INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2026

Summary

• Resilient H1 performance positions Group for another solid year
• Adjusted* Operating Profit of £11.5m (H1 2025: £11.3m)
• AOP margin of 24.3% (H1 2025: 19.7%)
• Adjusted* basic EPS of 20.4 pence (H1 2025: 19.3 pence)
• Core revenue (excluding pass-through defence revenue) of £46.4m (H1 2025: £48.7m)
• 2026 share buy-back programme anticipated to exceed £20.0m

* Alternative performance measures are provided in order to enhance the shareholders’ ability to evaluate and analyse the underlying financial performance of the Group. Refer to Note 1 for detail and explanation of the measures used.

Interim Results 2026

Science Group plc is an international Services and Systems company delivering innovation through the application of science, technology and engineering. The Group’s financial priorities and strategic drivers are: adjusted operating profit, operating margin and cash flow. The capital generated from the operating cash flow, combined with the significant cash resources on the Group’s balance sheet, is allocated to (i) corporate opportunities where the resources and capabilities of the Group can be deployed to produce attractive returns for shareholders, and/or (ii) capital returns to shareholders through the annual dividend and the share buy-back programme.

Science Group reports another resilient performance for the first half of the year, despite the global geopolitical environment and the uncertainty in the UK defence sector. For the six months ended 30 June 2026, Group Adjusted Operating Profit (‘AOP’) increased to £11.5 million (H1 2025: £11.3 million), an AOP Margin increase to 24.3% (H1 2025: 19.7%). Core revenue was £46.4 million (H1 2025: £48.7 million) and total revenue was £47.2 million (H1 2025: £57.2 million), the respective difference reflecting the managed reduction of low margin, pass-through defence revenue.

Profit before Tax of £8.1 million was consistent with the prior year after normalising for the H1 2025 exceptional corporate investment gain of £24.0 million. Adjusted basic earnings per share increased to 20.4 pence (H1 2025: 19.3 pence), benefitting from the increased profitability and the reduction in share capital resulting from the ongoing buy-back programme.

Cash conversion remained strong at 94%, generating £10.7 million from operations in the period (H1 2025: £21.2 million, which benefitted from a working capital normalisation). After returning £26.3 million to shareholders over the past year through the share buy-back programme and dividend (and after payment of the £5.1 million tax on the 2025 corporate investment gain), Group cash at 30 June 2026 was £67.9 million (30 June 2025: £82.0 million) with net funds of £56.8 million (30 June 2025: £70.3 million). The Group’s revolving credit facility of £30.0 million remains undrawn.

(Alternative performance measures provide clarity on the Group’s underlying trading performance. Refer to Note 1 for detail and explanation of the measures used.)

Services Division – Sagentia

Sagentia provides product development, regulatory and advisory services. The Division is differentiated through deep technical, scientific and engineering expertise combined with specialist industry knowledge.

The geopolitical turmoil in the Middle East impacted business confidence in H1 2026, across the Division’s international corporate client base, with concerns over increasing energy prices, global inflationary pressures and potential interest rate increases. Such an environment inevitably creates uncertainty and slows investment decisions resulting in delays to procurement schedules. While some market sectors stabilised fairly rapidly, others have taken longer to normalise.

Science Group entered the UK defence market through the acquisition of TP Group in 2023. In recent years, to align with the Board’s financial priorities, Sagentia Defence has progressively reduced the exposure to low margin, pass-through activities, reducing reported revenue but enhancing margin. The completion of this transition coincided with the UK Defence Investment Plan (‘DIP’) delay which, as widely reported, materially disrupted UK defence contracting. With the DIP release in July 2026, the Sagentia Defence practice is already seeing an improvement which is anticipated to continue in the second half.

Notwithstanding the external challenges in the period, the AOP margin for the Services Division was held at 24.0% (H1 2025: 23.9%), delivering AOP of £7.0 million (H1 2025: £7.9 million). Core revenue was £28.2 million (H1 2025: £29.0 million) excluding £0.8 million (H1 2025: £4.2 million) low margin, pass-through revenue. In summary, Sagentia reported a creditable first half performance and most sectors are well positioned to increase in the second half of the year.

Systems Businesses

The Group has two Systems Businesses, both of which have strong positions in their respective markets. In the first half of 2026, both Businesses performed in line with the Board’s expectations.

Critical Maritime Systems & Support (‘CMS2’) is based in Portsmouth, Hampshire, and designs, manufactures and supports submarine atmosphere management systems for the defence sector, specialising in regenerative systems to support extended submerged operations.

Due to operational timings on certain contracts, CMS2 margin increased to an exceptional 38.3% (H1 2025: 21.9%) and AOP increased to £4.3 million (H1 2025: £3.6 million). Revenue in the first half of 2026 was £11.1 million, compared to the prior year core revenue of £12.3 million. H1 2025 reported revenue was £16.6 million, including £4.3 million of low margin consumables revenue, which did not recur in H1 2026. It is a characteristic of the CMS2 Business that revenue and margins experience significant variability and over 2026 as a whole a more normalised margin is anticipated.

Frontier is a leading developer and supplier of radio and audio semiconductors/modules, with a significant share of its core market. Frontier’s new product, Auria, provides enhanced connected audio for a larger addressable market than the traditional Frontier product range and branded products have now been launched.

The Frontier Business remains relatively stable, in the context of the significant increase in DRAM costs which have impacted the consumer electronics industry. While these costs have been passed on to the distribution channel, there has been modest unit volume decline. However, this has been largely offset by increased selling prices and higher end product mix. As a result, adjusting for FX headwind and a one-off benefit in H1 2025, revenue in the first half of 2026 of £6.8 million was effectively flat on the prior year (H1 2025: reported £7.1 million) with AOP held at £0.9 million (H1 2025: £0.9 million). All R&D costs of Auria continue to be expensed maintaining a high correlation between AOP and cash conversion.

Freehold Property

Science Group owns two large freehold properties. Harston Mill, near Cambridge is approx 9,000
sq m on 6.5 hectares and Great Burgh, near Epsom, is approx 4,000 sq m on 3.6 hectares. These sites are primarily used for the Group’s operations, although the Harston Mill site does have some third-party tenants. The properties are held in separate corporate entities with an aggregate balance sheet value of £20.5 million. (The last independent valuation in December 2023 valued the properties in aggregate in the range £16.9 million to £31.6 million.) The Board recognises that these properties are significant assets in prime locations and considers it appropriate to explore opportunities to enhance shareholder value. Advisors have been appointed to evaluate a range of options which may provide benefits in the longer term.

Capital Allocation

At 30 June 2026, as a result of the significant return of capital to shareholders through the buy-back programme, the Company had 40.8 million shares in issue (30 June 2025: 44.4 million) and held 5.4 million shares in treasury (30 June 2025: 1.7 million). The Group continues the buy-back programme through the broker delegated authority and ad hoc incremental transactions. During the first half of 2026, 2.4 million shares were purchased for treasury at an average price of 553 pence per share, returning £13.5 million to shareholders. Subject to corporate activity, the Board anticipates capital allocation to the buy-back exceeding £20.0 million in 2026.

Summary

The first half of 2026 delivered another resilient performance for Science Group despite the challenges presented by external factors. Whilst the geopolitical environment remains volatile, the Board anticipates sequential period growth in the second half of the year, driven principally by the Services division.

Science Group retains a particularly strong balance sheet, enabling the Board to continue to evaluate corporate opportunities where the potential risk-adjusted returns justify the deployment of capital, while in parallel continuing to return capital to shareholders through the share buy-back programme.