Sdi Share Discussion Threads

[interceptor2] 30/1/2018 12:13

Thank you hastings, good comprehensive analysis and an enjoyable read.

[cheshire man] 30/1/2018 11:24

Excellent piece and thanks for posting hastings

[buywell3] 30/1/2018 08:28

SDI second half turnover over 1st half should be another 1M from ATC alone

Plus whatever NHS ProReveal orders come in to meet July 2018 DoH date

Plus improvements on existing divisions , say another 10% (conservative )

A decent chance to add around 2M to 2.5M in second half over 1st half

earnings per share of around 1.25 to maybe 1.5p second half if current Sentek trading carries on the way it is

[rivaldo] 29/1/2018 22:49

Good info Wilmdav, cheers.

Encouraging to see today's rise on such unusually heavy volumes, with around £500,000 traded today. Plus the late 150,000 buy at 34.5p augurs well.

[wilmdav] 29/1/2018 17:24

I think the driver for today's continued rise is largely encapsulated in Rivaldo's post 1048. He informs us that Finncap's adjusted eps for H1-18 is 1.22p and that SDI is H2 weighted. The weighting has been significant over the past 5 years, as can be seen from the link below.

Finncap have increased their eps forecast for 2018 from 1.9p to 2.0p but this still looks inconsistent or even ridiculous in the light of H1 performance and prior H2 weighting.

SDI do not provide adjusted eps figures. Their diluted basic eps for H1-18 was 0.95p. The difference between this figure and Finncap's is due to adjustment for reorganisation costs, acquisition & fundraising costs, amortisation of intangibles, share based payments etc. However SDI do provide adjusted pre-tax profit figures, from which it is possible to calculate adjusted eps. The outcome of my calculations was identical to Finncap's fully diluted 1.22p for H1-18 (assumes the same tax as reported in the accounts).

[buywell3] 29/1/2018 16:43

ATC the recent acquisition should add circa an extra £1M turnover in the second half
Plus around £150k extra profit

With all divisions now going well and cross selling opportunities identified

''Our newest acquisitions, Astles and ATC develop and market technology which can be utilised by Sentek as well as being used in bioprocess automation alongside Sentek sensors. They offer new opportunities for intra-group revenue generation and new market access.''

PLUS the one major competitor for sentek in the UK has ceased trading
''Sentek has also seen growth in demand for its ion selective electrodes as a major UK competitor has ceased trading leaving Sentek as the only UK manufacturer of this type of electrode. ''

''Sentek increased sales turnover by 23% in the period, driven by continuing strong sales growth of its single-use electrodes. These electrodes are used in bioprocessing and process analytics applications and Sentek is an OEM supplier to two major life science and healthcare companies. ''


Things are going great guns at Sentek; so much so

''Sentek has leased an additional building to double the size of its manufacturing facility and has recruited additional production staff.''


The SDI chart is now testing its previous resistance chartwise at 34p


With a great second half in prospect plus another small USA camera acquisition likely within weeks AND another acquisition to follow that in 2018 a bit bigger which no doubt enhance SDI offerings/services/Margins even more going into 2019

I urge the SDI BOD to speak to the house broker as the market has already taken the share price past their extremely conservative 32p

A NEW Forecast is needed based upon the incoming acquisitions and a P/E of a minimum of 15


Decent sized After hours trades today


SCIENTIFIC D. ORD 1P (LSE:SDI) Share Price

Today's low: 29.770

Today's high: 34.850

Last trade:34.200
Change:
4.700 (15.93%)

Volume:1,255,684
...


Latest trades
Time Price Volume Value
16:33:55 34.2 ......250,000 85,500
16:33:40 34.5...... 150,000 51,750

[rivaldo] 29/1/2018 15:16

Nice - another 150,000 just bought at 34p.

Looking forward to the article hastings.

[interceptor2] 29/1/2018 13:53

Wonder if last weeks interim results were the catalyst to a rerating here, SDI are on a modest rating for their sector with a PER of 13.5 for next year with broker estimates unchanged, I suspect that these estimate are likely to increase as the growth story becomes more obvious during the second half.

