Interim Results

SDI Group plc

("SDI", the "Company", or the "Group")

Interim results for the six months ended 31 October 2025

Strong results with strategy progressing well and significant contract wins

3 December 2025 - SDI Group plc, the buy and build group, focused on companies which design and manufacture specialist lab equipment, industrial & scientific sensors and industrial & scientific products, announces its interim results for the six months to 31 October 2025 ("H1 FY26").

Operational and Strategic highlights

· Significant contract wins across the portfolio for delivery in H2 FY26

· Completed earnings-enhancing acquisition within Lab Equipment of Severn Thermal Solutions Limited ("Severn")

· Continued focus on commercial collaboration between portfolio businesses and driving greater synergies across the Group

· New products launched last financial year now generating revenues, reinforcing focus on innovation across the portfolio

· Strengthened senior management team, with two Divisional Managing Directors now in place to support the delivery of sustainable, long-term growth

· Positive progress against both the organic and inorganic growth strategy

Financial summary

· Revenues increased by 10.1% to £34.0m (H1 FY25: £30.9m)

· Organic revenue growth of 3.2%, 3.0% on a constant currency basis, 6.9% growth from acquisitions (£2.1m)

· Gross margins (on materials only) improved to 66.3% (H1 FY25: 65.4%)

· Adjusted operating profit* up 17.7% to £4.6m (H1 FY25: £3.9m) and reported operating profit up 32.2% to £3.2m (H1 FY25: £2.4m)

· Adjusted profit before tax* increased 21.7% to £3.8m (H1 FY25: £3.2m) and reported profit before tax up 46% at £2.5m (H1 FY25: £1.7m)

· Adjusted diluted EPS* improved to 2.77p (H1 FY25: 2.37p) and reported diluted EPS up to 1.70p (H1 FY25: 1.18p)

· Cash generated from operations of £4.2m (H1 FY25: £4.7m)

· Post period end, renewed and expanded committed loan facility with HSBC to £25m, with an accordion option for an additional £15m

Outlook

· Acquisition pipeline remains active, potential for further M&A in FY26

· Stable strategy in place and the diversity of the portfolio ensures the Group is well placed for the future growth

· FY26 expected to be in line with market expectations**, with first half / second half weighting of profits similar to FY25, and good visibility

Stephen Brown, Chief Executive Officer of SDI Group, said:

"We have delivered a great set of results despite challenging market conditions, which is testament to our operating model, our strategy and the determination of our team. Whilst we do not expect these conditions to improve significantly in the near term, we remain on track to meet full-year market expectations** and have secured several significant new contracts for delivery in the second half of the year. 

"The breadth of our portfolio helps us navigate volatility, and we continue to drive inorganic growth through our acquisition pipeline. We are increasingly seeing attractive opportunities to add to our proven track record of value-enhancing acquisitions by adding profitable businesses in high-growth niche markets.

"With the addition of Divisional Managing Directors supporting our portfolio management teams, we have the leadership structure in place to sustain our inorganic growth as well as delivering innovation, synergies and organic growth. We are confident that our strategy, our structure, and our people position us well to achieve our long-term objectives."

A presentation for investors and shareholders via the Investor Meet Company platform will be held today on Wednesday, 3 December 2025 at 2.00 p.m. GMT. Investors can register for the presentation via the following link:https://www.investormeetcompany.com/sdi-group-plc/register-investor

A copy of the shareholder presentation will also be made available on the Company's website www.sdigroup.com/investors/reports-presentations/ later today.

* Before share based payments, acquisition costs, reorganisation costs and amortisation of acquired intangible assets.

** Analysts from SDI's broker Cavendish Capital Markets 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. Being for FY26; Revenue of £75.2m, Adjusted Operating Profit of £11.4m and Adjusted Profit Before Tax of £9.8m.

About SDI Group plc

SDI Group plc is a group of small to medium size companies with specialist industrial and scientific products in growth sector niches which help solve customers' key challenges.

It specialises in the acquisition and development of companies that design and manufacture specialist products for use in lab equipment, industrial & scientific sensors and industrial & scientific products.

Its portfolio of businesses supplies the life sciences, healthcare, plastics and packaging, manufacturing, precision optics and measurement instrumentation markets.

SDI aims to continue its growth through driving the organic growth of its portfolio companies and by the acquisition of complementary technology businesses with established reputations in global markets.

