Sdi Group Plc · LSE:SDI
Sdi — H1 FY2024 Earnings Presentation
32 slides from Sdi's earnings presentation, December 2023
Slide 1: Interim Results
Interim Results For the 6 months ended 31 October 2023
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (“Presentation”) has been prepared by SDI Group plc (“SDI”). While the information contained in the Presentation has been prepared in good faith, neither SDI nor any of its shareholders, directors, officers, agents, employees or advisers give
Slide 3: Agenda
Agenda Group Summary Board of Directors Group Overview UK and World Presence Acquisition Process Acquisition Timeline H1 FY24 Results Trading & Outlook Appendices Group Brands Track Record Capital Structure SDI Group plc 3
Slide 4: Board of Directors
Board of Directors SDI Group plc 4
Slide 5: Group Overview
Group Overview The strength of our business model: Federated structure for rapid but nuanced response Profitable & cash-generative businesses able to withstand external shocks Diverse portfolio of companies not relying on a single sector or region Resources to invest for organic and acquired growth
Slide 6: UK & World Presence
UK & World Presence SDI Group plc 6
Slide 7: Acquisition Process
Acquisition Process Why Join SDI Main Acquisition Criteria The business will retain its independence, brands and culture Strong exporters Scientific / technical Focus on growth within their instruments / niche sector manufacturing Strong financial support and access to sector specialist resources wi
Slide 8: Acquisition Timeline
Acquisition Timeline SDI Group plc 8
Slide 9: H1 FY24 Results
H1 FY24 Results SDI Group plc 9
Slide 10: Highlights
Highlights Adjusted Operating Revenue Profit* Organic Growth** Organic growth SVS 1.6% 35% 2.2% Atik Camera OEM customer Tax charge to £32.2m to £4.4m **Excl. Atik COVID related contracts in H1 FY23 (H1 FY23:£31.7m) (H1 FY23:£6.9m) Adjusted Profit Diluted Adjusted Cash generated Before Tax* EPS* fro
Slide 11: Income Statement
Income Statement Half Year Half Year 31 Oct 23 31 Oct 22 Percentage Organic growth of 2.2% excluding £6.4m £’000 £’000 Change Atik camera revenues for PCR machines in H1 FY23 Revenue 32,215 31,720 +1.6% £6.3m non-organic turnover from acquisitions Gross profit % 63.0% 62.9% Margins held Adjusted ope
Slide 12: Revenue Bridge
Revenue Bridge £m 40 6.3 6.4 38 36 34 0.2 32.2 6.1 0.7 0.5 32 31.7 30 28 24.7 26 24 22 20 18 16 14 12 10 8 6 4 2 0 Sales H1 FY22 2022 acquisitions Organic growth Organic growth Sales H1 FY23 2023 acquisitions Organic growth Organic growth Sales H1 FY24 1-time COVID* other 1-time COVID* other • In FY
Slide 13: Segment Highlights
Segment Highlights Sensors & Control Turnover increased to £26.8m from £19.2m, a 40% increase 6.7% organic growth Adjusted Operating Profit* increased to £4.8m (H1 FY23: £2.9m) Good performances at Astles Control Systems (chemical dosing equipment) Applied Thermal Control (chillers) and Scientific V
Slide 14: Cash Flow
Cash Flow Half Year Half Year 31 Oct 23 31 Oct 22 £’000 £’000 Operating cash flows before movement in working Unwind of c£2.7m in customer 5,624 7,698 capital advances. SVS (£1.4m) shipped equipment in Oct, Astles (£0.6m) and Movements in working capital (2,309) (5,823) LTE (£0.5m) also reduced cust
Slide 15: Net Debt Bridge
Net Debt Bridge £m 10 8 6 4 2 0 -2 -4 -6 -8 1.6 -10 (3.9) -12 (0.8) (1.4) -14 (13.3) 5.6 (0.8) (0.2) (13.2) -16 -18 Net debt April 2023 Op. cash flow Movement in Other movement in Capital expenditure Taxes paid Interest paid Other (FX, leases) Net debt October before mvt in wkg inventories wkg cap.