Noticed some larger 50k and 30k delayed buy transactions today, showing as sells by computer but certainly buys, hence the rise today.

[hastings] 29/1/2018 11:03

Caught up with the CEO late on Friday and penned a piece on the back of that.I'll pop here for interest as soon as it goes up on the Cambridge News site, but that may not happen until tomorrow.

[cheshire man] 29/1/2018 08:48

Nice start to the week :-)

[buywell3] 27/1/2018 17:34

Re the 32p that the NOMAD/House Broker now has on this share

It should be noted that Applied Thermal Control was acquired in August 2017 so contributed a couple of months to the interims

It should also be noted that Applied Thermal Control look set to contribute a reasonable amount in the next 6 months and going forwards

''Applied Thermal Control

ATC, acquired in August 2017, is redesigning one of its chiller systems to comply with new EU regulations prohibiting the sale of equipment containing fluorinated greenhouse gas from 2022. These new chillers will work in bioprocessing systems and will be tested for use by one of the world's largest suppliers of bioprocess automation.

This is a growing market which is also served by our Sentek brand. ATC is a complementary fit to the SDI Group and provides potential areas for growth as ATC can access our European network of dealers to market their products.''

So CROSS SELLING opportunities seem to have been identified by the SDI BOD = GREAT


Plus in the next 6 months ATIK could well gain by

''04 January 2018

Scientific Digital Imaging plc

Statement re. potential small acquisition

Scientific Digital Imaging plc, the AIM quoted group focused on the design and manufacture of scientific and technology products for use by the life science, healthcare, astronomy, consumer manufacturing and art conservation markets, announces that it is in negotiations regarding a potential small bolt-on acquisition to complement the Group's existing Atik Cameras brand.



The potential acquisition currently under consideration envisages SDI acquiring the trade and certain assets including camera designs, stock and brand names of Quantum Scientific Imaging, Inc. ("QSI"). Total consideration would be expected to be less than £300,000.''


Bolt ons are always nice to read about as the imply minimum work/change required to improve sales

And sales have improved very well indeed to date as :




Scientific Digital Imaging profit doubles
26 January 2018

Scientific Digital Imaging doubled its first-half profit after selling more of its technology products to the life sciences, healthcare and astrology industries, while expanding margins.

Pre-tax profit increased to £846,000, up from £410,000 a year earlier, while revenue grew by 34% to £6.55m.

Gross margin increased to 67.0% from 63.6%.

"The first half of the financial year has seen the group report substantial growth and we are pleased that trading in the current second half continues in line with management expectations," chairman Ken Ford said.

"We have been pleased with the performance of Applied Thermal Control, which was acquired in August 2017."






Hence I expect the House Broker should now revisit his 32p number




I think 40p within 12 months looks very likely chartwise and trading wise


Given that another acquisition is now being talked about by the BOD in the interims in 2018

dyor

[interceptor2] 27/1/2018 13:03

Thank you for the welcome rivaldo, always pleased to see that we share the same investments.

[rivaldo] 26/1/2018 13:39

It's worth noting that Finncap have 1.22p adjusted fully diluted EPS for H1 (before exceptionals etc).

I've had it pointed out to me that SDI's H2 is usually stronger than H1, particularly for Atik. This would offset any effects from the recent rise of the pound (assuming the rise is sustained to 30th April).

There seems therefore to be a reasonable chance that the full year EPS could be say 2.4p-2.5p EPS, and potentially a fair amount more than that - smashing Finncap's forecasts.

Welcome ic2, good to see you here. Good to see the spread has reduced to a more manageable 2p, and the bid has been rock-solid at 28p.

[interceptor2] 26/1/2018 11:35

Bought in here this morning and after completing my research I am happy that the company seem to be in the early stages of a new growth period, The ratios are modest for a growth stock and the balance sheet looks ok to me after the recent acquisitions, even though the company didn't state that they will beat expectations to the full year, I think that looking at the interims results it is likely that they will update the market before the full year results with a positive trading update.

