SDI Group (SD0) Q4 2026 Earnings Report

The call conveyed a broadly positive performance: record group revenue (c. GBP 75m) and double-digit group growth, strong divisional results (notably Sensors +23% and Lab Equipment +12%+), improved adjusted EBITDA and operating profit, successful strategic acquisitions and continued cash generation. Challenges include increased net debt from acquisitions (GBP 24m), a decline in cash generation versus prior year due to working capital build, some margin pressure in Sensors from contract mix, and a small organic decline in the Product division. Management highlighted robust H2 organic momentum, integration progress for acquisitions, a renewed RCF and confidence in FY '27 guidance, which supports a positive outlook despite near-term debt and working-capital headwinds.

Management guided that FY‑27 should deliver performance "in line with market expectations," citing strong momentum into the year after c.8% H2 organic growth (6.7% H2 on a constant‑currency basis; 7.6% H2 including FX) and full‑year organic growth of 5.3% (acquisitions added >7%), with revenue at c.£75m in FY‑26; they pointed to adjusted EBITDA of £14.1m, adjusted operating profit £11.6m, gross (materials) margin 66% (like‑for‑like up to 65.7%), an adjusted tax rate of 22.7% and cash generated from operations of £10.2m as the financial foundations for the outlook. Balance‑sheet metrics supporting the guidance include net debt of £24m at year‑end (net debt/EBITDA 1.7x against a 2.5x covenant), committed RCF of £25m to Nov‑2028 with a £15m accordion (£6m exercised) and RCF headroom of c.£4–5m, while working capital rose c.£3m (debtor days 44, inventories +£1m). Management said the acquisition pipeline (notably PRP £9.3m, Severn £4.8m) remains robust, Q1 trading has started strongly, and they expect ongoing cash generation to reduce leverage over the year while funding further bolt‑on M&A.