Industrials

SDI Group PLC

  • Market Cap (£m) 58.5
  • Listing AIM

Company Description

SDl Group is an AIM-quoted group specialising in the acquisition and development of a portfolio of companies that design and manufacture niche analytical technology products for use within digital imaging and sensing and control applications in science, technology and medical markets. The group operates a well-established 'buy and build' strategy, supplementing organic growth with earnings-accretive acquisitions of complementary businesses that have sustainable profits and cash flows. Targets are primarily UK businesses with established reputations, capable of achieving significant organic growth through developing export markets. SDI Group takes a decentralised approach, with seasoned local management given broad discretion to run group businesses within defined limits. SDI Group typically acquires businesses generating up to ?1m EBIT for around 4-6 times EBIT plus net assets, including earnout payments.

Investment Summary

SDI Group has successfully completed 16 acquisitions from 2014 to 2023, and the group demonstrated its resilience during 2020 with one-off Covid-related contracts boosting sales of two product lines, offsetting the effects of the pandemic's disruption to other group businesses. SDI Group historically funded acquisitions largely through issuing equity. However, management prefers to acquire using internal funding, and acquisitions since 2018 have been mostly self-funded. Growing free cash generation should enable SDI Group to fund future acquisitions from internal cash flows, reducing the likelihood of the group issuing equity to maintain its growth profile. Future acquisitions have to potential to boost SDI Group's earnings significantly, based on the group's proven track record of delivering significant inorganic earnings growth.

Recent Content

More Content

Company Management Team

  • Stephen Brown

    Chief Executive Officer

    Stephen joined the Board in September 2023 as Chief Operating Officer and was appointed CEO in January 2024. He has held a number of senior positions with prestigious global product and technology focused businesses. Recent roles include Group COO (non-board) at AIM quoted AB Dynamics plc and CEO & Operating Partner at BP Launchpad, part of BP plc. Prior to this, Stephen held multiple leadership roles including Global Vice President at Romax Technology, Research and Development Director (Technology and Production business unit) at Vestas Wind Systems A/S and Technical Director at the Industrial Power Group, part of Rolls Royce Holdings plc. Previously, Stephen held other executive level roles in early stage growth companies. Stephen holds an Honours degree in Mechanical Engineering and Advanced Manufacturing from University of Newcastle upon Tyne. Stephen is also a non-executive director at non-listed AltEnergis plc and its subsidiary companies.

  • Ami Sharma

    Chief Financial Officer

    Ami joined the Board in August 2022. He has over 30 years’ experience in public and private companies of various sizes. Most recently, Ami was Group CFO at FTSE 250 listed Ultra Electronics Holdings plc, an international manufacturing group with a focus in the aerospace and defence market. He was also CFO of Gibbs and Dandy plc, a smaller listed company. Ami has, in the past, held senior finance roles at Senior plc and Saint Gobain Building Distribution and has extensive experience of corporate transactions, driving operational improvements, and raising finance. Ami is also a Non-Executive Director at fully listed Porvair plc. Previously, he was an audit manager with KPMG and is a Fellow of the Institute of Chartered Accountants of England and Wales.

Key Dates

May 2021
26th
Q4 TU
Actual
Jul 2021
20th
Finals
Actual
Sep 2021
22nd
AGM
Actual
Nov 2021
4th
Q2 TU
Actual
Dec 2021
7th
Interims
Actual
May 2022
6th
Q4 TU
Actual
Jul 2022
21st
Finals
Actual
Sep 2022
21st
AGM
Actual
Oct 2022
24th
Q2 TU
Actual
Dec 2022
7th
Interims
Actual
May 2023
11th
Q4 TU
Actual
Aug 2023
8th
Finals
Actual
Sep 2023
29th
AGM
Actual
Dec 2023
7th
Interims
Actual
Jan 2024
4th
IE Group Meeting
Actual
May 2024
9th
Q4 TU
Estimate
Jul 2024
19th
Finals
Estimate
Sep 2024
29th
AGM
Estimate
Dec 2024
7th
Interims
Estimate