RNS Number : 9673J
SDI Group PLC
03 December 2025
SDI Group plc
("SDI", the "Company", or the "Group")
Interim results for the six months ended 31 October 2025
Strong results with strategy progressing well and significant contract wins
3 December 2025 - SDI Group plc, the buy and build group, focused on companies which design and manufacture specialist lab equipment, industrial & scientific sensors and industrial & scientific products, announces its interim results for the six months to 31 October 2025 ("H1 FY26").
Operational and Strategic highlights
· Significant contract wins across the portfolio for delivery in H2 FY26
· Completed earnings-enhancing acquisition within Lab Equipment of Severn Thermal Solutions Limited ("Severn")
· Continued focus on commercial collaboration between portfolio businesses and driving greater synergies across the Group
· New products launched last financial year now generating revenues, reinforcing focus on innovation across the portfolio
· Strengthened senior management team, with two Divisional Managing Directors now in place to support the delivery of sustainable, long-term growth
· Positive progress against both the organic and inorganic growth strategy
Financial summary
· Revenues increased by 10.1% to £34.0m (H1 FY25: £30.9m)
· Organic revenue growth of 3.2%, 3.0% on a constant currency basis, 6.9% growth from acquisitions (£2.1m)
· Gross margins (on materials only) improved to 66.3% (H1 FY25: 65.4%)
· Adjusted operating profit* up 17.7% to £4.6m (H1 FY25: £3.9m) and reported operating profit up 32.2% to £3.2m (H1 FY25: £2.4m)
· Adjusted profit before tax* increased 21.7% to £3.8m (H1 FY25: £3.2m) and reported profit before tax up 46% at £2.5m (H1 FY25: £1.7m)
· Adjusted diluted EPS* improved to 2.77p (H1 FY25: 2.37p) and reported diluted EPS up to 1.70p (H1 FY25: 1.18p)
· Cash generated from operations of £4.2m (H1 FY25: £4.7m)
· Post period end, renewed and expanded committed loan facility with HSBC to £25m, with an accordion option for an additional £15m
Outlook
· Acquisition pipeline remains active, potential for further M&A in FY26
· Stable strategy in place and the diversity of the portfolio ensures the Group is well placed for the future growth
· FY26 expected to be in line with market expectations**, with first half / second half weighting of profits similar to FY25, and good visibility
Stephen Brown, Chief Executive Officer of SDI Group, said:
"We have delivered a great set of results despite challenging market conditions, which is testament to our operating model, our strategy and the determination of our team. Whilst we do not expect these conditions to improve significantly in the near term, we remain on track to meet full-year market expectations** and have secured several significant new contracts for delivery in the second half of the year.
"The breadth of our portfolio helps us navigate volatility, and we continue to drive inorganic growth through our acquisition pipeline. We are increasingly seeing attractive opportunities to add to our proven track record of value-enhancing acquisitions by adding profitable businesses in high-growth niche markets.
"With the addition of Divisional Managing Directors supporting our portfolio management teams, we have the leadership structure in place to sustain our inorganic growth as well as delivering innovation, synergies and organic growth. We are confident that our strategy, our structure, and our people position us well to achieve our long-term objectives."
A presentation for investors and shareholders via the Investor Meet Company platform will be held today on Wednesday, 3 December 2025 at 2.00 p.m. GMT. Investors can register for the presentation via the following link:https://www.investormeetcompany.com/sdi-group-plc/register-investor
A copy of the shareholder presentation will also be made available on the Company's website www.sdigroup.com/investors/reports-presentations/ later today.
* Before share based payments, acquisition costs, reorganisation costs and amortisation of acquired intangible assets.
** Analysts from SDI's 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. Being for FY26; Revenue of £75.2m, Adjusted Operating Profit of £11.4m and Adjusted Profit Before Tax of £9.8m.
Enquiries:
SDI Group plc Stephen Brown, Chief Executive Officer Amitabh Sharma, Chief Financial Officer
+44 (0)1223 727144 www.sdigroup.com
Cavendish Capital Markets Ltd (NOMAD & Joint Corporate Broker) Ed Frisby / Seamus Fricker - Corporate Finance Andrew Burdis / Sunila de Silva - ECM
+44 (0)20 7220 0500
Stifel (Joint Corporate Broker) Fred Walsh / Brough Ransom / Ben Good
+44 (0) 20 7710 7600
Vigo Consulting (Financial Communications) Tim McCall / Rozi Morris / Fiona Hetherington
+44 (0)20 7390 0230 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
Chief Executive Officer's statement
The Group delivered significant operational progress across H1 FY26. Our teams have continued to execute on our strategy of driving both organic and inorganic growth, against a backdrop of challenges in certain markets, particularly within industrial sectors.
