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Share Name Share Symbol Market Type Share ISIN Share Description
Sdi Group Plc LSE:SDI London Ordinary Share GB00B3FBWW43 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 163.50 144,159 08:00:05
Bid Price Offer Price High Price Low Price Open Price
161.00 166.00 164.50 162.75 163.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Electronic & Electrical Equipment 35.08 5.64 4.81 34.0 167
Last Trade Time Trade Type Trade Size Trade Price Currency
16:35:14 O 50,000 161.50 GBX

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DateSubject
28/5/2022
09:20
Sdi Daily Update: Sdi Group Plc is listed in the Electronic & Electrical Equipment sector of the London Stock Exchange with ticker SDI. The last closing price for Sdi was 163.50p.
Sdi Group Plc has a 4 week average price of 146.50p and a 12 week average price of 130.50p.
The 1 year high share price is 219p while the 1 year low share price is currently 130.50p.
There are currently 102,081,960 shares in issue and the average daily traded volume is 54,005 shares. The market capitalisation of Sdi Group Plc is £166,904,004.60.
07/12/2021
21:36
sweetunicorn: Hastings your contributions and opinion as always much appreciated! However, I would like to draw your attention to the following. It is true. SDI has shown good work on the M&A front in the past. SDI had a MC of ~100-150mGBP and it was enough to make 1-2 high quality acquisitions to make a massive impact on the balance sheet due to the small numbers. SDI's valuation was also still close to fair value and attractive at a valuation of 10-18x PE. But times have changed. SDI has continued to grow and in the last 18 months multiples have widened massively as SDI has become an AIM darling that gets a lot of advance praise. SDI has continued to grow and the numbers are getting bigger. More or bigger takeovers will be needed to achieve the same impact as 2 years ago. SDI needs to turn the M&A wheel faster without lowering the hurdle rates. It is simply no longer enough to focus on 1-2 high value acquisitions a year. If SDI does not put the necessary structures in place, they will just have to carry on as before. Which is not a bad thing, but then valuations are already way off. It's ok. If management continues to focus only on 1-2 acquisitions and starts returning the rest of the cash flow as dividends. Then the growth will slow down. I think SDI is now in a very important and decisive phase. Does SDI want to go the way of a multi-billion company and think big? Then you have to start creating the necessary structures. Or do they want to keep it quiet and small and go the way of JDG? then what they are doing is enough and an offensive dividend policy like JDG will be due for the next 3 years and growth will go towards 10%. I don't see the fire at Mike to build a mulltimillion company at the moment. I think Mike just wants to do what he has done for the last 10 years in an excellent way and then retire in 5-6 years. Personally, I think SDI is past the massive rise in returns when it expanded its valuations from 12xPE to 30xPE and was able to create a massive impact with 1-2 acquisitions. In addition, Covid as a holy angel for SDI generated massive positive special effects which will, however, fall away again to a considerable extent. SDI will continue to be a decent investment but I think the valuation has gone far and there are also risks that should not be ignored. A great company, but the current price seems very juicy for the exciting phase SDI is in. It will be interesting to see what happens beyond FY23 when Covid is no longer an issue and SDI will again rely heavily on M&A growth. No investment recommendation
15/9/2021
22:58
fillspectre: Bigalan3 I am surprised by the timing of your question. To what extra interest were you referring? There has been plenty of interest in this share for quite a while as evidenced by the daily share volume and past bulletin board traffic. What I would say if you are new is that I expect, like me, everyone is just waiting for the next SDI RNS announcement which tells us about a new substantial acquisition. There will then follow a lot of comments and analysis about the new acquisition and how good a fit (or not) it is to SDI. I expect it will be a sensible immediately earnings enhancing acquisition if the past is any judge. Mike Creedon and the board would have applied a lot of due diligence. The announcement of such an acquisition may see another lift in the SDI share price. Cast your way back through this bulletin board. Fils.
