SDI Group says full-year earnings remain in line with expectations (SDI)

SDI Group plc (LSE:SDI) said it expects earnings for the year ended 30 April 2026 to meet market forecasts, supported by stronger operating margins and an acceleration in organic growth during the second half of the financial year. Revenue is anticipated to come in toward the lower end of expectations, although management said profitability improvements helped offset softer sales performance.

The specialist industrial and scientific instrumentation group reported net debt of £24 million following the acquisition of PRP Optoelectronics. Despite broader macroeconomic uncertainty, SDI said it enters FY27 with confidence, supported by a strong order book and approximately £4 million of undrawn banking facilities.

Operationally, the company highlighted healthy order intake across several portfolio businesses. Significant contract activity was reported at Sentek, Scientific Vacuum Systems, LTE Scientific, Safelab Systems and Severn Thermal Solutions, while Fraser Anti-Static Techniques and InspecVision continued to experience strong international demand.

During the year, SDI completed two acquisitions — Severn Thermal Solutions and PRP Optoelectronics — both of which management described as earnings accretive. The group said the transactions align with its long-standing strategy of combining organic expansion with targeted acquisitions to increase exposure to specialist industrial, scientific and defence-related markets.

The company’s broader outlook remains supported by resilient financial performance, strategic acquisitions and positive management commentary regarding future trading. However, these strengths are partly offset by weaker technical indicators, moderate valuation metrics and concerns around increased leverage and competitive market conditions.

More about SDI Group

SDI Group plc is a UK-based buy-and-build group focused on acquiring and developing specialist industrial and scientific technology businesses. Its portfolio companies manufacture laboratory equipment, scientific sensors and industrial instrumentation serving sectors including aerospace, defence, manufacturing, healthcare, life sciences and astronomy. SDI’s strategy centres on combining acquisitive growth with operational improvement across niche, high-value technology markets.