2025 Interim Results
Martyn Ratcliffe
Executive Chair
Dan Edwards
Group Managing Director
Jon Brett
Group Finance Director
To be read in conjunction with the Interim Results announcement released on 28 July 2025.
Science Group plc is an international Professional Services and Systems organisation
delivering innovation through the application of science, technology and engineering.
The capital generated from the cash flow of the operating businesses is invested in opportunities where the resources and capabilities of the Group could be deployed to produce attractive risk adjusted returns for shareholders.
H1-2025 Summary
Science Group reported another record Adjusted Operating Profit, reinforcing the resilience of the operating model. A strong performance in the Systems businesses offset the more challenging Professional Services market resulting from the volatile political and economic environment. In parallel, the Group significantly benefitted from the investment in Ricardo plc which produced an exceptional profit and cash inflow.
2025 Interim Results 2
Financial Summary
Profit Before Tax£32.2m
H1-24: £7.6m
Group Revenue£57.2m
H1-24: £53.7m
Group Cash£82.0m
H1-24: £38.8m
(Net Funds £70.3m;
H1-24: £26.4m)
Statutory EPS55.3p
H1-24: 12.9p
Adjusted Operating Profit£11.3m
H1-24: £11.0m
Adjusted EPS19.3p
H1-24: 18.1p
H1 Operating Performance
Record Adjusted Operating Profit ('AOP')
AOP margin of 19.7% (H1-24: 20.5%)
Resilient performance in volatile environment
Investment in Ricardo plc
Pre-tax investment gain of £24.0m
Investment commenced in February with full cash realisation in June
Tax liability reduced to £5.1m through legacy tax losses
Balance Sheet
Strong cash position, enhanced by Ricardo investment and operating cash flow
Refinancing of term loans and RCF in March 2025
2025 Interim Results 3
Group Operating Performance
Revenue: £57.2m (H1-24: £53.7m)
Professional Services Division: £33.2m (H1-24: £36.5m)
Systems Division: £23.7m (H1-24: £16.8m)
Adjusted Operating Profit: £11.3m (H1-24: £11.0m)
Record AOP despite volatile market environment
AOP Margin: 19.7% (H1-24: 20.5%)
Group AOP and Revenue Performance Revenue Breakdown
Adjusted Operating Profit
Total Revenue
41%
58%
12 70
Revenue £million
AOP £million
10 60
8
6
4
2
50
Services40
Systems30
Other20
10
0 0
H1-17 H1-18 H1-19 H1-20 H1-21 H1-22 H1-23 H1-24 H1-25
Group Cash and Cash Flows
Group cash of £82.0m (H1-24: £38.8m) and net funds of £70.3m (H1-24: £26.4m)
Investment gain from Ricardo plc, realised in cash
Good working capital management and operating cash conversion
Cash generated from operations of £22.7m (H1-24: £10.7m)
Enhanced by normalisation of high 2024 year-end receivables balance
H2 outflows: Dividend (July: £3.6m) and tax on Ricardo investment gain (c. £5.1m)
Cash Bridge90
80
70
Cash in £m
60
50
40
30
20
10
-
Opening Cash
1 Jan 2025
Pre tax gain on
Ricardo investment
Cash generated from underlying operations
Normalisation of
2024 Y/end debtors
Proceeds from
settling FX swaps
Share Buyback Tax Other Closing
Cash 30 June 2025
Professional Services Division
Financial Highlights Revenue£33.2m
(H1-24: £36.5m)
AOP£7.9m
(H1-24: £8.8m)
AOP Margin23.9%
(H1-24: 24.2%)
Product development, regulatory and advisory services to an international client base. Differentiated through technical, scientific and engineering expertise combined with specialist industry knowledge
Professional services impacted by end-market volatility due to economic uncertainty and geopolitical events
Sustained high margins due to cost and operational discipline supported by premium positioning
-
Outlook: Growth anticipated in second half, supported by recent contracts
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
H1-21 H2-21 H1-22 H2-22 H1-23 H2-23 H1-24 H2-24 H1-25
Medical
Consumer (inc FCB)
Industrial C Chemicals
Defence C Aerospace
Professional Services Division
Medical: Delayed start to two large projects. Now commenced and support anticipated growth in H2. Sector tends to be more resilient to macro-economic dynamics
Consumer C Industrial: More susceptible to end-market volatility (US tariffs, MAHA, consumer and business confidence)
Defence C Aerospace: Impacted by UK defence spending hiatus (Government change, SDR, budget reallocation) and transition away from legacy low margin activities. AOP margins improved as anticipated
Successful unification of brand, back-office functions and IT platforms with minimal operating disruption
US Surgical
Company
Design, development C prototyping of next generation surgical robot
UK
Government
3 year (+2 year extension) contract to maintain C update flight paths for UK
military aerodromes
EU Oil s Gas
Consortium
Produce a
"Concept of Operations" for AUVs in subsea operations
US Beverage
Company
Multi-country programme to
assess regulatory status and approval pathway for alcoholic beverage into 48 markets