For more information, please see: www.SDIGroup.com

Chief Executive Officer's statement

The Group delivered significant operational progress across H1 FY26. Our teams have continued to execute on our strategy of driving both organic and inorganic growth, against a backdrop of challenges in certain markets, particularly within industrial sectors.

While the imposition of US tariffs has introduced some uncertainty across our end markets, our portfolio companies have not experienced any noticeable direct impact. The breadth of the diversified portfolio has also underpinned the performance, with stronger delivery from certain businesses offsetting those navigating short term slowdowns in their end markets. Our focus, therefore, has remained on executing our strategy, delivering tangible results from both our organic initiatives and strengthening the portfolio through our proven buy-and-build model.

Operations

Our focus on innovation is organically translating directly into commercial traction. The new industrial scanner range from Chell Instruments ('Chell'), launched in April 2025, has been very well received and is already generating strong revenues. This is just one of many recent product launches, which include Applied Thermal Control's development of its G and H series to meet new environmental regulations, expanded autoclave ranges at LTE Scientific ('LTE') and Atik Camera's ('Atik') xGbE 60 camera.

We continue to identify and foster greater commercial synergies across the Group. Collaborations between portfolio businesses are opening up new international markets, with Fraser Anti-Static Techniques ("Fraser") and InspecVision working together commercially to expand further into the EV sector. Furthermore, following the success of last year's event, in October, five SDI businesses presented for the second time from a single stand at UK Lab Innovations, the UK's leading laboratory industry trade show.

We have continued to invest in a strong digital presence - recognising the importance of this in converting sales - with new websites launched at six of our businesses, and successful rebrands at Atik Cameras, Monmouth Scientific and Collins Walker.

To support our growth, we continue to invest in scalable infrastructure and talent. New IT system implementations at Fraser and Peak are progressing well and will provide a blueprint for rollouts at LTE and Chell, driving future efficiencies. We have also strengthened our senior leadership at Group level, welcoming two new Divisional Managing Directors, to oversee the Laboratory Equipment Division and Industrial & Scientific Products Division, with the primary objective to support operational efficiencies and drive further organic growth.

The trend for a second half weighting seen in FY25 as forecast has continued into this financial year. We have good visibility on the orders for the second half, with multiple significant contracts to be executed in H2 FY26, including:

· Safelab Systems ('Safelab') has received a £1.3m government contract to supply high performance fume cabinets, to be delivered in Q4 FY26.

· Chell received £0.9m in orders from a customer for the supply of two gas-meter calibration machines for flow calibration and leak testing, scheduled for delivery in Q4 FY26.

· Severn has two furnaces in production for a nuclear customer, due to be shipped in the second half, with a total value of £0.3m.

· Atik continues to execute its US$4m professional astronomy project. Deliveries for the project commenced in July 2025, with the balance of the contract to be delivered in the second half.

· Sentek are expected to receive their recurring annual order for c£2m worth of blood gas sensors from their OEM customer in January 2026, which they will continue to execute over 2026.

Acquisition

In June 2025, we announced the acquisition of Severn for a net consideration of £4.8m. This significantly enhances our capabilities in advanced material processing and testing. Severn's established expertise in designing systems capable of operating at extreme temperature ranges - from near absolute zero to over 3000°C - highly complements our existing portfolio.

Strategically, this acquisition accelerates our expansion into the controlled environment market and provides deeper access to a diverse, global blue-chip customer base in high-growth sectors, including nuclear, aerospace, and semiconductors. We see strong opportunities to leverage Severn's international footprint across 25 countries to drive cross-selling synergies across the Group.

Since joining the Group, the cultural integration of Severn has already exceeded our expectations, with the team showing a strong alignment with our core values, rapidly fostering the collaborative spirit across the portfolio.

The gross consideration for the acquisition was £8.4m, which included £3.6m of acquired cash, the latter including £2.8m of loans from the sellers. The acquisition was funded from the Group's revolving credit facility with HSBC UK Bank ('HSBC').

Financials and segment breakdown

Group revenues increased by 10.1% to £34.0m (H1 FY25: £30.9m). Severn, acquired in early June 2025, together with the new acquisitions made in FY25, InspecVision and Collins Walker, contributed inorganic revenues of £2.1m (6.9%). Organic revenue growth was 3.2% in total, 3.0% on a constant currency basis.

