Science Group set for another record adjusted operating profit

(Sharecast News) - Science Group said in an update on Monday that trading for the year ended 31 December was expected to deliver another record year of adjusted operating profit, in line with or slightly exceeding board expectations. The AIM-traded firm said it expected to publish its audited full-year results in late March or early April.

It reported gross cash of £38.6m and net funds of £26.8m as of the end of 2024.

That followed £8.6m returned to shareholders during the year, through share buybacks of £4.96m and an increased dividend of £3.66m.

Science Group said it had also initiated early refinancing of its term loan and revolving credit facility, both of which expire in 2026, with legal documentation for the renewed and expanded facilities progressing as planned.

Acknowledging a disconnect between its consistent operating performance and stock market valuation, the board highlighted that Science Group's share price had outperformed major UK and US indices for small and mid-cap companies over the past one, three, five and 10 years.

Despite that relative strength, the firm said it was planning to increase its capital allocation for the 2025 share buyback programme to between £6m and £10m.

That, the directors said, could result in a reduction of total voting rights by between 3% and 5%, based on current share prices.

The buyback programme, executed by Panmure Liberum under board-defined parameters, would be adjusted at the next trading window following the release of the 2024 results.

At 1337 GMT, shares in Science Group were up 2.42% at 465p.

Reporting by Josh White for Sharecast.com.