Higher profits forecast at listed scientific consulting business
Science Group, which has a base in Knaresborough, has reported a resilient performance over the year so far.
It anticipates that Group adjusted operating profit for the first half of 2020 will be approximately 50% higher than reported in the same period of the prior year. Gross cash at 29 May 2020 was £21.6m with net funds of £4.1m.
Martyn Ratcliffe, executive chairman, said this success has been achieved through a combination of organic growth in the Group’s services operations and the contribution from the restructured Frontier Smart Technologies business, acquired in 2019.
He added: “In terms of the Group’s services businesses, both the R&D Consultancy and Regulatory & Compliance Divisions have recorded revenue growth and increased profit contribution.
“While some business sectors have understandably been impacted by COVID-19, this has been more than offset by demand in other areas, with the Medical sector and the US regulatory operations performing particularly well compared to prior year.
“As anticipated, revenue from the Frontier business has been impacted by the market contraction related to the pandemic, although we believe that the business’ substantial market share (estimated at 70-80%) has been maintained and that its second half revenue 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.”