Laboratory Equipment revenues increased by 12.0% to £12.2m (H1 FY25: £10.9m) following the acquisition of Severn. Organically, the division grew by 5.9%. Monmouth's revenue growth accelerated over the first half, significantly ahead of last year.

Sales in Industrial & Scientific Sensors increased organically by 5.6% to £8.9m (H1 FY25: £8.4m). Sentek had a very strong first half, experiencing significant growth in demand for its pH sensors from both new and existing OEM customers. Astles Control Systems saw increased momentum as demand for its chemical dosing systems recovered from a slower FY25. This will continue into the second half as it executes on a strong first half order intake. Chell saw improved revenues over the half and excellent order intake, which it will also execute over H2 FY26.

Revenues in Industrial & Scientific Products increased by 11.5% to £13.0m (H1 FY25: £11.7m). Organically, the division was broadly flat, showing a slight decline of 1.2%. Atik had a strong first half as it commenced deliveries for a large professional astronomy contract, with the remainder of the contract to be executed in the second half.

Improved cost control at Fraser led to increased profitability in a flat market. Scientific Vacuum Systems saw a slower period than last year due to the comparative period including the production of two systems, compared to one in H1 FY26. Applied Thermal Control ("ATC") continued to experience a chiller market slow-down largely due to regulatory changes relating to bans in refrigerant fluorinated "(F)" gases, with new ATC products being released to market over 2025 and 2026 to address these changes.

Profits

Gross margins (on materials only) improved to 66.3% (H1 FY25: 65.4%), which was encouraging, as the Group sought to maintain margin discipline. Overheads and wage growth grew above inflation when excluding acquisitions due to the increase in employers' national insurance, increased bonus provisions and strengthened central team.

In addition to the performance measures defined under IFRS, the Group also provides adjusted results in which certain one-time and non-cash charges are excluded, to help shareholders understand the underlying operating performance. These adjustments totalled £1.4m (H1 FY25: £1.5m).

Adjusted Group profit before tax increased to £3.8m (H1 FY25: £3.2m). Statutory Group profit before tax increased to £2.5m (H1 FY25: £1.7m).

The effective tax rate on statutory PBT is unchanged at 26.8% (H1 FY25: 26.8%).

Basic earnings per share increased to 1.73p (H1 FY25: 1.19p); diluted earnings per share increased to 1.70p (H1 FY25: 1.18p). Adjusted diluted earnings per share increased by 16.9% to 2.77p (H1 FY25: 2.37p).

Cash flow

Cash generated from operations reduced to £4.2m (H1 FY25: £4.7m). Working capital increased by £1.3m mainly due to an increase in inventories of £1.25m over the half. This was largely due to Atik and Safelab building up stock for impending customer deliveries over the second half. Customer advances were flat on a like for like basis over the six months compared to April 2025, and higher year on year at £2.9m (H1 FY25: £2.0m). Working capital as a percentage of sales increased to 21.2% excluding acquisitions.

Deferred consideration of £0.5m (H1 FY25: £0.5m) was outstanding at the end of the half, relating to the acquisition of InspecVision. This was paid after the period end.

The Severn acquisition costs were £4.8m total net cash consideration.

Net debt (excluding lease liabilities and deferred consideration), or bank debt less cash, increased to £18.0m at 31 October 2025 compared to £13.8m at 30 April 2025 and £17.1m at 31 October 2024. This represents a net debt: EBITDA ratio (including deferred consideration) of c1.3x (rolling last 12 months calculation basis). At 31 October 2025, the Group had £5.5m of headroom within its £25m committed loan facility with HSBC. A further £5m accordion option remained available to the Group (at the discretion of HSBC).

After the period end, on 27 November 2025, the Group renewed and expanded its committed loan facility with HSBC to £25m, with an accordion option of an additional £15m. The renewed facility has a repayment date of 27 November 2028 and is extendable for two further years. Both the accordion option and the extensions are at HSBC's discretion.

The Group has sufficient access to funds, alongside its cash flow, both to execute on its acquisition pipeline and provide further investment in our current portfolio of businesses.

Outlook

Although we anticipate continued challenging market conditions, we remain on track to meet full-year market expectations**. We anticipate a stronger second half, driven by orders we have already received that are set to be delivered later this financial year.

