REG - Science Group PLC - 2021 End of Year Trading Update

ScienceAnnouncement

13/01/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220113:nRSM2584Ya&default-theme=true

RNS Number : 2584Y  Science Group PLC  13 January 2022

 

 

     13 January 2022

 

Science Group plc

 

 

2021 End-of Year Trading Update

 

 

The momentum reported during 2021, which resulted in multiple profit forecast
upgrades during the year, continued through the final months. As a result,
2021 will be another record for Science Group with revenue in excess of £80
million and adjusted operating profit anticipated to be in the order of £16
million, an increase of over 45% on the prior year (£10.9 million) and more
than double that reported in 2019, the year before the pandemic outbreak.

 

This outstanding performance, delivering a very strong operating margin, has
been achieved in a challenging environment due to the ongoing Covid pandemic
and global supply chain constraints. All the divisions have contributed to
this success, with the Group overall benefitting from the operational
efficiencies resulting from the greater scale following the 2019 Frontier
acquisition.

 

The past year has seen significant corporate activity, including the
acquisition of a strategic shareholding in TP Group, a royalty buy-out and the
acquisition of Magic Systech. Even so, due to the excellent operating cash
conversion, enhanced by the Group's first equity fund raising in over a
decade, at 31 December 2021 the Group had gross cash of £34.3 million and net
funds of £19.0 million. In addition, Science Group signed a new £25 million
revolving credit facility with its bank in December. The Group's robust
balance sheet and undrawn facilities, enable the Board to continue to explore
further corporate development opportunities in the year ahead.

 

Reflecting this resilient performance and significant earnings growth, the
Board anticipate recommending a 25% increase, to 5 pence per share, in the
dividend payment to Science Group shareholders at the next Annual General
Meeting. In parallel, the Group's profit share and bonus schemes will be
sharing the success with the employees and management whose commitment and
dedication throughout the two years of the pandemic have continued to deliver
value to Science Group shareholders.

 

End

 

 Science Group plc
 Martyn Ratcliffe, Chairman                                           Tel: +44 (0) 1223 875 200

 Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker)
 Nick Adams, Alex Price                                               Tel: +44 (0) 20 7710 7600

 Liberum Capital Limited (Joint Broker)
 Neil Patel, Cameron Duncan                                           Tel: +44 (0) 20 3100 2000

Note: This announcement contains inside information which is disclosed in
accordance with the Market Abuse Regulation (No 596/2014). The person
responsible for this announcement is Martyn Ratcliffe, Chairman.

 

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  TSTGPUWGGUPPGAP