SDI (SDI:AIM) 170p

Loss to date: 2.6%

Original entry point: Buy at 174.5p, 27 May 2021

Having drifted lower amid a wider sell-off for growth and technology stocks, a stellar trading update on 6 May has helped give science kit maker SDI (SDI:AIM) a boost.

SDI is a collection of businesses which design and manufacture sensing, digital imaging and control equipment used in sectors such as life sciences, healthcare and art conservation.

In a record result for the business, sales are expected to be approximately £49 million for the year to 30 April 2022, versus £35.1 million in 2021. SDI is guiding for organic sales growth in excess of 20%, which would be an improvement on the previous year’s 19% organic growth.

Adjusted pre-tax profit is expected to be at least £10.5 million, up from the previous year’s £7.4 million.

Analyst consensus estimates stood at £9.65 million adjusted pre-tax profit on £46.65 million revenue in advance of the update.

FinnCap responded by raising its 2023 revenue and adjusted pre-tax profit estimates by £2.5 million and £1 million, respectively.

SDI expects another record year in the 12 months to 30 April 2023, also ahead of previous expectations.

SHARES SAYS: The recent share price performance does not reflect how well the business is doing. Keep buying. 

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