05/9/2021
09:54
sweetunicorn: In SDI's Investor Meet Company IMC presentation on interim results for the six months ended October 31, 2020, in the Q&A, CEO Mike Creedon describes long-term growth Targets. In question 23 he is specifically asked about the 28% growth target and he confirms the target. Listen to the IMC presentations and you will get it in black and white. The CEO recently reconfirmed this long-term growth target. If you study SDI and management you will find that management is very cautious and cautious in their forecasts and forward looking statements and everything SDI does is very far sighted, intelligent and safety minded and there is a very strong understanding of growth and shareholder value. I think 8% organic and 20% M&A growth per year which SDI management is targeting is very realistic. SDI has strong growth factors and can strongly increase FCF. The framework conditions are excellent and SDI fully reinvests the FCF with a high ROIC of over 30% because they do not pay out dividends. Halma or Judges pay out ~45%% of the FCF as dividend. Judges even uses Tool of special dividends to pay out FCF. Judges or Halma show much weaker FCF growth compared to SDI, but are valued much higher. SDI is still trading at a massive discount to Halma and JDG on an FCF basis. I think the conditions for SDI are excellent. SDI seems fairly valued with strong double-digit FCF growth in expansion and high reinvestment rates at high ROIC. I think the biggest mistake is to unbreak a compounding machine by paying out a large part of the FCF as a dividend. This factor that SDI can reinvest 100% of FCF at ROIC >30% is neglected by many investors in the valuation. Many investors still focus on the highly overvalued serial acquirers like Judges or Halma. But I think SDI should get the attention. In 5 years when the liquidity increases and SDI has grown to a >$500m company with >20mFCF investors will pay more attention to SDI. I still see great potential for SDI. Regional expansion. Sector expansion. M&A. Buy and Build. Multiple Expansion. No investment recommendation. Check the data yourself for correctness. hTTps://www.investormeetcompany.com/sdi-group-plc/register-investor
23/8/2021
18:49
ymaheru: Yeah, I invest in growth companies (generally acquisitive ones), and value them all the same way. SDI had way overshot compared to what the market knows about the company and it’s earnings. They’ve not historically increased earnings by 70% at all and I doubt they will in 2022 or 2023. The SDI share price is barely under a fair value, whereas a lot of decent British stocks are trading far under my calculated values.
04/8/2021
22:59
fillspectre: Strange how the SDI share price is lurching around at the moment. Next acquisition RNS should settle us back into an upward trend. I'm really impatient to see what sort of Company Mike Creedon will buy next. Can't help but feel there will be a new acquisition before end of calendar year. Fils
15/7/2021
18:12
sweetunicorn: SDI buys companies at attractive prices at 3-6x EBIT (median last 12 acquisitions ~4.5x). Compared to the peer group SDI can buy at very attractive prices which is mainly due to the target range in TAM where SDI focuses on small companies for which they pay ~£4-7m. I think the focus on the quite attractively valued GB TAM compared to very expensive US TAM also plays into SDI's hands. SDI also regularly acquires companies that they know or have worked with. SDI also has long-standing good relationships with owners who are potentially inclined to sell their businesses one day. This reduces risk and makes it easier to negotiate a price that is fair to both parties. SDI is not entering the roll-up hamster wheel of being driven from one acquisition to the next. SDI is focused on buying and building, leveraging synergies and crosseling effects to maintain organic growth towards 10% while working through its strong M&A structures with a strong M&A pipeline to maintain M&A growth at 20% by making a platform acquisition every FY and building on it with smart add-on acquisitions. SDI has invested heavily in its existing businesses, which has had a strong positive impact in recent months. In particular, the investments in strong marketing and sales structures at the subsidiaries have already had a positive impact and will continue to have a positive effect in the long term. There continues to be strong growth potential on the organic and M&A front through regional and sector expansion via existing networks/businesses and add-on acquisitions or through platform acquisitions in new regions or sectors. SDI's portfolio is focused on less cyclical industries and the service and products are predominantly in the low to medium range of 500-5000 GBP and are largely supplied in customised versions to sticky customers and many OEM customers. The low price range and the low cyclical sectors in which the products and services are offered ensure that they are not financed by the customer in the cone, which makes the cash flows less sensitive to interest rates. As the cash flows are predominantly generated in less cyclical and narrow niches, the cash flows are stable over a full interest rate and economic cycle, which enhances their value in the DCF model. In addition, these factors provide strong pricing power, which also supports the high and consistently rising margins. SDI has been able to increase FCF by ~85% p.a. on average since 2017. The FCF growth as well as the other growth factors (revenue + profit) and the profitability factors (ROIC) are in expansion (YOY % change), which indicates systemically positive developments and further strong growth. Management continues to emphasise that it does not want to distribute FCF via dividends or share buybacks because it sees enough attractive reinvestment opportunities. The peer group, on the other hand, distributes ~45% of its FCF while SDI can reinvest the full FCF at a high ROIC (>15%). SDI continues to expand its M&A structures and the CEO emphasised that as the company grows in size and complexity due to the increasing number of companies and possibly an additional sector, he will strive to introduce an additional management level at the sector management level, as is also the case with Halma. Due to the strong growth structures SDI has implemented in recent years and the stable low cyclical strong growing FCF which should currently be at ~GBP7-8m, a strong M&A buy and build structure and the resulting strong growth potential, I consider SDI to be very attractively valued. The comparable larger serial acquirers such as Halma Judges Diploma Danaher Heico Addtech etc. have not been able to expand their growth for years but are mostly in growth contraction while SDI continues to accelerate growth across all growth factors. At the same time, SDI is growing at about twice the rate of its peer group. In the long term, prices will always adjust to the fundamental development. And I think a high performance serial aquirer like SDI which can increase its FCF with ~28% in the long run and with currently ~25x FCF trades at a more than 40% discount to its peer group can easily grow into its valuation. SDI will be able to grow its intrinsic value very strongly over the next few years due to its very strong reinvestment moat, creating very satrk value for its shareholders. I am a very long-term investor and do not intend to sell my positions. If the reinvestment opportunities deteriorate in many years (Berkshire effect - big numbers) SDI will start to pay out part of the strong cash flow as dividends. on the current share prices there will then be strong dividend rewards. To recognise the high quality of SDI requires a very deep study of the individual subsidiaries and corporate structures. No investment recommendation.
