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Universal Investment GmbH have declared they have a 4.99% stake in SDI, or 5.22m shares:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93913454
They must be a new major shareholder, as they don't appear on SDI's major holder list as at 10th April:
Https://sdigroup.com/investors/shareholder-information/
The reason for their declaration is that they fell below 5% due to the shares issued on 3rd April, but I can't see any RNS noting their initial stake of 5% or above? Maybe someone else can.
Interesting to see sector comparator JDG fall by 1000p folowing their trading statement today, due to company-specific issues.
Even despite the fall, JDG are still on a forward P/E of almost 27.7....compared to SDI's of 9.9.
Finncap have reiterated their 175p target price.
They also reiterate their forecasts of historic 5.8p EPS and 7.4p EPS for the current year, i.e a P/E of 9.4.
Progressive Research maintain their forecast of 7.3p EPS this year - a couple of extracts FYI:
"Solid update reflects strong second half
SDI Group’s trading update for the year ended 30 April 2024 is in line with current guidance for FY24, with good momentum heading into FY25. This reflects the hands-on approach under the new CEO, addressing short-term issues that had led to underperformance in some businesses. The underlying portfolio performed well in terms of profitability and cash generation, with improved trading in a number of businesses. The increased cashflow in H2 and significant headroom within its banking facilities leave SDI well placed to continue its buy and build strategy."
"Encouraging start to the year and forecasts maintained for FY25.
Performance was strong in the second half from a number of businesses. Atik Cameras received a large OEM order in November. Monmouth, following internal reorganisation, experienced increased clean room and cabinet sales. Chell Instruments experienced improved demand for its DAQ product range. Fraser Anti-Static also saw a pick-up in revenues. Sales at SVS are inherently lumpy with a slower H2, having delivered a large contract in H1. We leave FY25 estimates unchanged at this stage and look forward to further detail at the July results.
▪ FY24 delivered and strategy on track.
SDI delivered a solid performance in FY24, despite some continued disruption to ordering patterns and the well-flagged end to its large Chinese OEM contract within Atik Cameras. Most importantly, it has continued to do what we expect of it, successfully delivering on its buy and build strategy, coupled with underlying profitable growth and strong cash generation."
Great to see SDI trading nicely in line with expectations, no major surprises, the likes of Monmouth recovering nicely etc.
That confirms 5.8p historic EPS is in the bag. Progressive Research have this morning left their current forecast unchanged at 7.4p EPS.
That's a current year P/E of only 8.6.
Plus there's the prospect of more acquisitions given the following:
"The Group's cash generation from operations improved over the second half which leaves us well placed to continue our buy and build strategy."
One would hope at such a cheap multiple that the recent rally will continue (though there might be some profit-taking by those who bought for short-term gain).
Given 7.4p forecast EPS there's potential for the share price to rally to say 100p as a nice round number for starters.
Already up another 2p today on a quiet Friday to 63p.
Cavendish's forecasts are for historic 5.8p EPS, with a rise to 7.4p EPS in the current year.
Hopefully the trading update will confirm that trading for the year just ended was in line. If the outlook is merely cautiously encouraging too, then there could be a big relief rally given a current year P/E of only 8.5, whereas on such a low multiple any downside should be relatively limited.
Moving up nicely now, rising 3.5p, witha 33,800 share buy just now paying the full 59p offer price - which hopefully implies not much stock around.
Loads of little buys the past few days has given the share price a slight rise...for a massive 62k sell goes thru a few days before TU?
SDI have confirmed on their web site that the trading update will be on the 20th - next Monday.
Which is I suppose mildly encouraging for the optimists here since Monday updates are on the whole more positive than (say) Friday updates!
Plus if anything was materially wrong then SDI would have been obliged to announce something already:
Https://sdigroup.com/investors/financial-calendar/
It wasn't 200p + in a high interest / high inflation environment. The price started tumbling from that high once it become clear inflation was materializing and the business had a fair bit of debt and no cash for acquisitions. It's been on a downturn for a couple of years now. Throw in the lack of director buys and the major forecast misses / write-offs in the last year or so and it's guesswork as to what fair value is here and whether they can get back on track. The next trading update which should be due anytime soon will be telling.
Agree and industrial demand in their key sectors is depressed, so cant see it improving anytime soon. Back to 30's perhaps.
christ this share is an absolute stinker, i knew i should have sold out on the first rns of bgf accumulating shares, given the buying volume it was barely holding the 70s, they were clearly holding it up. absolutely ****ed with an avg buy in at the mid 80s, how the **** this ever did over 200p in a high interest/inflation environment boggles my mind
News of yet more institutional buying.
BGF Investments have now gone above 13% with 14.375m shares. So they've bought another 1.24m shares in the last week and almost 3m shares in the last three weeks:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93504938
Good to see the CEO buying another 14,000 shares at 71.25p:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Director-PDMR-Shareholding/93500745
BGF Investment Management are still buying. They now own 12.62%, or 13.134m shares - so they've bought another 1.66m shares in just the last two weeks:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93455058
FYI Octopus AIM VCT2's results this morning had this to say:
"SDI Group disappointed a couple of times over the year due to the end of a contract with Atik cameras, which had been lucrative over the Covid period. However, we are encouraged by the recent change in the management team and the new CEO comes with a wealth of operational experience in the sector."
Completely agree with what you are saying coffee to clarify. By growth I meant showing that the existing businesses can be run profitably and return to organic growth. The last thing SDI need to do right now is more acquisitions IMO. They need to steady the ship, pay down debt and then go again only when they have proven the existing businesses are being run well otherwise it's pointless. Still don't think the SP will get anywhere near £1.20 in the short term though. It's not cheap on current metrics at this price, and if there is any hint of missing the already reduced forecasts then it will get hammered.
Someone just paid 75p afterhours
Plus theres an uncrossing trade for 75p as well.
£1.20 in its sights ...
November 2023 share price £1.20.
December 2023 £1.10
Couple of weeks ago 60p
Disagree,
It won't be growth it will he consolidation and increasing profitability and cash generation.
Making sure each division is a standalone profit centre that can also x sell its products.
Wouldn't surprise if one or part ofxa division is sold off to clear down debt as better to be a low debt biz in new economic environment
Very much doubt we'll see £1.20 anytime soon. Management need to prove everything is ok, and growth back on track before this is going to gain any traction in my opinion.
BGF Investment Management continue to buy - they now own just over 11% with 11.47m shares:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93344879
Since early December they've bought just over 3m shares.
Its been nice for last few weeks.
Should carry on to £1.20 before it has a rest and gathers its strength for another bag.
Moving up nicely today - up 3.3p now. Hopefully BGF's and others' buying have cleared any large sellers.