While the imposition of US tariffs has introduced some uncertainty across our end markets, our portfolio companies have not experienced any noticeable direct impact. The breadth of the diversified portfolio has also underpinned the performance, with stronger delivery from certain businesses offsetting those navigating short term slowdowns in their end markets. Our focus, therefore, has remained on executing our strategy, delivering tangible results from both our organic initiatives and strengthening the portfolio through our proven buy-and-build model.
Operations
Our focus on innovation is organically translating directly into commercial traction. The new industrial scanner range from Chell Instruments ('Chell'), launched in April 2025, has been very well received and is already generating strong revenues. This is just one of many recent product launches, which include Applied Thermal Control's development of its G and H series to meet new environmental regulations, expanded autoclave ranges at LTE Scientific ('LTE') and Atik Camera's ('Atik') xGbE 60 camera.
We continue to identify and foster greater commercial synergies across the Group. Collaborations between portfolio businesses are opening up new international markets, with Fraser Anti-Static Techniques ("Fraser") and InspecVision working together commercially to expand further into the EV sector. Furthermore, following the success of last year's event, in October, five SDI businesses presented for the second time from a single stand at UK Lab Innovations, the UK's leading laboratory industry trade show.
We have continued to invest in a strong digital presence - recognising the importance of this in converting sales - with new websites launched at six of our businesses, and successful rebrands at Atik Cameras, Monmouth Scientific and Collins Walker.
To support our growth, we continue to invest in scalable infrastructure and talent. New IT system implementations at Fraser and Peak are progressing well and will provide a blueprint for rollouts at LTE and Chell, driving future efficiencies. We have also strengthened our senior leadership at Group level, welcoming two new Divisional Managing Directors, to oversee the Laboratory Equipment Division and Industrial & Scientific Products Division, with the primary objective to support operational efficiencies and drive further organic growth.
The trend for a second half weighting seen in FY25 as forecast has continued into this financial year. We have good visibility on the orders for the second half, with multiple significant contracts to be executed in H2 FY26, including:
· Safelab Systems ('Safelab') has received a £1.3m government contract to supply high performance fume cabinets, to be delivered in Q4 FY26.
· Chell received £0.9m in orders from a customer for the supply of two gas-meter calibration machines for flow calibration and leak testing, scheduled for delivery in Q4 FY26.
· Severn has two furnaces in production for a nuclear customer, due to be shipped in the second half, with a total value of £0.3m.
· Atik continues to execute its US$4m professional astronomy project. Deliveries for the project commenced in July 2025, with the balance of the contract to be delivered in the second half.
· Sentek are expected to receive their recurring annual order for c£2m worth of blood gas sensors from their OEM customer in January 2026, which they will continue to execute over 2026.
Acquisition
In June 2025, we announced the acquisition of Severn for a net consideration of £4.8m. This significantly enhances our capabilities in advanced material processing and testing. Severn's established expertise in designing systems capable of operating at extreme temperature ranges - from near absolute zero to over 3000°C - highly complements our existing portfolio.
Strategically, this acquisition accelerates our expansion into the controlled environment market and provides deeper access to a diverse, global blue-chip customer base in high-growth sectors, including nuclear, aerospace, and semiconductors. We see strong opportunities to leverage Severn's international footprint across 25 countries to drive cross-selling synergies across the Group.
Since joining the Group, the cultural integration of Severn has already exceeded our expectations, with the team showing a strong alignment with our core values, rapidly fostering the collaborative spirit across the portfolio.
The gross consideration for the acquisition was £8.4m, which included £3.6m of acquired cash, the latter including £2.8m of loans from the sellers. The acquisition was funded from the Group's revolving credit facility with HSBC UK Bank ('HSBC').
Financials and segment breakdown
Group revenues increased by 10.1% to £34.0m (H1 FY25: £30.9m). Severn, acquired in early June 2025, together with the new acquisitions made in FY25, InspecVision and Collins Walker, contributed inorganic revenues of £2.1m (6.9%). Organic revenue growth was 3.2% in total, 3.0% on a constant currency basis.
Laboratory Equipment revenues increased by 12.0% to £12.2m (H1 FY25: £10.9m) following the acquisition of Severn. Organically, the division grew by 5.9%. Monmouth's revenue growth accelerated over the first half, significantly ahead of last year.
