SDI Group’s CEO, Stephen Brown, CFO, Amitabh Sharma and Head of Corporate Development, James Dimitriou, answer investor questions following the Group’s recent December Interims
00:00 Opener
00:16 Introduction
00:45 Can you talk about opportunities going forward, and can you outline how you are encouraging collaboration between the businesses?
04:17 Are there any larger one-off acquisitions?
07:09 Are you starting to see these synergies between the businesses drive margin or sales revenue?
08:30 What further comfort can you give on the ability to hit FY25 forecasts, and did the order book at the end of October give you similar levels of cover that you’ve seen in past years?
09:23 Is the orderbook strong across all three segments, and could you give some detail on the drivers of that?
10:43 Are you seeing any further weakness in China, and will this market be a focus going forward?
12:00 Can you talk about potential tariffs and the opportunities for geographical expansion?
15:23 Just looking at momentum, you’ve mentioned that trading has continued strongly into H2. Is the sequentially month-on-month?
15:56 Can you give us a sense of how much business is repeated, recurring revenues vs one-off capital equipment?
16:16 And we’ve seen generally tougher, challenging trading conditions, but as to your portfolio, where do you see the most growth come from, and what are you doing to address the opportunities?
18:08 You’ve had a strong track record in terms of free cash flow, and you’ve successfully funded acquisitions from cashflow, do you see a change to this strategy going forward?
19:39 Could you give a bit more colour around cost-cutting and investment in the business in capex?
21:35 When do you expect business growth to re-accelerate, and in particular, when did life sciences start picking up again?
22:54 Do you think the existing portfolio can generate growth between 5 and 10 percent?
24:00 What’s the longer-term sustainable margin target?
24:55 Are there any other big operational or management structure changes that we should expect?
25:39 Are you happy with the structure in terms of managing the operations and driving growth through acquisitions?
26:40 Could you say any more about the M&A opportunities and your EBIT multiple opportunities for those?
28:07 You’ve outlined that there are benefits for companies that join SDI, can you just outline why companies become part of the SDI group?
28:38 Outro
This communication is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. Progressive Equity Research Ltd (“PERL”) does not make investment recommendations.
Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position, and/or may perform services or solicit business from, any of the companies or related securities mentioned.
Any prices quoted in our research are as at the previous day’s close.