10/7/2021
08:58
sweetunicorn: I focus by serial acquirers primarily on the development of FCF -- FCF/Share. At the same time, revenue growth and profitability (ROIC) are key factors in my valuation process for SA compounders. I mainly focus after the analysts of FinnCap they serve as advisors to SDI and I think they have a good insight into the operational business. This also confirms why FinnCap's forecasts are regularly very close to the published numbers. Progressive Research also thinks SDI through with regular research. However, Progressive tends to be more superficial in its analysis according to my assessment and tends to be further behind the published figures with its rather cautious forecasts. FinnCap forecast FCF of GBP6.6m for the past FY21, ~5% below my forecast FCF FY21 of GBP7.1m. Progressive Research, on the other hand, forecasts an FCF of only GBP 4.5m, which I consider to be very low. It is noticeable that Progressiv has not adjusted or raised its FCF forecast since the Feb TU although SDI pushed the numbers up again in May TU. I regularly go into developments at SDI on my Twitter channel and also on the factors of FCF development. But I can briefly give an overview of how I arrive at FCF of ~7.1mil fY21. FCF for full FY20 was £3.042m. FCF for H1 FY21 6 months to 31 Oct 2021 was reported in the half year report FY21 FCF GBP 3.833m. This means in the first 6 months of FY21 #SDI already has ~28% more FCF than in full FY20! H1 ended 10/31/20, ahead of extremely good TA Feb 2021 with strong OEM orders at ATIK. Atik then released another update in March 2021 after the TA in Feb, where they wrote about several OEM orders. Also, the Monmouth acquisition and the Uniform acquisition were not included in the first half of FY21 and will only have a strong positive impact on FCF in H2 FY21. In addition, the handover of a GBP1m+ project to a leading turbine manufacturer was reported by Chell in H2 which should also make payment in H2 due after handover. In addition, it was reported in H2 that business at Synoptics is excellent and also from the Thermal division strong new trade partnerships and regional expansion e.g. to Africa were reported, which should have driven sales further strongly in this area in H2. Furthermore, the merger of Thermal Exchange and ATC was reported in H2, which should eliminate these unnecessary duplicate structures in the future and thus also generate cost savings and at the same time positive potential through knowledge exchange and process standardization. Furthermore, it could be observed how in the subsidiaries in H2 FY21 the personnel reinforcement and upgrading in the sales and marketing departments was further strongly accelerated. Also, the very strong developments at Monmouth especially the numerous major projects with clean rooms in H2 should have had a particularly positive impact on H" FCF after the earnings out in Feb/March. Thus, I personally assume that SDI was able to moderately improve FCF growth in H2 compared to H1 because the Corona tailwind continued but in addition the burdens in the other areas have dissipated and returned to old heights. Assuming that SDI achieved the same FCF in H2 FY21 as in H1 FY21 this would mean a FCF for the full FY21 of ~£7.7m. I have deducted a safety margin of 10% for my calculation and therefore forecast a FCF of ~7.1m GBP for the past FY21, which would mean that SDI is currently trading at a closing price of 1.90GBP and a MC of 188GBP at a MC/FCF of ~26x. This means a discount to the peer group which trades at ~35x a discount of 25%. Forcast/Fwd Multiples: Mean FCF growth since 2017 is ~85% at the year! If we now assume that #SDI can grow ~20% acquisitively with a further acquisition in the current FY22 and ~10% with strong organic growth in the range of 30% (this is also expected by SDI management in the long term), this results in an FCF of ~£9.3m for FY22, which would mean that SDI is currently trading at a 12m fwd FCF multiple of ~20x. This implies a valuation discount to the peer group (fwd multiple mean 36x) of ~80%. I hereby confirm my personal 12m fwd Price target for SDI of ~300p by end of July 2022 which would correspond to an expected 12m return of ~55% from the current price at 190p. Serial acquirers and high performance compounders like SDI are often undervalued. Investors find it very difficult to recognize the future potential. In order to recognize the potential of high quality serial acquirers and to be able to determine future growth factors as accurately as possible, it is absolutely necessary to take a very close look at the company structures. It is important to know the corporate culture and the performance of the management as well as the created structures and networks. Personally, I think SDI has created the necessary highly decentralized structures and has the potential across all management levels to continue to grow its low cyclical business at ~25-30% p.a. over the long term. SDI is still in the young growth phase and the growth drivers are all in expansion (Change YoY %). The profitability factors (margins/return on