Member Info for JeremyCC

The report says corresponding shares in the Russian entity I do not see that you would loose your Evrax PLC shares so why not apply?

Strategic Takeaways

🔹 1. This is a Transformation, Not a Turnaround

CEO Ben Faes is pivoting the entire company from translation/localisation into a SaaS-based, AI-enabled content solutions provider.

Launch of 3 new units:

Generate (AI + TrainAI)

Transform (localisation, Trados, LLM integrations)

Protect (IP Services with end-to-end lifecycle tools)

Think of this as "Adobe for AI content workflows", not a legacy translation house.

🔹 2. Margin Compression Is Deliberate

Reported profit fell due to:

£22M of non-trading costs (FX, amortisation, Papercup acquisition).

High investment in TrainAI & SaaS platforms.

Growth in lower-margin APAC business (TrainAI) dragged gross margin to 43.3%.

This is similar to what happens in SaaS pivots — margin dips before annuity revenue lifts.

🔹 3. Strong Client Stickiness + Technology Bets

94% repeat business and record NPS of +51 = strong client loyalty.

Papercup IP acquired to power AI dubbing at scale, targeting video localisation markets (~$1B TAM).

SaaS licences in Language & Content Technology now 43% of total — this is a material strategic shift.

The RNS from Science Group on 2 June 2025 marks a strategic escalation in the Ricardo boardroom campaign. ISS has come out in favour of Science Group’s vote to remove Ricardo’s chair. ISS is the main proxy firm most big institutions follow, especially index funds.

No public comment from the big holders yet, but silence usually means they’re backing change or waiting to see momentum build. I’d say this pushes the odds well in favour of the vote passing.

Still holding — feels like 300p+ is on the cards if the board flips and a proper recovery plan follows. Let’s see how it plays.

Lol ,2 minutes of research will have told you they have sold the defence element of the Business.

Suspect we will 2 RNSs tomorrow one saying SG has accumulated and 1% and another institution/fund announcing a 1% reduction.

You are right we are in a waiting game but a lot is happening we cannot see. It looks like there has been 3 blocks of institutional buying today so far but low liquidity has meant the price has risen. The institutions are not selling out in any rush and are probably waiting for better value whoever controls Ricardo. Do they support Ricardo or are they just not willing to take a low ball offer? I had Ricardo's financial results at 3rd June, now it looks like 30th June is the date. More time to garner support, a possible white night? All quite possible. Some things are missing, no strategic actions to raise the price to make buying too costly, very little Ricardo Director buys no defensive actions beyond RNS. Currently its just hissy fits in emails that only affect the mood for retail investors when it is the institutional investors that hold the vast majority of Ricardo shares and who would not be moved by RNS attacks on credibility when they have brought in after doing their own research..

Ricardo fits Science groups portfolio so a good fit. Science group have a track history of buying fundamentally good companies that have taken a sentiment hit and aggressively attacking their credibility. They have been actively buying all the time but strategically (look for rapid activity or multiple decimal point buys) but because their offer price must legally be above the highest price paid their acquisition has been done in a way not to raise the share price. However institutions have not sold out of their positions so it is only retail shares that are available which is why on very low volumes the price has risen as liquidity has dried up at the lower prices.

I agree the RNS uses that phrase at least 10 times across business units. This can imply potential rather than locked-in certainty, and investors sometimes view it as a soft proxy for saying, "We think things are coming… but can’t guarantee them." Promises of future cost cutting are commonplace in corporate strategy, but without evidence of already-executed actions, they’re often seen as “hopeful.” As I have said there’s no upward revision to guidance, just confirmation they’ll be within the analyst range. That can feel a bit limp.

However secured revenue stats are strong: Energy & Environment: 94% revenue secured, Rail: 93% secured, Performance Products: 95% secured, A&I: 86% secured. These are substantive metrics, not just narrative fluff. This is operational momentum, even if not fully booked revenue.

The RNS breaks down improvement by business unit (e.g. EE utilisation up 3pts). This shows measurable operational tightening, which matters over the medium term. Cash conversion above 85%, which is a genuinely strong metric. That’s hard to fake and shows good underlying discipline. It cites actual figures (£3M H1 savings, £2M in H2, targeting £10M more) and backs them with utilisation improvements and third-party validation. That suggests a solid internal transformation is underway.

Sentiment matters at the moment and this RNS does little to move the needle, trading has been light so little reaction either way.

Really disappointed with the RNS today. The numbers suggest Ricardo is stabilizing and potentially recovering faster than many expected. So Ricardo is rallying shareholders to resist, implying any move by Science Group is for its own benefit, not other investors. However the RNS states several times that Ricardo expects to deliver trading within the range of analyst expectations but those expectations have Ricardo valued between 230p and 540p (average 382) so in their statement they have pegged a price of 230p which is why the share tanked on what should have been a positive and bullish recovery RNS. Ricardo in my estimation dropped the ball here.

