Business
AGM Trading Update and Capital Allocation
Science Group PLC anticipates a resilient 2026 performance in line with board expectations, despite geopolitical impacts and UK defence contracting challenges, with revenue expected to be lower than the prior year due to reduced low-margin activities, offset by margin improvement. As of April 30, 2026, the Group held £68.5 million in cash and £57.2 million in net funds, a significant increase from £20.9 million and £9.0 million respectively in the prior year, with its £40 million revolving credit facility undrawn. The company repurchased 3,938,596 shares, representing 8.8% of its capital, over the past year and plans to continue its buy-back program, considering an increased limit for flexibility and potentially further capital returns to shareholders if no material M&A or investment opportunities arise. Disclaimer*
About this update from Science Group Plc
20 May 2026 Science Group plc (the "Group" or "Science Group") AGM Trading Update and Capital Allocation Science Group is an international services and systems company delivering innovation through the application of science, technology & engineering. The Group's primary performance metrics are : adjusted operating profit, operating margin and cash flow. Group Trading Update Despite geopolitical events impacting customer confidence, and the widely-reported challenges in UK defence contracting, Science Group remains on track to deliver another resilient performance for 2026, in line with the Board's expectations. As anticipated, revenue in the year is expected to be lower than the prior year, primarily due to the reductions in previously-reported, low margin activities in the Defence sector, offset by margin improvement. After returning over £24 million to shareholders since the 2025 AGM (share buybacks and dividend outflows), at 30 April 2026, Science Group had Group cash of £68.5 million and net funds of £57.2 million (30 April 2025: £20.9 million and net funds of £9.0 million). The Group's revolving credit facility (£30m + £10m accordion, expiring in 2030) remains undrawn. Operating Business Overview The Sagentia Services Division operates across multiple sectors, including MedTech, Consumer, Food & Beverage, Defence and Industrial markets. While most areas have experienced some indirect effects of the recent geopolitical instability, the UK Defence sector has been more challenging due to the delays in contracting associated with the deferral of the UK Defence Investment Plan. Nevertheless, the Sagentia Division overall remains well positioned for 2026. The characteristics of the CMS2 business, providing systems to critical operational submarine programmes, have meant that the core business (excluding the irregular, low margin consumables orders) has been less affected by the UK Defence sector budget uncertainty. Furthermore, in recent months CMS2 has progressed UK contracts which, if successfully concluded, would position the business for growth and provide visibility into the 2030's. Further details will be provided if/when appropriate. The Frontier core DAB+/SmartRadio revenue continues to be relatively stable, although product mix has varied. Shipments of Auria, the...