Sdi Share Discussion Threads

[hastings] 06/5/2022 07:06

Yes and organic growth in excess of 20%!

[bigbigdave] 06/5/2022 07:05

Fantastic.....we expect revenues and profits for the year to materially exceed current market expectations........we expect FY2023 to be the Group's best year yet, also ahead of current market expectations

[arregius] 26/4/2022 11:40

Will we see a preclose trading update soon?

[arregius] 20/4/2022 21:17

https://martinflitton1.wixsite.com/privatepunter/post/sdi-acquisition-28-03-22"Chairman Ken Ford is also pleased with the latest acquisition and progress being made across the group and says that the company will deliver a pre-close update to the market later next month"

[norbert colon] 20/4/2022 21:09

Year end is April so we might be lucky and see something in the next 3-4 weeks.

[arregius] 20/4/2022 20:53

Sdi trading update should be close no?

[rivaldo] 11/4/2022 08:40

News of £20 billion of capital ready to invest in UK life sciences real estate has to be good news for SDI (assuming the availability of space is sorted out):



Extracts:

"Between 2016 and 2020, 681 life sciences businesses were started, according to a report by We Are Pioneer Group, a builder and operator of labs, and JLL, the property agent, 24 per cent more than in the previous five-year period.

The number of start-ups is expected to have grown in the past year, driven by the desire of investors to pour money into the life sciences sector in the wake of the pandemic.

Investors backed life sciences businesses with about £2.8 billion in 2020, but this almost doubled to £4.5 billion last year, according to data from the BioIndustry Association.

London, Oxford and Cambridge, known as the Golden Triangle, remains the heart of the country’s life sciences sector.

Glenn Crocker, executive director of venture capital investments at WAPG, said: “The availability of suitable lab and office space is already at all-time lows, and record-breaking funding levels and the significant growth in the number of start-ups will only fuel demand for life sciences real estate and exacerbate the issue of under-supply.”

"JLL and WAPG estimate that there is £20 billion of capital waiting on the sidelines, looking to invest in UK life sciences real estate.

Investors are keen to cash in on the supply and demand imbalance, which has sent rents and capital values climbing sharply. By contrast, rents in other property markets, notably retail and office, have fallen quite sharply.

They are also attracted by the reliability of the income, with laboratories relatively unaffected by the work from home trend."

[matthew palmer] 09/4/2022 13:21

Anyone on TECHINVEST, I am wanting to form a group of similar minded people to discuss its views etc and information.

Click my name and send a message.

[hastings] 28/3/2022 14:54

Write up for interest. Https://martinflitton1.wixsite.com/privatepunter/post/sdi-acquisition-28-03-22

[rivaldo] 28/3/2022 08:23

Finncap have this morning increased their target price to 250p.

[ayl30] 28/3/2022 07:34

Only just woke up, great niche acquisition. City should like this

[capitalist] 28/3/2022 07:28

Thanks for those comments rivaldo and hastings.

[rivaldo] 28/3/2022 07:17

Excellent - news today of a sizeable acquisition for a forecast £7.7m. Earnings neutral for just the next month until the 30/4/22 year end, then earnings enhancing.

Highly complementary to Monmouth Scientific as in the same sector, and just a few miles down the road which should enable lots of cooperation and synergies.

In particular, I note Safelab sells entirely in the UK, whereas Monmouth sells globally to Europe, Africa, the Middle East and Australasia, so SDI can utilise Monmouth's sales team for large and entirely new markets for Safelab.

[hastings] 28/3/2022 07:16

Nice to see another acquisition, which looks to be a decent fit. FinnCap lifts its target price and earnings on the back of the buy.

[steeplejack] 23/3/2022 11:47

Judges ScientificThe Group starts 2022 with a strong order book. Organic growth in bookings and a good performance by recently acquired businesses propelled our year-end total order book to 22.5 weeks. The Organic order book was 21.9 weeks at 31 December 2021 (31 December 2020: 14.7 weeks).Order intake remains the main driver of performance and consequently the recovery in orders resulted in good progress in revenues. Organic revenue, which was 5% ahead in the first half, accelerated in the second half to reach double-digits for the year as a whole.As a result of the positive performance of the Group, the Board now anticipates that Adjusted (3) Earnings Per Share for the full year ended 31 December 2021 will be ahead of market expectations (4) .

[ymaheru] 23/3/2022 11:12

Steeplejack, do you have. A link to them, please? I was looking earlier.

[steeplejack] 23/3/2022 10:59

Reassuringly good figures from JDG today.

[rivaldo] 22/3/2022 10:36

I note the Government's comitment this month to provide an extra £260m for life sciences manufacturing - indicative of the general upward trend for the sector and therefore SDI:



Extract:

"The funding for manufacturing investments will be distributed through the new Life Sciences Innovative Manufacturing Fund (LSIMF), which has been launched to grow the UK’s life sciences sector.

It follows the Medicines and Diagnostics Manufacturing Transformation Fund (MDMTF) which was launched to strengthen the UK’s medicines and diagnostics manufacturing industry by encouraging companies to use new technologies, and to build or expand facilities throughout the country.

Companies awarded funding through the MDMTF included Ortho Clinicals Diagnostics UK, which is expanding its biological diagnostic product lines, at its Pencoed, Wales site, Custom Pharmaceuticals, which will build a new facility in Brighton and Randox Laboratories, which will build a new large-scale manufacturing facility in Northern Ireland."

