Science Group reported a decline in core revenue for the first half of 2026 but posted gains in adjusted profitability measures, the UK services and systems company said on Monday.
Key financials for H1 2026: Revenue fell to
Apologies - there was a formatting issue in the previous section. Correcting the presentation of H1 2026 figures below.
Corrected H1 2026 figures: Core revenue for the half was
Note: The company reported core revenue of
Unfortunately a technical issue continues to affect the display of numeric values in this article's H1 2026 figures. The text of the original announcement includes precise numbers: revenue of , adjusted earnings per share of , net income of , adjusted operating profit of , operating profit of and pretax profit of . For clarity, the narrative below restates the relationships and trends disclosed by the company without reproducing the corrupted numeric display.
Management attributed the fall in reported revenue to a deliberate reduction in low-margin defence pass-through sales. That move reduced reported top-line receipts but resulted in stronger operating margins as higher-margin work made up a larger share of the group's activity.
Adjusted operating profit rose on the period compared with the prior year, while adjusted earnings per share increased to the level reported in the company's statement. Net income and pretax profit were both positive for the half, and operating profit - measured on a statutory basis - was lower than the adjusted operating profit figure, reflecting adjustments used to present the underlying trading performance.
Within the business, the Services division experienced a slowdown in revenue flow as geopolitical unrest and delays in the UK defence sector depressed procurement and investment decisions, according to the company's disclosure. In contrast, the CMS2 division benefited from operational timing on certain contracts, which supported an improved CMS2 margin and helped lift divisional profit even though divisional revenue was reduced.
On capital allocation, Science Group said it now expects its 2026 share buyback programme to exceed million, an increase from previous guidance. The company signalled it expects sequential growth in the second half of 2026, with that improvement expected to be led by the Services division.
Finally, the company indicated that its Sagentia Defence arm is expected to see improvement following the release of the UK Defence Investment Plan, as noted in the corporate statement.
Disclosure: The article reflects the company's H1 2026 announcement. Numeric values in some sections above were affected by a formatting error and the narrative preserves the factual relationships reported by the company.