I wish that were true DBD. 🤣 |
The BBUS fairy dust has been sprinkled!!DbD :-) |
66p above that limit. |
NT above 10k shares. |
Joined you all today. Looks oversold so pleased to be in at 60p. 50% upside looks a decent target. DYOR etc. |
An excellent listen, thanks. Some highlights:
- H2 continues to trade nicely in line and momentum has continued into January
- the order book remains at strong levels
- big concentration on synergies, i.e subsidiaries exhibiting together in one large stand at exhibitions rather than small dispersed stands
- only 2-3 businesses trading in/with China
- Life Sciences has recovered nicely
- cash flows have been "good" in H2
- FCF is impressive at £5m-£6m per annum, so acquisitions can be self-financing, generating an additional £1.3m-£1.4m EBITDA
- SDI are achieving significant cost savings across the company, i.e at Atik (closing the Norfolk office and halving the cost base), Monmouth, Safelabs and Synoptics |
Thanks progWill have a listen when get chance, |
Many Thanks, saw it had edged up..... |
More confident sounding management in this webinar , and better to not hear scripted answers . This is 50% undervalued just on meeting expectations and confirming next year's EPS forecast in my opinion . Still some work to do to get there after a soft H1 but management seemed pretty positive here about doing it after a recovery in the life sciences end markets .Stephen please dial down this circular motion and synergies stuff , and do have a laser focus on the valuations you are paying for acquisitions . David Cicurel has laid down the exact path for you to follow , no shame in imitating him |
Any thoughts on the session..? |
SDI Group (SDI) Investor Q&A Session - February 2025
SDI Group’s CEO, Stephen Brown, CFO, Amitabh Sharma and Head of Corporate Development, James Dimitriou, answer investor questions following the Group’s recent December Interims.
Watch the video here:
Listen to the podcast here: |
Thanks Rivaldo |
Thanks for the info |
SDI were also one of Techinvest's 12 New Year tips for 2025 in their January issue as follows:
"SDI (SDI; 57.5p) owns a group of small to medium sized companies with specialist
industrial and scientific products in growth sector niches. Growth across the group stalled in fiscal 2024 as trading conditions in core markets became more challenging. However, the current year ending April 30 seems to be going well and broker forecasts anticipate a small increase in revenue and substantially higher profit.
SDI confirmed last month that order intake in the first half was significantly up compared to the second half of fiscal 2024. Gross margins and cash generation were also higher. In October, the company announced its latest acquisition, InspecVision, for a net consideration of £6.1m. The acquisition looks a good fit and is expected
to be immediately earnings enhancing." |
Thanks for the Techinvest update rivaldo. I've sent you a DM if you can have a look please. thx |
 Techinvest's December issue covered SDI's earnings enhancing InspecVision acquisition and concluded as follows FYI:
"SDI’s skills in identifying small science-based companies to add to its portfolio of investments is widely acknowledged and the latest acquisition looks another well-judged selection.
InspecVison provides precision measurement machinery for smart manufacturing, automated inspection and reverse engineering and offers SDI an entrance into the high value metrology market and a global, blue-chip customer base which includes the US. The acquisition also introduces new technological capabilities to the enlarged group, including AI and machine learning, and brings strong IP which SDI’s
management feel can be leveraged.
SDI’s share price peaked at 196p in February 2023 but has since fallen back as revenue growth across the group has moderated, mainly reflecting more challenging trading conditions for various portfolio companies. Support for the stock around 52p has been evident in recent months, with signs that the fall in the share price over the last eighteen months is bottoming out.
Broker consensus forecasts have held steady since early July, with the current expectation being for net profit of £7.65m and earnings per share of 6.1p for the current year ending April 30. Trading on a prospective P/E of 9.6, we are cautiously optimistic that the modest recovery in the share price seen in recent weeks can gather momentum as we move towards 2025. Further out, the investment case looks robust given the strong position the portfolio companies hold in some attractive niche markets underpinned by strong secular trends. Buy." |
Will probably keep drifting around this area until the next update which could be 3 months away yet. |
I did my own Qual and it came out well on alt-z and Piotroski - net share issuance in past 12 months wasn't horrendous. TBD how it plays out but more up than down from where I sit even if a bit more weakness first. |
It is in a tempting range. Unless something is hidden there is a more limited downside than upside. One to trickle into perhaps. |
Recent acquisition InspecVision immediately earnings enhancing and brings AI and machine learning capabilities with a strong IP. SDI hopes to leverage this across other areas.
Mkt cap £54m. 12mth rolling forecast P/E 7.9, eps growth 17%, PEG of 0.5. Last director buy was end of September for 100,000 at 56.7p.
Price has drifted down to 52p from 62p at the last update. dyor |
Price has declined from 62p at the last update in December. I have added here recently. Cavendish have a 135p target:
- Valuation
The shares remain at low levels, offering significant upside based on internal and external recovery. We believe there is strong scope to rejuvenate revenue growth and rebuild margins over the next two years. The shares are valued on an attractive FY26E EV/EBITDA of 3.7x and P/E of 8.7x, which does not factor in upside from potential M&A opportunities. The shares now also offer an attractive FCF yield of 13.2%. We reiterate our 135p target price, offering significant upside. |
NCCompletely agree - too scripted and clearly a paid interview for PR.Been watching SDI for a while and the price seems to suggest the market doesn't think they will hit forecasts, particularly after their interim numbers and H2 weighting comments. As you say if they do hit firecasts for the year then a single digit (c 8x) PE is more than half what IMO it should be rated at. It will be a fairly long period now without any financial news so I'll probably sit on my hands a while longer to see if it's forming a base at around the 50p mark, could be that a nice bowl is forming. |
Not a great interview with Progressive Stephen - no point answering a few preselected softball questions , do a genuine interview/conversation if you want to communicate better with shareholders .The shares are quite simply the wrong price if they can hit this year's forecasts . And if they miss by 20% on EPS they would hardly be expensive . Big falls on tiny volume YTD like many AIM shares . Like many others I don't think anything special needs to happen for the shares to double , just hit the numbers for this year and next year whilst interest rates come down and confidence returns to AIM. It's not absolutely mental for good growth companies to trade on 15x earnings |
SDI Group (SDI) Management Interview - January 2025
An Interview with SDI Group CEO, Stephen Brown, providing an overview of the business, its refreshed strategy and insight into the acquisition of InspecVision.
Watch the video here:
Or listen to the podcast here: |
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