Sdi Share Discussion Threads

[rivaldo] 19/12/2018 10:13

The relatively small price rise yesterday post-results was surprising, but I suspect Miton have been offloading a few in the background given the amount of buying on the day.

With 1.41p EPS in H1 alone, and another acquisition likely from the sound of it before the year end, even if SDI only match H1 they should achieve 2.82p EPS to April'19 - around 18% ahead of forecasts.

[s_a_b] 18/12/2018 14:44

Decent write up from Graham on Stockopedia today: https://www.stockopedia.com/content/small-cap-value-report-tue-18-dec-2018-overdraftshigh-cost-credit-ang-sdi-toop-428213/

[hastings] 18/12/2018 07:52

Very true Prireric, excellent result.ATIK in particular for me has been a real driver in this area for the last few years now and looks very well placed to continue delivering with a great product in both existing and new markets.

[modform] 18/12/2018 07:50

This looks better than I expected, but how the market will react is anyone's guess. Hats off to SDI management

[buywell3] 18/12/2018 07:43

I think SDI have a chance of hitting 17M turnover for the year and 2.5M profit

Another good acquisition soon and 20M turnover for the following year is on with a profit of 3M

SDI is in rude health ... ........ just like me



OUTLOOK

Going forward, all our businesses are in good health and are prepared to trade profitably through any potential turbulence, while also developing new opportunities. The Board remains confident in the outlook for the year as current trading remains robust and comfortably in line with market expectations. SDI is continuing to review acquisition opportunities of profitable businesses and intends to add other companies to the Group. Alongside our existing portfolio of businesses serving global markets with niche technologies, we believe new acquisitions will maintain a good balance for continued growth and profitability. The Board hopes to add at least one other company to the Group before the end of the financial year as we continue with our successful strategy of organic and acquisitive growth.

[pireric] 18/12/2018 07:40

Organic growth is the fancy number. Didn't expect anywhere near 11%

[rivaldo] 18/12/2018 07:37

Very good H1 results - and a confident outlook.

SDI achieved 1.41p adjusted EPS in H1. This against full year forecasts of 2.4p EPS.

And this despite a much increased H1 tax charge of 17%.

Congrats to the SDI team once again.

[buywell3] 18/12/2018 07:29

This bit from the Chairmans statement should set some folks mind at rest

'' The Group has adequate working capital reserves and bank facilities that can be used, with its steady cashflow, to acquire new companies with complementary technologies and SDI expects to announce further expansion of the Group with the addition of at least another new company by the end of the financial year.''


In other words no extra shares to be issued


This makes sense


Grow the company firstly within its cash and existing loan arrangements ie no extra shares to be issued.


I have said before that SDI are brilliant at finding great value in small cap acquisitions in the $1M area , QSI was a great buy and i am sure Fistreem will be another both at less than $1M

As profits grow to circa 2.5M GBP in the current year , so in 2019 SDI can up the acquisition price to around $1.75M and still keep within safe cash and loan limits

In 2020 we could see $2M plus acquisitions

In 2021 we could see $3M plus acquisitions

In 2022 we could see $4M plus acquisitions


However we won't
















Because at some point before then SDI will get acquired itself

[cheshire man] 18/12/2018 07:12

Well done indeed :-)

[buywell3] 18/12/2018 07:06

Once again SDI deliver ... well done to the BoD and all staff working in the SDI Group


Highlights

-- Revenue increased by 23% to GBP8,047,000 (H1 2017: GBP6,552,000)
-- Revenue growth driven by organic (11%) and acquisitions (12%); organic revenue growth notably at the Atik Cameras and Sentek divisions with growth from acquisitions delivered by Applied Thermal Controls, Quantum Scientific Imaging and Fistreem

-- Adjusted operating profit* increased by 31% to GBP1,494,000 (H1 2017: GBP1,137,000)
-- Adjusted profit before tax* increased by 32% to GBP1,464,000 (H1 2017: GBP1,110,000)
-- Profit before tax increased by 42% to GBP1,199,000 (H1 2017: GBP846,000)
-- Cash generated from operations increased by 103% to GBP1,531,000 (H1 2017: GBP755,000)
-- In September 2018, SDI acquired Fistreem International for consideration of GBP756,000



buywell3 says , some folks might have sold recently because of Brexit worries

Check this out


Ken Ford, Chairman of SDI, commented:

"This has been a record-breaking six-month period with 23% sales growth and 31% growth in adjusted operating profit."