Our priorities are to capitalise on the management structure we now have in place to drive synergies and organic growth through the portfolio, whilst continuing to deliver our inorganic strategy, building on our proven track record of delivering value-enhancing acquisitions, and exploring new high-growth niche markets.

We are confident that these combined strategies, the breadth of our portfolio, the resilience of our companies, the niche markets in which we operate and the innovative high-quality products we produce, will deliver our long-term growth objectives.

Stephen Brown, Chief Executive Officer

3 December 2025

* Analysts from SDI's Joint corporate broker Cavendish Capital Markets 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. Being for FY26; Revenue of £75.2m, Adjusted Operating Profit of £11.4m and Adjusted Profit Before Tax of £9.8m.

Consolidated income statement

Unaudited for the six months ended 31 October 2025

Consolidated statement of comprehensive income

Unaudited at 31 October 2025

Consolidated balance sheet

Unaudited at 31 October 2025

 Consolidated statement of cash flows

Unaudited for the six months ended 31 October 2025

Consolidated statement of changes in equity

Unaudited for the six months ended 31 October 2025

Consolidated statement of changes in equity (continued)

Unaudited for the six months ended 31 October 2025

Notes to the interim financial statements

1. General information and basis of preparation

SDI Group plc (the "Company"), a public limited company, is the Group's ultimate parent. It is registered in England and Wales. The consolidated interim financial statements of the Company for the period ended 31 October 2025 comprise the Company and its subsidiaries (together referred to as the "Group").

The unaudited consolidated interim financial statements are for the six months ended 31 October 2025. These interim financial statements have been prepared using the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006. The consolidated interim financial information has been prepared under the historical cost convention, as modified by the recognition of certain financial instruments at fair value. The consolidated interim financial statements are presented in British pounds (£), which is also the functional currency of the ultimate parent company.

The consolidated interim financial information was approved by the Board of Directors on 2nd December 2025.

The financial information set out in this interim report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The figures for the year ended 30 April 2025 have been extracted from the statutory financial statements of SDI Group plc which have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial information for the six months ended 31 October 2025 and for the six months ended 31 October 2024 has not been audited or reviewed by the auditors pursuant to the Financial Reporting Council's relevant guidance.

2. Principal accounting policies

The principal accounting policies adopted in the preparation of the condensed consolidated interim information are consistent with those followed in the preparation of the Group's financial statements for the year ended 30 April 2025.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.

Going Concern

The consolidated interim financial information has been prepared on a going concern basis.

The Board has considered the potential of a downturn given the current economic environment. The Group is in a strong financial position with available facilities, sufficient headroom on all covenants associated with the revolving credit facility (see note 7), good profitability, and a strong future order book, enabling it to face any reasonable likely challenge of the continued uncertain global economic environment. The Board has reviewed forecasts for the period to 30 April 2027, evaluated a severe downside scenario and performed a sensitivity analysis, all of which the Board considers extremely unlikely. In the event of a more severe scenario (without applying any mitigations), both covenants would come under some (but not severe) stress. However, mitigations would be obviously applied should this unlikely scenario present itself, such as (but not restricted to) further cost cutting, sale and leaseback of freehold property and potential disposal of assets. This would not cause any significant challenges to the Group's continued existence.

The Board therefore has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and therefore continues to adopt the going concern basis in preparing the interim financial information.

3. Alternative Performance Measures

The Group uses gross profit (on materials only), adjusted operating profit, adjusted profit before tax, adjusted diluted EPS and net operating assets as supplemental measures of the Group's profitability and investment in business-related assets, in addition to measures defined under IFRS. The Group considers these useful due to the exclusion of specific items that are considered to hinder comparison of underlying profitability and investments of the Group's segments and businesses and is aware that shareholders use these measures to evaluate performance over time. The adjusting items for the alternative measures of profit are either recurring but non-cash charges (share-based payments and amortisation of acquired intangible assets) or exceptional items (reorganisation costs and acquisition costs). Some items, e.g. impairment of intangibles, are both non-cash and exceptional.

