SDI Group (SDI) investor relations material

Executive summary

• Achieved 10% revenue growth in H1 FY26, driven by 3% organic and 7% acquisition gains, with a resilient business model and expanded management team.

• Maintained a diversified portfolio across 17 businesses and 19 global locations, focusing on high-growth scientific niche markets.

• Continued to execute a compounding growth strategy, balancing organic expansion with earnings-enhancing acquisitions.

• Refined strategy focused on organic growth, collaboration, and value-enhancing acquisitions, with improved order intake in H2 FY25.

• Portfolio diversification offset challenges in life sciences and biomedical markets, with improved performance in other sectors.

Financial highlights

• Group revenue exceeded GBP 66 million in FY25, with H1 FY26 revenue up 10.1% to £34.0m and FY26 guidance around GBP 75 million.

• Adjusted operating profit increased 17.7% to £4.6m; adjusted PBT up 21.7% to £3.8m; adjusted diluted EPS up 16.9% to 2.77p.

• Net operating margins improved from 12.6% to 13.5% year-over-year; gross profit margin rose by 100 bps to 66.3% (materials only).

• Net debt increased to GBP 18 million, mainly due to the Severn Thermal acquisition; net debt to EBITDA at 1.3x.

• Cash generated from operations was GBP 4.2 million, down from GBP 4.7 million, due to inventory build-up.

Outlook and guidance

• Strategy remains focused on organic growth through new product development, synergies, and operational excellence, alongside high-quality acquisitions.

• Confident in delivering FY26 results in line with market guidance, with a second-half bias due to contract timings.

• Long-term organic growth target remains 5%-8%; robust pipeline of acquisition opportunities and capacity to execute further deals.

• Order intake significantly up compared to H2 FY24, supporting full-year profit expectations.