investment) are also expanding and are already at a very high level compared to peers. The high sales and FCF growth in the mid 2-digit range in combination with the very high profitability (ROIC) as well as a solid reinvestment moat via a strong M&A structure and M&A pipeline make SDI an excellent high quality compounding business which is however regularly underestimated by investors. However, I believe the valuation discount will increasingly dissipate as large and financially strong global investors take notice of SDI. With JP Morgan and Danske Bank, the first major international investors have already set foot in the SDI door in FY21 H2 / FY22H1. This is not an investment recommendation everything I write are personal thoughts and the information must be checked by the reader himself for accuracy and completeness!
08/7/2021
09:01
sweetunicorn: I have added #SDI positions 194p. In the short term, shaky hands seem to be further interested in profit taking. In the long term, I see 194p as buy prices . The very bullish long term investment case remains intact. The median consensus estimate from both analysts FinnCap Progressive Research forecasts FCF FY21 of £5.6m. FinnCap expects FCF FY21 of GBP6.6m. I think #SDI could be slightly above estimates at ~GBP7.1m. With my expected FCF FY21 of GBP7.1m, #SDI would trade at MC/FCF ~27x. Compared to peer group #JDG #DPLM #HLMA, which trades at ~37x on average, this gives a steep valuation discount. I think this valuation discount will disappear after the #SDI Final Results FY21 announcement on 20 July and an informative statement from management on 23 July. I expect more large international high quality financially strong investors to take notice of SDI's great potential. I expect FinnCap to adjust the #SDI price target by 10% to reflect the final results. In addition, I expect high quality acquisitions in the current FY to add another ~10% to FinnCap PT. In addition, I expect further strong organic growth through regional expansion (e.g. Monmouth -- USA) and the strong investment in high quality sales and marketing personnel will have an increasingly positive impact. With FY22 fwd12m growth factors, I expect FCF growth of 25%, giving fwd FCF FY22 ~£9m. This would result in #SDI currently trading at a fwd MC/FCF of ~21x, #HLMA #JDG #DPLM at a ~38x fwd FCF basis. I see a 12m upside potential of ~55% and set my personal #SDI price target at 300p by end July 2022. Not an investment recommendation. Always check data and details yourself. I am very heavily invested "long" SDI.
26/6/2021
13:18
sweetunicorn: SDI very weak trading volume with further downward trend (volume) this week with very small buyers mostly buying up the price under weak volume with unlimited orders, while financially strong investors regularly used these opportunities to sell material under larger orders. Falling prices under high volume with larger sell orders from the financially strong investors while the small investors buy up the price with small amounts under low volume indicates a confirmation of the long-term seasonal effect also for SDI. In the last 5y, the phase from mid-June to the publication of the final results in mid-July was characterised by falling volume and increasing selling pressure. This was regularly followed by a sideways consolidation in which the short-term exhausted conditions in the indicators were reduced. The SDI price has broken out above its long-term 5y trend, which has taken place under a strong multiple expansion in the last 12 months. SDI multiples on a fwd FCF basis have increased from 17x to 37x in the last 12 months. SDI is trading at a fwd MC/FCF multiple of 37x based on analyst estimates of FY21 FCF of £5.5m while Diploma and Judges are trading as direct peers to SDI at a fwd multiple of 34.5x. I think many small retail investors may have ridden the momentum wave somewhat FOMO driven while the financially strong often institutional investors are waiting for the final results to confirm the growth factors. FinnCap is trading SDI at a target price of 195p and fwd FCF FY21 6,6mio GBP. Historically, the market has been very much +-20p around FinnCap's target price. I think a lot of good news has been priced in. Indicators have run up a bit and the long term 5y trend channel has been exhausted to the upside. I think the market might be interested in running sideways back into the long term trend channel in the 180-205p range, taking some heat off indicators + valuation. With confirmation of expansion in broad growth factors and fresh impetus from the return of financially strong investors following the FY21 Final Results announcement, I can envisage a further moderate rise in the price under rising trading volumes. Before that, the seasonal effects should continue and selling pressure should increase as volume continues to fall, so that I personally expect prices around FinnCap's price target of 195p in the next few weeks which would surprise some weak hands. As a long-term investor, I see prices of 180p-195p as excellent entry or post-buy prices. I stand by my positive long-term expectations, which I have shared here in the past, but I do see potential for a consolidation in the short term. I am heavily invested in SDI. Always check the information for yourself. Anything I write is NOT an investment recommendation! hTTps://twitter.com/jogilog2/status/1406998179359363074
