Science Group raises Ricardo stake, has 'little confidence' in board

8th Apr 2025 08:02

(Sharecast News) - Science and technology consultancy Science Group revealed on Tuesday that it had raised its stake in environmental consulting services firm Ricardo to 14.49m shares, representing approximately 20.08% of the company's total voting rights.

Science Group stated the 20% threshold was "a key strategic investment milestone", achieved in just 7 weeks, at an average cost of 236.0p per share. The AIM-listed group stated it "may or may not "increase its shareholding in Ricardo.

"The Science Group shareholding was acquired at levels last seen in 2010 following disappointing Ricardo operating performance and investor loss of confidence," said Science Group, which added that since Ricardo's board "was evidently unable to manage the company through the 'market headwinds' of 2024", it now has "little confidence" in its ability to "navigate the global storms" developing in 2025.

"Science Group considers it extraordinary that, with such poor operating performance compounded by ineffective governance, the Ricardo Board refuses to accept responsibility. The chairman is ultimately accountable to shareholders for the destruction of shareholder value and his position is clearly untenable," it said.

"In light of the recent market/economic volatility, increasing significantly in the past week, the need to effect change at Ricardo is even more pressing. The future strategy now needs to be defined by a realigned board, reflecting the current market environment and a reprioritisation of shareholders' interests."

As of 0910 BST, Ricardo shares were up 3.04% at 237.00p, while Science Group shares advanced 3.19% to 420.0p.

Reporting by Iain Gilbert at Sharecast.com