Science Group hikes share buyback programme despite dip in revenue
Record profit first half profit at Science Group driven by a well choreographed turnaround at one of its major brands helped the consultancy and systems specialist to increase its share buyback programme.
The Aim-listed group, which owns seven brands that operate in areas as diverse as food and beverage research to defence systems, posted a record profit of £11m in the six months ended June 30, up from £10.4m in 2023.
This was despite a hit to its revenue, which dropped from £56 .1m in H1 2023 to £53m in the first six months of this year.
Adjusted earnings per share rose from 16.6p in H1 2023 to 18.1p this year, and it maintained a “strong” balance sheet, with £38.8m of cash in the group and net funds of £26.4m.
Consequently, the firm, which listed on the Aim market in July 2008 and is headquartered in Cambridge, announced a hike to its share buyback programme to £5m.
The firm said in an update: “The first half of 2024 has continued the Group’s consistent track record, delivering record first half Adjusted Operating Profit, with strong cash conversion, despite ongoing economic and political uncertainty. This solid performance provides a good platform for the remainder of the year…
“With a robust balance sheet, including significant cash resources and undrawn debt facilities, combined with ongoing operating cash generation, Science Group continues to explore corporate opportunities while also increasing the capital allocated to the share buy-back programme.”
Science Group bosses attributed much of its performance to increase in fortunes at its Critical Maritime Systems and Support brand (CMS2), which designs and develops submarine atmosphere management systems for the defence sector.
Having been bough by the group in 2021, Science Group stripped CMS2 of “non-core” activities, and renegotiated several contracts, which, the firm said, is starting to bear fruit. Revenue in the division was up to £10.9m, a significant increase on the £7.8m in 2023.