Published on: November 4, 2021
Half-year trading update and new loan facility. Good organic growth
SDI Group, AIM-listed specialist in the acquisition and development of companies that design and manufacture scientific and technology products, has announced a positive trading update for the half year ended 31 October 2021. It has also renewed and expanded its loan facility with HSBC, from £5m to £20m, providing a significant war chest for potential acquisitions. Management reported very strong sales and profits, with revenue of c.£24.7m expected for H1 2022E (H1 2021: £14.1m; H1 2020: £11.4m). We are upgrading our FY22E and FY23E forecasts accordingly. Monmouth Scientific and Uniform Engineering, both acquired in the second half of FY2021, contributed to the strong sales growth, alongside expected organic growth of c.40%, due in part to significant one-off COVID-19 related contracts. We note that order intake has been robust across all of SDI’s businesses and look forward to further updates at the Interims on 7 December 2021.