Sdi Share Discussion Threads

[tongosti] 03/12/2020 09:20

I agree on unaudited accounts front but it all depends what one's approach. If one believes (like I do) that the market itself is the ultimate fundamental (+ willingness to manage risk dynamically) then the latest is a great catalyst for a further advance. Quite telling the v strong relative strength on the day. Long it may continue chaps.

[rivaldo] 03/12/2020 09:14

SDI say the acquired company will be "immediately earnings-enhancing".

Monmouth made £800k EBIT in the last 6 months alone, and the earn-out is based on a maximum of £1.9m EBIT.

Besides, it's evident from the RNS that SDI are stripping out "non-recurring items" and adjusting Monmouth's cost base, so the historic figures - even before this year's huge surge in profits - won't be relevant.

SDI's management have proven their ability in their record of acquisition integration to date. I trust them to continue.

[trident5] 03/12/2020 08:53

It seems to have been making £100k - £200k bottom line profit in the last couple of years. Seems a big price to pay for such a business unless the directors/shareholders were receiving meaty distributions.

EBITDA figures - the company is light on debt and fixed assets - this figure is likely to approximate reasonably closely to profits before tax.

Company has been filing unaudited abbreviated accounts - so a lot of key information not pubicly available.

[tongosti] 03/12/2020 08:48

Good news - but more important is what Mr Markets thinks of it. +20% in less than 5 weeks. Granted - it's all still paper profits but with my trailing stop set way above entry, this baby is firmly on The House.

[hastings] 03/12/2020 08:29

Increased demand from Covid is a bonus, the business has been growing for a number of years and as the UK market leader in clean air solutions is likely to continue on that trajectory. Very happy with the buy and price.

[trident5] 03/12/2020 08:23

Is this a good time to be buying a company seeing increased demand because of Covid?

Immediately earnings enhancing - let's be clear: in these times of low interest rates it just needs to be making a profit to be earnings enhancing.

[ramridge] 03/12/2020 07:41

Financially it looks a good acquisition.
multiple of revenues is below 1.
consideration paid to EBITDA also looks like below 5.

[rivaldo] 03/12/2020 07:35

Yep, another very good acquisition - and a timely one given the increasing demand for Monmouth's products due to COVID which will continue for some time yet.

Immediately earnings-enhancing - and the scale of the upside can be seen from the earn-out provisions, which are only payable based on Monmouth achieving adjusted EBIT for the current year in excess of £1.9m. This against a likely £5.9m total consideration.

Good to see Finncap raising their target price to 125p as a result.

[hastings] 03/12/2020 07:22

Looks like another great fit and certainly in the right spot. Customers include the NHS, DOH and BAE Systems.FinnCap lifts target price to £1.25p and pencils in a 14% EPS uplift to next years numbers with revenue forecast to move to £35m with adj pre-tax profit of £5.7m.

[ayl30] 03/12/2020 07:09

Nice acquisition, immediate earnings enhancing, bang on strategy

[tongosti] 26/11/2020 14:09

+15% from my entry price so will leave you and co with the entertainment slick.

[johnveals] 26/11/2020 13:27

My guess would be that we, the world, is on the brink of another round of scientific and technological change and a company formerly called Scientific and Digital Imaging is probably well placed to capitalise on that.

[tongosti] 26/11/2020 12:14

I have no idea what I am doing and thank goodness I have 2 Einsteins on this board to guide me. Mwah.

[trident5] 25/11/2020 14:47

? Tongosti just says things like - whizz bang, fasten your seat belts and this sucker's flying.

He probably thinks you're asking him about very big dogs.

[ymaheru] 25/11/2020 14:24

Tongosti, how involved are SDI in the mega labs? I thought their cameras can be used to diagnose the main test, but do you know that it is actually used and do you know how much this adds to the bottom line?

[tongosti] 25/11/2020 09:06

Nice one SDI - about take off time!

[tongosti] 11/11/2020 11:41

This baby on the move - fasten your seatbelts chaps (and chapesses)

[calougra2000] 11/11/2020 09:09

FWIW there are many OEM businesses that have offerings for temperature-regulated storage of lab. samples, $TMO included, it's a market sector with a wide moat.

[rivaldo] 11/11/2020 08:47

Good to see SDI continue to rise nicely. All this extra global investment and attention on the world of laboratories and scientific instrumentation has to be good news.

As regards the Pfizer vaccine, it seems there will be a big need for clinical/medical freezers (assuming it succeeds, which imo is still a very big question). I'm pretty sure SDI don't have any involvement in this area (Fistreem do vacuum ovens!), but happy to be corrected.

[tongosti] 10/11/2020 10:18

Joe - that was on your EKF call. In light of following market action I rest my case. LOL

[petewy] 10/11/2020 10:16

This is an IM from Tongosti, "Still happy with your bullish view pal? LOL"

Is he a full shilling/

[hastings] 10/11/2020 10:15

Very much looking forward to the interim results next month and potentially, another great acquisition.

[tongosti] 10/11/2020 09:05

Shall we finally see the long awaited take off today folks? One hopes!

[tongosti] 09/11/2020 08:41

Morning all - holding up nicely around multi month highs. Should have another leg up in short order. Fasten your seatbelts and enjoy the ride.

[johndoe23] 06/11/2020 10:46

Predictable Friday profit takers after such a strong rise