With cash the king Science Group plc bestrides the throne
Cambridge based S & T thought leader, Science Group plc, saw its share price increase almost six per cent at the start of the week as it lifted the lid on a glittering war chest and reiterated its growth ambitions in an impressive trading update.
Following a successful Placing in September and a strategic investment in TP Group plc the same month Science Group had gross cash of £34.7 million and net funds of £19.1m.
The board is also discussing a potential new revolving credit facility of up to £25m with the group’s bank, incremental to an existing fixed term loan which runs to 2026.
Science Group is an international science-led services and product development organisation comprising three operating divisions: R & D Consultancy; Regulatory & Compliance; and Frontier Smart Technologies.
Following a business update on September 6, Science Group says it has continued to perform well.
Despite component supply constraints, FX headwinds relative to prior year and increasing inflationary cost pressures, the board anticipates further upside in the group’s 2021 profitability forecasts. This third upgrade during the current year reflects the strength of the group, the success of the Frontier acquisition and the balance of financial discipline with investment for the future.
The board continues to explore opportunities to deploy its capital, in conjunction with the group’s management resources, to enhance value to shareholders.
Options include add-on acquisitions to accelerate the growth of the group’s existing operations and larger opportunities which would increase the scale of the business.
Chairman Martyn Ratcliffe said the board anticipated that Science Group would “close out 2021 as another outstanding year and is now starting to plan for 2022 and beyond.”