"All our businesses are in good health and are prepared to trade profitably through any potential turbulence, while also developing new opportunities. The Board remains confident in the outlook for the year as current trading remains robust and comfortably in line with market expectations. SDI is continuing to review acquisition opportunities of profitable businesses and intends to add other companies to the Group. The Board hopes to add at least one other company to the Group before the end of the financial year as we continue with our successful strategy of organic and acquisitive growth."

[buywell3] 17/12/2018 21:16

If you read the RNS

Miton UK Microcap Trust PLC were instructed to sell by BNY (OCS) Nominees Limited


Who are part of BNY International Financing Corporation

BNY (OCS) Nominees Limited

Founded: 1996

Parent organization: BNY International Financing Corporation




Who are part of BNY Mellon N.A.

BNY International Financing Corporation

Parent organization: BNY Mellon N. A.

Who are part of The Bank of New York Mellon Corporation.





USA markets are in a spot of bother of late hence the UK market pullback.

Trump needs to sort out the FED ASAP ... a forward softer rate statement tomorrow/wednesday might get America back on track.

Small Cap Companies like Scientific Digital Imaging (SDI) that have a track record under the latest BoD of making higher turnover/profits by shrewd value for money acquisitions that ''FIT'' the rest of the SDI Group of companies , acquisitions that are at bargain prices for several reasons, but are all making profits and are cash generative within the first year of ownership ... such growth small cap companies as SDI in todays market with cash on the balance sheet and little debt are as rare as the proverbial teeth .


The Global Economy is in a downturn now ... but I still see SDI managing to achieve over 20% increase in Turnover and a healthy uplift in profits V the previous year.


At 34.5p SDI trade at what they were back in April , Fistreem has been added to the group since then and I think we can expect another addition soon ... perhaps as a xmas present. Then another around Easter 2019 would be good.

Sector and Stock picking within that sector will be key for 2019

[mr doughnut1] 17/12/2018 20:28

RNS 7166k - Miton UK Microcap Trust reduced holding from 4.92% to 3.78%. Would account for recent downward pressure on share price Let's see what results bring tomorrow. GLA.
American sell off continuing.

[pireric] 17/12/2018 07:50

Note to self. Never doubt Sir Hastings :0). Was flagging it 3-4 wks ago on here

[s_a_b] 17/12/2018 07:45

Looks like tomorrow for the results then...

[pireric] 14/12/2018 22:17

Only down 120 from the UK close though ;0)

[pj 1] 14/12/2018 21:32

The Dow is down 500 points so maybe Tuesday may be better? Unless.....

[pireric] 14/12/2018 21:07

Thanks Hastings. Monday or Tuesday, whichever it turns out to be, I am most looking forward to ;0)

[bamboo2] 14/12/2018 13:37

Hi hastings, thank you.
I have double checked my chart, and as a result will wait until Monday to ascertain the likely direction of Tuesday's potential turn.
gla

[hastings] 14/12/2018 13:30

Hi bamboo2 yes, the CEO confirmed as I wanted to arrange a call on the day for a follow up article.

[bamboo2] 14/12/2018 13:04

Just checked, the last t/u does say 17/12/2018.

Chart suggests a potential turn 18/12/2018, so that could mean some rns based chart action.

hastings, if you have a mo, can you divulge your source?

[hastings] 14/12/2018 11:36

Hi Pireric, don't know the reason and as you say makes no difference really.

[pireric] 14/12/2018 10:30

Trading update said 17th December Hastings....doesn't bother me either way but any reason why it's not the case? Noticed you said it before and tried to correct

[hastings] 14/12/2018 10:28

Good to hear pireric, but results out Tuesday not Monday, just so you're not disappointed and people fret about a delay!

[pireric] 14/12/2018 10:10

I've added ahead of Monday results. Think market weakness has created a great opportunity as I think will be spelt out in less than 12 trading hours time

Very cheap for the FCF this chucks off per year and m+a strategy actually works even better then private multiples come down