Sdi Share Discussion Threads

[fillspectre] 28/9/2021 18:58

Is this another one of them thar tree shakes. It dipped suddenly a while back to 160p. Or is this just the doldrums as the autumnal weather finally lands, the nights lengthen, furlough ends and we all have to look into a new reality. Nothing in the last week suggests the investment case for SDI changes. I am not aware they are a significant energy consumer, they don't surely use haulage any more than the next company. They produce high value items many of which are not necessarily bulky. Fils.

[steeplejack] 28/9/2021 16:03

Given recent update,i would think its general profit taking.A lot of 2021 winners are falling back today.

[trident5] 28/9/2021 13:46

Something bad by the looks of it.

[fozzie] 28/9/2021 13:37

10%+ gone in a blink, thoughts anyone?

[fillspectre] 24/9/2021 19:37

Looks like there has been a chunky £167K purchase today @ 209p plus another not unsubstantial one. A good read across from Judges Scientific interim results today? Fils

[fillspectre] 23/9/2021 15:41

It doesn't surprise me bigbigdave - it is a worthy company poised for expansion. Danske buying for a reason. Fils.

[bigbigdave] 23/9/2021 15:25

Delayed reaction to TU, not too far from an ath now :o)

[fillspectre] 23/9/2021 12:04

Danske's involvement at this juncture very reassuring. When news of the next acquisition does arrive I think we could be testing new highs. Lowest share volume this week and highest rise - could be supply is drying up. I am certainly holding tight to the shares I have got. Fils

[rivaldo] 23/9/2021 11:26

Danske are evidently pretty keen - they've bought just over another 2m shares in the last month, and now own over 6% with 6.03m shares:

[arregius] 23/9/2021 11:16

That was danske buying

[trident5] 22/9/2021 22:48

FS - well quite, the nature of making small numbers of acquisitions is that the timing will appear random and sporadic to an outside observer.
I doubt that management pay much attention to what's said on here, t least I hope they don't.

[fillspectre] 22/9/2021 22:29

I don't think we should cajole Mike Creedon through the medium of this bulletin board into making a rushed acquisition. I would like to see the next acquisition as much as the next person - but it has to be right. For all we know they could have got close but been outbid, the asking price not right or the due diligence turned up something they didn't like. I think I have read a comment by Mike that owners are not necessarily as keen to sell as you would expect following the Covid year. Owners that have survived the Covid year may be feeling more enthused to retain a business and full of confidence. What we need is a business which is very much an ongoing concern where the owner wants to free up some personal capital but wants to secure a rosy future for their loyal and talented employees. It is also good if the owner / manager is willing to stay with the business and also accept a conditional share payment as part of the sale proceeds. Ideally we want cross-pollination with existing SDI Group businesses - and we want some sort of geographic fit if that is possible. The next acquired business should be a good fit for SDI Group and vice-versa. Fils.
PS: Stonking share volume today Gromit!

[alphabeta4] 22/9/2021 12:31

1-2 acquisitions guided for the financial year and we're nearly 6 months through. They have always delivered what they've said in the past so I wouldn't be surprised to see one in short order.

[sweetunicorn] 22/9/2021 11:54

Yes, at the moment they still enjoy the luxury of making a big impact in FCF and profit development with 1-2 acquisitions due to the low MC and small numbers. But if FCF continues to grow at the historically high rates (which I hope) then SDI will generate FCF of ~20mGBP in 5y. Together with an expansion of the credit line to maintain a small moderate leverage to amplify growth, SDI would then be able to reinvest ~30mGBP each year.

SDI should therefore start early to expand its M&A structures and networks to build an M&A pipeline that will allow for 2-5 acquisitions per year.

It usually takes 2-3 years to expand the M&A networks regionally and to create new incentive structures in the company to encourage M&A activities in the subsidiaries.

SDI is growing and it is important to have big visions to create big things in the next years.

