Science Group Plc · LSE:SAG
Science — Sagentia Group — FY2012 Earnings Presentation
13 slides from Science's earnings presentation, March 2013
Slide 1: Preliminary Results Presentation – 2012
Preliminary Results Presentation – 2012 March 2013 Martyn Ratcliffe Chairman Neil Elton Finance Director
Slide 2: Sagentia Group plc
Sagentia Group plc • Technology Consultancy & 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) •
Slide 3: Summary
Summary • Good operating performance despite more difficult market conditions • Underlying revenue growth offset by suspension of Medical sector project in H1 • Recovery in Commercial sector benefiting from multi-year outsource R&D contract • YOY revenue growth of 5.6% in H2 • Adjusted* operating ma
Slide 4: Financial Summary
Financial Summary • Return to Revenue Growth in H2 2012 (9.1% increase on H1 2012) • Annual revenue of £22.3m (2011: £23.6m) • One-off product revenue in 2011 (£0.8m) and reduced royalty income in 2012 • R&D Consultancy revenues of £19.4m (2011: £19.9m) • Recovery in Consultancy Revenues in H2 2012
Slide 5: Financial Performance - Annual
Financial Performance - Annual 25 5.0 4.0 20 3.0 2.0 Discontinued Revenue £m Profit/Loss £m 15 1.0 Revenue 0.0 Operating Profit/Loss PBT 10 ‐1.0 ‐2.0 5 ‐3.0 ‐4.0 2012 excludes charges related to CEO resignation (approx £0.4m) 0 ‐5.0 2009 2010 2011 2012 5 © Sagentia 2013
Slide 6: 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 H2‐12 2009 includes revenue from 2011 revenue benefited from 2012 excludes disposed/discontinued significant o
Slide 7: Revenue Breakdown
Revenue Breakdown • H2 2012 recovery in Core Consulting Fees • Strong performance in Commercial sector (38% revenue growth) offset by suspension of North American project in Medical Sector in H1 • Reduction in Product and Licence income in 2012 14 Discontinued/ 12 Disposed IT Services (M5N) 10 Prope
Slide 8: Revenue Breakdown
Revenue Breakdown Total Revenue R&D Consultancy Revenue 1% 6% R&D Consultancy 6% Fees Medical Recharged Project 7% Expenses Commercial Property Income 53% 47% 2011: 68% IT Support 2011: 32% 80% Product & Licence Segment Definitions Core Business: R&D Consultancy Fees, Recharged Project Expenses, Pro
Slide 9: Segmental Analysis
Segmental Analysis • Market Sectors • Commercial sector: Strong performance with revenue growth of 38% • Benefited from multi-year contract won in 2011 • Improved Industrial market and entry into Oil & Gas sector • Medical Sector: Relative weakness in 2012 • 53% of R&D Consultancy revenue (2011: 68%
Slide 10: Balance Sheet (extracted information)
Balance Sheet (extracted information) 31 Dec 2009 31 Dec 2010 31 Dec 2011 31 Dec 2012 £m £m £m £m Cash 4.2 16.4 21.2 19.2 (after £4.5m share buyback in 2012) Borrowings •Bank (6.5) (7.8) (7.0) (6.2) •Other borrowings (0.4) (0.1) (0.1) (0.0) Equity Investments 1.4 1.0 0.0 0.0 Freehold Property 14.0 1
Slide 11: Growth Strategy
Growth Strategy • Organic Development • Commercial sector recovery following sector management changes • Patient Care in Medical sector gaining traction • New Sectors: Entry into Oil & Gas in 2012 • New Geographies: Exploring Scandinavia, China, West Coast USA • Accelerated Development Programmes •
Slide 12: Summary
Summary • A strong end to 2012 in difficult market environment • Consultancy revenues in H2 2012 return to growth • Loss of North American Medical project in H1 2012 • Strong operating margins • At upper end of Board target range • Board will balance margin and investment • Robust balance sheet and
Slide 13: Sagentia Ltd
www.sagentia.com info@sagentia.com Sagentia Ltd Harston Mill T. +44 1223 875200 Sagentia Inc One Beacon Street Suite 2300 Boston MA 02108 USA T. +1 617 896 0213 www.sagentia.com info@sagentia.com Sagentia is listed on the London Stock Exchange (SAG.L) SAGENTIA