24th Apr 2025 14:14
(Alliance News) - Science Group PLC on Thursday said profitability and revenue were mildly ahead of its plan for the first quarter despite trading conditions being unpredictable.
The Cambridge, England-based science & technology consultancy said its "resilient" performance in the first quarter provided a good foundation for 2025, despite trading conditions being unpredictable.
It added that group operating cash flow was "strong" in the first months of the year amid a healthy balance sheet with "significant" cash resources.
However, the company reiterated its criticism of Ricardo PLC, a Shoreham-by-Sea, England-based environmental and engineering consultancy. Science Group is the second largest shareholder of Ricardo with a stake of 20.1%.
Science Group responded to Ricardo's business & strategy update which was issued on Tuesday.
Ricardo had said it expects to deliver full-year results in line with analyst expectations despite increased global and market uncertainty.
However, Science Group said Ricardo did not mention a "significant profit downgrade" five weeks prior, amid a "simultaneous cancellation/dilution of the 2022 strategic margin targets and the enormous destruction of shareholder value over which the Ricardo board has presided."
In recent weeks, Science Group has repeatedly criticised Ricardo's financial performance and demanded governance change.
Science Group noted a "benefit" of engaging with Ricardo, with the latter "acknowledging that the high cost base and poor productivity are major factors to the root cause of the poor margins."
Science Group added that it views the objective of Ricardo's business & strategy update issued on Tuesday as "unclear".
Science Group shares were 1.4% higher at 417.60 pence each on Thursday afternoon in London, while Ricardo shares were up 3.0% at 237.00p each.
By Tom Budszus, Alliance News slot editor
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