SDI Group: Record Revenue and a New Shareholder Signal a Step-Change in Momentum

FY26 results show 8% H2 organic growth and two strategic acquisitions, while a 13% shareholder adds external validation.

SDI.L · Earnings Call · 2026-07-29

A Record Year, But the Real Story Is Acceleration

SDI Group plc (SDI.L) reported its FY26 results on 29 July 2026, and the numbers were the best in the group's history. Revenue rose 13% to approximately £75 million, with organic revenue growth of 5.3% for the year and an impressive 8% in the second half, supported by contract timing and strong demand across all three divisions. CFO Amitabh Sharma noted: “Organic revenue growth was therefore 5.3% on a constant currency basis for the year, 6.7% in the second half alone, again on a constant currency basis.” — Amitabh Sharma · 2026-07-29 This is a clear step up from the 5%–8% target management reaffirmed in December 2025, and the elevated H2 run-rate suggests the group is now compounding.

Acquisitions Bring New Technological Depth

Two acquisitions defined the year: Severn Thermal Solutions (June 2025) and PRP Optoelectronics (February 2026). acquisition of PRP is particularly notable — at £9.3 million it is the largest in recent history and brings expertise in microLEDs and mission-critical avionics components for platforms like the Eurofighter Typhoon and F-16. This expands SDI's exposure into defense and high-reliability electronics, complementing its existing scientific instruments base. James Dimitriou explained the M&A philosophy: “So the intention long term in the foreseeable future is not to go bigger in terms of acquisition sizes. We're likely to do more quantities of the range that we've been focused on already, which is the GBP 1 million to GBP 1.5 million EBIT range.” — James Dimitriou · 2026-07-29 PRP likely fits this range, and its addition to the decentralized model underscores the group's ability to integrate larger assets without losing agility.

In FY '26, we achieved a total group revenue of circa GBP 75 million, and this came from growth from all 3 of our divisions. This is, in fact, the highest level in SDI's history.
Stephen Brown · 2026-07-29

A Supportive 13% Shareholder

A new shareholder, Mikhail, has built a 13% stake and has engaged constructively with management. CEO Stephen Brown stated: “The good news is that he really understands our business model and he's confirmed that he is supportive of the direction and strategy of the business.” — Stephen Brown · 2026-07-29 While the stake itself is not an activist signal, it adds a committed long-term holder and could strengthen the company's ability to pursue further M&A.

AI: Both Opportunity and Benchmark

Investors asked about AI's impact, and management's response was measured. SDI's manufacturing-heavy, niche portfolio is seen as largely protected from AI displacement. Brown said:

The good news is that our model being a largely manufacturing model, we do not see AI being a particular threat to us, where we can -- where what we do is not easily replaceable by AI in any stretch.
Stephen Brown · 2026-07-29

At the same time, the group is adopting AI internally, with InspecVision using AI for code generation to cut software update time. This balanced stance is a healthy sign for a company at this stage.

Outlook

Management expects FY27 in line with market expectations, with a more even H1/H2 split than FY26's heavily second-half-weighted profile. The order book is strong, and the group enters the new year with "significant firepower" from its renewed £25 million facility and undrawn accordion. As Stephen Brown noted earlier, the pipeline remains robust — a theme echoed in prior calls: “We've got 37 businesses in our pipeline, too much than we can handle and fund, obviously.” — Stephen Brown, CEO · 2024-12-05 With the record revenue, two acquisitions, and a supportive new shareholder, SDI has clearly moved from resilience to growth.