Business
Trading and Business Update
Trading and Business Update.
About this update from Science Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5466O\n Science Group PLC\n 11 October 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 11 October 2021\n \n \n \n \n \n \n \n \n Science Group plc\n \n \n \n \n \n Trading and Business Update\n \n \n \n \n \n \n \n \n Following the business update on 6 September 2021, Science Group 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. It should also be noted that the advisor costs associated with the recent corporate activity have been expensed as incurred and are therefore absorbed within this profit upgrade.\n \n \n \n \n \n Following the successful Placing in September, and after the strategic investment in TP Group plc, at 30 September 2021 Science Group had gross cash of £34.7 million and net funds of £19.1 million. Furthermore, the Board is currently discussing a potential new revolving credit facility of up to £25 million with the Group's bank, incremental to the existing fixed term loan which runs to 2026. \n \n \n \n \n \n The Board continues to explore opportunities to deploy its capital, in conjunction with the Group's management resources, to enhance value to Science Group shareholders. These include both add-on acquisitions to accelerate the growth of the Group's existing operations and larger opportunities which would increase the scale of the Group.\n \n \n \n \n \n Services Operations\n \n \n \n \n \n The Group's services divisions have continued to perform well. The R&D Consultancy division continues to benefit from the global investment in the Medical sector but other industry sectors are now seeing increased activity in line with the economic recovery and Advisory services are experiencing the traditional increased activity as the year end approaches reflecting a progressive return to normality. The reorganisation of the division last year (integrating Advisory and Product Development services) has been well received by ke...