SDI Group’s trading update for the year ended 30 April 2025 is in line with guidance, with a strong H2 offsetting the slow start to the year. This reflects management’s clear focus on driving organic growth over H2 and addressing short-term issues that had led to underperformance in some businesses. The underlying portfolio performed well in terms of profitability and cash, with several businesses delivering a strong H2. SDI has a robust order book, with good momentum going into FY26, and we maintain our estimates. Strong cashflow generation and significant headroom within its banking facilities leave SDI well placed to continue its buy and build strategy.