Science Group Plc · LSE:SAG
Science — Sagentia Group — H1 2012 Earnings Presentation
12 slides from Science's earnings presentation, July 2012
Slide 1: Interims Results Presentation July 2012
Interims Results Presentation July 2012 Martyn Ratcliffe Chairman Brent Hudson CEO Neil Elton Finance Director
Slide 2: Sagentia Group plc
Sagentia Group plc • Technology & Product Development Company • One of the top Cambridge Science & Technology Consultancies • Outsourced R&D • Predominantly time-and-materials consultancy • Medical Sector (Diagnostics, Surgical, Patient Care) • Commercial Sector (Consumer & Industrial) • Based in Ha
Slide 3: Summary
Summary • Good operating performance despite more difficult market conditions • Underlying revenue growth offset by suspension of NA Medical sector project • Recovery in Commercial sector benefitting from multi-year outsource R&D contract • Operating margins very strong • Upper end of comparable com
Slide 4: Financial Summary
Financial Summary Revenue of £10.7m (H1 2011: £12.6m; H2 2011 : £11.0m) • 2011 (particularly H1) benefitted from one-off product revenue and higher project expenses • R&D Consultancy fees of £8.6m (H1 2011: £9.7m; H2 2011: £8.4m) • Suspension of North American project in H1 2012 impacted Medical sec
Slide 5: Financial Performance – Half Year
Financial Performance – Half Year 15 3.0 2.0 Discontinued 10 1.0 Revenue £m Profit/Loss £m Revenue Operating 0.0 Profit/Loss PBT 5 ‐1.0 ‐2.0 0 ‐3.0 H1‐09 H2‐09 H1‐10 H2‐10 H1‐11 H2‐11 H1‐12 2009 includes revenue from 2011 revenue benefitted from significant disposed/discontinued one-off product reve
Slide 6: Revenue Breakdown
Revenue Breakdown H1 2012 Core Consulting Fees reported sequential growth reflecting good performance in Commercial Sector offset by suspension of North American project in Medical Sector 14 12 Discontinued/ 10 Disposed IT Services (M5N) Revenue £m 8 Property Income 6 Product and licence income 4 Re
Slide 7: Revenue Breakdown
Revenue Breakdown Total Revenue R&D Consultancy Revenue 2% R&D Consultancy Fees 6% 7% Medical Recharged Project 5% Materials Commercial Property Income 41% 59% IT Services (M5N) 80% Product & Licence Segment Definitions Core Business : R&D Consultancy Fees, Recharged Project Materials, Product & Lic
Slide 8: Segmental Analysis
Segmental Analysis Business Sectors • Medical Sector : 59%. Commercial Sector : 41% • H1 2011 : 72% and 28% respectively • Recovery in the Group’s Commercial sector in H1 2012 benefitting from 3-year contract • Suspension of North American Medical project Geographic • Approx 78% of R&D Consultancy r
Slide 9: Balance Sheet (extracted information)
Balance Sheet (extracted information) 30 Jun 2011 31 Dec 2011 30 Jun 2012 £m £m £m Cash 17.7 21.2 18.9 Borrowings •Bank (7.4) (7.0) (6.6) •Other borrowings (0.2) (0.1) (0.0) Equity Investments 0.8 0.0 0.0 Freehold Property 13.8 13.8 13.8 • Last valuation (Savills): August 2010 Shareholders Funds 24.
Slide 10: Market Valuation
Market Valuation 40 4 100 90 35 3.5 80 30 3 70 25 2.5 60 £ million Pence 20 2 50 40 15 1.5 30 10 1 20 5 0.5 10 0 0 0 Market Cap NAV Post‐Tax Profit (RHS) Share Price (p) NAV per Share (p) 10 © Sagentia 2012
Slide 11: Summary
Summary Good operating performance • Strong operating margins in H1-2012 at the upper end of sector range • Revenue declined due to one-off factors in prior year and suspension of Medical sector project, partially offset by recovery in Commercial sector (incl multi-year contract) • Macro-economic en
Slide 12: Sagentia Ltd
www.sagentia.com info@sagentia.com Sagentia Ltd Harston Mill Harston Cambridge CB22 7G UK T. +44 1223 875200 Sagentia Inc One Broadway 14th Floor Cambridge MA 02142 USA T. +1 617 401 3170 www.sagentia.com info@sagentia.com Sagentia is listed on the London Stock Exchange (SAG.L) SAGENTIA