LGC Science Group

Overview Key strengths Key risks Leading market positions within scientific and assurance reference standards and genomics. Exposure to fragmented industry of testing, investigation, and certification (TIC). High barriers to entry in terms of regulated nature of service offerings and accreditations held by laboratories. Relatively rigid cost base and limited flexibility due to skilled nature of employee base, with high exposure to wage inflation. Good revenue visibility supported by high share of recurring revenue and critical, nondiscretionary products. Operating margins historically affected by substantial one-off costs related to mergers and acquisitions (M&A). Very low customer concentration, with a highly diversified client base. LGC Science Group (LGC) reported solid and profitable growth of 8.1% on a comparable basis (13.4% reported) in financial

...S&P Global Ratings anticipates solid operating performance in financial 2023 (ending March 31, 2023), stemming from continued growth momentum in the base business. LGC Science Group (LGC) reported solid and profitable growth of 8.1% on a comparable basis (13.4% reported) in financial 2022 and 5% in first-quarter financial 2023, spurred by a favorable environment where investment in nucleic acid therapeutics is continuously increasing, resulting in demand for LGC's products, namely Oligonucleotide. Moreover, the...

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