Trading Update, Board Changes and Dividend Policy

RNS Number : 9506O

Sagentia Group PLC

18 October 2012

 



18 October 2012

Sagentia Group plc

("Sagentia", the "Company" or the "Group")

Trading Update, Board Changes and Dividend Policy

Trading Update

Operating performance over the summer period has continued broadly in line with the Board's expectations, as set out in the Interim Report.  As a result, the Board anticipates a satisfactory operating outcome for the current financial year, before the one-off cost noted below.

The Group's balance sheet remains strong with unaudited shareholders funds at 30 September 2012 of £26.7 million, comprising mainly cash and freehold property, equivalent to approximately 69 pence per share.  Net cash at 30 September 2012 was £13.2 million.

Board Changes

After three years at Sagentia, Brent Hudson, CEO, has decided to leave the company and resign as a director with effect from 31 October 2012.  An associated one-off charge will be incurred in the current financial year.  Brent has been instrumental in the turnaround of the Group and the Board wish him well for the future.

With immediate effect, the current Chairman, Martyn Ratcliffe, has been appointed as Executive Chairman.  The Board does not anticipate appointing a plc Board replacement for Mr Hudson but is promoting Mick Withers and Dan Edwards, currently Head of the Medical and Commercial sectors respectively, to Joint Managing Directors of Sagentia Limited, the consultancy operating company.

Strategy & Dividend Policy

The restructuring in 2010 and 2011 established the required business processes within Sagentia's very talented science and engineering consultancy.  As a result, Sagentia today is a successful, profitable business with a blue-chip customer base.

The Board continues to explore acquisition opportunities, but remains prudent, particularly in the current economic climate.  However, a number of organic business growth opportunities have recently been identified which the Board believe could increase medium term growth.  Therefore, whilst the Board will continue to target operating margins towards the upper quartile of comparable companies, in order to pursue these activities, the Board intends to balance the Group's operating margin targets with investment in longer term growth opportunities.

The Board has also determined that, subject to shareholder approval at the next Annual General Meeting, it is now appropriate to commence dividend payments.  The Board anticipates a single dividend being paid each year.

- Ends -

For further information:

Sagentia Group plc
Martyn Ratcliffe, Executive Chairman	Tel: [phone]
Neil Elton, Finance Director	www.sagentia.com

Numis Securities Limited
Nominated Adviser: Oliver Cardigan / Simon Willis Corporate Broking: James Serjeant	Tel: [phone]

Media enquiries:

Abchurch
Henry Harrison-Topham	Tel: [phone]
[e-mail]	www.abchurch-group.com

 

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