A change in disclosure, not in policy

Science Group (LSE:SAG), the science and technology consultancy that also owns product businesses, told the market on 2 November 2026 that it would report its share repurchases weekly rather than daily. The company said the move complied with AIM Rules, would reduce administration and cut the number of regulatory announcements, and left the buyback itself unchanged.

The first weekly notice followed on 9 November. It covered 36,000 shares bought between 2 and 5 November at prices from £5.66 to £5.69, for total consideration of £204,190, an average of roughly 567p a share. All of the shares went into treasury, where they carry no votes.

About the company

Science Group is a science and technology consultancy that also owns product businesses. It works with clients on development and regulatory matters, and its product businesses sell specialised equipment and services. The company reports revenue, including pass-through defence work that carries a low margin, which it has been reducing.

How far the share count has fallen

After that week, LSE:SAG held 6,098,281 shares in treasury and had 40,087,593 voting shares in issue. Treasury stock is now about 13.2% of the total share capital. On 13 October the voting share count stood at 40,213,093, so roughly 125,500 shares have been removed from the voting total in a little over three weeks, net of any treasury shares reissued.

Because every holding is measured against that shrinking denominator, the effect on the register is cumulative. Executive chair Martyn Ratcliffe's disclosed 8,042,080 shares now equate to about 20.1% of votes, and Ruffer's 6,428,053 to about 16.0%, assuming neither has dealt since their October notifications.

A new name above 5%

A further notification, published on 9 November, showed Artemis Investment Management crossing the 5% threshold on 5 November, with 2,099,116 shares, or 5.23% of voting rights, all held directly. Unlike the October filings for Mr Ratcliffe and Ruffer, which were triggered by changes in the voting share total, this one was recorded as an Acquisition of voting rights. Taken together, the three disclosed holders control a little over 41% of the votes.

Why the buyback matters

LSE:SAG's interim results on 27 July, showed core Revenue of £46.4m, down from £48.7m, and total revenue of £47.2m after a managed reduction of low-margin pass-through defence work. Adjusted operating profit edged up to £11.5m, lifting the Margin to 24.3% from 19.7%, and adjusted Basic Earnings Per Share rose to 20.4p. The company held cash of £67.9m and net funds of £56.8m at the end of June, had returned £26.3m to shareholders over the previous year and said its 2026 buyback was likely to exceed £20m.

With profits broadly flat and revenue lower, repurchases are the main lever lifting per-share earnings. Weekly reporting does not change that arithmetic, but it does mean investors will see the share count updated less often.

Risks and limitations

A narrowing free float can reduce Liquidity and concentrate voting power, and cash spent on Buybacks is unavailable for acquisitions, which the group has used to expand in the past. The interim figures show revenue under pressure in defence-related work.

There is also a regulatory dimension. Under the Takeover Code, a holder whose interest rises to 30% or more can be required to make an offer, and the Code contains specific provisions for stakes that increase because of buybacks. Mr Ratcliffe remains well below that level, but his percentage will keep rising while repurchases continue.

The mechanics of the weekly notice

A move from daily to weekly reporting means the company will publish one notice covering several days of purchases. The first notice covered 2 to 5 November, four trading days, and 36,000 shares, an average of 9,000 a day. At about 567p, the total consideration of £204,190 matches 36,000 times 567p, which is £204,120, close to the stated figure, with a small difference due to rounding of the average. The company states that the buyback itself is unchanged.

Treasury shares

Treasury shares of 6,098,281 make up 13.2% of the total Share Capital of about 46.2 million shares. Voting shares of 40,087,593 are the figure used for notification thresholds. Shares held in treasury can be cancelled, sold or used for employee share schemes, so the voting count could rise if shares are reissued. The fall of about 125,500 voting shares over three weeks is about 0.3% of the count.

The effect on major holders

Ratcliffe's 8,042,080 shares divided by 40,087,593 voting shares gives about 20.06%. Ruffer's 6,428,053 shares give about 16.04%. Artemis's 2,099,116 shares give 5.24%. The three together hold 16,569,249 shares, about 41.3% of the votes. Because three holders control that proportion, the free float is limited, and buybacks that reduce the share count raise each holder's percentage without any purchase by them.

The interim results

Core revenue of £46.4m, down from £48.7m, fell about 4.7%, while total revenue was £47.2m after reducing low-margin pass-through defence work. Adjusted operating profit of £11.5m on core revenue of £46.4m is a margin of about 24.8%, though the company reports 24.3% on a slightly different base. The margin improved from 19.7%, which suggests that the group's mix has shifted towards higher-margin work.

The group's Business mix

Science Group combines consultancy with product businesses, which gives it two kinds of revenue. Consultancy work is billed for time and expertise, while product businesses sell equipment and services that can be repeated. The managed reduction of low-margin pass-through defence work lowers reported revenue but raises the margin, which explains why the adjusted Operating Margin moved from 19.7% to 24.3% while core revenue fell by about 4.7%.

Because the buyback is large relative to the company's size, with treasury shares at about 13.2% of the capital, it has a material effect on the register. Every share bought reduces the number of shares that can vote, so holders who do not sell see their percentage rise.

The disclosure of share purchases in weekly rather than daily notices does not change the amount that can be bought. It means investors have to wait up to a week to see the Volume and price of purchases, and the totals for treasury shares and voting rights appear less often. The AIM Rules permit this approach, and the company said it would reduce administration.

The Interim Dividend and the cash position are further parts of the picture, but the main point of the notices is the steady reduction in the voting share count and the changes this brings to the percentages held by the largest shareholders.

What to watch

The next markers are the weekly repurchase notices, the monthly total voting rights announcement and any further holding notifications as percentages drift upwards. Management has guided to sequential growth in the second half, led by its Services division.