SCIENCE GROUP PLC — Earnings Release 2014

Jan 23, 2015

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RNS Number : 9240C

Sagentia Group PLC

23 January 2015

	23 January 2015

Sagentia Group plc

("Sagentia" or the "Group")

Trading Update

Sagentia Group plc (AIM:SAG) anticipates issuing its preliminary results for the year ended 31 December 2014 in March 2015.

Trading in the second half of 2014 was stronger than the first half of the year and, despite a negative foreign exchange impact, the core consultancy fees increased in the second half relative to the same period in the prior year.

Operating profit is anticipated to be ahead of the Board's expectations at the time of the interim results, due to the mid-year correction in the sterling-dollar exchange rate.  For the year as a whole, the negative FX rates in 2014 mean that the Board anticipates that it will report Adjusted Operating Profit below the 2013 level of £5.7 million but would have exceeded this comparator on a constant currency basis. (Adjusted operating profit excludes amortisation of acquisition related intangible assets and share based payment charges.)

At 31 December 2014, the Group had gross cash of £23.9 million and net cash of £15.1 million.  The Group's debt of £8.8 million at 31 December is secured only on the freehold property in Harston, which has a current carrying value of £13.6 million.

While the Board has evaluated a number of potential acquisition opportunities of varying scale during the past year, in the absence of a major acquisition, the Board has reviewed the cash requirements of the business and is considering a material return of cash to shareholders, anticipated to be in the order of £10 million, probably via a tender offer.  A further update will be provided at the time of the preliminary results.

- Ends -

For further information:

Sagentia Group plc
Martyn Ratcliffe, Chairman	Tel: +44 (0) 1223 875 200
Rebecca Hemsted, Finance Director	www.sagentia.com

Numis Securities Limited
Nominated Adviser: Oliver Cardigan / Simon Willis Corporate Broking: James Serjeant	Tel: +44 (0) 20 7260 1000

Media enquiries:

Abchurch
Henry Harrison-Topham / Jamie Hooper	Tel: +44 (0) 20 7398 7719
jamie.hooper@abchurch-group.com	www.abchurch-group.com

This information is provided by RNS

The company news service from the London Stock Exchange

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