SDI Group (SDI) , the AIM quoted group focused on the design and manufacture of scientific and technology products, has released its FY23 results, with trading in line with its update released in May.
Revenue increased by 36.0% to £67.6m, led by the acquisitions of LTE and Fraser Anti-Static, while Safelab Systems delivered a better-than-expected first full-year contribution.
Group organic revenue growth for the year was 0.9%, and excluding the one-off contracts and the impact of FX, SDI generated 6.4% organic growth.
Gross profit increased to £42.8m, up from £31.7m in FY22, whilst margin was marginally down to 63.3% with the acquisitions having slightly lower gross margins than the Group average.
Net debt at 30 April was £13.3m, with £16m drawn from its revolving credit facility, leaving £9m of headroom excluding a further £5m accordion.
Ken Ford, Chairman of SDI said: "The Group has added two high quality businesses to the portfolio in FY23. We continue to execute our proven value-creating business model by investing in capacity and capability to enable organic growth amongst our portfolio of businesses, as well as buying and building where acquisition opportunities present themselves.
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A strong year for SDI, which continues to demonstrate the value of its ‘buy and build’ model, alongside investing in capacity and capability to drive organic growth amongst its portfolio of businesses.
SDI designs and manufactures scientific products for use in applications including life sciences, healthcare, astronomy, consumer manufacturing and art conservation markets. SDI actively pursues strategic acquisitions to add to its already broad business portfolio, split into two segments. The Digital Imaging segment incorporates the Synoptics brands Syngene, Synbiosis, Synoptics Health and Fistreem, the Atik brands Atik Cameras, Opus and Quantum Scientific Imaging, and Graticules Optics. These businesses share characteristics of customer application, technology, and production location.
The Sensors & Control segment combines Sentek, Astles Control Systems, Applied Thermal Control, Thermal Exchange, MPB Industries, Chell Instruments, Monmouth Scientific, Uniform Engineering, Scientific Vacuum Systems, Safelab Systems, LTE Scientific and Fraser Anti-Static Techniques businesses. All of these businesses provide products that enable accurate control of scientific and industrial equipment.
On projected forecasts, Progressive Equity Research said “We maintain our FY24E revenue of £71m, with no further acquisitions built into our forecasts. We also maintain our adjusted FY24E operating profit at £11m, which reflects the decision to maintain the higher cost base associated with the ‘one-off’ Atik orders, given the additional growth opportunities."
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