SDI Group (GB:SDI)
LSE:SDI
Top Page
SDI Group
(LSE:SDI)
Select Model
Select Model
Rating:70Neutral
Price Target:
69.00 p
▼(-12.44% Downside)
Action:ReiteratedDate:12/07/25
SDI Group's strong financial performance and positive earnings call are offset by bearish technical indicators and moderate valuation. The company's strategic acquisitions and revenue growth are significant strengths, but market competition and increased debt pose challenges.
Positive Factors
Acquisition-driven revenue growth
SDI's recent mix of organic and acquisitive growth shows a repeatable model: small, accretive buys plus modest organic expansion. This diversifies revenues across niche product lines, accelerates scale and cross-selling opportunities, and supports durable top-line expansion over the next 2–6 months.
Negative Factors
Rising net debt
Higher net debt from acquisitive activity raises leverage and interest exposure. Although currently within the group's target range, elevated debt reduces financial flexibility for opportunistic investments and increases sensitivity to slower cash conversion or weaker-than-expected post-acquisition integration outcomes over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisition-driven revenue growth
SDI's recent mix of organic and acquisitive growth shows a repeatable model: small, accretive buys plus modest organic expansion. This diversifies revenues across niche product lines, accelerates scale and cross-selling opportunities, and supports durable top-line expansion over the next 2–6 months.
Read all positive factors
SDI Group (SDI) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£70.06M
Dividend YieldN/A
Average Volume (3M)331.24K
Price to Earnings (P/E)12.0
Beta (1Y)0.85
Revenue Growth7.36%
EPS Growth31.93%
CountryUK
Employees500
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.03
Shares Outstanding104,573,130
10 Day Avg. Volume197,495
30 Day Avg. Volume331,242
Financial Highlights & Ratios
PEG Ratio1.74
Price to Book (P/B)1.25
Price to Sales (P/S)0.86
P/FCF Ratio14.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)£74.80M
SDI Group Business Overview & Revenue Model
Company Description
SDI Group plc, through its subsidiaries, designs and manufactures scientific and technology products based on digital imaging in the United Kingdom, rest of Europe, the United States, Asia, and internationally. It operates in Digital Imaging and S...
How the Company Makes Money
SDI makes money primarily through the sale of products and related services delivered by its operating subsidiaries. Its core revenue model is business-to-business (B2B): subsidiaries generate income by (1) manufacturing and selling specialist ins...
SDI Group Earnings Call Summary
Earnings Call Date:Dec 03, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Neutral
SDI Group delivered strong financial results with significant revenue growth, successful strategic acquisitions, and record government contracts. However, challenges such as increased net debt, market competition, and geopolitical uncertainties were also highlighted. The acquisition pipeline remains strong, indicating continued growth potential.Positive Updates
Strong Revenue Growth
SDI Group reported a 10% total revenue growth, comprising 3% organic growth and 7% acquisition growth, with net operating margins improving from 12.6% to 13.5%.
Negative Updates
Increased Net Debt
Net debt increased due to acquisitions, reaching GBP 18 million, although leverage remains within the preferred range of 1x to 1.5x net debt to EBITDA.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
SDI Group reported a 10% total revenue growth, comprising 3% organic growth and 7% acquisition growth, with net operating margins improving from 12.6% to 13.5%.
