Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
SDI Group (LON: SDI) said in its trading update on Wednesday that despite the negative impact of Covid-19, two of its businesses have secured “significant” one-time contracts for equipment relating to the treatment and testing of COVID-19 and of similar respiratory and viral diseases.
The manufacturer of scientific and technology products also revealed that most of its businesses have seen revenues take a hit from the coronavirus pandemic (reported in its interim results to October 31 2020).
“We are very pleased to report that our Atik Cameras business unit has secured follow-on camera orders from an OEM manufacturer of real time PCR DNA amplifiers with delivery centered on our year to April 30 2022,” SDI said.
“This is a significant endorsement of the Atik Camera design and production capability, recognising its expertise in imaging solutions for life sciences,” added the UK-based firm.
As a result, the company believes it will exceed the market’s sales and profit expectations for the year ending April 30, 2021, and “substantially” exceed expectations for the year ending April 30 2022.
SDI is now expecting revenue for the year ending April 30, 2021, to be £34 million with an adjusted pre-tax profit of £6.7million while it expects 2022 revenue to be £42 million with a pre-tax profit of £8.7 million.
“These are exceptional prospective outcomes in unprecedented times, during which the staff across SDI have executed on all aspects of our buy-and-build business model,” said Ken Ford, Chairman of SDI.
The company’s stock price is currently trading 27% higher at 153p per share in London.
Should you invest in SDI Group shares? SDI Group shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are SDI group shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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