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Results bang in line with both Finncap's and Progressive's upgraded expectations with £7.41m adjusted PBT. Net cash at £0.8m is hugely ahead of expectations, even with the Monmouth Scientific earn-out to come.
One to two further acquisitions expected this year and plenty of headroom to make these reasonably material.
Above all, post year end trading is nicely in line and the outlook for this year is as optimistic as the usually very cautious management team allow - note the studiously honest and down to earth comments throughout about costs increasing but still being below pre-pandemic levels, Atik Cameras' large OEM Covid orders being one-off in nature but continuing through to April'22 etc etc.
Happy to continue holding this stock for a long time to come.
Cheers Rivaldo, a great watch!
Taken the opportunity to top this one up to make it by far my largest holding. In fact now 20% of my portfolio which seems mad, but I'm very confident in the management here and will hold through thick and thin. Didn't think we'd see this price again, and I think there is lots of upside here. A positive trading update would help to reverse the negative momentum we've seen over the last couple of weeks here.
Nice comments here from Georgina Brittain, manager of JP Morgan UK Smaller Companies trust, about their holding in SDI.
They first bought in just over a year ago, and she describes SDI as an "acorn" at a sub-£100m m/cap on purchase which she hopes will grow into a FTSE 100 "oak"....
She notes that SDI htrows off great cash flows, and their buy and build strategy when it works can be an "absolutely fantastic virtuous circle"
Listen from 22 minutes 20 seconds - "we're properly excited":
https://www.thisismoney.co.uk/money/investingshow/article-9737785/Georgina-Brittain-investing-best-British-smaller-companies.html
Thanks Rivaldo - looking oversold today - hoping this rise is the sign of a climb from a new base around 190.
For the record, there's an InvestorMeet presentation post-prelims on 23rd July at 4.00:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Investor-Presentation/85422598
Great new write-up on SDI by the Private Punter:
https://martinflitton1.wixsite.com/privatepunter/post/sdi-group-catching-up-10-06-21
Danske Bank have now declared a 3.1% stake in SDI with 3.08m shares. Certainly an indication of SDI's fast-increasing heft and reputation:
https://www.investegate.co.uk/sdi-group-plc--sdi-/rns/holding-s--in-company/202106101245075228B/
Looking extremely strong.
SDI are one of the two main tips/"Great Ideas" in today's Shares Magazine in a page-length feature.
They conclude that SDI trades at a 16% discount to JDG, and:
"We see this gap narrowing and mid-teens earnings growth to keep pushing SDI’s share price higher."
The main thrust of the article sees SDI as a mini-Halma, acquiring good value businesses "that add consistent cash flow and profits to the overall group."
And:
"Its share price jumped 33% on 10 February after telling the market that it would smash forecasts. The company secured material follow-on orders for its Atik cameras business, proving kit for real-time PCR DNA amplifiers, clever medical kit that allows us to test for Covid infection by studying genetic code.
Given that the Covid-19 strain is stubbornly sticking around, and may do for some time, there could be plenty more PCR test-based orders over the coming months, but SDI has plenty of other opportunities beyond the pandemic.
For example, the near-£7 million acquisition of Monmouth Scientific last year provides a range of clean air solutions to healthcare and science customers, such as clean rooms, which could take SDI into the booming semiconductors space."
Good write-up in on-line shares magazine today.
GLA
Solid update, chart looks very bullish. Finncap set a price target of 196p following the update today, perhaps the reason why the price rejected 190p instantly. But as I said, the chart looks very bullish...
Strange reaction to a great update.
Agreed. I am currently in the red on this but don't mind. Bullish on the company and the leadership team. Solid products in a reliable sector. A strong steady grower in my view.
Lovely :o))
Yet another great trading statement. A further 4% or so increase in revenues to April'21, leading to another 10% increase in adjusted PBT,
Revenues are now up 44% on Apr'20 and PBT is up 70%....
Plus confirmation that the £42m revenues and £8.7m adjusted PBT for this year are MINIMUM figures.
I am with you rivaldo - glad i am long this company. Great things to come.
The year end trading update will be on 26th May, with results on 20th July.