Sales in Industrial & Scientific Sensors increased organically by 5.6% to £8.9m (H1 FY25: £8.4m). Sentek had a very strong first half, experiencing significant growth in demand for its pH sensors from both new and existing OEM customers. Astles Control Systems saw increased momentum as demand for its chemical dosing systems recovered from a slower FY25. This will continue into the second half as it executes on a strong first half order intake. Chell saw improved revenues over the half and excellent order intake, which it will also execute over H2 FY26.
Revenues in Industrial & Scientific Products increased by 11.5% to £13.0m (H1 FY25: £11.7m). Organically, the division was broadly flat, showing a slight decline of 1.2%. Atik had a strong first half as it commenced deliveries for a large professional astronomy contract, with the remainder of the contract to be executed in the second half.
Improved cost control at Fraser led to increased profitability in a flat market. Scientific Vacuum Systems saw a slower period than last year due to the comparative period including the production of two systems, compared to one in H1 FY26. Applied Thermal Control ("ATC") continued to experience a chiller market slow-down largely due to regulatory changes relating to bans in refrigerant fluorinated "(F)" gases, with new ATC products being released to market over 2025 and 2026 to address these changes.
Profits
Gross margins (on materials only) improved to 66.3% (H1 FY25: 65.4%), which was encouraging, as the Group sought to maintain margin discipline. Overheads and wage growth grew above inflation when excluding acquisitions due to the increase in employers' national insurance, increased bonus provisions and strengthened central team.
In addition to the performance measures defined under IFRS, the Group also provides adjusted results in which certain one-time and non-cash charges are excluded, to help shareholders understand the underlying operating performance. These adjustments totalled £1.4m (H1 FY25: £1.5m).
Adjusted Group profit before tax increased to £3.8m (H1 FY25: £3.2m). Statutory Group profit before tax increased to £2.5m (H1 FY25: £1.7m).
The effective tax rate on statutory PBT is unchanged at 26.8% (H1 FY25: 26.8%).
Basic earnings per share increased to 1.73p (H1 FY25: 1.19p); diluted earnings per share increased to 1.70p (H1 FY25: 1.18p). Adjusted diluted earnings per share increased by 16.9% to 2.77p (H1 FY25: 2.37p).
Cash flow
Cash generated from operations reduced to £4.2m (H1 FY25: £4.7m). Working capital increased by £1.3m mainly due to an increase in inventories of £1.25m over the half. This was largely due to Atik and Safelab building up stock for impending customer deliveries over the second half. Customer advances were flat on a like for like basis over the six months compared to April 2025, and higher year on year at £2.9m (H1 FY25: £2.0m). Working capital as a percentage of sales increased to 21.2% excluding acquisitions.
Deferred consideration of £0.5m (H1 FY25: £0.5m) was outstanding at the end of the half, relating to the acquisition of InspecVision. This was paid after the period end.
The Severn acquisition costs were £4.8m total net cash consideration.
Net debt (excluding lease liabilities and deferred consideration), or bank debt less cash, increased to £18.0m at 31 October 2025 compared to £13.8m at 30 April 2025 and £17.1m at 31 October 2024. This represents a net debt: EBITDA ratio (including deferred consideration) of c1.3x (rolling last 12 months calculation basis). At 31 October 2025, the Group had £5.5m of headroom within its £25m committed loan facility with HSBC. A further £5m accordion option remained available to the Group (at the discretion of HSBC).
After the period end, on 27 November 2025, the Group renewed and expanded its committed loan facility with HSBC to £25m, with an accordion option of an additional £15m. The renewed facility has a repayment date of 27 November 2028 and is extendable for two further years. Both the accordion option and the extensions are at HSBC's discretion.
The Group has sufficient access to funds, alongside its cash flow, both to execute on its acquisition pipeline and provide further investment in our current portfolio of businesses.
Outlook
Although we anticipate continued challenging market conditions, we remain on track to meet full-year market expectations**. We anticipate a stronger second half, driven by orders we have already received that are set to be delivered later this financial year.
Our priorities are to capitalise on the management structure we now have in place to drive synergies and organic growth through the portfolio, whilst continuing to deliver our inorganic strategy, building on our proven track record of delivering value-enhancing acquisitions, and exploring new high-growth niche markets.
We are confident that these combined strategies, the breadth of our portfolio, the resilience of our companies, the niche markets in which we operate and the innovative high-quality products we produce, will deliver our long-term growth objectives.
Stephen Brown, Chief Executive Officer
3 December 2025
* Analysts from SDI's Joint corporate 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. Being for FY26; Revenue of £75.2m, Adjusted Operating Profit of £11.4m and Adjusted Profit Before Tax of £9.8m.
