REG - Science Group PLC - Trading Update

ScienceAnnouncement

11/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241111:nRSK5909La&default-theme=true

RNS Number : 5909L  Science Group PLC  11 November 2024

 

11 November 2024

 

Science Group plc

(the "Company" or "Science Group")

 

Trading Update

 

 

The Group's trading performance for FY24 remains on track to deliver another
record year of adjusted operating profit in line with expectations.

 

While not immune to the UK and international political/economic environment,
Science Group benefits from the resilience inherent in its portfolio. In that
regard, the UK budget on 30 October 2024 increased Employer's National
Insurance with an estimated annualised increase to the Group's operating cost
base in the order of £0.7 million. The Board will consider how to mitigate
this impact during the forthcoming 2025 planning cycle.

 

Science Group retains a very strong balance sheet with significant cash
resources. At 31 October 2024, the Group had gross cash of £37.7 million and
net funds of £25.6 million, after returning a total of £7.4 million to
shareholders in 2024 through the buyback programme and an increased dividend.
As announced on 22 October 2024, the operation of the share buyback programme
is now delegated to Panmure Liberum.

 

The Group's Term Loan expires in September 2026. In addition, the Group has an
undrawn Revolving Credit Facility ("RCF") of £25 million which is available
until December 2026. In order to support the Group's corporate strategy, the
Board is considering:

 

·    Refinancing the Term Loan for a new 10 year period, secured on the
Group's freehold properties, and

·    Renewing the RCF on a new 5 year term and increasing the facility to
£30 million with an additional £10 million accordion option.

 

Negotiations are progressing well and term sheets have been agreed. Legal
documentation is anticipated to take several weeks. If concluded on
satisfactory terms, these new, increased facilities with extended commitment
periods, combined with the Group's existing cash resources, would strengthen
Science Group's ability to continue to consider corporate opportunities which
may arise.

 

 

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

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

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUWANRSVUARAA