Science Group Plc · LSE:SAG
Science — H1 2016 Earnings Presentation
10 slides from Science's earnings presentation, Jul 12, 2016
Slide 1: Interim Results Presentation July 2016
Interim Results Presentation July 2016 Martyn Ratcliffe Chairman Rebecca Hemsted Finance Director To be read in conjunction with the Interim Results announcement released on 12 July 2016 1
Slide 2: Science Group plc
Science Group plc Science and technology services • Science-based Consultancy and Advisory Services • Technology & Product Development Four subsidiary companies/brands • Sagentia – founded 1986, provides services to medical and commercial markets • OTM Consulting – acq 2013, provides services to oil
Slide 3: Financial Summary - 1
Financial Summary - 1 Satisfactory operating performance Group revenue of £17.7m (H1-15: £14.1m) • Benefitting from 2015 acquisitions • Continuing challenging oil & gas market resulted in OTM revenue decline • Sagentia-Medical affected by end of large projects in mid-2015. Significant new projects r
Slide 4: Financial Summary - 2
Financial Summary - 2 Freehold property assets : £21.3m (H1-15 : £13.6m) • Harston Mill : £13.5m; approx gross 100k sq ft; approx. one third of space is sublet • Great Burgh : £7.8m; approx gross 50k sq ft; will be fully used by Science Group Cash balance of £17.2m (H1-15: £21.5m) and Net Funds of £
Slide 5: Share Options
Share Options At 31 December 2015, the Group had 3.0m share options outstanding • Of which 1.9m have vested or are anticipated to vest during 2016 Share options settlement offer to employees • Limited liquidity in Science Group shares and not understood by many employees • Difficult for share option
Slide 6: Group Revenue Breakdown
Group Revenue Breakdown • Benefitted from 2015 acquisitions • Offset by challenging oil & gas market • Phasing of projects in Medical sector continued to affect revenue. New large projects won 18 16 14 Non Core: Incl third party property income 12 £ million 10 Other core business revenue 8 6 Core bu
Slide 7: Services Revenue Profile – H1 2016
Services Revenue Profile – H1 2016 • Group comprises 5 operating businesses using 4 brands • 2015 acquisitions have expanded customer base and service offerings • Food & Beverage market synergies : Sagentia-Commercial, Oakland and Leatherhead Leatherhead Sagentia-Medical Sagentia- Commercial Oakland
Slide 8: International Services Business
International Services Business • Science Group is an international business : approx. 70% of Services revenue outside UK • 35% of services revenue in US$ (H1-15: 55%) and 11% in Euro (H1-15 : 7%) • Over 90% of employees are based in the UK 100% 100% 90% 90% 80% 80% 70% 70% Other Other 60% 60% GBP U
Slide 9: Adjusted Operating Profit
Adjusted Operating Profit • Leatherhead contribution ahead of integration plan level • Offset by OTM business in challenging Oil and Gas market • Sagentia aggregate contribution declined due to project phasing in Medical division • Oakland contribution strong 3.5 Adjusted operating profit £m 3.0 2.5
Slide 10: www.sciencegroup.com
www.sciencegroup.com Head office Epsom London Harston Mill Great Burgh 48-49 St James's Street Harston, Cambridge Yew Tree Bottom Road London CB22 7GG Epsom SW1A 1JT UK Surrey UK KT18 5XS Phone: +44 1223 875200 Phone: +44 1372 376761 Phone: +44 207 014 3250 info@sciencegroup.com info@sciencegroup.co