I had a good exchange with SDI executives on this topic and I think the SDI management is fully aware of its task and will create the necessary framework to let SDI grow further.

[ymaheru] 22/9/2021 11:42

I think they’re well aware and keen on acquisitions. They just don’t want to overpay or get the wrong deal.

SDI is quite small at present, so it doesn’t feel like too big a delay to me. The acquisitions will come.

[sweetunicorn] 22/9/2021 11:08

I don't think they need a reminder either. They will continue to do a great job.

But as FCF increases and SDI grows, more acquisitions will be needed to maintain the high M&A growth. That is a very simple law.

But I think the SDI management has the necessary vision and will create the necessary conditions to keep SDI on the road to success and take SDI to a new level.



"To be big, you have to think big. If you think small, you will become small."

Emeril Lagasse

[hastings] 22/9/2021 10:56

I don't think they need any reminders on that front!

[trident5] 22/9/2021 10:44

Perhaps a call to HO reminding them to fully activate the M&A front would be a helpful reminder for them.

[sweetunicorn] 22/9/2021 10:23

I also think that things are going well for SDI and that the management tends to be very cautious, as in the past.

However, I also see that it has been very quiet on the M&A front for the last 9 months while other serial acquirers such as VLX or HLMA (HLMA reported 10 acquisitions in the current FY in TU today) do not seem to have any problems on the M&A front.

If SDI wants to maintain the high long-term forecast of 20% M&A growth, the ball should be accelerated on the M&A front without lowering the hurdle rates.

In the medium term, it will be necessary to further expand the M&A structures in order to be able to turn the M&A wheel faster when FCF increases.

Especially due to the very questionable FinnCap outlook for FY23, which sees a strong organic decline and excludes M&A, it would be important to fully activate the M&A front now.

In the long run, SDI will continue to develop great but I think 9 months without M&A should not become the new rule as FCF increases and structures should be started early to accommodate the strong growth.

I am holding and looking forward to the M&A RNS that will come... Upgrades will be the result...


No investment recommendation.

[rivaldo] 22/9/2021 08:52

Looks like a few traders were desperate to make a few pennies this morning having bought ahead of the AGM update. The MMs took full advantage given that volumes were so light.

Good to see the price bouncing now given the ahead of expectations update. As hastings points out, management here are always prudent in tone, so one would expect that things are going rather well at present for SDI.

[slogsweep] 22/9/2021 07:57

forecast eps 6.65 so pe falls to 30 may be a bit less, sounds ok to me lets see if Mr market agrees

[pugugly] 22/9/2021 07:41

Shows great clarity in detailing what are market expectations.Wish more companies would do this.

Analysts from our Broker finnCap Limited and from Progressive Equity Research regularly provide research on the Company, and the Group considers the average of their forecasts to represent market expectations for FY2021/2022 being Sales of £42.05m and Adjusted2 Profit Before Tax of £8.85m"
"

[hastings] 22/9/2021 07:11

Happy with that, in keeping with SDI's usual tone.

[rivaldo] 22/9/2021 07:06

The AGM update is short and very sweet :o))

"The Group has made a good start to the new financial year, modestly above our initial forecasts, and the Board remains confident that results for the full year will be delivered at least in line with market expectations"

[sweetunicorn] 17/9/2021 09:24

SDI
ATIK CAMERAS

Panos Kapetanopoulos was appointed director ATIK Norwich last week.

Panos Kapetanopoulos joined Atik Cameras in January 2021 from Photek Ltd.

Prior to being appointed Director, Panos held the position of R&D Manager at Atik for 9 months.

Prior to joining Atik, Panos spent more than 12 years at Photek Ltd, where he was Engineering Manager and later Technical Sales Manager, gaining more than 7 years of sales and marketing experience and building a strong sales network. Panos has numerous qualifications in business administration.

I am sure Panos will do a great job as a Director at Atik and help maintain Atik's strong growth and open new chapters in the success story of Atik and SDI.

Source for the information: Linkedin