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SDI Group
(LSE:SDI)
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Rating:65Neutral
Price Target:
98.00 p
▲(8.89% Upside)
Action:Reiterated
Date:08/03/26
Overall score reflects a balance of strengths and risks: supportive technical trend and a broadly upbeat earnings call (momentum, record revenue, guidance in line) are tempered by weaker financial quality signals—margin volatility, softer cash conversion/free cash flow, and higher leverage. Valuation is reasonable but not distinctly cheap, and lacks dividend support based on the provided data.
Positive Factors
Revenue Growth
Record FY‑26 revenue and sustained H2 organic momentum indicate durable market demand across SDI's specialist businesses. Consistent top-line expansion improves scale economics, supports cross‑sell, and provides a larger base from which margin recovery and further strategic investments can be funded over the medium term.
Negative Factors
Gross Margin Shock
A material step‑down in gross margin signals potential structural issues: product mix shifts, pricing pressure or input cost passthrough failures. Such a swing erodes the quality of earnings, reduces operating leverage and makes future profit forecasting and reinvestment plans more uncertain for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Record FY‑26 revenue and sustained H2 organic momentum indicate durable market demand across SDI's specialist businesses. Consistent top-line expansion improves scale economics, supports cross‑sell, and provides a larger base from which margin recovery and further strategic investments can be funded over the medium term.
Read all positive factors
SDI Group (SDI) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£94.12M
Dividend YieldN/A
Average Volume (3M)126.04K
Price to Earnings (P/E)19.1
Beta (1Y)1.04
Revenue Growth12.56%
EPS Growth23.36%
CountryUK
Employees555
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.05
Shares Outstanding104,573,130
10 Day Avg. Volume71,863
30 Day Avg. Volume126,041
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)1.44
Price to Sales (P/S)1.06
P/FCF Ratio15.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£145.00Price Target Upside61.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.08
Revenue Forecast (FY)£82.83M
SDI Group Business Overview & Revenue Model
Company Description
SDI Group plc, founded in Cambridge, United Kingdom in 2007 and formerly known as Scientific Digital Imaging plc until November 2019, is a global designer and manufacturer of scientific and technological products, primarily leveraging digital imag...
How the Company Makes Money
SDI primarily makes money through operating revenues generated by its portfolio of acquired subsidiaries and, at the holding-company level, through the long-term value creation of those businesses. Key revenue streams generally include (1) sales o...
SDI Group Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Record Group Revenue
Total group revenue of circa GBP 75 million for FY '26, the highest level in SDI history, representing approximately a 13% year-on-year increase.
Negative Updates
Increased Net Debt
Net debt rose to GBP 24 million at period end (from GBP 13.8m at start), driven largely by the acquisition of PRP; average net debt higher during the year.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Group Revenue
Total group revenue of circa GBP 75 million for FY '26, the highest level in SDI history, representing approximately a 13% year-on-year increase.
Read all positive updates
Company Guidance
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.SDI Group Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
57
Neutral
Cash Flow
55
Neutral
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 74.49M | 66.18M | 65.85M | 67.58M | 49.66M |
| Gross Profit | 18.57M | 42.93M | 41.55M | 42.77M | 31.66M |
| EBITDA | 13.81M | 11.10M | 11.27M | 11.07M | 12.95M |
| Net Income | 4.91M | 3.98M | 4.23M | 3.87M | 7.54M |
Balance Sheet | |||||
| Total Assets | 111.04M | 88.23M | 81.66M | 84.99M | 68.92M |
| Cash, Cash Equivalents and Short-Term Investments | 2.90M | 1.31M | 1.43M | 2.71M | 5.11M |
| Total Debt | 34.13M | 21.98M | 21.48M | 22.74M | 11.44M |
| Total Liabilities | 56.25M | 38.56M | 36.23M | 43.70M | 33.13M |
| Stockholders Equity | 54.82M | 49.64M | 45.42M | 41.26M | 35.79M |
Cash Flow | |||||
| Free Cash Flow | 5.23M | 7.42M | 4.05M | 6.33M | 11.26M |
| Operating Cash Flow | 6.68M | 9.30M | 5.83M | 7.74M | 13.10M |
| Investing Cash Flow | -15.89M | -9.03M | -4.99M | -22.38M | -12.77M |
| Financing Cash Flow | 10.75M | -205.00K | -2.15M | 12.10M | 982.00K |
SDI Group Technical Analysis
Positive
90.00
Price Trends
89.97
Positive
85.97
Positive
81.57
Positive
Market Momentum
-0.30
Positive
53.24
Neutral
64.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDI, the sentiment is Positive. The current price of 90 is above the 20-day moving average (MA) of 89.17, above the 50-day MA of 89.97, and above the 200-day MA of 81.57, indicating a bullish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 64.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SDI.
SDI Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £109.06M | 26.67 | 6.51% | 1.35% | 23.25% | 700.00% | |
73 Outperform | £50.59M | 3.76 | 22.93% | ― | 136.76% | ― | |
65 Neutral | £94.12M | 19.15 | 9.24% | ― | 12.56% | 23.36% | |
62 Neutral | £329.82M | 81.69 | 3.33% | 0.81% | 12.73% | -26.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | £289.10M | -8.25 | -24.38% | 3.68% | -2.68% | 47.33% | |
54 Neutral | £111.21M | -50.56 | -3.80% | 4.56% | 4.27% | 81.19% |
* Technology Sector Average
GB:SDI
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SDI Group Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
SDI Group Delivers Double-Digit Growth as Buy-and-Build Strategy Scales
Positive
Jul 29, 2026
SDI Group reported a strong set of final results for the year to 30 April 2026, with revenues rising 12.6% to £74.5m on the back of both organic expansion and contributions from recent acquisitions. Adjusted operating profit climbed 16.1% to ...
Business Operations and StrategyFinancial Disclosures
SDI Group Sets Date for FY 2026 Results and Investor Webcast
Positive
Jul 16, 2026
SDI Group plc, a UK-listed buy-and-build specialist in laboratory equipment, industrial and scientific sensors, and niche industrial products, operates a portfolio of small and medium-sized companies serving high-growth sectors such as aerospace a...
Business Operations and StrategyExecutive/Board Changes
SDI Group strengthens board with M&A veteran Mark Fryer as audit chair
Positive
Jun 10, 2026
SDI Group, the specialist buy-and-build consolidator in lab equipment and industrial and scientific sensing technologies, has appointed experienced finance executive Mark Fryer as an independent non-executive director. He will join the board in mi...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
SDI Group Keeps Earnings on Track as Acquisitions and Order Book Bolster Outlook
Positive
May 21, 2026
SDI Group plc, the specialist industrial and scientific instrumentation consolidator, reported that earnings for the year to 30 April 2026 are expected to be in line with market forecasts, as improved operating margins offset revenue at the lower ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
SDI Group Launches Board Succession as Long-Serving Non-Executive Director Prepares to Step Down
Positive
May 11, 2026
SDI Group plc, a buy-and-build specialist in lab equipment and industrial and scientific sensing technologies, has grown from four companies with £10.7 million in revenue and £1.3 million in adjusted operating profit at the start of Non-...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.