Thank you Sir_Hector it is nice to have a decent conversation on the boards I normally do not bother. I am sorry for your position. My experience is quite different though. I like to buy depressed companies that are as you note fundamentally good with news coming and get in and out on the news looking for yearly compound growth so that 3% a months adds up to 25% yearly. So I brought early Feb for the interims. I then went overweight when SG showed up. This is a different strategy than yours but all my research suggests that there is a big upside from where we are so I am holding on. Good luck whatever you decide.

Ricardo is facing in my opinion a critical timing situation with its promised mid-April strategy update. With Easter holidays approaching (bank holiday Friday 18th and Monday 21st), we're already at mid-April with no announcement yet. This creates a compressed window for communication before the month's latter half. Whilst companies typically avoid major announcements during market holidays since they want maximum investor attention and liquidity when sharing strategic updates. The Easter break creates an awkward timing gap. Given Science Group's public criticism that Ricardo's board has shown "ineffective governance in handling 2024 market challenges and 2025 economic volatility," any delay feeds into this narrative. A slight delay (releasing just after Easter) is likely neutral, but pushing to late April would be concerning. The market has already shown skepticism - note that despite analyst targets averaging £3.82 (65% above current price), the stock continues to trade near 52-week lows.

The most important factor isn't the exact timing but the quality and credibility of the strategy presented. With Science Group holding 20.08% and publicly criticizing the board, Ricardo needs to deliver a compelling plan that addresses operational issues and governance concerns. Certainly there appears a disjuncture between the board and their buy into the company as their share holdings and tiny director dealings visibly show.

Science group have to make an offer at or above the maximum price they have paid which I recon is 255p. However based on previous takeovers by science group eg. TP where they offered 67% above their accumulation price there is upside. Institutional holders (the vast majority of holders) have not changed their holdings substantially and they too would have an entry price of around 400p. So SG would have to offer a price that they would not reject. There are a couple of news items that are key. One is the strategic update due mid April ie. now, the fact that it has not happened is concerning as if they cannot meet self imposed timelines it plays to SG narrative of poor management. If the update is poor it reinforces that narrative but if strongly positive and points to a good results report in early June then expect a tick up in price and therefore any final offer, obviously a lower offer if poor and late. So if poor offer probably 300p if Ricardo on the road to a strong recovery and instutional holders see returns to pre drop norms the could be offer in 380-400+ range.

Buying from Gresham House, this may be support for Ricardo, lets see if it continues.

Sorry about the formatting in my last message best to check my word format spacing. Also if anyone thinks the 315p is a fair price it is not my fair range is 380-400 which is the analysts range for fair price.

Using previous SG tactics and standard corporate tactics this is my read on the next steps

Date Range: Mar 25 – Apr 15

• Action/Event: Public campaign + pressure letters

• SG Objective: Undermine board, build tension

• Ricardo Response Needed: Activate investor comms + defence file

Date Range: Apr 10 – Apr 25

• Action/Event: Possible GM requisition or governance motion

• SG Objective: Test shareholder alignment

• Ricardo Response Needed: Prepare legal rebuttal + proxy support

Date Range: Apr 20 – May 15

• Action/Event: Accumulate up to 29.99% stake

• SG Objective: Maximise leverage without full bid

• Ricardo Response Needed: Monitor daily filings, apply pressure

Date Range: May 15 – June 10

• Action/Event: Possible formal offer circa 315p

• SG Objective: Win backing with “fair value” narrative

• Ricardo Response Needed: Demand revaluation / explore white knight

Date Range: June – July 2025

• Action/Event: Shareholder vote or AGM confrontation

• SG Objective: Push board changes / complete offer

• Ricardo Response Needed: Mobilise base, show strategy clarity

Lets hope Ricardo can find a white knight

27th Feb

I am a premium member on investing.com which has paid for itself in analysis. You say there are other chucks of shares but it looks like the rule of diminishing returns if you look at holding updates. 27% SG announces 8%, 11 days later that increase 4% to 12% holdings, 1 day later 2% increase to 14% 2 days later 1% to 15% and 1% more to 16% *6* days later. It looks like it is getting harder to find shares. It is tea leaf reading so take it or leave it.

There are a few: Gresham House Asset Management Limited 22.61% , Aberforth Partners LLP 11.12% institutional above 10% there are 7 more in the 2-7% range and 10 Mutual Funds in the 1.8-p.6% range. All the institutional holders bar 1 have updated their holdings this calendar year so that may be where the SG are getting their shares?

On balance I am biased towards Ricardo as I like what they do but the RNS today re. the Chief Strategy and Digital Officer getting shares and immediately selling them does speak to Science Groups point of Directors not be invested in the company. If they believed in Ricardo would they not have skin in the game? Still think holding is the best option for now but strike 1 against current Directors for me.

Do some research on their other takeovers offer price was at least 66% up on the share price of the company. Hold