SDI Group Shares Rise on Strong Interim Results, On Track to Meet FY26 Expectations

SDI Group plc (LON: SDI) has announced robust interim results for the six months ended October 31, 2025, showcasing a strategic emphasis on growth and significant contract acquisitions. The specialist lab equipment and scientific product manufacturer's performance is underpinned by a buy-and-build strategy.

SDI shares are up more than 9% in early Wednesday trading.

Revenues increased by 10.1% to £34.0 million, up from £30.9 million in H1 FY25. Organic revenue growth accounted for 3.2% of this increase, with acquisitions contributing 6.9% (£2.1 million).

Profitability metrics also demonstrated positive momentum. Adjusted operating profit rose by 17.7% to £4.6 million (H1 FY25: £3.9 million), while reported operating profit surged by 32.2% to £3.2 million (H1 FY25: £2.4 million). Adjusted profit before tax climbed 21.7% to £3.8 million (H1 FY25: £3.2 million), with reported profit before tax increasing by 46% to £2.5 million (H1 FY25: £1.7 million). Adjusted diluted EPS improved to 2.77p (H1 FY25: 2.37p), and reported diluted EPS rose to 1.70p (H1 FY25: 1.18p).

Cash generation remained strong, with £4.2 million generated from operations, slightly lower than the £4.7 million reported in H1 FY25.

The company's gross margins (on materials only) also improved to 66.3% (H1 FY25: 65.4%). This improvement in gross margin reflects SDI's ability to manage costs effectively while driving revenue growth.

Driver Breakdown:

• Strategic Acquisitions: The acquisition of Severn Thermal Solutions Limited has already proven earnings-enhancing, contributing to overall growth.
• Commercial Synergies: SDI Group continues to focus on commercial collaboration between its portfolio businesses, driving greater synergies across the Group.
• Product Innovation: Revenues from new products launched in the previous financial year are now contributing, showcasing the company's innovation focus.

Stephen Brown, Chief Executive Officer of SDI Group, stated, “We have delivered a great set of results despite challenging market conditions, which is testament to our operating model, our strategy and the determination of our team.”

Looking ahead, SDI Group expects FY26 to be in line with market expectations, with a similar first-half/second-half profit weighting as in FY25. Revenue forecast is £75.2m, Adjusted Operating Profit of £11.4m and Adjusted Profit Before Tax of £9.8m.

The company also renewed and expanded its committed loan facility with HSBC to £25 million post-period, with an option for an additional £15 million, providing financial flexibility for future acquisitions. The acquisition pipeline remains active, signaling potential for further M&A activity in FY26.

SDI Group's diversified portfolio and stable strategy position it well for future growth. The company's ability to navigate challenging market conditions and deliver strong financial results demonstrates its resilience and strategic acumen.