National Storage Mechanism | Additional information
RNS Number : 0203Z
SDI Group PLC
11 May 2023
 

 

SDI Group plc

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

Trading Update

 

SDI Group plc, the AIM quoted group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications, is pleased to provide an update on trading for the year ended 30 April 2023.

Financial results

Subject to finalisation of the accounts and audit, we expect revenues to be approximately £69m (FY22: £49.7m). We are also pleased with the contributions from acquired businesses LTE Scientific (acquired July 2022), Fraser Anti-Static Techniques (acquired October 2022), and a full year's contribution from both Scientific Vacuum Systems (January 2022) and Safelab Systems (March 2022). Adjusted Profit Before Tax2 is expected to be in the region of £11.8m (FY22: £11.8m), in line with current market expectations1.

Strength of the business model and prospects for 2024

FY23 continued the pattern seen over recent years, with the after-effects of Brexit, COVID and a war in Ukraine creating uncertainty and generating supply chain and recruitment difficulties alongside unwelcome inflationary cost pressures. It is pleasing to report that some of the supply chain issues eased over the second half. Atik Cameras' trading in FY23 included sales of c.£8.5m supplying PCR cameras to a specific OEM customer. We do not currently expect any further PCR contracts from this customer, and as a result have removed all related revenues from FY24 forecasts. The Group's federated structure and our hard-working staff continue to allow us to respond to these various challenges and we forecast a good year of organic growth when excluding this previous one-off business. FY24 revenues are expected to be ahead of FY23. We continue to invest in our existing businesses and in acquiring complementary businesses and we expect to continue our buy and build strategy in FY24.

Ken Ford, Chairman of SDI, commented: "2022 was a busy calendar year for SDI, with four new businesses joining the Group, all of whom have contributed to an excellent financial year. We have executed once again on all facets of our buy and build strategy, delivering a record Adjusted Operating Profit performance in FY23. Whilst we have previously highlighted to the market that the Atik PCR OEM sales were of a one off nature, it is disappointing that there are not likely to be any more PCR camera or other product sales to this customer; we have adjusted the FY24 outlook and we look forward to delivering sustainable profits and cashflows in FY24 and beyond."

 

1. Analysts from our Broker finnCap 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 (prior to this Trading Update) for FY23 being Revenue of £66.3m and Adjusted Profit Before Tax of £11.8m.

2. Before reorganisation costs, acquisition costs, amortisation of acquired intangibles and share based payment costs.

 

Enquiries

SDI Group plc                                                                          01223 727144

Ken Ford, Chairman

Mike Creedon, CEO

Ami Sharma, CFO

www.sdigroup.com

 

finnCap Ltd                                                                              020 7220 0500

Ed Frisby/Seamus Fricker/Milesh Hindocha - Corporate Finance

Andrew Burdis/Sunila de Silva - ECM

 

About SDI Group plc:

SDI designs and manufactures scientific and technology products for use in digital imaging and sensing and control applications including life sciences, healthcare, astronomy, plastics and packaging, manufacturing, precision optics, measurement instrumentation and art conservation. SDI operates through its subsidiaries: Atik Cameras, Synoptics, Graticules Optics, Sentek, Astles Control Systems, Applied Thermal Control, MPB Industries, Chell Instruments, Monmouth Scientific, Uniform Engineering, Scientific Vacuum Systems, Safelab Systems, LTE Scientific and Fraser Anti-Static Techniques.

Corporate expansion is via organic growth within its subsidiary companies and through the acquisition of complementary, niche technology businesses with established reputations in global markets.

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTFZGMKLGGGFZM