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SDI Group (GB:SDI)
LSE:SDI
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SDI Group (SDI) AI Stock Analysis

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GB:SDI

SDI Group

(LSE:SDI)

Rating:76Outperform
Price Target:
105.00p
▲(10.53% Upside)
SDI Group's overall stock score is driven by strong financial performance and positive technical indicators. The company's strategic acquisitions and operational efficiencies contribute to a positive outlook, despite challenges in organic growth and specific market segments. The valuation is moderate, and the absence of a dividend yield may limit appeal to some investors.

SDI Group (SDI) vs. iShares MSCI United Kingdom ETF (EWC)

SDI Group Business Overview & Revenue Model

Company DescriptionSDI 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 Sensors & Control segments. The company offers sensitive cameras for life science and industrial applications under the Atik Camera brand name; cameras for art conservation under the Opus Instruments brand name; and cameras that have applications in astronomy, life sciences, and flat-panel inspection under the Quantum Scientific Imaging brand name. It also designs and manufactures precision re-circulating chillers, coolers, and heat exchangers to control the thermal environment within the scientific instrument support market; and supplies chemical dosing and control systems for manufacturing industries. In addition, it offers off-the-shelf and custom-made electrochemical sensors for water-based applications under the Sentek name; systems and software for automated gel-based DNA and protein fluorescence/chemiluminescence imaging under the G:BOX and NuGenius brands; automated and manual systems for microbiological testing in food, water, pharmaceutical, and clinical applications; and ProReveal, a fluorescence-based patented protein detection test to check for residual protein on surgical instruments. Further, it engages in the design, manufacture, and calibration of pressure, vacuum, and gas flow measurement instruments; and flowmeters, flow alarms, flow indicators, flow-switches, calibration cylinders, and sight glasses for the measurement of liquids and gases; and precision micropattern products, as well as water purification products and vacuum ovens under the Cyclon Water Still and Gallenkamp vacuum ovens brands. The company was formerly known as Scientific Digital Imaging plc and changed its name to SDI Group plc in November 2019. SDI Group plc was incorporated in 2007 and is based in Cambridge, the United Kingdom.
How the Company Makes MoneySDI generates revenue primarily through the sale of software licenses and subscriptions for its cloud-based applications and ERP systems. Additionally, the company earns money from consulting services, where it assists clients in implementing and optimizing its software solutions. Key revenue streams include recurring subscription fees, one-time license fees, and ongoing support and maintenance contracts. Strategic partnerships with leading technology firms also enhance SDI's market reach and generate co-branded offerings, contributing significantly to its overall earnings.

SDI Group Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Dec 04, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook, with strong financial performance driven by strategic acquisitions and operational efficiencies. However, challenges remain in organic growth and specific market segments.
Q4-2025 Updates
Positive Updates
Record Group Revenue
SDI Group achieved a total group revenue in excess of GBP 66 million for FY '25, with a strong geographic diversity and strategic acquisitions supporting growth.
Strategic Acquisitions
Three significant acquisitions were made: InspecVision, Collins Walker, and Severn Thermal Solutions, enhancing earnings and aligning with SDI's strategic objectives.
Increased Gross Profit Margin
Gross profit margin increased by 2.8% to 64.9%, demonstrating operational success and improved pricing strategies.
Strong Cash Flow and Order Intake
Operating cash conversion was over 100%, generating GBP 3 million more than the previous year, with a strong order intake across all divisions.
Resilience in Difficult Markets
SDI Group showed resilience against challenging global conditions, maintaining positive momentum with a strong order book and strategic diversification.
Improved Net Operating Margins
Net operating margins improved from 14.5% to 15%, indicating effective cost management and operational efficiency.
Negative Updates
Organic Revenue Decline
There was a small organic revenue decline of 1.6% overall, despite some growth in the second half of the year.
Laboratory Equipment Segment Decline
Total revenues in the Laboratory Equipment segment decreased by 11% due to challenging conditions in life sciences and biomedical markets.
Impact of Employers NI Contributions
The group anticipates a GBP 600,000 impact from changes to employers NI contributions for FY '26.
Exposure to Tariffs
While minimal, there is some exposure to U.S. tariffs, with 10% of earnings coming from direct sales to the U.S.
Company Guidance
During the SDI Group's final results presentation for the fiscal year ending April 30, 2025, CEO Stephen Brown and CFO Ami Sharma highlighted several key metrics and strategic achievements. The group achieved total revenue exceeding GBP 66 million, with a 47% contribution from overseas markets, while maintaining a decentralized business model across 17 businesses and 19 locations worldwide. The Industrial & Scientific Products division saw a 10% increase in revenue, surpassing GBP 25 million, whereas the Industrial & Synthetic Sensors segment grew by 6% to GBP 17 million. However, the Laboratory Equipment segment experienced an 11% revenue decline to GBP 24 million due to challenging market conditions. The company executed three strategic acquisitions: InspecVision, Collins Walker, and Severn Thermal Solutions, enhancing technical capabilities and market reach. Despite a small organic revenue decline of 1.6%, adjusted EBIT rose to GBP 10 million, with operating margins improving to 15% and an impressive over 100% operating cash conversion. The outlook for FY '26 is positive, with expectations to meet market expectations, driven by a robust acquisition pipeline and strategic initiatives aimed at sustainable long-term growth.