Judging by prior trading statements I'd guess that these will be rather positive....
Https://www.investegate.co.uk/sdi-group-plc--sdi-/rns/notice-of-results/202105120700042944Y/
Bought some today
The recent huge wave of investment in the life sciences sector has to be good news for SDI:
Https://www.theguardian.com/business/2021/may/02/investors-flock-to-life-science-as-uk-firms-break-funding-record
"Investors flock to life sciences as UK sector breaks funding record
Covid crisis spurs growing interest in drugmakers, diagnostics and medical equipment firms
UK drugmakers, diagnostics, medical equipment and other life sciences companies have raised £10.6bn from private funding rounds and stock market flotations in the first three months of the year, more than half of last year’s record total, according to a report.
Last year, investment into life sciences companies, including mergers and acquisitions, public listings, venture capital, and private equity, amounted to a nearly £20bn.
etc"
Interesting. Money Week's cover story this week was Aviation, and they recommended that aircraft manufacturer based in Derby... "...sales....should grow by 17% this year. The group also has exciting products in the pipeline, including the UltraFan turbine, which is expected to boost fuel efficiency further - by up to 25% compared with earlier engines."
Firstly, Hastings on ADVFN has confirmed with SDI that the year end trading update will be at the endof May, so not long to wait.
Secondly, very impressive stuff - Chell Instruments have completed a "totally unique" "million pound test module" for a "for a leading international aircraft engine manufacturer":
Https://www.chell.co.uk/news/2021/chell-instruments-create-ground-breaking-mobile-jet-engine-testing-facility-
"Chell Instruments Create Ground-breaking Mobile Jet Engine Testing Facility
World-renowned gas measurement and control experts, Chell Instruments, have completed construction of a unique mobile jet engine test facility.
Chell have developed the testing facility for a leading international aircraft engine manufacturer who require a mobile solution to test engines undergoing development at various locations around the globe.
The unit began life as a custom built 20ft heavy-duty shipping container which has been modified and converted into an expandable, portable testing unit by Chell’s engineers. The million-pound test module will be based in Derby when not deployed at sites around the world.
Jamie Shanahan, Sales Director at Chell Instruments, says “Emissions testing of Jet engines requires a significant amount of complex and specialist equipment. When a leading aircraft engine manufacturer asked us to create a mobile solution with no compromises to the testing capability, we jumped at it. Our portable unit will cut costs by making it convenient to transport the impressive capability anywhere in the world as standard freight.”
Totally unique, the test module has been specifically developed for ease of movement. By utilising a standard shipping container, it can be transported by land, sea or air. It is also expandable for internal space and comfort and is deployable on most surfaces due to its hydraulically auto-levelling design.
etc"
Thanks for all the information, Rivaldo. Given the ongoing predominance and importance of tech it does look like this could continue to be a great share to be in for a long, long time. very pleased to be here. And I note that while one or two institutions have topsliced over recent months they are only creaming off profits, no one is selling down.
SDI's December acquisition of Monmouth Scientific looks very good - they've announced a number of contract wins on their Twitter feed. This is a particularly interesting one as it "was installed for the Travel Jabs Clinic in Croydon, experts in travel vaccinations, immunisations and health protection":
Https://twitter.com/Monmouth_Sci/status/1382311423544594440
I assume Monmouth's microbiological safety cabinets are rather a good sector to be in at present:
Https://twitter.com/Monmouth_Sci/status/1379752347665113097
"Since April 2020 our we've installed and shipped over 500 Class 1 and Class 2 Biological Safety Cabinets all around the world, many in Hospitals such as Newcross, Llandough and Morris Ton, helping NHS staff to tackle COVID-19"
The late RNS yesterday shows a non-exec transferring almost £15k of his shares into his ISA at 184p. Which is rather encouraging:
Https://www.investegate.co.uk/sdi-group-plc--sdi-/rns/director-dealing/202104141616414969V/
RNS - great to see a non-exec using her entire £20,000 ISA allocation for the year to transfer SDI shares into the ISA at 177.9p:
Https://www.investegate.co.uk/sdi-group-plc--sdi-/rns/director-dealing/202104011513343736U/