US Food
Company
Formulation and testing of a consumer-
acceptable plant-based vegan cheese
Global Consumer Company
Advising on use of Gen AI for product development and
sourcing
Systems: CMS2
Financial Highlights Revenue£16.6m
(H1-24: £10.9m)
AOP£3.6m
(H1-24: £3.2m)
AOP Margin21.9%
(H1-24: 29.0%)
Submarine atmosphere management systems for the Defence sector. Market leading position outside the USA
Strong financial performance confirming success of turnaround
Revenue enhanced by low-margin consumables
Progress in contracting in-service support agreements
-
Outlook: Good visibility for H2
Revenue by Geography
Revenue by Type
18%UK
RoW
40%Systems
Support
60% 82%Systems: Frontier
Financial Highlights Revenue£7.1m
(H1-24: £5.9m)
AOP(H1-24: £0.1m)
(RCD costs on new product development, expensed not capitalised)
£0.9m
AOP Margin12.6%
(H1-24: 1.0%)
Leading developer and supplier of radio and audio semiconductors and modules. Product development team based in Cambridge and sales, support and operations functions in UK and China
Performance ahead of expectations
Operational simplification in 2024 contributed to margin improvement
DAB and SmartRadio provide stable revenue and profit contribution
New product category (Auria) offers growth opportunity in 2026 and beyond
Revenue
Product Volumes
8
7
6
5
4
3
2
1
0
28%
DAB
72%
SmartRadio
Revenue £m
- Outlook: H2 anticipated to continue, broadly in line with H1
Ricardo Investment Synopsis
Pre-Tax Return on Investment: £24.0m after costs (74.2% RoI)
Total investment (incl brokerage fees) between February and May 2025: £32.4m
Average price (incl brokerage fees): 239 pence per share
Realised value (cash) in June: £58.0m
Offer by third party at 430 pence per share (102% premium to share price prior to Science Group investment)
Tax (estimate): £5.1m, lower than standard UK Corporation Tax rate due to use of legacy tax losses
18 June Inv realised
30 Jan Profit Warning
11 June WSP Offer
3 March
SG holding >11%
SG holding 2
28 May
1.8%
16 Feb : SG Share purchase initiated
8 Apr
SG holding >20% 30 Apr
GM Req
Source: https://www.londonstockexchange.com and RNS
Corporate
Share Buy-BackH1 Buy-Back: 310k shares purchased at an average price of 460 pence per share
Board has increased the capital allocation to the share buy-back in H2
Board will keep possible Tender Offer under review given significant cash resources
Renewed Bank Finance FacilitiesFinancing facilities were due to expire in 2026
Two new term loans for total value of £12.0m expiring March 2035
Secured on freehold properties near Cambridge and Epsom
No operating covenants
Increased Revolving Credit Facility ("RCF") of £30.0m (+£10.0m accordion)
Expires March 2030
RCF currently undrawn
Tax
Exceptional gain on Ricardo investment of £24.0m
Utilisation of legacy tax losses will reduce tax payable on investment gain
Estimated taxation on gain of £5.1m, payable H2
This document contains forward-looking statements. These have been made by the Board in good faith based on the information available to them and it is believed that the expectations reflected in these statements are reasonable. However, due to the inherent uncertainties, including both economic and other risk factors underlying such forward-looking information, the Directors can give no assurance that these expectations will prove to be correct. Actual results may differ materially from those expressed or implied, and investors should not place undue reliance on any such forward-looking statements. Nothing in this document should be construed as a profit forecast, or a guide as to the performance, financial or otherwise of the Company whether in the current or any future financial year.
No representation or warranty is made as to the achievement or reasonableness of, and no reliance should be placed on such forward-looking statements. The statements in this document are current only as of the date of this document. The Company undertakes no obligation to update or revise any information contained in this document, except as may be required by applicable law or regulation.
The Board, officers, members, employees, agents or advisers of the Company expressly disclaim any liability for any direct, indirect or consequential loss or damage (including, without limitation, loss of profit) suffered by any person as a result of any obligation or undertaking to disseminate any updates, revisions or corrections to any forward looking statements or other information contained in the document, including to reflect any change in the Company's expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.
2025 Interim Results 12
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Disclaimer
Science Group plc published this content on July 28, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 28, 2025 at 06:03 UTC.
