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Science Group trading in line; sees 'mixed' impact from Covid-19 crisis

By BFN News | 02:19 PM | Tuesday 31 March, 2020


R&D consultancy Science Group said trading in the first quarter had been broadly in line with its expectations and that the impact of Covid-19 on its business had been 'mixed'. The company said its product development business, Sagentia, was negotiating a contract to manufacture ventilators under the UK government's Rapidly Manufactured Ventilator System (RMVS) initiative. The indirect effects of the pandemic were likely to impact the second quarter, it added, as customers reduced discretionary expenditure on advisory consulting services. However, strong demand levels for regulatory services were anticipated to continue. 'The lockdown across most of Europe also means that consumer electronics companies cannot easily distribute products such as radio units containing Frontier modules, with corresponding demand reduction and revenue deferral,' Science Group said. 'It is currently unclear on the materiality of these effects and/or the recovery that may or may not occur in the second half of the year.' 'In summary, despite the impact of Covid-19, the group's performance in the first quarter was in line with expectations.' 'While the underlying outlook is unpredictable, the RMVS programme could be a significant factor in the second quarter. Regardless of the short-term volatility, the group has a strong balance sheet and is well-positioned to withstand the market disruption.' Science Group said it had cash of £14.4m and net debt was £1.9m at 28 March. At 2:19pm: (LON:SAG) Science Group share price was +40p at 225p Story provided by StockMarketWire.com

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