⌘K
t
| Date | 4 Nov 2021 |
| Time | 07:00:03 |
| Category | Trading updates |
| ID | 2755R |
SDI Group plc
("SDI", the "Company", or the "Group")
Trading Update
and
Notice of Results
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 control applications, is pleased to announce an update on trading for the current year ending 30 April 2022.
The Group expects to report very strong sales and profits for the half year ended 31 October 2021 ("H1"), with approximately £24.7m of Revenue (H1 2021: £14.1m; H1 2020: £11.4m). Alongside the valuable contributions from Monmouth Scientific and Uniform Engineering, both acquired in the second half of FY 2021, we expect to report organic revenue growth in excess of 40%.
As previously announced, the Atik Cameras division has benefitted in FY 2021 and in 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.
Performance in other areas of our business has been strong, and the Board expects full year Revenue to be around £45m, ahead of current market expectations1. In common with much of the manufacturing industry, the Group is experiencing supply chain challenges, but to date we are managing this well. Accordingly, the Board expects full year Adjusted2 Profit Before Tax to also be modestly above current market expectations at around £9.2m1.
While we have not completed any acquisitions to date in the year, there has been no shortage of activity with potential targets.
On 1 November 2021, we renewed and expanded our committed loan facility with HSBC to £20m, with a further accordion option of an additional £10m (at the discretion of HSBC), which, with our current net cash position and strong cash flow, provides sufficient funding for acquisition opportunities.
The Group expects to publish its interim results for the six months to 31 October 2021 on 7 December 2021.
1Analysts from our Broker finnCap Limited and from Progressive Equity Research regularly provide research on the Company, and the Group considers the average of their forecasts to represent market expectations for FY 2022 being, prior to this announcement, Revenue of £42.05m and Adjusted2 Profit Before Tax of £8.85m
2Before amortisation of acquired intangible assets, reorganisation costs, acquisition costs and share based payments
Enquiries
SDI Group plc 01223 727144
Ken Ford, Chairman
Mike Creedon, CEO
Jon Abell, CFO
finnCap Ltd 020 7220 0500
Ed Frisby/Kate Bannatyne/Milesh Hindocha - Corporate Finance
Andrew Burdis/Sunila de Silva - ECM
JW Communications 07818 430 877
Julia Wilson - Investor & Public Relations
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, manufacturing, precision optics and art conservation. SDI operates through its company divisions: Atik Cameras, Synoptics, Graticules Optics, Sentek, Astles Control Systems, Applied Thermal Control, MPB Industries, Chell Instruments, Monmouth Scientific and Uniform Engineering.
SDI continues to grow by developing its own technology advancements and by improving its global sales channels, as well as through pursuing strategic, complementary acquisitions. www.thesdigroup.net
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.