Consolidated income statement
Unaudited for the six months ended 31 October 2025
Note
6 months to 31 October 2025 Unaudited £'000
6 months to 31 October 2024 Unaudited £'000
12 months to 30 April 2025 Audited £'000
Revenue
34,026
30,911
66,177
Other operating income
203
150
577
Other operating expenses
5
(31,012)
(28,627)
(59,822)
Net operating expenses
(30,809)
(28,477)
(59,245)
Operating profit
3,217
2,434
6,932
Net financing expense
(741)
(738)
(1,470)
Profit before taxation
2,476
1,696
5,462
Income tax charge
(664)
(454)
(1,424)
Profit for the period
1,812
1,242
4,038
Attributable to:
Equity holders of the parent company
1,815
1,214
3,984
Non-controlling interest
(3)
28
54
Profit for the period
1,812
1,242
4,038
Earnings per share
6
Basic earnings per share
1.73p
1.19p
3.86p
Diluted earnings per share
1.70p
1.18p
3.81p
Consolidated statement of comprehensive income
Unaudited at 31 October 2025
6 months to 31 October 2025 Unaudited £'000
6 months to 31 October 2024 Unaudited £'000
12 months to 30 April 2025 Audited £'000
Profit for the period
1,812
1,242
4,038
Other comprehensive income
Items that will subsequently be reclassified to profit and loss:
Exchange differences on translating foreign operations
5
(81)
(141)
Total comprehensive profit for the period
1,817
1,161
3,897
Attributable to:
Equity holders of the parent company
1,820
1,133
3,843
Non-controlling interest
(3)
28
54
Total comprehensive profit for the period
1,817
1,161
3,897
Consolidated balance sheet
Unaudited at 31 October 2025
Note
31 October 2025 Unaudited £'000
31 October 2024 Unaudited £'000
30 April 2025 Audited £'000
Assets
Non-current assets
Intangible assets
52,681
47,217
48,027
Property, plant and equipment
8,265
8,311
8,151
Right-of-use leased assets
5,928
6,342
6,243
Deferred tax asset
88
142
86
66,962
62,012
62,507
Current assets
Inventories
12,579
11,629
11,079
Trade and other receivables
12,777
11,205
13,116
Corporation tax asset
-
292
216
Cash and cash equivalents
1,508
1,195
1,313
26,864
24,321
25,724
Total assets
93,826
86,333
88,231
Non-current liabilities
Borrowings
7
(25,115)
(24,173)
(21,070)
Provisions
(250)
(235)
(281)
Deferred tax liability
(4,976)
(5,595)
(4,900)
(30,341)
(30,003)
(26,251)
Current liabilities
Trade and other payables
(10,748)
(8,584)
(11,331)
Provisions
(119)
(53)
(68)
Borrowings
7
(952)
(953)
(906)
Corporation tax liability
(219)
-
-
(12,038)
(9,590)
(12,305)
Total liabilities
(42,379)
(39,593)
(38,556)
Net assets
51,447
46,740
49,675
Equity
Share capital
1,046
1,046
1,046
Merger reserve
2,606
2,606
2,606
Merger relief reserve
424
424
424
Share premium account
10,863
10,858
10,858
Share-based payment reserve
922
914
902
Foreign exchange reserve
7
61
2
Retained earnings
35,618
30,789
33,803
Total equity due to shareholders
51,486
46,698
49,641
Non-controlling interest
(39)
42
34
Total equity
51,447
46,740
49,675
Consolidated statement of cash flows
Unaudited for the six months ended 31 October 2025
6 months to 31 October 2025 Unaudited £'000
6 months to 31 October 2024 Unaudited £'000
12 months to 30 April 2025 Audited £'000
Operating activities
Profit for the year
1,812
1,242
4,038
Depreciation
1,003
1,017
2,133
Amortisation
1,334
1,030
2,038
Finance costs and income
741
738
1,470
Impairment of intangible assets
-
-
31
Increase in provisions
21
21
82
Taxation in the income statement
664
454
1,424
Employee share-based payments
20
150
338
Operating cash flows before movement in working capital
5,595
4,652
11,554
(Increase)/decrease in inventories
(1,249)
(414)
156
Decrease in trade and other receivables
542
2,128
430
(Decrease)/increase in trade and other payables
(639)
(1,685)
719
Cash generated from operations
4,249
4,681
12,859
Interest paid
(741)
(738)
(1,470)
Income taxes paid
(1,016)
(912)
(2,091)
Cash generated from operating activities
2,492
3,031
9,298
Investing activities
Capital expenditure on fixed assets
(687)
(589)
(1,238)
Sale of property, plant and equipment
50
50
187
Expenditure on development and other intangibles
