16th Jun 2020 11:39
(Alliance News) - Science Group PLC on Tuesday said it expects a significant rise in profit for the first half of 2020 despite challenges posed by the pandemic.
The scientific consultancy services firm - whose annual general meeting is on Tuesday - said it expects adjusted operating profit to the end of June to be around 50% higher than GBP3.3 million reported for the same period in 2019.
Science Group attributed the improvement to organic growth in its services operations and the contribution from the Frontier Smart Technologies business, which was acquired in 2019.
By business, the R&D Consultancy and Regulatory & Compliance divisions saw revenue increase, lifting profit. The Medical sector and the US regulatory operations performed "particularly well" compared to the previous year. While revenue from the Frontier business was hurt by the Covid-19 pandemic, the company believes revenue in the second half will begin to recover as retail outlets across Europe reopen.
"While the future global economic impact resulting from the pandemic remains unclear and the board therefore remains cautious, the strong first half performance provides an excellent platform for the year as a whole. This enables the group to continue to invest in future organic growth and explore further acquisition opportunities," Science Group said.
As at May 29, the company had gross cash of GBP21.6 million with net funds of GBP4.1 million.
Science Group shares were trading 16% higher at 219.80 pence each on Tuesday morning in London but 12% lower than the start of the year.
By Ife Taiwo; [email protected].
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