RE: SAG holding...8 Apr 2025 07:18
Getting very tumultuous
The 20% threshold is a key strategic investment milestone, achieved in just 7 weeks, at an average cost (including fees) of 236 pence per share. Science Group may or may not increase its shareholding in Ricardo.
At 4 April 2025, adjusting for the capital allocated to the strategic investment, Science Group retained significant cash resources of £21.2 million and net funds of £9.3 million. The Group's recently renewed revolving credit facility (£30 million plus £10 million accordion, expiring in 2030) remains undrawn.
The Science Group shareholding was acquired at levels last seen in 2010 following disappointing Ricardo operating performance and investor loss of confidence. However, since the Ricardo Board was evidently unable to manage the company through the "market headwinds" of 2024, there remains little confidence in the ability to navigate the global storms developing in 2025.