with
highlights including:

·      Sentek securing a significant contract with a multinational
industrial manufacturing customer;

·      Scientific Vacuum Systems receiving a multimillion-pound contract
from one of the world's largest consumer brands;

·      Chell building on last year's strong performance, with continued
demand for its products from its diverse customer base including gas meter
manufacturers, aerospace and Formula 1;

·      LTE Scientific and Safelab Systems securing, and in the process
of delivering, significant contracts for key customers;

·      Severn Thermal Solutions continuing to execute existing
significant contracts for nuclear fusion applications; and

·      Fraser Anti-Static Techniques and InspecVision seeing sustained
demand for their products from international customer bases, including South
Korea and North America respectively.

 

Acquisitions

During the year, the Group completed two acquisitions, with both businesses
performing well post-acquisition:

·      Severn Thermal Solutions, a designer and manufacturer of high
temperature furnace systems and environmental chambers for advanced material
processing and testing, acquired in June 2025; and

·      PRP Optoelectronics ("PRP"), a designer and manufacturer of
custom high performance microLEDs, LED light engines and monolithic LEDs for a
range of applications within the avionics, defence and industrial sectors,
acquired in February 2026.

 

 

Stephen Brown, Chief Executive Officer of SDI, said:

 

"We are proud to have delivered a strong performance in FY26, against the
backdrop of increasing macroeconomic and geopolitical uncertainty, further
underpinning the value of our portfolio model. New product development,
coupled with new client wins both internationally and in the UK, and
partnering on pioneering projects remain the mainstay of our business.

Our strategy remains unchanged - to continue to support organic growth across
the portfolio whilst exploring opportunities to expand the business through
targeted acquisition."

 

 

 1  Analysts from SDI's joint corporate brokers Cavendish Capital Markets
Limited and Stifel together with Progressive Equity Research regularly provide
research on the Company, accessible from SDI's website, and the Group
considers the average of their forecasts to represent market expectations,
which at 20 May 2026, for FY26 were Sales of £75.4m 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

 James Dimitriou, Group Head of Corporate Development
                                                                      +44 (0)20 7220 0500

 Cavendish Capital Markets Ltd (NOMAD & Joint Corporate Broker)

 Ed Frisby / Seamus Fricker - Corporate Finance

 Andrew Burdis / Sunila de Silva - Corporate Broking

 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 serves a broad spectrum of specialised markets,
ranging from advanced industrial technologies (aerospace & defense,
manufacturing, semiconductors and precision measurement) to scientific and
medical applications (life sciences, healthcare, astronomy).

 

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)

 

 

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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