(513)
(321)
(641)
Repayment of loan
-
750
750
Payment of deferred consideration
(145)
-
-
Acquisition of subsidiaries, net of cash
(4,814)
(6,393)
(8,090)
Net cash used in investing activities
(6,109)
(6,503)
(9,032)
Financing activities
Leases repayments
(422)
(357)
(706)
Dividends paid to non-controlling interests in subsidiaries
(70)
-
(34)
Proceeds from bank borrowing
6,850
6,925
8,895
Repayment of borrowings
(2,485)
(3,250)
(8,360)
Issues of shares and proceeds from option exercise
5
-
-
Net cash from/(used in) financing
3,878
3,318
(205)
Net changes in cash and cash equivalents
261
(154)
61
Cash and cash equivalents, beginning of period
1,313
1,430
1,430
Foreign currency movements on cash balances
(66)
(81)
(178)
Cash and cash equivalents, end of period
1,508
1,195
1,313
Consolidated statement of changes in equity
Unaudited for the six months ended 31 October 2025
6 months to 31 October 2025 - unaudited
Share capital £'000
Merger reserve £'000
Merger relief reserve £'000
Foreign exchange £'000
Share premium £'000
Share-based payment reserve £'000
Retained earnings £'000
Total equity due to shareholders £'000
Non-controlling interest £'000
Total £'000
Balance at 30 April 2025
1,046
2,606
424
2
10,858
902
33,803
49,641
34
49,675
Share issued
-
-
-
-
5
-
-
5
-
5
Share based payments
-
-
-
-
-
20
-
20
-
20
Dividends paid
-
-
-
-
-
-
-
-
(70)
(70)
Transactions with owners
-
-
-
-
5
20
-
25
(70)
(45)
Profit for the period
-
-
-
-
-
-
1,815
1,815
(3)
1,812
Other comprehensive income for the year:
Foreign exchange on consolidation of subsidiaries
-
-
-
5
-
-
-
5
-
5
Total comprehensive income for the period
-
-
-
5
-
-
1,815
1,820
(3)
1,817
Balance at 31 October 2025
1,046
2,606
424
7
10,863
922
35,618
51,486
(39)
51,447
6 months to 31 October 2024 - unaudited
Share capital £'000
Merger reserve £'000
Merger relief reserve £'000
Foreign exchange £'000
Share premium £'000
Share-based payment reserve £'000
Retained earnings £'000
Total equity due to shareholders £'000
Non-controlling interest £'000
Total £'000
Balance at 30 April 2024
1,046
2,606
424
143
10,858
764
29,575
45,416
14
45,430
Share based payments
-
-
-
-
-
150
-
150
-
150
Transactions with owners
-
-
-
-
-
150
-
150
-
150
Profit for the period
-
-
-
-
-
-
1,214
1,214
28
1,242
Other comprehensive income for the year:
Foreign exchange on consolidation of subsidiaries
-
-
-
(82)
-
-
-
(82)
-
(82)
Total comprehensive income for the period
-
-
-
(82)
-
-
1,214
1,132
28
1,160
Balance at 31 October 2024
1,046
2,606
424
61
10,858
914
30,789
46,698
42
46,740
Consolidated statement of changes in equity (continued)
Unaudited for the six months ended 31 October 2025
12 months to 30 April 2025 - audited
Share capital £'000
Merger reserve £'000
Merger relief reserve £'000
Foreign exchange £'000
Share premium £'000
Share-based payment reserve £'000
Retained earnings £'000
Total equity due to shareholders £'000
Non-controlling interest £'000
Total £'000
Balance at 30 April 2024
1,046
2,606
424
143
10,858
764
29,575
45,416
14
45,430
Tax in respect of share options
-
-
-
-
-
-
44
44
-
44
Share based payment transfer
-
-
-
-
-
(200)
200
-
-
-
Share based payment charge
-
-
-
-
-
338
-
338
-
338
Dividends paid
-
-
-
-
-
-
-
-
(34)
(34)
Transactions with owners
-
-
-
-
-
138
244
382
(34)
348
Profit for the year
-
-
-
-
-
-
3,984
3,984
54
4,038
Other comprehensive income for the year:
Foreign exchange on consolidation of subsidiaries
-
-
-
(141)
-
-
-
(141)
-
(141)
Total comprehensive income for the period
-
-
-
(141)
-
-
3,984
3,843
54
3,897
Balance at 30 April 2025
1,046
2,606
424
2
10,858
902
33,803
49,641
34
49,675
Notes to the interim financial statements
1. General information and basis of preparation
SDI Group plc (the "Company"), a public limited company, is the Group's ultimate parent. It is registered in England and Wales. The consolidated interim financial statements of the Company for the period ended 31 October 2025 comprise the Company and its subsidiaries (together referred to as the "Group").
