SDI Group plc

Good afternoon and welcome to the SDI Group PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll, and I'd now like to hand you over to Stephen Brown, CEO. Good afternoon, sir.

Hello, and a warm welcome to today's half-year results, ending 31st of October, 2025. I'm Stephen Brown, CEO of SDI Group, and joining me is CFO Amit Sharma. In terms of the agenda for today, reviewing half-year 26, I will provide an overview of the group and our dual prong strategy to drive growth. This will be followed by an operational review for the period. I'll then hand over to Ami who will cover the financial results. Ami will then pass back to me for a wrap up with the summary and I will then run through the outlook going forward. We will of course leave time for Q&A at the end of the presentation. First, let me reintroduce you to the SDI group and our business model. We are a buy and build group with currently 17 established businesses and roughly 500 employees operating from 19 locations worldwide. We maintain a lean and supportive group structure operating at a centralized model that fosters growth, autonomy, independence, and agility. Our focus is on high growth scientific niche markets and we have a proven strategy of combining organic growth with earnings enhancing acquisitions, having made 20 since 2014. In FY25 we achieved a total group revenue exceeding £66 million and our current guidance for FY26 showing growth to around £75 million. With our operations being geographically diverse, we estimate that we export approximately 70% of our products internationally, with 40% from direct sales and a further 30% of UK distributor sales ultimately shipped overseas. Importantly, our buy and build model relies on a compounding cycle of growth. Turning to slide six, and for those of you less familiar with FDI and what we do, I'd like to briefly explain our business model. The key takeaway from this slide is that the group is a sustainable and robust platform with a clear strategy to drive growth. We can simply define the strategy in two parts, organic growth and inorganic growth. Looking at organic growth, this is driven by our ability to build and sustain revenues and profitability across our strong portfolio of existing businesses. Inorganic growth is our ability to identify and execute accretive acquisitions that add value to the portfolio. We will also offer synergies and cross-selling opportunities for the existing portfolio businesses. cash flow generated from organic activities feeds our capital allocation strategy and drives inorganic growth where we seek to acquire complementary profitable businesses in niche markets. This leads back to create a compounding effect. Now to provide a bit more detail on what we delivered during the half year. This year has been focused on continuing momentum from last year and we delivered excellent progress against our strategy and continue to see our plans come to fruition. This financial year we expanded SDI's management team, increasing our capacity for organic growth and effective portfolio management with two divisional managing directors. This strength increases our ability to facilitate knowledge sharing and synergies across the group, supporting portfolio leadership teams to ultimately deliver. Strategic acquisitions have continued to contribute strongly to our financial performance this half year and the successful acquisition of Severum Thermal Solutions. In short, our business model has demonstrated its resilience against a highly visible backdrop of challenging and uncertain global conditions. And finally, we are delighted that we have restructured our debt financing with a renewed debt finance facility with HSBC, which is committed for the next three years. This will support our future inorganic growth. Now to go into a bit more detail on some of our key group organic growth activities. This year, throughout the group, we are focusing on operational excellence, leveraging the sum of our parts. We have invested across the group in new ERP systems at Fraser, LTE and PEG, with our learnings expanded across the rest of the group. And we continue to invest in R&D, enabling new product launches, and have benefited from revenues being generated from new product commercialization from last year. The drive to foster synergies from market access across the businesses has continued with numerous collaboration initiatives. For example, we repeated lab innovations for the second time, bringing five companies together to promote a unified product offering. Fraser and the SpecVision are working together for expansion into the EV automotive sector as well as targeted geographic access and we have exploited several internal customer initiatives such as ATC supplying Severum Thermal. We have improved knowledge sharing across the group also for example the group marketing function established last year has supported many portfolio companies with the launch of new websites across six businesses and rebranding initiatives, perhaps more prominent at Monmouth, Atta Cameras and Collins Walker. Now looking at each of our operating divisions in turn. I am pleased to report that we've seen revenues in lab equipment increase 12% to over £12 million. This is reflecting improving conditions in the life sciences and biomedical markets. Also, the organic initiatives we drove last year are having impact, particularly with Monmouth Scientific allowing second half momentum from last year to follow into this year. SafeLab had an exceptional performance through contract momentum. This was cemented by them receiving a substantial £1.3 million government contract for the delivery of high performance stream cupboards to be delivered at the end of this financial year. There have been further significant contract wins across the division, including Severn Thermal, who has two furnaces in production for a key nuclear contract with a value of over £300,000, and increased odour intake by LTE for environmental rooms, as well as the new Labcliffe L product. There have been numerous new initiatives across the division, including, as I mentioned, LTE's new range of autoclaves for a focus on sustainability, smart performance and safety, a momentous drive for improving product mix through growing their cleanroom revenues and capability. Again, we developed revenue growth, with the sensors division growing 6% to £9 million and boasting solid margins. We saw solid performance from Centec with increased demand from both new and existing customers for products and bespoke solutions. Encouragingly, they have strong capability and tenacity for market expansion. In addition to last year's strong order intake, in January, they expect to receive an annual recurring order of £2 million for blood gas sensors from one of their key OEM customers. and can boast a further life science giant awarding them recurring contracts and the back of a new relationship. Astels had a strong recovery in demand for their chemical dosing systems and are executing a strong order book this year. Gel continues to perform well with an excellent order intake in H1 for execution in the second half with solid demand for core products. In addition to this, they have received a notable order for the supply of two gas meter calibration machines, valued at around £1 million, again for delivery in H2. Again we see solid performance, this time across the product division, with revenues up 12% to £13 million. I'm pleased to see ADEC, for one, continue to perform well, executing on its market expansion strategy. They're adding to the life sciences revenues by growing into the buoyant professional astronomy market. This has been evidenced by a significant project valued at $4 million that commenced delivery earlier this year, with further delivery expected across the second half. They look forward to further traction in this market. Applied thermal control has been facing market headwinds in the first half, relating to regulatory use of refrigerants, predominantly in the US. However, in response, ATC released earlier this year updated G and H series products to meet the changing market requirements, and they continue to develop the range. We also had a number of new products launched across the division. In addition to ATCs, these include ADEC, who launched a new XGB60 camera for multi-camera installations. Moving on to our inorganic strategic development. This year, we have completed one excellent acquisition so far, in line with our key criteria. I am pleased to welcome Severn Thermal Solutions to the SDI group. Completed in June, Severin will be kept autonomous as part of a decentralized model. They manufacture and sell high temperature furnace systems and environmental chambers for advanced material processing and testing. They are focused on innovative high value markets such as aerospace, semiconductors and nuclear. Since joining the group, the integration of Severin has already exceeded our expectations, with the team showing a strong alignment to the group and rapidly fostering the collaborative spirit we have across the portfolio. Now over to Ami for a financial overview.

Thank you, Stephen.