UK's Science Group preliminary H1 core revenue falls; expects buyback to exceed £20 mln
UK's Science Group preliminary H1 core revenue falls; expects buyback to exceed £20 mln
Overview
UK services and systems firm's H1 2026 core revenue declined yr/yr amid reduced low-margin defence sales
Adjusted operating profit and adjusted EPS both increased from the prior year period
Company expects 2026 share buy-back programme to exceed £20 mln
Outlook
Science Group anticipates sequential period growth in H2 2026, led by the Services division
Company expects Sagentia Defence to see improvement after UK Defence Investment Plan release
Science Group expects capital allocation to buy-back programme to exceed £20 mln in 2026
Result Drivers
DEFENCE REVENUE MIX - Managed reduction of low-margin, pass-through defence revenue lowered overall revenue but improved operating margin
GEOPOLITICAL UNCERTAINTY - Geopolitical turmoil and UK defence sector delays slowed procurement and investment decisions, impacting Services division revenue
SYSTEMS CONTRACT TIMING - CMS2 margin rose sharply due to operational timing on certain contracts, boosting divisional profit despite lower revenue
Company press release: ID:nRSa8456Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 47.20 mln |
|
H1 EPS |
| GBP 0.14 |
|
H1 Net Income |
| GBP 5.98 mln |
|
H1 Adjusted EBIT |
| GBP 11.47 mln |
|
H1 Basic EPS |
| GBP 0.14 |
|
H1 EBIT |
| GBP 8.43 mln |
|
H1 Pretax Profit |
| GBP 8.15 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy."
Wall Street's median 12-month price target for Science Group PLC is GBp777.50, about 32.5% above its July 24 closing price of GBp587.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)