The unaudited consolidated interim financial statements are for the six months ended 31 October 2025. These interim financial statements have been prepared using the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006. The consolidated interim financial information has been prepared under the historical cost convention, as modified by the recognition of certain financial instruments at fair value. The consolidated interim financial statements are presented in British pounds (£), which is also the functional currency of the ultimate parent company.
The consolidated interim financial information was approved by the Board of Directors on 2nd December 2025.
The financial information set out in this interim report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The figures for the year ended 30 April 2025 have been extracted from the statutory financial statements of SDI Group plc which have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial information for the six months ended 31 October 2025 and for the six months ended 31 October 2024 has not been audited or reviewed by the auditors pursuant to the Financial Reporting Council's relevant guidance.
2. Principal accounting policies
The principal accounting policies adopted in the preparation of the condensed consolidated interim information are consistent with those followed in the preparation of the Group's financial statements for the year ended 30 April 2025.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.
Going Concern
The consolidated interim financial information has been prepared on a going concern basis.
The Board has considered the potential of a downturn given the current economic environment. The Group is in a strong financial position with available facilities, sufficient headroom on all covenants associated with the revolving credit facility (see note 7), good profitability, and a strong future order book, enabling it to face any reasonable likely challenge of the continued uncertain global economic environment. The Board has reviewed forecasts for the period to 30 April 2027, evaluated a severe downside scenario and performed a sensitivity analysis, all of which the Board considers extremely unlikely. In the event of a more severe scenario (without applying any mitigations), both covenants would come under some (but not severe) stress. However, mitigations would be obviously applied should this unlikely scenario present itself, such as (but not restricted to) further cost cutting, sale and leaseback of freehold property and potential disposal of assets. This would not cause any significant challenges to the Group's continued existence.
The Board therefore has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and therefore continues to adopt the going concern basis in preparing the interim financial information.
3. Alternative Performance Measures
The Group uses gross profit (on materials only), adjusted operating profit, adjusted profit before tax, adjusted diluted EPS and net operating assets as supplemental measures of the Group's profitability and investment in business-related assets, in addition to measures defined under IFRS. The Group considers these useful due to the exclusion of specific items that are considered to hinder comparison of underlying profitability and investments of the Group's segments and businesses and is aware that shareholders use these measures to evaluate performance over time. The adjusting items for the alternative measures of profit are either recurring but non-cash charges (share-based payments and amortisation of acquired intangible assets) or exceptional items (reorganisation costs and acquisition costs). Some items, e.g. impairment of intangibles, are both non-cash and exceptional.
APM
Description
Gross profit (on materials only)
Gross profit excluding any labour costs
Adjusted operating profit
Reported profit excluding any recurring but non-cash charges or exceptional items
Adjusted profit before tax
Adjusted diluted EPS
Total net income divided by the weighted average number of shares outstanding and dilutive shares
Net operating assets
The total of all assets directly linked to the main operations minus all operational liabilities
The following table is included to define the term gross profit (on materials only):
6 months to 31 October 2025 Unaudited £'000
6 months to 31 October 2024 Unaudited £'000
12 months to 30 April 2025 Audited £'000
Revenue
34,026
30,911
66,177
Cost of purchases
(11,453)
(10,699)
(23,251)
Gross Profit (on materials only)
22,573
20,212
42,926
Gross Margin (on materials only)
66.3%
65.4%
64.9%
The following table is included to define the term adjusted operating profit:
6 months to 31 October 2025 Unaudited £'000
6 months to 31 October 2024 Unaudited £'000
12 months to 30 April 2025 Audited £'000
Operating Profit (as reported)
3,217
2,434
6,932
Adjusting items (all costs):
Non-underlying items
Share based payments
20
150
338
Amortisation of acquired intangible assets
1,046
796
1,725
Exceptional items
Reorganisation costs
164
265
398
Acquisition costs
136
249
564
Total adjusting items
1,366
1,460
3,025
Adjusted Operating Profit
