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 2022.
Financial results ahead of expectations
Subject to finalisation of the accounts and audit, we expect revenues and profits for the year to materially exceed current market expectations1. Sales are expected to be approximately £49m (FY2021: £35.1m). We expect organic sales growth2 for the year to be in excess of 20%, which further builds on last year's 19% organic growth. We are also pleased with the 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 Tax3 is expected to be at least £10.5m (FY2021: £7.4m). We also expect to report very strong operational cashflows, significantly ahead of market expectations.
Strength of the business model and prospects for 2023
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. The Group's federated structure and our diligent staff have allowed us to respond to the challenge with record output and improved profitability, providing customers with the products they need. Our Atik Camera business continues to see strong demand from PCR OEM manufacturers. We have no material direct exposure to Ukraine or Russia. Having continued to invest in our current businesses and in acquiring complementary businesses, we expect FY2023 to be the Group's best year yet, also ahead of current market expectations.
Ken Ford, Chairman of SDI, commented: "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."
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 FY2022 being Revenue of £46.65m and Adjusted Profit Before Tax of £9.65m.
2. Organic sales growth is the year-on-year change in sales for all of our businesses starting from their 13th month within the Group, expressed as a percentage of the Group's prior year sales.
3. Before reorganisation costs, acquisition costs, amortisation / impairment of acquired intangibles and share based payment costs.
Enquiries
SDI Group plc 01223 320480
Ken Ford, Chairman
Mike Creedon, CEO
Jon Abell, CFO
www.sdigroup.com
finnCap Ltd 020 7220 0500
Ed Frisby/Kate Bannatyne/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, 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, Uniform Engineering and Safelab Systems.
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.sdigroup.com
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.
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