Morning Note – 7 December 2023

PROGRESSIVE: SDI Group: H1 24 – well-placed for the post-Covid normal

SDI has indicated that a slowdown in the life science / biotech market, and some resultant destocking, is likely to impact its expected FY24 revenue, leading the group to moderate current year guidance for both revenue and adjusted EBITDA. SDI notes that FY24 represents a short-term phenomenon, due to the over-ordering of the past three years caused by inflated Covid demand. However, we remain confident for the long term, given the strength of SDI’s ‘buy and build’ business model, with a number

SDI Group - Interims – Some destocking seen – FY24E EPS reduced by 19%

SDI released interim results showing mixed trading in challenging markets. As anticipated, the completion of the exceptional Covid-related camera orders resulted in a reduction at Digital Imaging, offset by Sensors & Controls revenue growth of 40%. Some customer destocking is being seen as well as softer markets in China and Germany. As a result, the outlook points to FY24E adj PBT of between £7.9m-8.4m. This leads us to downgrade our Adj PBT by 18% to £7.9m, with a reduction in adj EPS of 19% t

Morning Note – 7 November 2023

SDI Group - £2.4m acquisition

SDI has announced the acquisition of Peak Sensors for c.£2.4m; a manufacturer of temperature sensors, specialising in standard and bespoke thermocouples and resistance thermometers, which are used in various industries, the most important to Peak being the glass industry. The acquisition is a typical SDI-target; strong niche position, profitable and cash generative. It is funded from SDI’s existing debt facility, with net debt at 30 September having been c.£13.3m (unchanged from 30 April 2023 du

PROGRESSIVE: SDI Group: Acquisition of Peak Sensors

SDI Group has announced the acquisition of Peak Sensors, a UK manufacturer of temperature sensors, for an estimated £2.4m (£2.3m less cash). The initial cash consideration is £1.58m, with a further c.£0.82m payment due shortly after completion. The deal will be funded from SDI’s revolving credit facility. As at 30 September, SDI had c.£1.78m cash, £15.1m bank debt and £9.9m undrawn bank facility excluding the accordion, providing considerable financial flexibility for the group. The acquisition

Hybridan Small Cap Feast - 06 Nov 23

6th November 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Morning Note – 24 August 2023

Hybridan Small Cap Feast 08/08/2023

Dish of the day Joiners: No joiners today. Leavers: Non-standard Finance (NSF.L) has left the Standard Segment of the Main Market. CT Property Trust (CTPT.L) has left the Premium Segment of the Main Market. What’s cooking in the IPO kitchen?** Announced ITF 4 August: Tan Delta Systems plc, a Sheffield based Company intends to IPO on AIM. Tan Delta has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhan

Morning Note – 8 August 2023

SDI Group - FY 2023 results – Atik OEM contract now in the past

SDI reported adjusted FY 2023 results in line with its trading update of 11 May, save for lower (£1.4m) revenues, which were due to its auditors’ view on revenue recognition. With its Atik camera OEM customer contract having come to an end, the focus is on driving organic revenue growth, which was 7.2% (6.4% CER) in the year. With a positive start to the year and expectations of meeting market forecasts, a strong M&A pipeline and the prospect of further acquisitions in FY 2024, we make minor cha

PROGRESSIVE: SDI Group: Strong FY23

SDI has announced FY23 results in line with the guidance given in its May trading update. Strong organic growth and outperforming acquisitions delivered revenue growth of 36% to £67.6m (FY22: £49.7m), with adjusted PBT at £11.8m (FY22: £11.8m). Despite increased global economic uncertainty, SDI’s niche businesses, operating in diverse end markets, delivered organic growth of 6.4% (constant currency). This excludes the ‘one-off’ Atik Cameras PCR contract, which was c.£8.5m in FY23 and c.£10.9m in

Morning Note – 11 May 2023

PROGRESSIVE: SDI Group: Trading update points to record FY23

SDI Group expects revenue for the year to 30 April 2023 to be c.£69m, slightly ahead of market expectations. We estimate that this reflects high single-digit organic growth, excluding the ‘one-off’ Atik PCR contract (c.£8.5m in FY23). Adjusted PBT is expected to be in the region of £11.8m (FY22: £11.8m), in line with our forecast. Strong organic growth and outperforming acquisitions highlight management’s ability to consistently deliver, despite a difficult economic backdrop and supply-chain pre

SDI Group - FY 2023 trading update in line with downgrades to FY 2024

SDI has issued a trading update for the year ending 30 April. Whilst revenues are expected to be c.£69m, up 39% on FY 2022 and some £2.5m or 4% higher than our forecast, higher investment into sales & marketing pegs back adjusted PBT to around £11.8m (no change to FC £11.9m est). Product mix changes in FY 2024 (lower higher-margin Atik sales, offset by higher lower-margin new business sales), coupled with sustained investment in opex will impact our forecasts for FY 2024. We leave revenues uncha