SDI Group Financial Statement Overview

Summary
SDI Group demonstrates solid financial health with strong revenue growth and efficient cash flow management. While profitability margins have slightly declined, the company maintains a stable balance sheet with moderate leverage. Overall, SDI Group is well-positioned in the Hardware, Equipment & Parts industry, though it should monitor profitability closely to sustain investor confidence.
Income Statement
75
Positive
SDI Group has shown consistent revenue growth over the years, with a slight dip in the most recent year. The gross profit margin remains strong at approximately 65%, indicating efficient production and pricing strategies. However, the net profit margin has decreased over the years, suggesting rising costs or increased competition. The EBIT and EBITDA margins are stable, reflecting solid operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. The return on equity has decreased, which may concern investors seeking high returns. The equity ratio shows a stable financial structure, with equity making up a significant portion of total assets.
Cash Flow
80
Positive
SDI Group's cash flow metrics are strong, with a significant increase in free cash flow growth in the latest year. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is robust, suggesting good cash conversion from profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue66.18M66.18M65.85M67.58M49.66M35.08M
Gross Profit28.35M42.93M41.55M42.77M31.66M22.87M
EBITDA11.10M11.10M11.27M11.07M12.95M8.49M
Net Income3.98M3.98M4.23M3.87M7.54M4.71M
Balance Sheet
Total Assets88.23M88.23M81.66M84.99M68.92M48.70M
Cash, Cash Equivalents and Short-Term Investments1.31M1.31M1.43M2.71M5.11M3.84M
Total Debt21.98M21.98M21.48M22.74M11.44M5.64M
Total Liabilities38.56M38.56M36.23M43.70M33.13M21.93M
Stockholders Equity49.64M49.64M45.42M41.26M35.79M26.77M
Cash Flow
Free Cash Flow8.06M7.42M4.05M6.33M11.26M9.22M
Operating Cash Flow9.30M9.30M5.83M7.74M13.10M10.26M
Investing Cash Flow-9.03M-9.03M-4.99M-22.38M-12.77M-5.02M
Financing Cash Flow-205.00K-205.00K-2.15M12.10M982.00K-6.58M

SDI Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price95.00
Price Trends
50DMA
90.13
Positive
100DMA
78.89
Positive
200DMA
67.45
Positive
Market Momentum
MACD
1.36
Negative
RSI
71.43
Negative
STOCH
88.89
Negative
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 95 is above the 20-day moving average (MA) of 90.40, above the 50-day MA of 90.13, and above the 200-day MA of 67.45, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 71.43 is Negative, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SDI.

SDI Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£96.71M24.288.38%0.50%-6.16%
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
57
Neutral
£96.54M22.364.44%9.43%-1.95%-110.12%
56
Neutral
£32.09M-13.12%-9.28%-19.48%
52
Neutral
£143.71M26.394.79%2.44%1.74%359.50%
51
Neutral
£86.41M169.440.81%2.45%-23.42%-94.25%
49
Neutral
£99.05M-16.64%-7.35%-222.10%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SDI
SDI Group
99.00
38.40
63.37%
GB:GHH
Gooch & Housego
534.00
100.18
23.09%
GB:KMK
Kromek Group plc
4.90
-0.95
-16.24%
GB:SOLI
Solid State
152.50
-104.59
-40.68%
GB:XAR
Xaar plc
131.00
26.00
24.76%
GB:KETL
Strix Group
42.00
-40.50
-49.09%

SDI Group Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
SDI Group Reports Strong Second Half Performance and Strategic Growth Initiatives
Positive
May 19, 2025

SDI Group plc announced a trading update for the fiscal year ended April 30, 2025, reporting strong performance in the second half of the year, aligning with market expectations. The company maintained solid cash generation and has sufficient debt facilities to support its acquisition strategy. Key achievements include increased order intake, successful product launches, and strategic acquisitions, notably InspecVision and Collins Walker. InspecVision received the King’s Award for Enterprise in International Trade, highlighting its success in a niche market. Despite global economic uncertainties, SDI’s diverse portfolio and strategic growth initiatives position it well for continued momentum into FY26.

