Supercharged SDI basks in another record year
Cambridge based S & T products innovator SDI Group earned rave reviews from brokers after releasing a glowing update on trading for the year ended April 30 which showed the AIM-quoted business operating well ahead of market expectations.
The share price was almost 19p and 12.50 per cent ahead to 169.88 on early trading following the update. Chairman Ken Ford is confident that SDI Group has laid the ground for another record-breaking year.
SDI designs and makes scientific and technology products for use in digital imaging and sensing and control applications.
Sales for the year are forecast to be approximately £49 million – up from £35.1m last time. SDI expects organic sales growth for the year to be in excess of 20 per cent, which further builds on last year’s 19 per cent surge.
The company reports additional sales contributions from acquired businesses Monmouth Scientific (acquired December 2020), Uniform Engineering (February 2021), Scientific Vacuum Systems (January 2022) and Safelab Systems (March 2022).
Adjusted Profit Before Tax is expected to be at least £10.5m (FY2021: £7.4m). SDI also expect to report very strong operational cashflows, significantly ahead of market expectations.
The past year has presented unprecedented operational challenges, with an intermittent COVID-19 recovery, the after-effects of Brexit and a war in Ukraine all creating uncertainty and generating significant supply chain difficulties and unwelcome inflationary cost pressure.
SDI’s federated structure and diligent staff have allowed the company to respond to the challenge with record output and improved profitability, providing customers with the products they need.
Its Atik Camera business continues to see strong demand from PCR OEM manufacturers. Having continued to invest in the current businesses and in acquiring complementary companies, SDI expects FY2023 to be the group’s best year yet – also ahead of current market expectations.
Chairman Ken Ford remarked: "We have executed again on all facets of our buy and build strategy, delivering record performance in FY2022 and setting up what looks like another record year in FY2023.”