10th Nov 2016 09:09
LONDON (Alliance News) - Science Group PLC on Thursday said its 2016 adjusted operating profit is likely to be ahead of its expectations due to the foreign exchange benefit from sterling devaluation.
The technology consulting company said that in the first half of 2016, 46% of its revenue was denominated in dollars or euros, though more than 90% of employees were based in the UK.
Therefore, whilst underlying adjusted operating profit remains in line with its expectations, the devaluation of the pound resulting from the Brexit vote has benefited the group in recent months, and is expected to drive the adjusted operating profit out-performance, Science said.
Science noted the relocation and integration of the Leatherhead Food Research and OTM Consulting businesses into a site in Epsom was completed in September, and said it expects to record a non-related charge of around GBP500,000 in relation to this for the year.
"Following the EU referendum, international business activity has remained consistent but some UK sectors do appear to be reducing discretionary expenditure," Science said.
"The impact of the US election is unclear and, in combination with the Brexit process, a period of uncertainty is expected. However, sterling is anticipated to remain below pre-referendum levels during the first half of 2017 and the board will use the opportunity to invest in the group's strategy," the company added.
Shares in Science were up 2.6% at 140.00 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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