AGM Trading Update
16 Apr 2012
Sagentia Group plc (AIM:SAG), the international technology company which
provides outsourced R&D consultancy services, provides the following trading
update ahead of the Company’s Annual General Meeting this morning.
The Group’s preliminary results for 2011 were released on 5 March 2012 in which
the Group reported that satisfactory progress had been made in consolidating the
turnaround achieved in 2010, but that the Group had experienced some effects from
the deterioration in the macro-economic environment in the second half of the year.
Since the start of the current year the Group has seen some early signs of an
improvement in the general economic situation and renewed interest from the
Industrial sector in particular. Unfortunately, a large project with a North American
start-up in the Medical sector has been suspended which will result in Group
revenue in the first half of 2012 being lower than the revenue reported in the second
half of 2011, despite the underlying business continuing to grow. Actions have been
taken to mitigate this event and these have been effective in enhancing operating
margins. As a result for the full year, while revenue will be lower than last year, profit
is anticipated to be in line with the Board’s expectations.
With a strong balance sheet the Board continues to evaluate potential merger and
acquisition opportunities, although remains prudent in this process.