SDI’s FY25 results for the year ended 30 April 2025 were in line with market expectations, despite wider global economic challenges. The robust performance reflects management’s clear focus on both organic and inorganic growth, fostering greater collaboration and synergies across the portfolio of quality, cash-generative businesses. SDI has a robust order book with good momentum going into FY26, and we maintain our current estimates. We remain confident long term given SDI’s successful ‘buy and build’ model, particularly given the recent delivery on the acquisition strategy. The focus on organic growth is driving operational synergies, margin enhancement and strong cashflow generation, which has been a consistent feature of the group. The ‘supernormal’ profit and cash generated throughout Covid disrupted the growth track record, making year-on-year comparators more difficult. However, the strong management team under CEO Stephen Brown has delivered on the strategy refresh, providing a new baseline, delivering profitable growth and resuming the acquisition strategy despite the evolving economic environment.