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(Sharecast News) - Science Group delivered record adjusted operating profit and earnings per share for the year ended 31 December, it announced on Monday, despite a modest decline in revenue.
The AIM-traded firm said adjusted operating profit rose to £21.5m from £20.5m, while adjusted basic earnings per share increased to 36.2p from 33.3p.
Revenue for the year slipped to £110.7m from £113.3m in 2023.
However, profit before tax more than doubled to a record £14.7m, up from £7.6m, supported by strong operational performance and margin discipline.
The group said it generated £21.8m in cash from operations and ended the year with cash of £38.6m and net funds of £26.8m, after completing a £5.0m share buy-back programme.
Post year-end, the company made a new investment in Ricardo and renewed its banking facilities, including a term loan and revolving credit facility.
Science Group also announced that it would expand its 2025 share buy-back programme to over £6m and maintain its dividend at 8p per share, in line with its capital allocation strategy.
"Science Group reports another solid performance in 2024, despite economic and political volatility, maintaining strong margins with record adjusted earnings per share, the primary metric for shareholder value," said executive chair Martyn Ratcliffe.
"The consultancy services division was somewhat affected by the market instability, but this was offset by the performance of CMS2 resulting from the successful turnaround of that business.
"Accordingly, the group's strategy again demonstrates resilience and translates into tangible results."
Ratcliffe said that "most importantly", adjusted operating profit translates into cash.
He added that the company's strong balance sheet provided a robust foundation for the group, while also enabling the board to pursue corporate opportunities in a timely manner, as evidenced by the recent investment in Ricardo.
"Even after the Ricardo investment, Science Group retains significant cash resources, enhanced by the recent renewal and increase of finance facilities.
"Similarly, while the Science Group share price has consistently outperformed the relevant market indices, the board remains focused on translating operating performance into shareholder value.
"Accordingly, the board anticipates allocating capital to continuing and increasing the share buyback programme in the year ahead."
At 0916 GMT, shares in Science Group were up 0.49% at 412p.
Reporting by Josh White for Sharecast.com.
