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Published on: December 7, 2021

Strong H1 results – momentum continues

SDI Group has announced strong H1 results to 31 October 2021, in line with its trading update of 4 November. Revenue increased by 75% to £24.7m, including 42% organic growth, and adjusted operating profit rose by an even more impressive 82% to £5.8m. Monmouth Scientific and Uniform Engineering, both acquired in the second half of FY2021, contributed to the strong sales growth, alongside the well-flagged, significant one-off Covid-19 related contracts within Atik Cameras. However, it is very encouraging that management has reported strong growth (averaging 22%) across its broader business portfolio, confirming that order patterns are returning to pre-pandemic levels. Post period, SDI has renewed and expanded its loan facility with HSBC, from £5m to £20m, providing good firepower for potential acquisitions. While no new acquisitions have been announced in H1 22, we understand that management is optimistic that it will secure at least one before the end of FY22. We note that order intake remains robust across all of SDI’s businesses and look forward to further positive updates as it continues to execute on its buy and build strategy.

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