REG - SDI Group PLC - Trading Update

SDIAnnouncement

19/05/2025 07:00

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RNS Number : 0996J  SDI Group PLC  19 May 2025

SDI Group plc

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

Trading Update

19 May 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, provides a trading update for the year ended 30 April 2025 ("FY25").

The Company expects full year results to be in line with current market
expectations(1), following strong trading over the second half of FY25,
offsetting the slow start to the financial year.

SDI has continued to demonstrate solid cash generation during FY25 and retains
sufficient headroom within existing debt facilities to support the Group's
acquisition strategy. At 30 April 2025 the Group had net debt of £13.8m and
£9.9m of undrawn bank facility (excluding the £5m accordion option) and a
further £0.6m of deferred consideration payable relating to previous
acquisitions.

The Group has a robust order book, buoyed by an uptick in orders in Q4 FY25,
and looks forward to providing a further update at the full year results in
late-July/early August.

Operational Update

The Group strategy remains to drive growth organically as well as expanding
the business through strategic acquisitions that complement the existing
portfolio, where synergies including cross-sell opportunities can be
leveraged.

Several businesses within the portfolio demonstrated strong performance in the
second half. Monmouth Scientific experienced increased demand for its fume
cabinets, while Safelab Systems successfully fulfilled a substantial order
that had been deferred from the first half of the year. Chell saw increased
demand for its DAQ product range, and Sentek benefited from positive market
trends in pH sensors. Atik Cameras had an excellent FY25, with demand for its
cameras normalising following a slow FY24, and both Graticules and MPB
delivered strong overall performances across FY25.

Order intake increased during the second half of the year, driven by key
contract wins across several businesses. These included a notable win for Atik
Cameras from a professional astronomy customer, strong clean room order intake
at Monmouth and a key agreement for Sentek with a prominent OEM. LTE
Scientific and Applied Thermal Control both successfully launched new products
and Sentek completed a successful trial of a novel pH sensor for a UK customer
that is expected to produce a new revenue stream.

Over the course of FY25, the Group has acquired two businesses: InspecVision,
a designer and manufacturer of computer vision-based measurement systems for
industrial applications, acquired in October 2024, and Collins Walker, a
designer and manufacturer of electric boilers, acquired in April 2025.
InspecVision is trading as a standalone business within the portfolio, whilst
the integration of Collins Walker into Applied Thermal Control has begun.
InspecVision traded positively, as expected, post-acquisition. Due to the
Collins Walker acquisition being completed in April 2025, as expected, it did
not have a significant impact on FY25.

Post year end, InspecVision was awarded the prestigious King's Award for
Enterprise in the category of International Trade, reflecting its quality as a
successful and profitable UK engineering business operating in a unique, but
critical, niche.

Tariffs

Approximately 10% of revenues in FY25 were generated from sales directly to
the US, and the introduction of tariffs on products sold to the US is not
expected to have a material impact on the Group.

Stephen Brown, CEO of SDI Group commented:

"The second half of the year has finished strongly, with momentum continuing
into FY26. We are seeing some notable performances from businesses across our
portfolio and good demand for their niche highly specialised scientific and
industrial products, despite the global economic uncertainty. This is
testament to the quality businesses within our portfolio and their diversified
geographical and sectoral customer base."

(1) Analysts from SDI's broker Cavendish Capital Markets Limited, and from
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 for FY25 are Sales of £66.5m
and Adjusted Profit Before Tax of £8.4m.

 

 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 & broker)       +44 (0)20 7220 0500

 Ed Frisby / Seamus Fricker - Corporate Finance

 Andrew Burdis / Sunila de Silva - ECM

 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/)

 

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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