Science Group Increases Stake in Struggling Ricardo plc
Why we think this is bad
The RNS highlights significant issues with Ricardo's board and performance, which have led to substantial value destruction for shareholders. While Science Group's increased stake could potentially lead to positive changes, the current state of the company is concerning.
Key Points
- Science Group has increased its shareholding in Ricardo plc to 15.19%
- Average cost of the shares is 230 pence per share
- Science Group believes Ricardo has experienced substantial value destruction under the current board's leadership
- Ricardo's board has not taken responsibility by offering to resign
Summary
The consulting and technology company has increased its stake in the engineering firm, citing concerns over the board's strategy and poor operational performance.
Science Group plc has increased its shareholding in Ricardo plc to 15.19%, making it the second-largest shareholder. The company believes Ricardo has experienced substantial value destruction due to the board's strategy, weak operational performance, excessive executive remuneration, and ineffective governance. Science Group states that Ricardo shareholders should hold the board to account for the failure of governance.
GENERAL UPDATE