Science Group Urges Strategic Overhaul at Ricardo Amid Financial Challenges

PUBLISHED: 01 May 2025 @ 18:11 | Comments (0) | More info about Fiona Craig

Science Group PLC (LSE:SAG), a significant shareholder in Ricardo plc (LSE:RCDO), has voiced concerns over Ricardo’s strategic direction and financial health. Holding a 20.08% stake, Science Group has criticized Ricardo’s recent Business & Strategy Update for overlooking crucial financial issues and failing to outline a clear recovery plan. The update disclosed a significant reduction in financial forecasts, including an expected operating profit loss and lower cash flow projections, which have led Science Group to call for leadership changes at Ricardo.

In light of these challenges, Science Group is pushing for a comprehensive strategic review and restructuring at Ricardo to restore shareholder value. The company is also considering the possibility of selling its stake in Ricardo, given the latter’s deteriorating financial condition.

Company Overview

Science Group PLC is a well-established company with a strong financial position, including solid income and balance sheet metrics. While its valuation remains reasonable, the stock faces technical challenges, with bearish trends suggesting caution. The company continues to monitor its investments, particularly in Ricardo, which represents both a potential risk and opportunity for its portfolio.

Key Metrics:

Year-to-Date Share Price Performance: -2.87%
Average Daily Trading Volume: 22,589 shares
Technical Sentiment: Sell
Market Capitalization: £196.1 million

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