Slide 16: Net debt
Net debt As at As at As at £1.25m of the RCF was repaid over the 31 Oct 23 31 Oct 22 30 April 23 £’000 £’000 £’000 first half of FY24 Cash 1,546 3,619 2,711 £10.25m of unused facility at the RCF facility (14,750) (19,000) (16,000) period end. In addition, £5m of accordion facility available (at HSBC
Slide 17: Trading & Outlook
Trading & Outlook SDI Group plc 17
Slide 18: Trading
Trading Portfolio trading: Atik Cameras have now received strong order coverage from its largest customer after destocking affected H1. The forward-looking strategic plan for this business has been prioritised SVS shipped the expected significant order over the first half. Encouragingly, they have a
Slide 19: Peak Sensors
Peak Sensors Sensors & Control Background & Operations Acquired in November 2023, a leading UK manufacturer of temperature sensors, specialising in standard and bespoke thermocouples and resistance thermometers which are used in various industries, including glass, ceramic, incinerators (including e
Slide 20: Growth Drivers
Growth Drivers Organic Growth M&A M&A Background Current status Strong market presence in a Between 1 and 4 acquisitions No change in our criteria, number of its niche segments made each year since 2014 although we are more willing to We continue to look for synergies use earnouts to reconcile price
Slide 21: Summary & Outlook
Summary & Outlook Continue to evaluate high quality businesses as they become available Buy Cement our position as the go-to acquirer for owners of profitable, cash generative SMEs in scientific / technical niche sectors Generate synergies within our businesses Build Leverage the combined resources
Slide 22: Appendices
Appendices Group Brands Track Record Capital Structure SDI Group plc 22
Slide 23: Digital Imaging
Digital Imaging Atik Cameras The cameras are designed and developed in Norwich, UK with manufacturing based in Lisbon, Portugal. The company has developed and sells a range of cameras under three brands Atik, Quantum Scientific Imaging and Opus Instruments. Atik Atik Cameras designs and manufactures
Slide 24: Digital Imaging
Digital Imaging Synoptics Synoptics based in Cambridge is the headquarters and manufacturing site for Syngene, Synbiosis, Synoptics Health and Fistreem International products. It also has a US sale and marketing office based in Frederick USA. Sygene Syngene develops and manufactures systems and soft
Slide 25: Sensors & Control
Sensors & Control Applied Thermal Control Applied Thermal Control (ATC) is based in Coalville and was acquired in August 2017. Thermal Exchange was acquired in February 2019 and merged with ATC in December 2019. ATC designs, manufactures, and supplies a range of chillers, coolers and heat exchangers
Slide 26: Sensors & Control
Sensors & Control MPB Industries MPB Industries (MPB) designs and manufactures flowmeters, flow alarms, flow indicators, flow switches, calibration cylinders and sight glasses for the measurement of liquids and gases by well-known industrial and scientific users. Based in East Peckham, UK, MPB opera
Slide 27: Sensors & Control
Sensors & Control Fraser Anti-Static Techniques Fraser Anti-Static Techniques is one of the leading global manufacturers of anti-static products which eliminate, clean, generate or measure static electricity in a variety of industries including plastics, packaging, printing, food processing, medical
Slide 28: Sensors & Control
Sensors & Control Monmouth Scientific Limited Monmouth Scientific (Monmouth) is one of the UK’s leading designers, manufacturers, and suppliers of Clean Air Solutions. The company specialises in Filtration Fume Cupboard and Ducted Fume Cupboard installations alongside Laminar Flow and Class I/ Class
Slide 29: Balance Sheet
Balance Sheet As at As at 31 Oct 23 31 Oct 22 £’000 £’000 Assets Non-current assets Intangible assets 40,584 47,264 Investments 24 - Property, plant and equipment 14,630 15,015 Deferred tax asset 705 1,547 55,943 63,826 Current assets Inventories 11,937 12,066 Trade and other receivables 10,086 11,5
Slide 30: Track Record
Track Record Revenues (£m) Adjusted Operating Profit* (£m) Cash Generated by Operations (£m) 14.7 12.8 12.1 67.6 11.7 10.7 49.7 7.7 35.1 32.2 4.6 5.2 4.4 24.5 3.1 3.6 3.3 17.4 2.3 2.9 14.5 10.7 H1 1.3 H1 1.4 H1 '17 '18 '19 '20 '21 '22 '23 24 '17 '18 '19 '20 '21 '22 '23 '24 '17 '18 '19 '20 '21 '22 '2
Slide 31: Capital Structure
Capital Structure Listing AIM:SDI Market Capitalisation ~£110m Ordinary Shares in issue 104,080,044 Options, including LTIP 2,523,492 (2.4% of issued share capital) Number Percentage of of ordinary issued share Shareholders shares capital Berenberg Wealth and Asset Management 9,651,726 9.3% Danske B
Slide 32: sdigroup.com
sdigroup.com > sDIGROUP