Science Group (SAG) H1 2026 earnings summary

Executive summary

• Delivered resilient H1 2026 performance amid geopolitical and sector uncertainty, with adjusted operating profit up to £11.5m from £11.3m year-over-year and AOP margin rising to 24.3% from 19.7%.

• Core revenue (excluding low-margin/pass-through defence activities) was £46.4m, down from £48.7m, reflecting a managed reduction in low-margin activities.

• Adjusted basic EPS increased to 20.4p from 19.3p year-over-year, supported by profitability and share buy-backs.

Financial highlights

• Total revenue declined to £47.2m from £57.2m, reflecting reduced low-margin pass-through activities.

• Adjusted operating profit rose to £11.5m from £11.3m year-over-year.

• Cash conversion remained strong at 94%, generating £10.7m from operations.

• Group cash at 30 June 2026 was £67.9m, down from £82.0m.

• Net funds at £56.8m, down from £70.3m, reflecting capital returns.

Outlook and guidance

• Sequential period growth anticipated in H2 2026, mainly driven by the Services Division, with margin enhancement expected.

• Systems businesses expect H2 revenue similar to H1, with margins normalizing.

• Improvement expected in Sagentia Defence following the UK Defence Investment Plan release in July 2026.

• Share buy-back programme for 2026 expected to exceed £20.0m.