Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Finncap have this morning raised their target price to 265p (from 250p).
Lovely stuff :o))
Expectations have been thrashed, once again. And the figures quoted can be expected to be the absolute minimum.
The 20%+ organic growth is terrific, following 19% the previous year. And cash flows are also "significantly ahead of market expectations", which will help with yet more acquisitions.
Above all, there's huge confidence already in the new year to April'23 being another record year and also ahead of expectations.
Congrats to the SDI team:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Trading-Update/88029534
Bought more today
News of £20 billion of capital ready to invest in UK life sciences real estate has to be good news for SDI (assuming the availability of space is sorted out):
Https://www.thetimes.co.uk/article/cash-pile-of-20bn-ready-for-lab-space-lq95jct2z
Extracts:
"Between 2016 and 2020, 681 life sciences businesses were started, according to a report by We Are Pioneer Group, a builder and operator of labs, and JLL, the property agent, 24 per cent more than in the previous five-year period.
The number of start-ups is expected to have grown in the past year, driven by the desire of investors to pour money into the life sciences sector in the wake of the pandemic.
Investors backed life sciences businesses with about £2.8 billion in 2020, but this almost doubled to £4.5 billion last year, according to data from the BioIndustry Association.
London, Oxford and Cambridge, known as the Golden Triangle, remains the heart of the country’s life sciences sector.
Glenn Crocker, executive director of venture capital investments at WAPG, said: “The availability of suitable lab and office space is already at all-time lows, and record-breaking funding levels and the significant growth in the number of start-ups will only fuel demand for life sciences real estate and exacerbate the issue of under-supply.”
"JLL and WAPG estimate that there is £20 billion of capital waiting on the sidelines, looking to invest in UK life sciences real estate.
Investors are keen to cash in on the supply and demand imbalance, which has sent rents and capital values climbing sharply. By contrast, rents in other property markets, notably retail and office, have fallen quite sharply.
They are also attracted by the reliability of the income, with laboratories relatively unaffected by the work from home trend."
Encouraging that SDI are still hopeful of more acquisitions soon:
"Having now completed two acquisitions in the space of the last few months, Creedon isn’t resting on his laurels and says that they continue to assess further opportunities and the board is hopeful of making further bolt-on buys in the future. "
Https://martinflitton1.wixsite.com/privatepunter/post/sdi-acquisition-28-03-22
Finncap have now increased their target price to 250p (40% upside from here) after today's earnings-enhancing acquisition.
Excellent - news today of a sizeable acquisition for a forecast £7.7m. Earnings neutral for just the next month until the 30/4/22 year end, then earnings enhancing.
Highly complementary to Monmouth Scientific as in the same sector, and just a few miles down the road which should enable lots of cooperation and synergies.
In particular, I note Safelab sells entirely in the UK, whereas Monmouth seels globally to Europe, Africa, the Middle East and Australasia, so SDI can utilise Monmouth's sales team for large and entirely new markets for Safelab.
Good results from sector comparator JDG this morning, well received by the market - which bodes well for SDI too:
Https://www.investegate.co.uk/judges-scientificplc--jdg-/rns/final-results/202203230700026622F/
Continung to rise nicely today. Meanwhile, I note the Government's comitment this month to provide an extra £260m for life sciences manufacturing - indicative of the general upward trend for the sector and therefore SDI:
Https://www.med-technews.com/news/medtech-merger-acquisition-finance-and-investment-news/uk-government-to-provide-260m-for-life-sciences-manufacturi/
Extract:
"The funding for manufacturing investments will be distributed through the new Life Sciences Innovative Manufacturing Fund (LSIMF), which has been launched to grow the UK’s life sciences sector.
It follows the Medicines and Diagnostics Manufacturing Transformation Fund (MDMTF) which was launched to strengthen the UK’s medicines and diagnostics manufacturing industry by encouraging companies to use new technologies, and to build or expand facilities throughout the country.
Companies awarded funding through the MDMTF included Ortho Clinicals Diagnostics UK, which is expanding its biological diagnostic product lines, at its Pencoed, Wales site, Custom Pharmaceuticals, which will build a new facility in Brighton and Randox Laboratories, which will build a new large-scale manufacturing facility in Northern Ireland."
Good news flow from Monmouth Scientific. Firstly, their February round-up notes they won a prestigious award:
Https://monmouthscientific.co.uk/monmouth-scientific-updates-february-2022/
"February kicked off in celebratory mood as we were thrilled to announce that we were awarded Best Clean Air Solutions Equipment Provider (South-West England) at Global Health & Pharma Health Care and Pharmaceutical Awards! It is a great opportunity to celebrate the fantastic work of our entire Monmouth team!"
"Our Engineer Team were out and about across the country installing more Class 2 Biological Safety Cabinets including a suite of 6 units for Accession Therapeutics Limited. The Oxford based firm are utilising our cabinets as they continue developing immuno-oncology therapeutics to treat some of the most intractable and widespread forms of cancer".
Secondly, it seems Monmouth's move to an impressive new facility is going smoothly:
Https://monmouthscientific.co.uk/monmouth-scientific-have-a-new-home/
"We are pleased to announce that we will be moving to our new, purpose-built UK Headquarters and Manufacturing Facility on Friday April 8th 2022.
The 48,000 sq/ft Facilty will house our expanding business as we continue our commitment to the Highest Quality Manufacturing, Customer Service and Product Development."
As with almost the entire market, it's just been the MMs taking advantage of nervous sellers given the current Russia backdrop. The relatively small volumes tell you that the price drop is nothing more than there being a lack of buyers given current conditions and the MMs having to attract interest by cutting prices.
Any bounce is likely to be just as sharp and perhaps more so. It's just a question of time and patience and what happens to Putin!
