SDI Group on course for more acquisitions on the back of another strong performance
SDI is a group of SMEs 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.
The half-year was a story of strong results with the corporate strategy progressing well and significant contract wins banked. Revenues increased by 10.1 per cent to £34 million (H1 FY25: £30.9m) and SDI saw organic revenue growth of 3.2 per cent, 3 per cent on a constant currency basis and 6.9 per cent growth from acquisitions (£2.1m).
Adjusted operating profit was ahead 17.7 per cent to £4.6m (H1 FY25: £3.9m) and reported operating profit up 32.2 per cent to £3.2m (£2.4m). SDI generated £4.2m cash from operations, slightly down from £4.7m from the same period of the prior year.
Post period end, SDI has renewed and expanded its committed loan facility with HSBC to £25m with an accordion option for an additional £15m.
The acquisition pipeline remains active, with potential for further M & A in FY26, SDI reports. It expects FY26 to be in line with expectations.
CEO Stephen Brown 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."
