Business
Pre-Close Trading and Business Update
Pre-Close Trading and Business Update.
About this update from Science Group Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n \n \n \n 15 December 2022\n \n \n \n \n \n \n \n \n Science Group plc\n \n \n \n \n \n \n \n Pre-Close Trading and Business Update\n \n \n \n \n \n \n \n \n \n Despite the deterioration in the global economy, Science Group has again demonstrated the resilience derived from the Group's sector and international diversity. As anticipated, while some market sectors, particularly medical, are continuing to invest, consumer-oriented sectors in both services and products have been impacted by the global economic slowdown. With a significant proportion of income generated in US Dollars, the Group has benefitted from the relative strength of the Dollar, offsetting the significant increase in energy prices and other cost inflation. In aggregate, the Board anticipates that revenue and adjusted operating profit for 2022 will be slightly ahead of current Board expectations.\n \n \n \n \n \n Science Group continues to be highly cash generative. At 30 November 2022, the Group had gross cash of £44.5 million and net funds of £30.1 million. Science Group currently has limited exposure to future interest rate increases. The Group's term loan, which expires in 2026, is fixed through a swap instrument at an effective rate of 3.5%. In addition, the Group's revolving credit facility of £25 million, taken out in 2021 on a 4 year term with 1 year extension, remains undrawn. The Group's strong balance sheet, with significant cash resources, provides a robust foundation in the current macro-economic environment whilst also enabling Science Group to benefit from corporate opportunities which may arise.\n \n \n \n \n \n During 2022, in view of the currency volatility, the Board has taken the opportunity to procure a currency exchange instrument to cap the Sterling:US Dollar rate in relation to the R&D Consultancy Division through to the end of 2023. Initially the Sterling:Dollar cap was set at 1.30, but during October the Board took advantage of the very low exchange rates to improve the cap to 1.20. The instrument, which applies to $1.25 million per month, still enables the business to benefit from lower exchange rates, should such rates apply.\n \n \n \n \n \n Recommended Offer for TP Group plc\n \n \n \n \n \n Science Group acquired a strategic shareho...