SDI fashions opportunity for fresh acquisitions
SDI Group plc, an AIM-quoted Cambridge business focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing control applications, has enjoyed a terrific period of trading.
The group expects to report very strong sales and profits for the half year ended October 31 with approximately £24.7 million of revenue – almost double from last time.
Alongside valuable contributions from Monmouth Scientific and Uniform Engineering, both acquired in the second half of FY 2021, SDI expects to report organic revenue growth in excess of 40 per cent, according to chairman Ken Ford.
As previously announced, the Atik Cameras division has benefited in FY 2021 and FY 2022 from exceptional orders for cameras to be used in real time PCR DNA amplifiers whose end demand is related to testing for COVID-19.
Shipments against these orders have continued through H1 2022 but will be substantially reduced in the second half of the financial year, fully in line with expectations.
Ford says that performance in other areas of the business has been strong and the board expects full year revenue to be around £45m, ahead of current market expectations.
In common with much of the manufacturing industry, the group is experiencing supply chain challenges, but to date is managing this well. Accordingly, the board expects full year adjusted PBT to also be modestly above current market expectations at around £9.2m.
The company has just renewed and expanded its committed loan facility with HSBC to £20m, with a further accordion option of an additional £10m (at the discretion of HSBC), which, with SDI’s current net cash position and strong cash flow, provides sufficient funding for acquisition opportunities.
SDI designs and manufactures scientific and technology products for use in digital imaging and sensing and control applications including life sciences, healthcare, astronomy, manufacturing, precision optics and art conservation.