Business
Update on Ricardo plc
Update on Ricardo plc.
About this update from Science Group Plc
[{"type":"text","content":"\n\n \n\n31 March 2025\n \nScience Group plc\n(the \"Group\" or \"Science Group\")\n \nUpdate on Ricardo plc\n \nScience Group shareholding in Ricardo plc (\"Ricardo\") is 10,483,684 shares, equivalent to approximately 16.85% of the voting rights. The average cost (including brokerage fees) is 232 pence per share. Science Group may or may not increase its shareholding in Ricardo.\n \nScience Group and Ricardo provide similar consultancy services and engineering systems. Science Group issued its Annual Results for the year ended 31 December 2024 on 24 March 2025. In stark contrast to the Ricardo Interim Results (released on 5 March 2025), Science Group reported robust operating margins, record earnings per share and strong cash conversion, despite the same challenging \"market headwinds\" that Ricardo blamed for its weak performance, poor cash flow and materially downgraded forecasts. Science Group actually delivers the margins that Ricardo aspires to.\n \nScience Group set out its concerns to the Ricardo Board in the announcements of 14 and 17 March 2025 and in a 90 minute meeting with the Senior Independent Director and an advisor. In RNS responses, Ricardo has consistently ignored the serious matters raised and instead has sought to criticise Science Group for acquiring shares in the open market at levels around the Ricardo 15 year low. The irony of the Ricardo Board comments is readily apparent and the responsibility for the destruction of shareholder value (65% peak to trough share price reduction) lies squarely with the Ricardo Board.\n \nScience Group notes Ricardo's announcement on 28 March 2025, which continues to try to deflect attention from the core issues. Contrary to the 'victim' narrative presented by the Ricardo Board, the strategy and financial targets were defined by Ricardo in 2022 and were reiterated by the Ricardo Board as recently as September 2024. The Ricardo Board seeks to blame external factors for its under-performance rather than address its own mismanagement. Furthermore, the statement that Ricardo \"continues to trade in line with the Board's expectations\" conveniently omits the fact that these expectations were significantly downgraded only a few weeks ago. (The 20% downgrade for the current year (continuing businesses) was extraordinary after the strong assurance...