Sdi Share Discussion Threads

[hastings] 21/7/2022 09:23

No dividend has been declared since coming to market.

[varies] 21/7/2022 09:19

Whilst very glad to see these excellent profits, I am a little concerned to see only a modest excess of Current Assets over Current Liabilities.
In these circumstances it is hardly surprising that no dividend is recommended and I cannot remember if we have ever had one.

[steeplejack] 21/7/2022 08:44

There's a seller out there and buys are being shown as sells at 156p currently.The shares probably warrant trading around 180ish even in this feral market.

[rivaldo] 21/7/2022 08:27

Progressive have issued a new note and have raised their forcasts, with EPS rising to 9.1p this year based on £11.2m adjusted PBT, due to what looks like a lower tax charge:



"Upgrading FY23E and introducing FY24E

SDI has started FY23E with good momentum and, with travel restrictions having been lifted, further geographic expansion is likely. We have increased our FY23 estimates, raising revenue to £57.9m from £53.1m and adjusted EBITDA to £13.9m from £13.7m. We introduce FY24 estimates with revenue at £60.2m and adjusted EBITDA £14.4m. The Covidrelated orders at Atik were considered one-off, however sales have continued at a high rate into FY23. Although no longer one-off, it is likely that at some point demand for PCR equipment will normalise at a lower level, and we have incorporated this into our estimates. We also haven’t assumed a contribution from potential new acquisitions, which offers upside to our estimates.

Summary and outlook

The group is in a strong position financially, with good operational cash flows and a solid order book. Management continues to seek targeted acquisitions, funded by cash flows from existing businesses and its £20m undrawn facilities, coupled with access to a further facility if required. The record FY22 performance demonstrates the continued growth potential from a diversified group of niche businesses. We believe that SDI is in a strong position to continue to deliver its successful ‘buy and build’ business model, with good opportunities to consolidate the highly fragmented markets that the group targets. Results with acquisitions so far have been exceptional, delivering strong financial returns and operational synergies.

The outlook remains positive with further organic growth and acquisitions uplift expected, demonstrating continued commercial demand for the niche technologies that SDI provides. We look forward to further positive updates as SDI has entered its current financial year (FY23E) from a position of strength."

[zipstuck] 21/7/2022 08:17

the forecast adjusted PBT for 2023 is less than this year so it needs acquisitions

[mammyoko1] 21/7/2022 07:54

From the FY results to 31 October 2021

Continued strong contribution from Atik Cameras due to one-time COVID-19-related contracts, expected to complete by January 2022

From the RNS 7th Jan 2022

The Company also announces that its Atik Cameras division has received a further firm order for cameras to be used in PCR machines, for delivery in the year ending 30 April 2023, extending the series of orders related to the COVID-19 pandemic.

From today's results

Demand for Atik cameras for use in the fight against the COVID-19 pandemic continued strongly throughout this financial year and remains robust into the new financial year. We are confident that the demand related to the current pandemic will be replaced over time by demand for similar products in the broader life sciences domain.

At Atik Cameras, sales of cameras for PCR machines, previously expected to be essentially one-off due to COVID-19 demand, increased further, and in fact they are now expected to continue at least for the first half of 2022-23

From the outset of the COVID-19 pandemic, in 2020-21, our Atik Cameras business received substantial orders from an existing OEM customer for cameras designed into the customer's PCR instrument. At the time, we considered these to be one-off orders, and we viewed follow-on orders from the same customer in the same light. Further and larger orders have followed in the 2021-22 year, and sales are continuing at a high rate in 2022-23. The expansion of Atik Cameras sales represents a large proportion of the Group's organic sales growth in both years. We can no longer consider these sales to be one-off, but it is also prudent to assume that at some point the demand for PCR instruments will normalise at a lower level. However, having demonstrated the efficacy and competitiveness of its camera, we also expect Atik to successively pursue a wider market for its products.

So some potential risk from Atik sales normalisation?

No position but considering a purchase

[hastings] 21/7/2022 07:50

I see Progressive has now pencilled in 2024 numbers with revenue of £60m forecast and EBITDA at £14.4m & adj EPS at 9.6p.

[rivaldo] 21/7/2022 07:50

Every single company and analyst uses the adjusted numbers to present/look for the core results of the ongoing business, not the reported figures, though of course it's necessary to look at the adjusting items as sometimes they're telling.

We shall agree to disagree :o))

All of which is immaterial in relation to SDI's sparkling performance and its huge relative current undervaluation relative to JDG in particular.

[trident5] 21/7/2022 07:45

No - they're manipulated numbers, and the manipulations recur year on year.
Always best to look at the bottom line.

[rivaldo] 21/7/2022 07:38

All analysts use the adjusted EPS figure, which was 8.71p EPS. They don't even bother quoting the basic reported EPS in their summaries.

So for comparison purposes the 8.71p adjusred EPS is the way to go.

[trident5] 21/7/2022 07:30

Profit before tax was £9.9m and eps was 7.2p.

[rivaldo] 21/7/2022 07:20

Fantastic results, well ahead of even the most recently increased expectations.

PBT at £11.8m compares to Progressive's latest forecast of £10.5m

And 8.7p EPS thrashes the upwardly revised forecast 7.9p EPS.

The outlook is very confident and has also been upgraded once again through to April'23. Knowing SDI's management the new current year number will likely once again prove to be extremely conservative and will be upgraded several times.

I note the comment that SDI expect "to acquire additional businesses" (plural) in this financial year.

[bigbigdave] 21/7/2022 07:10

Superb numbers, got to be due a re-rating.

[hastings] 21/7/2022 07:09

Excellent results ahead of what was expected with 2023 as also now revised upwards.

[hastings] 20/7/2022 13:32

Back from a holiday and well timed to catch up with management again tomorrow.Hopefully have something written up fairly quickly after that for further interest.

[rivaldo] 20/7/2022 09:53

For those who missed yesterday's RNS, the prelims are out tomorrow, with an InvestorMeet presentation on Friday:



I'm looking forward to them. We already know that revenues and profits for the year will "materially exceed current market expectations" - and that "we expect FY2023 to be the Group's best year yet, also ahead of current market expectations".

[mutandis] 30/6/2022 16:53

Sharma seems to have been out of the market for over 2 years since leaving Ultra and, the skill sets needed in a defence technology business like Ultra with revenue of £800m+ are quite different to the requirements of a small £50m commercial technology business. So, I am a little sceptical as to whether this will work out.

[steeplejack] 30/6/2022 08:34

That's a good appointment.

[rivaldo] 22/6/2022 09:42

Cheers - here's a direct link:



"The debut of ChemiMOS at Analytica in Munich, has so far been an exciting success. The Atik team are looking forward to plenty more discussions over the coming week."

This is the new product for "for long stare scientific imaging":

[arregius] 22/6/2022 09:03

Exactly. I put it in twitter. Check #SDI

[norbert colon] 22/6/2022 08:19

Analytica show in Munich - LinkedIn

[alter ego] 22/6/2022 07:48

Arregius, could you divulge the source of that piece of info please?

[arregius] 22/6/2022 07:15

Atik is still doing awesome. New product was a success

[martinthebrave] 15/6/2022 16:14

Bought back in earlier 150p (& a bit!). Great "Materially Ahead) 6th May. Has dropped back quite a bit, so hopeful!