(Alliance News) - Science Group PLC on Wednesday said that it while it expects annual operating profit to fall in line with expectations, revenue has been particularly affected by the global economic and geopolitical climate.
Science Group is a Cambridge, England-based science, engineering and technology business, providing services to the medical, defence, industrial, food & beverage and consumer sectors.
For the year ending December 31, the firm anticipates that adjusted operating profit will be in line with guidance, partly as a result of its sector portfolio and disciplined cost management.
However, it noted that revenue for the year has been impacted by macroeconomic trends, with investment by clients in consumer and industrial sectors particularly affected.
Nevertheless, Science Group said its acquisition of TP Group earlier in the year provided "a timely entry" into the defence market. Integration of TPG Services and CMS2 is progressing well, the company said, with investment made in strengthening operational management and business development functions.
Looking ahead, Science Group remained cautious about its prospects for 2024.
"While the reduction in inflation in the group's key geographies provides some optimism, confidence in end-user markets is unlikely to improve in the near term," it said.
"However, as consistently demonstrated, the board considers that Science Group's sector diversity, disciplined management culture and strong financial position will continue to provide resilience."
Science Group shares were trading 4.9% lower at 385.00 pence each in London on Wednesday afternoon.
By Holly Beveridge, Alliance News reporter
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Science Group (SAG)