Science Group holds 16.85% of Ricardo voting rights

Published 31/03/2025, 07:06
Science Group holds 16.85% of Ricardo voting rights

LONDON - Science Group PLC, a consultancy and engineering firm, has disclosed its ownership of 10,483,684 shares in Ricardo PLC, representing approximately 16.85% of the company’s voting rights. The average cost of these shares, including brokerage fees, was 232 pence each. It is unclear whether Science Group intends to increase its stake in Ricardo, a provider of similar services.

In a stark contrast with Ricardo’s recent financial struggles, Science Group has reported robust operating margins and record earnings per share for the year ended December 31, 2024, despite facing the same market challenges Ricardo cited for its poor performance.

Science Group has voiced concerns to the Ricardo Board through multiple announcements and a 90-minute meeting, criticizing the Board for its response to the share purchases and the alleged mismanagement leading to a 65% decrease in Ricardo’s share price. Ricardo’s recent announcement on March 28, 2025, was seen as an attempt to deflect from core issues, including significantly downgraded expectations for the current year and the next.

Science Group’s critique of Ricardo includes failure to meet profitability targets, inadequate financial processes, poor cost control, and ineffective governance, which led to a high-risk acquisition just weeks before a major profit warning. Furthermore, Science Group has called out excessive executive remuneration at Ricardo compared to the Board’s minimal shareholdings.

The upcoming Ricardo Business and Strategy Update, set for mid-April, is met with skepticism by Science Group due to past failures in executing strategic plans. Science Group insists on holding the Ricardo Board accountable and suggests that any future acquisitions or disposals should require shareholder approval.

The shareholder base of Ricardo has changed significantly post-January profit warning, with four shareholders now holding nearly 60% of the issued share capital. Science Group maintains that its engagement has led to partial recovery in Ricardo’s share price and increased scrutiny of the Board’s performance, but notes the Board’s continued denial of responsibility.

This news is based on a press release statement from Science Group.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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