REG - Science Group PLC - FY24 Trading Update & 2025 Buy-Back Programme

ScienceAnnouncement

13/01/2025 07:00

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RNS Number : 9783S  Science Group PLC  13 January 2025

 

13 January 2025

 

Science Group plc

(the "Company", "Group" or "Science Group")

 

FY24 Trading Update and 2025 Share Buy-Back Programme

 

Science Group's trading performance for the year ended 31 December 2024 is,
subject to audit, anticipated to deliver another record year of adjusted
operating profit in line or slightly ahead of Board expectations. The 2024
audited results are anticipated to be released in late March or early April.

 

Science Group retains a strong balance sheet with significant cash resources.
At 31 December 2024, the Group had gross cash of £38.6 million and net funds
of £26.8 million, after returning a total of £8.6 million to shareholders in
2024 (2023: £6.1 million) through the share buy-back programme (£4.96
million) and the increased dividend (£3.66 million).

 

The Group's Term Loan and (undrawn) Revolving Credit Facility expire in 2026.
As announced on 11 November 2024, in support of the Group's corporate
strategy, the Board has initiated an early refinancing with term sheets
agreed. The legal documentation to renew, increase and extend these facilities
is progressing satisfactorily.

 

Share Buy-Back Programme

 

Science Group has a track record of delivering strong operating results and
cash flow. However the Board note that this consistent operating performance
has not been reflected in the Company's stock market valuation.  However,
while the FTSE 100 has increased by 10.7% and the S&P 500 by 23.4% over
the three years to the end of 2024, the table below compares the Company's
share price development relative to UK and US indices for small and mid-market
companies, for periods to 31 December 2024.

 

                    1 Year  3 Years  5 Years  10 Years
 AIM All-Share      -5.7%   -40.9%   -24.9%   +2.5%
 FTSE Fledgling     +3.7%   -14.4%   +15.3%   +65.7%
 FTSE Small Cap     +6.5%   -8.2%    +15.0%   +56.8%
 Russell Microcap   +12.2%  -6.8%    +31.8%   +71.0%

 FTSE 250           +4.7%   -12.2%   -5.8%    +28.2%
 Russell 2000       +10.0%  -0.7%    +33.7%   +85.1%

 Science Group plc  +15.6%  -0.4%    +81.9%   +282.3%

 

Source: Canaccord Genuity Limited/LSEG Workspace

 

In summary, while the Company's absolute value accretion has not kept pace
with the Group's operating performance, Science Group's share price has
outperformed all the major UK and US micro-cap and small/mid-cap indices over
a 1, 3, 5 and 10 year period, a very respectable relative performance. (The
index data does highlight the variability related to market listing, and the
Board is monitoring UK regulatory and market developments, although a change
in geographical listing location is not considered appropriate.)

 

In an efficient market, consistent operating performance should translate into
market value accretion. Market inefficiencies are a factor for consideration
in capital allocation. Accordingly, subject to market dynamics and/or material
corporate activity, the Board intends to increase the capital allocation to
the 2025 share buy-back programme to between £6 million and £10 million,
equivalent (at the current share price) to a reduction in total voting rights
of between approximately 3 and 5%.

 

As previously announced, the execution of the share buy-back programme is now
delegated to Panmure Liberum Limited based on parameters defined by the Board
at certain windows. The increase in capital allocation will be instructed at
the next window following the release of the 2024 results.

 

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

 

 

- Ends -

 

 

 For further information:

Science Group plc
 Martyn Ratcliffe, Executive Chair                                Tel: +44 (0) 1223 875 200
 Jon Brett, Finance Director                                      www.sciencegroup.com (http://www.sciencegroup.com)

 Canaccord Genuity Limited (Nominated Adviser and Joint Broker)
 Simon Bridges, Andrew Potts                                      Tel: +44 (0) 20 7523 8000

 Panmure Liberum Limited (Joint Broker)
 Max Jones, John More                                             Tel: +44 (0) 20 3100 2000

 

 

 

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