Science Group performing well as it integrates TP Group

18th May 2023 14:55

(Sharecast News) - Science Group said in a trading update on Thursday that it performed in line with the board's expectations during the first months of 2023.

The AIM-traded firm, which was holding its annual general meeting, said its services divisions showed growth, while its Frontier subsidiary was continuing to face challenges in the consumer electronics industry due to the economic slowdown since mid-2022, and the resulting excess inventory in market channels.

It said the integration of its recent acquisition of TP Group was progressing satisfactorily, adding that it had implemented improved governance and processes as part of the integration process.

Additionally, Science Group appointed a new managing director from within TP Group to lead TPG Services, ensuring a smooth transition and facilitating the next phase of development for the division.

TPG Maritime, another division of TP Group, had also made significant progress, and benefited from strategic actions taken in 2022 following Science Group's investment.

As at 30 April, the group's gross cash totalled £33.4m, with net funds of £19.6m.

The board said the group's strong balance sheet was further enhanced by the undrawn facility of £25m, arranged in December 2021.

It said the financial position would enable the board to continue evaluating corporate opportunities to increase the scale and development of the group.

"After 10 years as a non-executive director, Michael Lacey-Solymar has now retired from the board," Science Group confirmed in its statement.

"Susan Clement Davies becomes chair of the remuneration committee, succeeding Lacey-Solymar.

"Clement Davies has extensive capital markets and investment banking experience and joined the board in 2022."

Science Group said a "smooth transition" had been effected, with Clement Davies bringing "a fresh perspective" to the board.

"Peter Bertram is now the senior independent director and remains chair of the audit committee.

"Having joined the board in 2020, Bertram is an experienced director and a Chartered Accountant.

"Following the investment in TP Group, Bertram was a Science Group nominated director on the TPG board, and provided a key role in the bank and auditor relationships during this challenging period."

At 1132 BST, shares in Science Group were up 1.24% at 409p.

Reporting by Josh White for Sharecast.com.