Profits rise at SDI thanks to Covid-related products

Digital imaging and sensing technology company SDI reported a 23% improvement in first-half revenue on Wednesday, to £14.13m, including organic growth of 7.7%.

The AIM-traded firm put the growth down to a strong contribution from products designed into equipment used in testing for and treating Covid-19, offset by the impact of the pandemic on the broader economy.

Its adjusted operating profit for the six months ended 31 October increased 52% to £3.2m, as reported operating profit rose 56% to £2.53m.

Adjusted profit before tax was ahead 52% at £3.03m and reported profit before tax was up 56% at £2.37m, while adjusted diluted earnings per share rose 45% to 2.47p and reported diluted EPS grew by 48% to 1.95p.

Cash generated from operations was 130% higher year-on-year at £4.72m, while net debt at 31 October stood at £0.34m, narrowing from £4.04m at the beginning of the period.

“We are pleased to report another strong set of financial results,” said chairman Ken Ford.

“Our business model has shown resilience in the period and despite the ongoing uncertainties, the board remains confident that SDI will deliver a full year financial performance in line with market expectations.”

At 1110 GMT, shares in SDI Group were up 2.95% at 102.95p.