Noticed a healthy improvement of net margins with 12.9% achieved at the half year compared to 7.7% in the last full year results.

Chart is appealing also after a near one year consolidation period.

It is just a shame that the spread is high here, but if interest increases this can reduce the spread and make the stock a little more liquid.

[hastings] 26/1/2018 08:39

I would say another acquisition in the coming months is highly likely.I also found the comments on ProReveal the most upbeat yet from the board.They tend not to beat the drum over loudly, just get on with it, which is refreshing. I'm speaking with the company again later today so will hopefully glean a little more.

[rivaldo] 26/1/2018 08:33

I note that Finncap's forecast this year is now 2p EPS - and doesn't include anything for the likely Quantum Scientific Imaging Inc acquisition already announced.

I can see their 32p target being achieved relatively soon, particularly with more acquisition news and/or a re-rating based on SDI's excellent trading:

"Valuation

We maintain our target price of 32p but see further upside from here if the
company is able to successfully acquire and integrate any acquisitions that it has
indicated it is currently reviewing. Based on our 2018 forecasts, which looks only
at the current business mix and excludes any potential bolt-on acquisitions, this
would place SDI on FY 2019 EV/Sales of 1.9x, EV/EBITDA of 8.9x and adjusted
P/E of 14.4x."

[cheshire man] 26/1/2018 08:10

Delighted with this news on a cold dank Friday morning, a nice touch of blue sky on the way for us holders perhaps :-)

[hastings] 26/1/2018 07:41

Have to concur rivaldo excellent progress. Sentek and ATIK delivering strong organic growth even the old laggard legacy business grew by 11%.FinnCap retains numbers for now, but highlights the upside risk, which to be honest looks well on.One point to note is Sentek's competitor withdrawing from the market, that's another bonus.

[soundbuy] 26/1/2018 07:20

That'll do........... :)

[rivaldo] 26/1/2018 07:16

Excellent interims - SDI are well on track to beat expectations with 0.98p EPS achieved in H1 relative to forecast 1.9p EPS for the year.

Plus another acquisition expected this year.

Plus Sentek is booming - particularly as a key competitor has gone out of business!

And ProReveal is gaining traction now with sales to 11 hospitals.

The outlook is also very bullish:

""The first half of the financial year has seen the Group report substantial growth and we are pleased that trading in the current second half continues in line with management expectations. We have been pleased with the performance of Applied Thermal Control which was acquired in August 2017. The acquisition was another exciting step in the Group's growth strategy and the Group looks forward with confidence."



"· Revenue increased by 34% to £6,552,000 (2016: £4,902,000)
· Gross margin increased to 67.0% (2016: 63.6%)
· Adjusted profit before tax* increased by 140% to £1,089,000 (2016: £454,000)
· Profit before tax increased by 106% to £846,000 (2016: £410,000)
· Basic earnings per share increased by 53% to 0.98p (2016: 0.64p)"

[buywell3] 24/1/2018 16:54

Expecting good things with a FULL year from the Astles acquisition, which should I hope add around £2.5M in turnover by itself

Plus Sentek going from strength to strength

Maybe some further news regarding the next planned acquisition plus how ATIK is going with the small/ish USA camera company buy recently announced.

[hastings] 23/1/2018 16:19

Results out on Friday morning, hopefully all going well as per previous statement and on course for a good full year.

[buywell3] 12/1/2018 15:18

FT has this


Institutional shareholders

Top holders 26.32%

Per cent of shares held by top holders

Holder Shares % Held

Octopus Investments Ltd.
AS OF 09 OCT 2017
7.71m 8.60%

Herald Investment Management Ltd.
AS OF 31 DEC 2016
5.29m 5.90%

Miton Asset Management Ltd.
AS OF 30 APR 2017
4.99m 5.57%

Hargreave Hale Ltd.
AS OF 18 SEP 2017
4.08m 4.55%

Harwood Capital LLP
AS OF 11 MAY 2017
1.40m 1.56%

Webb Capital Asset Management Ltd.
AS OF 28 FEB 2017
121.84k 0.14%