Read all positive updates
Company Guidance
In the call, SDI Group plc provided guidance for fiscal year 2026, projecting a revenue growth to approximately GBP 75 million from the previous fiscal year's GBP 66 million. The company reported a 10% total revenue growth for the first half of FY'26, comprising 3% organic growth and around 7% acquisition growth. Net operating margins improved to 13.5% from 12.6% the prior year, with a gross profit margin increase to 66.3%. The company highlighted significant contract wins, including a GBP 1.3 million government contract for Safelab and a recurring GBP 2 million order for blood gas sensors. Additionally, SDI Group's acquisition strategy remains robust, with a focus on profitable businesses in niche markets, and they have restructured their debt financing with HSBC to support future inorganic growth. The company targets a long-term organic growth rate of 5% to 8% and maintains a strong acquisition pipeline, aiming for accretive acquisitions with a typical size of GBP 1 million EBIT and above.SDI Group Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Apr 2024 | Apr 2022 | Apr 2021 | Apr 2020 | Apr 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.29M | 66.18M | 67.58M | 49.66M | 35.08M | 17.43M |
| Gross Profit | 17.20M | 42.93M | 42.77M | 31.66M | 22.87M | 11.53M |
| EBITDA | 12.18M | 11.10M | 11.07M | 12.95M | 8.49M | 3.40M |
| Net Income | 4.58M | 3.98M | 3.87M | 7.54M | 4.71M | 1.91M |
Balance Sheet | ||||||
| Total Assets | 93.83M | 88.23M | 84.99M | 68.92M | 48.70M | 26.55M |
| Cash, Cash Equivalents and Short-Term Investments | 1.51M | 1.31M | 2.71M | 5.11M | 3.84M | 2.49M |
| Total Debt | 26.07M | 21.98M | 22.74M | 11.44M | 5.64M | 4.10M |
| Total Liabilities | 42.38M | 38.56M | 43.70M | 33.13M | 21.93M | 9.46M |
| Stockholders Equity | 51.49M | 49.64M | 41.26M | 35.79M | 26.77M | 17.09M |
Cash Flow | ||||||
| Free Cash Flow | 7.42M | 7.42M | 6.33M | 11.26M | 9.22M | 2.21M |
| Operating Cash Flow | 8.76M | 9.30M | 7.74M | 13.10M | 10.26M | 3.22M |
| Investing Cash Flow | -8.64M | -9.03M | -22.38M | -12.77M | -5.02M | -7.79M |
| Financing Cash Flow | 355.00K | -205.00K | 12.10M | 982.00K | -6.58M | 5.05M |
SDI Group Technical Analysis
Negative
78.80
Price Trends
76.25
Negative
76.11
Negative
82.89
Negative
Market Momentum
-3.27
Negative
41.72
Neutral
57.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDI, the sentiment is Negative. The current price of 78.8 is above the 20-day moving average (MA) of 69.37, above the 50-day MA of 76.25, and below the 200-day MA of 82.89, indicating a bearish trend. The MACD of -3.27 indicates Negative momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 57.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | £65.51M | 3.57 | 22.93% | ― | 36.61% | ― | |
70 Neutral | £70.06M | 12.03 | 9.07% | ― | 7.36% | 31.93% | |
68 Neutral | £79.14M | 8.13 | 3.91% | 1.56% | 8.75% | -54.73% | |
67 Neutral | £210.75M | 25.56 | 3.10% | 2.19% | 10.66% | 21.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £208.38M | -4.02 | -31.21% | ― | -16.33% | -448.12% | |
54 Neutral | £91.30M | -24.70 | -5.90% | ― | -7.35% | -222.10% |
* Technology Sector Average
GB:SDI
SDI Group
67.00
17.50
35.35%
GB:GHH
Gooch & Housego
770.00
378.96
96.91%
GB:KMK
Kromek Group plc
10.00
4.85
94.17%
GB:SOLI
Solid State
139.50
-12.97
-8.51%
GB:TTG
TT Electronics
117.00
36.20
44.80%
GB:XAR
Xaar plc
116.00
25.40
28.04%
SDI Group Corporate Events
Business Operations and StrategyProduct-Related Announcements
SDI Group Portfolio Companies Secure Major Contracts and Expand into New High-Tech Markets
Positive
Mar 17, 2026
SDI Group has reported a wave of commercial and product milestones across its portfolio, highlighting robust demand in specialist lab equipment, industrial sensors and scientific products. Portfolio companies have secured sizable contracts, launch...
Business Operations and Strategy
SDI Chair Trims Stake but Remains Major Shareholder in Specialist Instruments Group
Neutral
Mar 2, 2026
SDI Group plc, a specialist acquirer and developer of lab equipment, industrial and scientific sensors, and related products, operates a portfolio of small to medium-sized businesses serving life sciences, healthcare and other technical markets. T...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
SDI Group buys PRP Optoelectronics in push into avionics and defence LEDs
Positive
Feb 13, 2026
SDI Group plc has acquired PRP Optoelectronics Ltd for a net consideration of £9.3m, marking its entry into the avionics market and expanding its presence in the aerospace and defence sectors. PRP designs and manufactures custom high-performa...
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.