M&A TransactionsBusiness Operations and Strategy
SDI Group’s InspecVision Wins Prestigious King’s Award for International Trade
Positive
May 6, 2025

SDI Group plc announced that its recently acquired company, InspecVision Ltd, has been awarded the King’s Award for Enterprise in International Trade, recognizing its excellence in international trade. InspecVision, known for its computer vision-based measurement systems, has achieved a 126% growth in overseas sales over the past three years, with 96% of its products exported to over 40 countries. This accolade underscores InspecVision’s success in expanding its market presence and highlights SDI Group’s strategic acquisition approach, enhancing its portfolio’s international footprint.

Business Operations and StrategyRegulatory Filings and Compliance
SDI Group PLC: Shareholder Voting Rights Update
Neutral
Apr 11, 2025

SDI Group PLC has announced a change in the notification process for major holdings in issuers whose shares are traded on UK regulated markets. Shareholder Value Beteiligungen Aktiengesellschaft, based in Frankfurt, Germany, has increased its voting rights in SDI Group to 5.05%, crossing the previous threshold of 3.94%. This change reflects a significant shift in shareholder dynamics, potentially impacting the company’s governance and strategic decisions.

Business Operations and Strategy
SDI Group Chair Increases Stake with Significant Share Purchase
Positive
Apr 4, 2025

SDI Group plc announced that Ken Ford, the Non-Executive Chair, has purchased 100,000 ordinary shares of the company, increasing his total holding to approximately 1.15% of the issued share capital. This transaction underscores confidence in the company’s strategic direction and could positively impact stakeholder perception, reinforcing SDI Group’s commitment to growth and market expansion.

M&A TransactionsBusiness Operations and Strategy
SDI Group Expands into Electric Boiler Market with Collins Walker Acquisition
Positive
Apr 4, 2025

SDI Group plc has acquired Collins Walker Ltd, a designer and manufacturer of electric boilers, for approximately £1.85 million. This acquisition aligns with SDI’s strategy to expand in the regulatory-driven electric boiler market, which is experiencing growth due to net zero regulations. Collins Walker will be integrated into SDI’s Industrial & Scientific Products division, specifically Applied Thermal Control, to enhance manufacturing capacity and operational efficiencies. This strategic move is expected to increase sales and margins, providing SDI with a stronger foothold in the high-growth industrial electric boiler sector.

Product-Related AnnouncementsBusiness Operations and Strategy
SDI Group Announces Strategic Innovations and Collaborations in Portfolio Companies
Positive
Mar 20, 2025

SDI Group plc has announced recent developments within its portfolio companies, highlighting innovations and collaborations that enhance efficiency and sustainability across science, healthcare, and industry. Key updates include Fraser Anti-Static Techniques’ cost-saving static control system for Serialetic, Applied Thermal Control’s environmentally friendly chiller ranges, and Chell Instruments’ contributions to the University of Sheffield’s Formula Student competition. Additionally, Monmouth Scientific and Safelab Systems have partnered to advance biofuel research, while LTE Scientific has secured a position on the NHS Supply Chain framework, reinforcing its role in the UK healthcare sector. These activities underscore SDI Group’s commitment to customer-focused product development and strategic partnerships, driving organic growth and solidifying its industry positioning.

Business Operations and Strategy
SDI Group Chair Increases Stake with Significant Share Purchase
Positive
Mar 14, 2025

SDI Group plc announced that Ken Ford, the Non-Executive Chair, has purchased 100,000 ordinary shares in the company, increasing his total shareholding to approximately 1.06% of the issued share capital. This transaction reflects confidence in the company’s strategic direction and may positively influence stakeholder perceptions, potentially enhancing SDI’s market position and investor relations.

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.Date of analysis: Sep 04, 2025