Sdi Share Discussion Threads

[fillspectre] 11/1/2022 07:34

Plenty of notice - should be an orderly transition. I wonder if they will look to internal candidates. Good for employees to have development opportunities within the Group. Fils

[death by donut] 11/1/2022 07:08

CFO retiring in summer .DbD

[alter ego] 07/1/2022 15:00

updated research note on Progressive Equity Research - free but requires registration

[rivaldo] 07/1/2022 14:09

Cheers Hastings, extremely helpful as usual.

Further to your comment that SVS "will deliver an EBITA figure for the current year above the historic £0.7m number highlighted", I note that Finncap have forecast SVS will deliver £1.1m EBITA for the coming financial year based on their "visible strong order book".

Also good to hear the comment that the wider group is also performing well.

Here's a direct link (no idea why your link doesn't work since the Https is capitalised!)

[alter ego] 07/1/2022 12:32

very interesting Hastings - thx for posting.

I note this snippet

"Whilst the acquisition is both timely and welcome, Mike tells me that he is currently very active on assessing further potential buys and is hopeful of delivering on further deals."

[hastings] 07/1/2022 12:23

Write up that may be of some interest.Https://martinflitton1.wixsite.com/privatepunter/post/kicking-off-the-new-year-with-sdi-group-07-01-22

[trident5] 07/1/2022 11:17

The acquisition has been around since 1990.
In 2020 revenue fell to £1.1m, but in the 3 preceding years was running at around £2m with post tax profits of c£0.2m, after paying the 2 directors c£0.3m a year.

Gross profit margins are very healthy.

[rivaldo] 07/1/2022 10:51

Finncap have today raised their target price to 240p.

Agreed steeplejack, JDG's statement certainly augurs well for SDI's sector.

The main point of today's acquisition is that in SDI's usual fashion it looks to be an attractive acquisition at a decent multiple, very profitable and with good growth prospects. As well as being earnings-enhancing....

[steeplejack] 07/1/2022 10:31

Additionally,Good figures from JDG today helps the cause.

[gdjs100] 07/1/2022 10:06

As they are net debt you need the earnings to cover the cost of the debt, which will be more expensive. Still a low bar though.

[trident5] 07/1/2022 09:34

Rivaldo - there is very low bar for acquisitions that enhance earnings.

If you assume that cash currently generates 0% interest, then any acquisition that then generates post tax profit will enhance earnings.

[pugugly] 07/1/2022 09:21

Sales being marked as buys - Am told very well bid. But DYOR.

[our haven] 07/1/2022 07:57

Great to see the progress on the two fronts.

[rivaldo] 07/1/2022 07:15

Two pieces of good news.

An earnings-enhancing acquisition - £4.9m buys historic £0.7m of EBITA in what looks like a very interesting area in semiconductor wafers. With manufacturing being re-shored from China a UK-based company like this should do well.

The further order of Atik Camera orders for PCR machines is great news. It has to be material to be worthy of RNS'ing. I wonder if it's from the same OEM or from a new one?

[hastings] 07/1/2022 07:06

Excellent news with an interesting acquisition and with new orders received for ATIK in the Covid space

[ayl30] 07/1/2022 07:04

New acquisition, good news

[rivaldo] 22/12/2021 12:29

New video from Synbiosis about their latest Autocol product - this is "the highest priced equipment the company has ever produced". I seem to remember it sells for at least £50,000-£75,000 per machine, and perhaps more given my erratic memory?

[kaffee] 21/12/2021 08:30

70's nostalgia has no bearing on the market these days. Governments just pumps more billions to whoever has the begging bowl out, or underwrites the banks to do so, or even becomes a direct buyer in the market.

Crash of 1929 proportions? Well % wise for sure that possible, 50% off of S&P only puts it back to a (very) long term average and for it to be an average, values have to go lower on occasion. The difference is... it's all V shape recovery these days.

[arregius] 19/12/2021 10:38

Pedro Matos takes over as General Manager of Atik Cameras LDA in Portugal https://hubs.li/Q010P3vt0 #Biotechnology #Imaging #LifeSciences

[steeplejack] 16/12/2021 00:12

Good presentation.The two executives complement each other.I thought of Taylor and Brian Clough at one point and then Owen Green and Norman Ireland the next!(I think Ken Ford,the chairman,was a big fan of BTR back in the 80s).However,the methodology is perhaps more Melrose because Mike Creedon is prepared to carry his earnings accretive template into a variety of different industries,as long as his cash flow template dictates are met.It’s a tough call to adopt such a ‘free ranging’ approach but i don’t think this team will be cajoled into making an “iffy” acquisition to placate impatient City expectations and neither should they be.The company is at a pivotal point in its history,no need to rush.The next couple of deals could represent a quantum leap.

[rivaldo] 14/12/2021 12:56

SDI's excellent interims presentation can be seen here, with Mike in fine, dry form and as to the point as ever:

Htps://www.ii.co.uk/analysis-commentary/sdi-group-qa-medtech-firm-shares-update-ii522278

[steeplejack] 11/12/2021 14:38

The crash of 1974 was particularly brutal exacerbated by strikes,left wing discord and political mismanagement post the Opec hike.Inflation adjusted pay rises of 25% were not uncommon.You can make parallels with the 70s but there were exceptional factors particularly in the UK.If you want to make comparisons,i’d lean more towards 1929.Theres always money to be made in a crisis.Miners boomed in the mid 70s,gold went through the roof.Perhaps,it̵7;ll be a continuing addiction to technology stocks next time.Monetarism was born out of the 70s experience and whilst the monetary reins are worryingly loose just now,the basic economic tenets have not been forgotten.

[sweetunicorn] 11/12/2021 14:06

Sdi ~39x fwd FCF and ~34xfwd PE.

In the long term, these extreme multiples that we are currently seeing will not be sustainable.

I would like to quote David Barber, the former CEO of Halma.

"There was a kind of economic blizzard which !asted about four years from 1973 to 1977. The
Stock Market was in shock. We were producing a string of sensationally good results at
Halma but at one stage our p.e. ratio was less than four. lnflation was running at 17% per
annum and the banks couldn't or didn't want to lend money."

[steeplejack] 11/12/2021 13:22

The big money was clearly made buying at around 50p a couple of years back and the stock has been consolidating around the 190p level for months now.I took some profits a few weeks back but retain the greater part of my holding.This is a thin market and its true that a sharp deterioration in overall market sentiment could see the shares fall back disproportionately especially given the healthy gains enjoyed by investors.Frankly,it’s more likely that private punters scuttle out than institutional funds.They may top slice in response to redemptions received but are unlikely to have a damascene experience that sees them throw the baby out with the bathwater.It shouldn’t be forgotten that this business could well appeal to the likes of a Halma.Takeover is never a reason to purchase a stock but experience suggests that a company like SDI (operating in attractive areas)could attract a predator if it fell back significantly.As for reduced revenue expectations resulting from a fall away in covid,Omicron confirms that we’re just not sure what to expect or how our Orwellian governments will react to it.Like the enduring war between Oceania and Eurasia in the book 1984,i sometimes feel that covid provides ample masking for governmental deficiencies and incompetence.Useful indeed and ‘normalityR17; isn't going to return anytime soon.I think the shares are probably fairly valued all things considered.