That's right, an opportunity to buy more at lower prices. The management are extremely competent in executing their acquisition plan, no reason to bail out. Not many shares in existence anyway, which helps to support the share price. I have been invested here since they were 20p.
Big drop here today providing opportunity to buy in at a much better price than over the last year. Still by far my largest single stock holding, and I should probably have taken some profits over 200p, but I have faith in the management here and confident it will recover.
Bought more today
FYI here's a recent seminar from SDI organised by Progressive Equity Research.
Nice comment from the CFO - "everything's quite buoyant at the moment". He also states that they would never have forecasts out in the market which they weren't comfortable with meeting.
Applied Thermal Controls found it difficult in the pandemic - now it's doing "really well". Graticules - SDI put in the investment and its figures are now "fantastic". Astles is doing "very well". The only business still behind somewhat is Chell given its aerospace side (though this should soon recover too imo given the opening up of borders etc).
Also encouraging to note that that there will be "further need in the future" for even more PCR machine cameras from Atik:
Https://www.progressive-research.com/company-coverage/sdi-group-plc/
Good to see this news of Chell's involvement in sustainablity/energy consumption reduction:
Https://www.chell.co.uk/news/2022/chell-instruments-prepare-for-turbo-expo-2022-in-the-netherlands-
"08.02.22
Chell Instruments Prepare for Turbo Expo 2022 in the Netherlands
"We’re excited to announce that Chell Instruments will be exhibiting at this year’s ASME (The American Society of Mechanical Engineers) Turbo Expo Conference in Rotterdam, in the Netherlands, from 13 – 17th June.
We’ll be attending to showcase our latest products which help support the development of gas turbine technology.
This year’s ASME Turbo Expo Conference in the Netherlands aims to accelerate the transition of the energy and propulsion sector to meet a carbon-neutral future by 2050.
As the leaders in pressure and gas flow measurement and control equipment, we’re thrilled to be part of the move to reduce energy consumption from turbine technology.
Here at Chell, we’re continuing to develop technology which is being used to create more sustainable practises, including the electrification of flight and more efficient gas turbines which power both travel and energy production.
The 5-day conference will include hundreds of live presentations from top experts and decision-makers to discuss implementation of safe, reliable carbon neutral solutions while shaping the future of the turbomachinery industry."
Also a comprehensive January '22 project update from a "busy" Monmouth Scientific:
Https://monmouthscientific.co.uk/monmouth-scientific-updates-january-2022/
The Private Punter (Martin Flitton) has written an excellent article on SDI following today's news.
Further to his comment that SVS "will deliver an EBITA figure for the current year above the historic £0.7m number highlighted", I note that Finncap have today forecast SVS will deliver £1.1m EBITA for the coming financial year based on their "visible strong order book".
Also good to hear the comment that the wider group is also performing well.
Here's a direct link to the article:
Https://martinflitton1.wixsite.com/privatepunter/post/kicking-off-the-new-year-with-sdi-group-07-01-22
Finncap have today raised their target price to 240p.
In addition, JDG's RNS today that they've beaten forecasts certainly augurs well for SDI's sector.
Two pieces of good news.
An earnings-enhancing acquisition - £4.9m buys historic £0.7m of EBITA in what looks like a very interesting area in semiconductor wafers. With manufacturing being re-shored from China a UK-based company like this should do well.
The further order of Atik Camera orders for PCR machines is great news. It has to be material to be worthy of RNS'ing. I wonder if it's from the same OEM or from a new one?
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Acquisition-of-SVS-and-Atik-Order/86964337
New video from Synbiosis about their latest Autocol product - this is "the highest priced equipment the company has ever produced". I seem to remember it sells for at least £50,000-£75,000 per machine, and perhaps more given my erratic memory....
Https://www.synbiosis.com/news/new-autocol-video/
SDI's excellent interims presentation can be seen here, with Mike in fine, dry form and as to the point as ever:
Htps://www.ii.co.uk/analysis-commentary/sdi-group-qa-medtech-firm-shares-update-ii522278
Excellent H1 results, with further confirmation that full year results are already expected to be nicely in line with forecasts.
H1 has provided 62% of the year's forecast PBT, so even with the Atik OEM contract completing it would seem likely that SDI will at worst meet and potentially beat quite easily those expectations.
Going forward SDI "hope to close at least one" acquisition before the end of April, perhaps suggesting that one or two are pretty close to completion. Of course these are necessary to fill the gap from the Atik Covid contract - but with two-year organic growth of 16% across the group even excluding Atik, SDI's companies are trading very satisfactorily.
watching the tape at the open, the amount of retail selling is mad. thanks for the dip, there is nothing negative and unknown in this RNS. See you higher
Nice plug for SDI in this week's What Investment magazine, as one of JP Morgan UK Smaller Companies' most successful investments:
Https://www.whatinvestment.co.uk/find-tomorrows-large-caps-today-2620040/
"A snapshot of the future
The first is SDI Group (Scientific Digital Imaging), a manufacturer of scientific products for use in life sciences, healthcare and astronomy applications.
The JPM team first identified the company when it was a small, £50m company. Following the company’s progress, they eventually bought shares in the AIM-listed firm in August 2019.
SDI’s slightly generic name belies a nimble management strategy that has enabled it to grow at pace. The company has expanded through the acquisition of other small, niche operators which are strategically complementary to SDI, often holding a dominant position in their fields within the larger imaging and sensor sectors.
These operators include a company supplying infrared cameras for art restoration, another whose imaging helps identify leftover proteins on surgical equipment and a third that creates electrochemical sensors for food testing.
The diversity of fields in which its sub-companies operate has proved useful for SDI, meaning that it has been more resilient to market shocks – such as a global pandemic.
Since the JMI team bought it in August 2019, SDI’s share price has risen from 50p to 200p."