4,583
3,894
9,957
Adjusted profit before tax is defined as follows:
6 months to 31 October 2025 Unaudited £'000
6 months to 31 October 2024 Unaudited £'000
12 months to 30 April 2025 Audited £'000
Profit Before Tax (as reported)
2,476
1,696
5,462
Adjusting items (as above)
1,366
1,460
3,025
Adjusted Profit Before Tax
3,842
3,156
8,487
Adjusted diluted EPS is defined as follows:
6 months to 31 October 2025 Unaudited £'000
6 months to 31 October 2024 Unaudited £'000
12 months to 30 April 2025 Audited £'000
Profit for the Period (as reported)
1,812
1,242
4,038
Adjusting items (as above)
1,366
1,460
3,025
Less: taxation on adjusting items calculated at the UK statutory rate
(219)
(199)
(503)
Adjusted profit for the period
2,959
2,503
6,560
Divided by diluted weighted average number of shares in issue (note 6)
106,713,142
105,586,140
106,097,371
Adjusted Diluted EPS
2.77p
2.37p
6.18p
Net operating assets is defined as follows:
31 October 2025 Unaudited £'000
31 October 2024 Unaudited £'000
30 April 2025 Audited £'000
Net Assets
51,447
46,740
49,675
Deferred tax asset
(88)
(142)
(86)
Corporation tax asset
-
(292)
(216)
Cash and cash equivalents
(1,508)
(1,195)
(1,313)
Borrowings and lease liabilities (current and non-current)
26,066
25,126
21,571
Deferred & contingent consideration
500
500
645
Deferred tax liability
4,976
5,595
4,900
Current tax payable
219
-
-
Total adjusting items
30,165
29,592
25,501
Net Operating Assets
81,612
76,332
75,176
4. Segmental analysis
On 1 May 2024, the Group implemented a new strategy, with the SDI businesses being re-segmented into the following divisions:
· Laboratory Equipment, comprising Safelab Systems, Monmouth Scientific, LTE Scientific, Synoptics and Severn Thermal Solutions;
· Industrial & Scientific Sensors, comprising Chell Instruments, Astles Control Systems, Sentek, MPB Industries and Peak Sensors; and
· Industrial & Scientific Products, comprising Atik Cameras, Fraser Anti-Static Techniques, Applied Thermal Controls, Graticules Optics, Scientific Vacuum Systems, InspecVision and Collins Walker.
The Board of directors reviews operational results of these segments on a monthly basis and decides on resource allocations to the segments and is considered the Group's chief operating decision maker.
6 months to 31 October 2025 Unaudited £'000
6 months to 31 October 2024 Unaudited £'000
12 months to 30 April 2025 Audited £'000
Revenues
Lab Equipment
12,154
10,850
24,007
Industrial & Scientific Products
12,998
11,659
25,135
Industrial & Scientific Sensors
8,874
8,402
17,035
Group
34,026
30,911
66,177
Adjusted operating profit
Lab Equipment
1,416
782
2,703
Industrial & Scientific Products
2,804
2,310
4,950
Industrial & Scientific Sensors
1,924
1,832
4,493
Central costs
(1,561)
(1,030)
(2,189)
Group
4,583
3,894
9,957
Amortisation of acquired intangible assets
Lab Equipment
(305)
(193)
(384)
Industrial & Scientific Products
(451)
(313)
(759)
Industrial & Scientific Sensors
(290)
(290)
(582)
Group
(1,046)
(796)
(1,725)
Adjusted Operating Profit has been defined in note 3.
Analysis of amortisation of acquired intangible assets has been included separately as the Group considers it to be an important component of profit which is directly attributable to the reported segments.
4. Segmental analysis (continued)
Net operating assets has been defined in note 3.
5 Operating costs
31 October 2025 Unaudited £'000
31 October 2024 Unaudited £'000
30 April 2025 Audited £'000
Raw materials and consumables
11,453
10,699
23,251
Staff costs
13,210
12,040
24,574
Other administrative expenses
6,349
5,888
11,997
31,012
28,627
59,822
6. Earnings per share
The calculation of the basic earnings per share is based on the profits attributable to the shareholders of SDI Group plc divided by the weighted average number of shares in issue during the period. All profit per share calculations relate to continuing operations of the Group.
Profit for the period £'000
Weighted average number of shares
Earnings per share amount in pence
Basic earnings per share:
Period ended 31 October 2025
1,812
104,555,473
1.73
Period ended 31 October 2024
1,242
104,551,326
1.19
Year ended 30 April 2025
4,038
104,551,326
3.86
Dilutive effect of share options:
Period ended 31 October 2025
2,157,669
Period ended 31 October 2024
1,034,814
Year ended 30 April 2025
1,546,045
Diluted earnings per share:
Period ended 31 October 2025
1,812
106,713,142
1.70
Period ended 31 October 2024
1,242
105,586,140
1.18
Year ended 30 April 2025
4,038
106,097,371
3.81
7. Borrowings
31 October 2025 Unaudited £'000
*31 October 2024 Unaudited £'000
30 April 2025 Audited £'000
Within one year
Lease liabilities
952
953
906
952
953
906
After one and within five years
Bank finance
19,500
18,275
15,135
Lease liabilities
2,673
2,532
2,803
22,173
20,807
17,938
After more than five years
Lease liabilities
2,942
3,366
3,132
2,942
3,366
3,132
Total borrowings
26,067
25,126
21,976
*A restatement has been made to split out the lease liabilities after more than five years, which were included in the lease liabilities after one year and within five years previously. The total borrowings remain unchanged.
