Science Group Share Price (SAG)

.wealthoracle.co.uk/company-results

Market Analysis

The Cambridge-based services and systems group confirmed 2026 trading remains on track with Board expectations despite geopolitical headwinds and UK Defence contracting delays. Revenue will be lower YoY as planned reductions in low-margin Defence consumables flow through, but this is offset by margin improvement. The balance sheet has strengthened markedly with cash of £68.5m and net funds of £57.2m at end-April (vs £20.9m/£9.0m a year ago), and the £40m RCF remains undrawn. Over £24m has been returned to shareholders since the 2025 AGM via buybacks (8.8% of capital repurchased) and dividends. The Board is asking shareholders to expand the buyback authority and is openly flagging additional capital returns if no material M&A emerges. CMS2 submarine systems progressing positively with potential visibility into the 2030s. No specific FY26 consensus number disclosed. Verdict: IN-LINE.

.wealthoracle.co.uk/company-results

An under the radar share. Paul Scott posting on Substack is bullish on it.

Respect to the SAG Board on today's uplift on the investment in Riccardo.

Science Group's corporate activity in relation to Ricardo plc is a rare, intriguing and quite transparent window into the boardrooms of both companies. Science Group has actively engaged with TP Group plc in the past, resulting in a takeover and the way the acquisition played out in the early stages had similarities with Science Group's current engagement (gradual purchase of 20% approx) and public admonishment (by SG) of the destruction of shareholder value by the Ricardo board.

Science Group has sought to requisition a general meeting and has clearly had some engagement with Ricardo's largest shareholders (so few that it would be relatively easy to be in contact with those holding considerably more than a further 50% of the shares not already owned).

Interestingly whilst Science Group is today capitalised at circa £200M, Ricardo is trading at a 15 year low and capitalised circa £168M.

So this engagement is between two companies of an approximately similar size and is not a David & Goliath interaction between one obviously larger and one obviously smaller player.

My sense so far of how the two boards have responded publicly is that Ricardo are a long way behind the curve, poorly led and very likely to have to accept board changes at the least, positively much more engagement than that.

So what’s the thinking on here? What are SAG’s intentions? You don’t up your holding beyond the key 20% level for no reason and yet it isn’t clear what the strategic intent is.