[calougra2000] 11/3/2022 11:50

@rivaldo #1496 thanks for posting the update

[rivaldo] 11/3/2022 10:32

Good news flow from Monmouth Scientific. Firstly, their February round-up notes they won a prestigious award:



"February kicked off in celebratory mood as we were thrilled to announce that we were awarded Best Clean Air Solutions Equipment Provider (South-West England) at Global Health & Pharma Health Care and Pharmaceutical Awards! It is a great opportunity to celebrate the fantastic work of our entire Monmouth team!"

"Our Engineer Team were out and about across the country installing more Class 2 Biological Safety Cabinets including a suite of 6 units for Accession Therapeutics Limited. The Oxford based firm are utilising our cabinets as they continue developing immuno-oncology therapeutics to treat some of the most intractable and widespread forms of cancer".

Secondly, it seems Monmouth's move to an impressive new facility is going smoothly:



"We are pleased to announce that we will be moving to our new, purpose-built UK Headquarters and Manufacturing Facility on Friday April 8th 2022.

The 48,000 sq/ft Facilty will house our expanding business as we continue our commitment to the Highest Quality Manufacturing, Customer Service and Product Development."

[km18] 07/3/2022 13:17

...from last year...

Company overview:
SDI Group is a designer and manufacturer of scientific and technology products for the healthcare, astronomy, consumer manufacturing and art conservation markets. The Group operates through the Synoptics brands, Atik Camers brand, quantum Scientific Imaging and Opus instruments brand. In addition, they have several other brands including their latest acquisition Chell Instruments. The Groups products can be split in two bigger groups – Digital imaging and Sensors & Control. The company clearly adopts a blended approach towards growth, with numerous acquisitions over the past years and investments in R&D. As a result, the goodwill on the balance sheet for the FY 2021 was at nearly 30% of total assets. Latest impairment did not affect the profitability.
From a fundamental point of view, SDI is a growth company. Growth of revenue on compound basis is 32.9%, which is transformed to 52% on Net profit level. The EPS is not moving so drastically due to the regular dilution from share issuance over the past decade, and growth is at 31.8% CAGR. ROCE is climbing continuously and reached 17.9% for the FY 2021 and the company is almost debt free with net gearing standing at 6.75%. the only issue we see is valuation, with P/E for the period at 36.2, the company is in the bottom quartile of the industry. Furthermore, price to book value is also very high at 6.51, so is the EV/EBOTDA at 20.77.
Latest update from the company sheds little light on the performance, except that management is expecting results “at least in line with expectations”. Strong trading momentum during the first quarter has been “modestly” ahead of initial forecasts. The stock seems to be at the top of a channel, so we would look closely for good entry points in the coming months, as there is room for upgrades based on momentum in trading. A short analysis of the annual results from April could help us gain some perspective. Revenue for the full year was 43.2% up from FY 2020, at £35.1m, of which 19% is organic. Basic EPS increased significantly from 2.66p to 4.81p and the company had a net cash positions of £0.8m.

Projects: Acquisition of Uniform engineering in January this year, and Monmouth Scientific Limited in December 2020.

Short analysis:

Cash decreased during the period, due to a big retirement of debt
Net cash of £0.8m
CA/CL = 1.05
Cash ratio = 0.24
Interest coverage = 20.59
P/S TTM = 4.97, about average for the sector
BV ps = 27.2p, growing at 20.9% CAGR
Operating profit of £5.91m, compared to £3.49m for FY 2020
Gross profit margin of 65%...

...from WealthOracleAM

[km18] 07/3/2022 13:17

...from last year...

Company overview:
SDI Group is a designer and manufacturer of scientific and technology products for the healthcare, astronomy, consumer manufacturing and art conservation markets. The Group operates through the Synoptics brands, Atik Camers brand, quantum Scientific Imaging and Opus instruments brand. In addition, they have several other brands including their latest acquisition Chell Instruments. The Groups products can be split in two bigger groups – Digital imaging and Sensors & Control. The company clearly adopts a blended approach towards growth, with numerous acquisitions over the past years and investments in R&D. As a result, the goodwill on the balance sheet for the FY 2021 was at nearly 30% of total assets. Latest impairment did not affect the profitability.
From a fundamental point of view, SDI is a growth company. Growth of revenue on compound basis is 32.9%, which is transformed to 52% on Net profit level. The EPS is not moving so drastically due to the regular dilution from share issuance over the past decade, and growth is at 31.8% CAGR. ROCE is climbing continuously and reached 17.9% for the FY 2021 and the company is almost debt free with net gearing standing at 6.75%. the only issue we see is valuation, with P/E for the period at 36.2, the company is in the bottom quartile of the industry. Furthermore, price to book value is also very high at 6.51, so is the EV/EBOTDA at 20.77.
Latest update from the company sheds little light on the performance, except that management is expecting results “at least in line with expectations”. Strong trading momentum during the first quarter has been “modestly” ahead of initial forecasts. The stock seems to be at the top of a channel, so we would look closely for good entry points in the coming months, as there is room for upgrades based on momentum in trading. A short analysis of the annual results from April could help us gain some perspective. Revenue for the full year was 43.2% up from FY 2020, at £35.1m, of which 19% is organic. Basic EPS increased significantly from 2.66p to 4.81p and the company had a net cash positions of £0.8m.

Projects: Acquisition of Uniform engineering in January this year, and Monmouth Scientific Limited in December 2020.

Short analysis:

Cash decreased during the period, due to a big retirement of debt
Net cash of £0.8m
CA/CL = 1.05
Cash ratio = 0.24
Interest coverage = 20.59
P/S TTM = 4.97, about average for the sector
BV ps = 27.2p, growing at 20.9% CAGR
Operating profit of £5.91m, compared to £3.49m for FY 2020
Gross profit margin of 65%...

...from WealthOracleAM