Science Group (SAG) H2 2025 earnings summary

Executive summary

• Achieved record profitability with adjusted operating profit (AOP) of £23.1m, up from £21.5m year-over-year.

• Revenue increased to £111.7m from £110.7m, reflecting resilient performance despite sector challenges.

• Statutory profit before tax surged to £41.5m from £14.7m, driven by exceptional corporate investment gains.

• Both adjusted and statutory EPS reached record highs, with adjusted EPS at 40.2p and statutory EPS at 75.1p.

• Strong cash generation and balance sheet, with year-end cash at £72.6m and net funds at £61.2m.

Financial highlights

• Adjusted operating margin improved to 20.7% from 19.5% year-over-year.

• Cash generated from operations rose to £31.8m from £21.8m.

• Gross cash and net funds more than doubled year-over-year.

• Recommended dividend increased by 25% to 10p; share buybacks totaled £10.7m.

• Return on capital employed (ROCE) has exceeded 30% since 2020.

Outlook and guidance

• 2026 market dynamics expected to remain similar, with ongoing geopolitical uncertainties.

• Share buyback program to continue in 2026 at similar levels, subject to market and corporate activity.

• Anticipated benefit from new product launches, particularly in connected-audio, expected in 2027 and beyond.