28th Jul 2020 11:54
(Alliance News) - Science Group PLC on Tuesday said its first-half results beat board expectations, helped by double-digit organic revenue growth and the acquisition of Frontier Smart Technologies.
In the six months to June 30, revenue surged 56% to GBP36.9 million from GBP23.6 million. The Cambridge-based scientific consultancy services firm posted pretax profit of GBP2.5 million, down 10% from GBP2.8 million.
Operating expenses surged 57% to GBP32.0 million and there was also the absence of GBP687,000 in a gain from a legal claim.
Revenue grew 13% on an organic basis and it was boosted by the acquisition of Frontier Smart, an audio and smart home technology firm formerly listed in London.
Science Group completed the takeover of Frontier Smart last October, but only after the two firms exchanged in a boardroom back and forth, with the latter's board initially disagreeing on the value of Science Group's offer.
"Following the completion of the acquisition of Frontier in October 2019, a substantial accelerated restructuring programme was successfully executed, including the closure of the Romanian operations, a streamlining of product lines and the restructuring/relocation of the Cambridge and London operations. This intense programme, which produced a substantial reduction in the operating cost base, positioned Frontier to report an adjusted operating profit in the first half of 2020, despite revenue being impacted by the pandemic," Science Group said on Tuesday.
"In summary, the performance of the group in the first half of 2020 has been ahead of the board's pre-Covid-19 expectations, despite the operational challenges resulting from the pandemic. The excellent first half provides a solid platform for the rest of the year."
Science Group shares were flat at 236.00 pence each in London on Tuesday shortly before midday.
By Eric Cunha; [email protected]
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