Sdi Share Discussion Threads

[edscoville] 05/12/2019 08:21

It's worth considering Chell have established sales channels in Aerospace. This must be a huge opportunity for the rest of the group to consider how their technologies could be applied into that space. Quite a value add, aside from the accretion.

[edscoville] 02/12/2019 15:32

Apologies if already posted by others and I missed it, Finncap have re-rated at 75p following the acquisition.
SDI Group (SDI) : Corp
Acquisition – 7% accretive in first full year
Key data

Share price (p) 67.0
Target price (p) 75.0
Market cap (£m) 65.1
Enterprise value (£m) 66.7
SDI has announced the acquisition of Chell Instruments; paying c.£4.3m for the business (FY 2018 EV/Sales and EV/EBIT of 0.9x and 5.5x) funded from cash and a new debt facility with net debt at year-end now expected to be c.£5.0m. SDI has shown that it can source and execute another accretive acquisition in what was a competitive tender bid process. We expect the acquisition to be c.7% accretive to EPS in FY 2021 and raise our target price by 25% to 75p to reflect the accretion as well as rolling forward our target year, implying an EV/EBITDA of 11.9x and adjusted P/E of 17.3x.

[pireric] 02/12/2019 10:03

Nice acquisition indeed. More accretion than I was expecting because it's a fairly sizeable deal.

[rivaldo] 02/12/2019 07:28

Looks like another great acquisition - and a very material one too. Is it SDI's single largest to date? Mike must have been very impressed.

Wholly financed from cash and loan facilities too, so not surprising that it's nicely earnings-enhancing straight away.

The price looks good value at £4.3m (with more for assets including cash) for £0.78m PBT, but more importantly:

"The Board has identified areas within Chell that have the potential for growth using the strong management team the company has recruited over the years"

SDI have proven that they grow businesses strongly once they're integrated, and this looks to have similar potential.

[robow] 02/12/2019 07:07

well there you are

[hastings] 02/12/2019 07:06

Announced significant acquisition in the shape of Chell Instruments based in Norfolk. Adjusted pre-tax profits to hit £5m next year with EPS of 4.4p.

[ayl30] 01/12/2019 22:48

Rumour on Twitter of an acquisition to be announced on Monday. Just passing info on

[davr0s] 27/11/2019 17:52

Crikey a sensible comment from some one :)

[xajorkith] 27/11/2019 17:11

Good to see this hit 70p today :)

Pleasantly surprised by such a rapid run up ahead of December’s results.

Growth stocks showing real strength here & in the US of late.

[edscoville] 27/11/2019 15:21

is something we are not aware of yet? Some large buys occurred this afternoon?

[pireric] 27/11/2019 13:19

Incredible rerate. I confess to have reduced this to 8% of my portfolio now just given where the multiple now sits. So more of a normal proportion for me. Still positive mid term, just think it may need to settle back slightly short term

[rivaldo] 27/11/2019 12:33

Buying at 69.42p now....

[hastings] 21/11/2019 11:23

Breaking into new territory this morning on decent volume.

[robow] 21/11/2019 10:07

read across from JDG

[johndoe23] 21/11/2019 09:24

Patience required!

[ssahoy18] 20/11/2019 11:14

slowed a bit here but JDG keeps going.... maybe we'll get a bit more of a push at some point and a bit of a catchup

[the white house] 14/11/2019 16:16

Added, minimal downside by the looks

[rivaldo] 14/11/2019 13:13

New Fistreem web site - and the first piece of news flow, with some interesting closing comments from Mike Creedon:



"Fistreem International relocates to Cambridge, UK to provide manufacturing excellence and support for customers globally
October 30th, 2019

Fistreem International, a global leader in the development and manufacture of water purification products and vacuum ovens for scientific applications, is delighted to announce its relocation to the Synoptics site in Cambridge, UK. The move will ensure Fistreem has access to technology, manufacturing and marketing expertise, as well as the capacity to support its global scientific customer base.

Fistreem, acquired by Scientific Digital Imaging (SDI) in September 2018 will be operational at the Synoptics site in Cambridge by the end of October 2019. where its main activity will be to produce the Cyclon Water Still, one of the world’s leading water purification brands. Fistreem in Cambridge will also manufacture the Calypso water stills as well as vacuum ovens.

To complement the relocation, Fistreem has launched a new corporate identity including a new website www.fistreeminternational.com and new product literature detailing the full range of Fistreem products and services its Cambridge site provides. Technical services and spare parts will also be available from there, ensuring that Fistreem’s customers and distributors receive the level of product support they need.

Mike Creedon, CEO of SDI commented: “The relocation of Fistreem to the Synoptics site in Cambridge will provide the company with the space, expertise and infrastructure to expand. Additionally, because Fistreem is now fully integrated into our AIM quoted SDI Group, it will also have the funding for that expansion, enabling it to fulfil larger contracts, that it has not previously been able to support. The move is very positive and we look forward to seeing Fistreem go from strength to strength in its new location.”

[johndoe23] 07/11/2019 16:38

Yes, just seen this myself on the back of reading Robbie Burns blog.At first glance looks decent, will do my due diligence before making any potential move.

[sphere25] 07/11/2019 16:33

Not been in this one before.

Robbie Burns (Naked Trader) has bought in. He is looking for £1:

"SDI looks a very decent share and another that came up at the
seminar. It is currently breaking out of its range and the breakout looks
like a powerful one.

It designs and make scientific and tech products used in digital imaging
and sensing and control applications.

Profits are going nicely and it has a very small debt. Its markets look
to be promising and its recent AGM statement was encouraging.

It has been gradually raising money sensibly to acquire other companies and
it looks set to continue.

It looks like a rather nice Isa tuckaway with a potential 100p in time
with some patience. Not a virtue most traders have!"

[adibadi] 07/11/2019 08:33

Looks like there is a bit of resistance at ~63.8. What are your opinions on this? Personally I'm going to hold as I think the price will eventually rise further.

[hastings] 06/11/2019 14:12

https://www.syngene.com/news/syngene-sponsors-tufts-launchpad-biolabs-to-support-biomedical-innovation-in-boston/

[rivaldo] 05/11/2019 11:55

Cheers melody9999.

[melody9999] 04/11/2019 00:03

Here is the conclusion Riv

SDI Group is smaller than Judges Scientific and is cheaper on a range of metrics, including Slater’s PEG ratio - a classic measure of how much investors are paying for the promise of future growth - and it is when viewed as a ‘growth at a reasonable price’ stock that SDI looks most attractive as an investment.

In terms of financial strength, acquisition track record, free cash flow generation and overall quality, it does not quite live up to JDG’s exacting standards - yet - but management appears to have done a good job so far, and the group has ample time and opportunity to prove itself. That said, history is littered with value-destroying acquisitions. Buy and build strategies can go wrong, so it is not without risk.

One point that clearly differentiates the two companies is their attitudes towards shareholder dilution. While Judges keeps a tight rein over its share count, SDI has nearly quadrupled its number of shares in issue over the past five years. In fairness, the funds raised have helped drive the company’s strategy and consequent share price growth.

It would be positive to see SDI kick on from here and continue to scale up with minimal further dilution. Another positive sign would be to see the board increasing their own holdings in the company.

SDI is bigger than it was five years ago, with a stronger balance sheet, a more diversified revenue stream across multiple geographies and has a more liquid shareholder base. Its subsidiary companies continue to establish a track record of profitable growth, which should translate into more free cash flow.

All of these factors make SDI an attractive acquirer, which bodes well for its stated strategy and gives this stock the potential to be a high QM compounder.