1st May 2025 17:02
(Alliance News) - Science Group PLC on Thursday requisitioned a general meeting of Ricardo PLC shareholders in an attempt to remove Chair Mark Clare, labelling it a vote of no confidence in the engineering consultancy's leadership.
Science Group, Ricardo's second-largest shareholder with a 20.08% stake, said its move follows months of frustration with what it described as "ineffective governance," persistent underperformance, and a failure to address deteriorating financials under Clare's chairmanship.
The Cambridge-based investor said Ricardo's recently issued Business & Strategy update merely recycled past messaging and failed to restore shareholder confidence.
It highlighted a worsening outlook for the year ending June 2025, with broker forecasts showing a swing to a reported operating loss of GBP5.1 million, and a deterioration in cash flow and debt levels.
"The fact is that three years into the 5-year 2022 strategic plan, Ricardo is in a far worse financial position today than when the 2022 plan was initiated," Science Group said, noting that net debt is now forecast to rise to GBP84 million by June 2026.
"Ricardo BSU was little more than a self-serving promotion to try to maintain the status quo. It portrayed a misleading perspective of the success of the Ricardo 2022 strategy and missed the opportunity to engage with shareholders to realign the company priorities."
Science Group also criticised Ricardo for focusing more on attacking it, the shareholder, than on articulating a clear future strategy. The company is now calling for structural reform and has proposed splitting Ricardo into three independent business units: E&E, Rail, and A&I.
Ricardo confirmed receipt of the requisition and said it would convene a general meeting in accordance with statutory requirements. It advised shareholders to take no action at this time.
Ricardo shares closed 0.4% up at 247.00 pence on Tuesday, while Science Group shares rose 0.2% to 440.66p.
By Eva Castanedo, Alliance News reporter
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