Bank finance relates to amounts drawn down under the Group's bank facility with HSBC Bank plc, which is secured against all assets of the Group.
On 1 November 2021 the Group renewed and expanded its committed loan facility with HSBC to £20m, with an accordion option of an additional £10m and with a termination date of 1 November 2024 extendable for two further years. On 30 November 2022, the Group reached an agreement with HSBC to exercise £5m of an available £10m accordion option, which increased the committed loan facility from £20m to £25m. The balance of the accordion option (£5m) remains available to the Group (at the discretion of HSBC) for future exercise. In April 2024, HSBC approved an extension of the repayment date by one year to November 2026.
At the end of the period to 31 October 2025 the Group had drawn down £19.5m of its revolving credit facility, leaving £5.5m in headroom (excluding the £5m accordion option).
On 27 November 2025 the Group renewed and expanded its committed loan facility with HSBC to £25m, with an accordion option of an additional £15m and with a repayment date of 27 November 2028 extendable for two further years. Both the accordion option and the extensions are at HSBC's discretion.
8. Taxation
The Group has estimated an effective tax rate on statutory PBT of 26.8% (H1 FY25: 26.8%) for the year and has applied this rate to the profit before tax for the period.
9. Business combinations
On 5 June 2025, the Company acquired 100% of the share capital of Severn Thermal Solutions Limited, a company incorporated in England and Wales, for a consideration payable in cash.
The assets and liabilities acquired were as follows:
Book value £'000
Fair Value adjustment £'000
Fair Value £'000
Assets
Non-current assets
Intangible assets
-
1,491
1,491
Property, plant & equipment
16
-
16
Right of use asset
-
45
45
Total non-current assets
16
1,536
1,552
Current assets
Inventories
250
-
250
Trade and other receivables
2,969
-
2,969
Cash and cash equivalents
869
-
869
Liabilities
Trade and other payables
(306)
36
(270)
Corporation tax liability
(489)
-
(489)
Lease liabilities
-
(45)
(45)
Deferred tax liability
-
(372)
(372)
Net assets acquired
3,309
1,155
4,464
Goodwill
3,984
Consideration and cost of investment
8,448
Fair value of consideration transferred
Cash paid
5,683
Less: cash acquired
(869)
Net cash paid in year (see cash flow) Non-cash item: Acquired receivable netted off on consolidation against SDI loan payable
4,814 2,765
Cash acquired
869
8,448
Severn Thermal Solutions is a designer and manufacturer of high temperature furnace systems and environmental chambers for advanced material processing and testing.
Severn Thermal Solutions Limited contributed £664k revenue and approximately £222k to the Group's profit before tax for the period between the date of acquisition and the balance sheet date, not including £112k of acquired intangible asset amortisation.
If the acquisition of Severn Thermal Solutions Limited had been completed on the first day of the financial year, the additional impact on group revenues for the period are estimated to have been £230k and the additional impact on group profit before tax is estimated to have been £114k, before an additional £22k of amortisation expense.
The goodwill of £3,984k arising from the acquisition relates to the assembled workforce and to expected future profitability, synergy and growth expectations.
A third-party expert performed a detailed review of the acquired intangible assets and recognised acquired customer relationships, orderbook and brand. The customer relationships intangible asset was valued using a multi-period excess earnings methodology. The estimated fair value of the customer relationships therefore reflects the present value of the projected stream of cash flows that are expected to be generated by existing customers going forwards, net of orders on hand at the date of acquisition. Key assumptions are the discount rate and attrition rate. Values of 12.5% and 20% were selected. After consulting with management to discuss their findings, management agreed with the inputs used and results obtained.
The deferred tax liability has been calculated on the amortisable intangible assets using the current enacted statutory tax rate of 25%.
The last financial year for Severn Thermal Solutions Limited was to 30 September 2025. The current financial year has been extended by seven months to 30 April 2026 to align with that of SDI Group plc.
10. Post balance sheet events
Subsequent to the balance sheet date, the Group renewed and expanded its committed loan facility with HSBC. Please refer to note 7 for more details.
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