LONDON (ShareCast) - (Sharecast News) - Digital imaging and sensing control products company SDI Group said in a trading update on Thursday that it was expecting to report "very strong" sales and profits for the half-year ended 31 October, with revenue of around £24.7m, up from £14.1m year-on-year.
The AIM-traded firm said that alongside the "valuable contributions" from Monmouth Scientific and Uniform Engineering, both acquired in the second half of the 2021 financial year, it expected to report organic revenue growth of more than 40%.

As it had previously announced, the Atik Cameras division was benefiting from "exceptional orders" for cameras to be used in real time PCR DNA amplifiers, where end demand was related to testing for Covid-19.

Shipments against those orders had continued through the first half of the 2022 financial year, but would be "substantially reduced" in the second half, in line with expectations.

"Performance in other areas of our business has been strong, and the board expects full year revenue to be around £45m, ahead of current market expectations," the board said in its statement.

"In common with much of the manufacturing industry, the group is experiencing supply chain challenges, but to date we are managing this well.

"Accordingly, the board expects full year adjusted profit before tax to also be modestly above current market expectations at around £9.2m."

While SDI had not completed any acquisitions in the year as yet, it said there was "no shortage of activity" with potential targets.

On 1 November, it renewed and expanded its committed loan facility with HSBC to £20m, with a further accordion option of an additional £10m at the discretion of HSBC.

"[This], with our current net cash position and strong cash flow, provides sufficient funding for acquisition opportunities," the directors added.

SDI Group said it would publish its interim results for the six months ended 31 October on 7 December.

At 1551 GMT, shares in SDI Group were up 8.21% at 205.05p.

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