Science Group Plc · LSE:SAG
Science — H1 2018 Earnings Presentation
10 slides from Science's earnings presentation, Jul 24, 2018
Slide 1: Interim Results Presentation July 2018
Interim Results Presentation July 2018 Martyn Ratcliffe Chairman Rebecca Archer Finance Director To be read in conjunction with the Interim Results announcement released on 24 July 2018 In addition to IFRS measures, alternative performance measures are used in this presentation. Refer to the Notes t
Slide 2: Financial Summary
Financial Summary • Group revenue of £25.1m (H1-17: £18.0m) • Record revenue for the Group, benefitting from TSG acquisition • 85% of Core Business revenue from international markets • 32% of Core Business revenue invoiced in US Dollars and 14% in Euros • Adjusted operating profit of £3.7m (H1-17: £
Slide 3: Group Revenue
Group Revenue • Record revenue, benefitting from TSG acquisition • Organic growth strongest in Medical sector • Negative FX impact of £0.3m in period 30 25 Non Core: Property income 20 Revenue (£m) Other core business revenue 15 10 Core business: Services revenue 5 0 H1-12 H2-12 H1-13 H2-13 H1-14 H2
Slide 4: Revenue by Currency/Geography
Revenue by Currency/Geography • 85% (H1-17: 80%) of Core Business revenue derived from international markets • 32% of Core Business revenue invoiced in US$ (H1-17: 32%) and 14% in Euro (H1-17: 9%) • Employee Distribution - UK: 84%; America: 11% and Continental Europe: 5% 100% 100% 90% 90% 80% 80% 70
Slide 5: Service Offerings Revenue Profile
Service Offerings Revenue Profile Service Offerings Overview • Applied Science & Product Development • Organic growth on both year-on-year and sequential period basis • Medical sector strong organic growth • Commercial sector decline year-on-year but maintained H2-2017 levels, as anticipated Regulat
Slide 6: Market Sector Revenue Profile
Market Sector Revenue Profile Market Sector Overview • Medical: Continued strong performance in Food & Applied Science/Product Development. Beverage 18% Medical • Commercial: Benefitted from TSG 34% acquisition. Market still slow in some sectors. • Food & Beverage: Steady performance Commercial with
Slide 7: Adjusted Operating Profit
Adjusted Operating Profit • Record H1 adjusted operating profit • Foreign exchange negative by £0.3m in H1-18 compared to H1-17 • Margin decline related to TSG acquisition integration 4.0 24% 3.5 Adjusted operating profit margin (%) 3.0 18% Adjusted operating profit (£m) 2.5 2.0 12% 1.5 1.0 6% 0.5 0
Slide 8: TSG Integration
TSG Integration • TSG acquired in September 2017 • Gross consideration of $17.0m (£13.2m) funded from existing cash resources • Net consideration was £10.4m, including £2.8m cash acquired with the business • Net acquisition integration costs of £1.1m incurred since acquisition • USA Integration Prog
Slide 9: Freehold Property
Freehold Property • Science Group owns two freehold properties • Harston Mill is owned by Sagentia Limited, the largest operating business • Great Burgh is held in a dedicated subsidiary with leases to 2 of the operating businesses • Considering moving ownership of Harston Mill from the trading comp
Slide 10: www.sciencegroup.com
www.sciencegroup.com Head office Harston Mill Harston, Cambridge CB22 7GG UK Phone: +44 1223 875200 [email protected] 10