The following table is included to define the term gross profit (on materials only):

The following table is included to define the term adjusted operating profit:

Adjusted profit before tax is defined as follows:

Adjusted diluted EPS is defined as follows:

Net operating assets is defined as follows:

4. Segmental analysis

On 1 May 2024, the Group implemented a new strategy, with the SDI businesses being re-segmented into the following divisions:

· Laboratory Equipment, comprising Safelab Systems, Monmouth Scientific, LTE Scientific, Synoptics and Severn Thermal Solutions;

· Industrial & Scientific Sensors, comprising Chell Instruments, Astles Control Systems, Sentek, MPB Industries and Peak Sensors; and

· Industrial & Scientific Products, comprising Atik Cameras, Fraser Anti-Static Techniques, Applied Thermal Controls, Graticules Optics, Scientific Vacuum Systems, InspecVision and Collins Walker.

The Board of directors reviews operational results of these segments on a monthly basis and decides on resource allocations to the segments and is considered the Group's chief operating decision maker.

Adjusted Operating Profit has been defined in note 3.

Analysis of amortisation of acquired intangible assets has been included separately as the Group considers it to be an important component of profit which is directly attributable to the reported segments.

4. Segmental analysis (continued)

Net operating assets has been defined in note 3.

5 Operating costs

6. Earnings per share

The calculation of the basic earnings per share is based on the profits attributable to the shareholders of SDI Group plc divided by the weighted average number of shares in issue during the period. All profit per share calculations relate to continuing operations of the Group.

7. Borrowings

*A restatement has been made to split out the lease liabilities after more than five years, which were included in the lease liabilities after one year and within five years previously. The total borrowings remain unchanged.

Bank finance relates to amounts drawn down under the Group's bank facility with HSBC Bank plc, which is secured against all assets of the Group.

On 1 November 2021 the Group renewed and expanded its committed loan facility with HSBC to £20m, with an accordion option of an additional £10m and with a termination date of 1 November 2024 extendable for two further years. On 30 November 2022, the Group reached an agreement with HSBC to exercise £5m of an available £10m accordion option, which increased the committed loan facility from £20m to £25m. The balance of the accordion option (£5m) remains available to the Group (at the discretion of HSBC) for future exercise. In April 2024, HSBC approved an extension of the repayment date by one year to November 2026.

At the end of the period to 31 October 2025 the Group had drawn down £19.5m of its revolving credit facility, leaving £5.5m in headroom (excluding the £5m accordion option).

On 27 November 2025 the Group renewed and expanded its committed loan facility with HSBC to £25m, with an accordion option of an additional £15m and with a repayment date of 27 November 2028 extendable for two further years. Both the accordion option and the extensions are at HSBC's discretion.

8. Taxation

The Group has estimated an effective tax rate on statutory PBT of 26.8% (H1 FY25: 26.8%) for the year and has applied this rate to the profit before tax for the period.

9. Business combinations

On 5 June 2025, the Company acquired 100% of the share capital of Severn Thermal Solutions Limited, a company incorporated in England and Wales, for a consideration payable in cash.

The assets and liabilities acquired were as follows:

Severn Thermal Solutions is a designer and manufacturer of high temperature furnace systems and environmental chambers for advanced material processing and testing.

Severn Thermal Solutions Limited contributed £664k revenue and approximately £222k to the Group's profit before tax for the period between the date of acquisition and the balance sheet date, not including £112k of acquired intangible asset amortisation.

If the acquisition of Severn Thermal Solutions Limited had been completed on the first day of the financial year, the additional impact on group revenues for the period are estimated to have been £230k and the additional impact on group profit before tax is estimated to have been £114k, before an additional £22k of amortisation expense.

The goodwill of £3,984k arising from the acquisition relates to the assembled workforce and to expected future profitability, synergy and growth expectations.

A third-party expert performed a detailed review of the acquired intangible assets and recognised acquired customer relationships, orderbook and brand. The customer relationships intangible asset was valued using a multi-period excess earnings methodology. The estimated fair value of the customer relationships therefore reflects the present value of the projected stream of cash flows that are expected to be generated by existing customers going forwards, net of orders on hand at the date of acquisition. Key assumptions are the discount rate and attrition rate. Values of 12.5% and 20% were selected. After consulting with management to discuss their findings, management agreed with the inputs used and results obtained.

The deferred tax liability has been calculated on the amortisable intangible assets using the current enacted statutory tax rate of 25%.

The last financial year for Severn Thermal Solutions Limited was to 30 September 2025. The current financial year has been extended by seven months to 30 April 2026 to align with that of SDI Group plc.

10. Post balance sheet events

Subsequent to the balance sheet date, the Group renewed and expanded its committed loan facility with HSBC. Please refer to note 7 for more details.