Science Group reported “record” first half results on Monday, slightly ahead of the board’s expectations, with revenue rising 10% to £44.8m.
The AIM-traded firm said adjusted operating profit improved 22% year-on-year in the six months ended 30 June, to £8.8m, while adjusted basic earnings per share was 10% firmer at 14.6p.
It said it was continuing to “actively manage” its strategic investment in TP Group.
The company described its balance sheet as “very strong”, with group cash of £38.6m and net funds of £23.9m, up from a respective £29m and £13m a year ago.
Science Group said it was on track for “another record year” in 2022, despite a deteriorating economic outlook, with the firm benefitting from sector diversification and a strong dollar.
“The first half of 2022 has continued the group’s track record of resilient performance, delivering results slightly ahead of the board’s expectations,” the directors said in their statement.
“The group is experiencing increases in materials, energy and staff costs but has to date managed to offset the effects.
“The macroeconomic environment is unpredictable with global inflationary pressures and destabilising geopolitical events, now combined with an uncertain UK political direction and economic policy.”
Science Group said economic performance in some of the group’s markets was expected to deteriorate in the months ahead, as consumer spending slowed.
“While the group is not immune to macroeconomic factors, the revenue streams are well diversified with little reliance on individual customers or sectors and therefore is well positioned with solid foundations.
“As a result, the board remains cautiously optimistic for the remainder of the year.”
The directors also pointed to the company’s “very strong” balance sheet, including “significant” cash resources and undrawn debt facilities.