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Science Group PLC on Monday said trading in the year to date has been progressing in line with its expectations, and considers an increase to its existing revolving credit facility. Science Group is a Cambridge, England-based science, engineering and technology business that provides services to the medical, defence, industrial, food & beverage and consumer sectors. The group said its performance in the year to date remained on track to deliver ‘another record year’ of adjusted operating profit, in line with its expectations. Though it did not on Monday provide its full-year expectations, Panmure Liberum forecasted £109 million in revenue, which would represent a 3.8% fall from £113.3 million last year, and £21 million of adjusted operating profit, which would be a 2.4% growth year-on-year from £20.5 million. At October 31, the group had gross cash of £37.7 million and net funds of £25.6 million, having returned a total of £7.4 million to shareholders through a share buyback programme and an increased dividend. ‘While not immune to the UK and international political and economic environment, Science Group benefits from the resilience inherent in its portfolio,’ the company said. ‘In that regard, the UK budget on October 30 increased employer’s national insurance with an estimated annualised increase to the group’s operating cost base in the order of £700,000. The board will consider how to mitigate this impact during the forthcoming 2025 planning cycle.’ Science Group also plans to increase its existing undrawn revolving credit facility to £30 million, up from £25 million, with an additional £10 million accordion option. The facility is due to mature in December 2026, though the company is considering refinancing for a new ten-year period. It said negotiations on the facility were ‘progressing well’, and believes the new increased facilities would strengthen the company’s ability to ‘consider corporate opportunities which may arise’. Shares in Science Group were up 1.2% at 471.50 pence each in London on Monday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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