15/6/2021
07:49
sweetunicorn: Monmouth is currently very much in the focus of investor perception. Monmouth has also been a great buy for SDI and Monmouth offers great potential with its very motivated and intelligent management. But I don't think one should underestimate or neglect the other excellent SDI companies. Numerous other SDI companies are also currently undergoing very strong developments that offer great potential. Here are a few examples: Sentek with its excellent sticky customer relationships. You have to love this kind of business as an investor, as #Sentek does. Products priced £5-500 to be used for 6-12 months and then replaced. High recurring revenue business diversifies into many different low cyclical sectors. High OEM customer share + Dominant in niches. Thereby cross-selling effects e.g. to Astle. At ATC there have been further pleasing developments that are already bearing fruit. In recent months, ATC announced the merger with Termal Exchange and was able to enter into strong trading and service partnerships that will allow the business to expand further, e.g. to South Africa. hTTps://www.app-therm.com/news/south-africa-distriubutor-als.aspx hTTps://www.app-therm.com/news/gd-rectifiers.aspx ATC has also released a new service prospectus which should further increase sticky recurring revenues and Uniform Engineering should continue to benefit from additional orders through increased cross-selling demand. Atik and Synoptiks continue to benefit from strong Covid backed demand for test and analysis solutions. I would like to mention the high quality personnel upgrade at Atik with Jason Evans and since May also Frederico Dias strengthening the Atik management. But across all subsidiaries you can see the expansion in high quality personnel to expand production capacity due to high demand but also the marketing and administration level to further accelerate growth organically. Chell Instruments also continues to push its development and sales in new areas such as electrified aviation. Chell's increasingly strong presence in the industry-specific media is noticeable on the public channels and Chell is expanding its sector dominance with further product launches that address the very specific needs and requirements of market-leading customers. In particular, I would like to point out that the SDI CEO Mike told that there should still be changes at Synoptics/Syngene this FY in the area of sales of PCR workstations. Synoptics is currently still selling low-cost PCR workstations from a third-party supplier through its subsidiary. However, work is already underway to offer Monmouth products and services in the future. hTTps://www.syngene.com/product-category/pcr-workstations/ Many investors have been surprised by SDI's dynamic growth in returns. However, the strong price performance is only a reflection of the very strong expansionary growth trend and the high future growth potential that the strong buy and build strategy can provide in the future. The broadly diversified portfolio across less cyclical sectors offers robust and strongly growing cash flows. This strong price performance and expansion of growth factors (change YoY %) are particularly typical of the early growth phase of a high performing serial acquirer. Personally, I roughly take my cue from the performance of Judges Scientific Plc when roughly assessing SDI's potential. Judges doubled revenue and EBITDA in 4y from 2010 to 2014 (20% p.a.). Share price increased by 1673% in the same 4y period (~100% p.a.) However, for Judges, the growth factors have been in contraction for over 10y. In the last 16 years, the share price of Judges increased by 5633% (28.8% p.a.). Since its IPO, SDI has achieved a moderate share price performance of 1025% (22% p.a.) in the last 12.2y. In the last 5y SDI shows a growth over the broad growth factors of 32%. Growth and annual returns are in a dynamic expansion. SDI is about half the size of Judges in terms of revenue and earnings (EBITDA), but has a much higher growth rate and is able to expand this growth, while Judges' growth and profitability (margins, return on investment) has been weakening for years. If an investor looks at Judges' historical performance and compares it to SDI's current performance, and takes into account the great value Judges has provided to its shareholders at a lower fundamental performance than SDI, one can roughly estimate the extremely great future potential of the company. I am heavily invested in SDI. Always check the information yourself. Everything I write is NOT an investment recommendation! JDG Performance 2010-2014: https://ibb.co/F8rCtkB Data and Growth Fakts #JDG vs. #SDI: https://ibb.co/djK1NVh
Sdi share price data is direct from the London Stock Exchange
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