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Judges Scientific (LSE:JDG), a company focused on acquiring and developing businesses in the scientific instrument sector, announced its unaudited interim results for the six months ended 30 June 2024. The group faced difficult market conditions, which, combined with high prior-year comparatives, led to a decline in both revenue and order intake. Despite this, Judges Scientific remains optimistic about the second half of the year, supported by recent acquisitions and an improving order book.
Financial Highlights
- Organic Revenue: The group's organic revenue decreased by 3% compared to the first half of 2023, reflecting a challenging market environment.
- Order Intake: Organic order intake fell by 4% compared to the same period in 2022. The group's order book was down, standing at 17.2 weeks, compared to 22.4 weeks in the first half of 2023.
- Acquisitions: The group completed two small acquisitions during the first half of the year—Luciol and Rockwash—for a combined consideration of £4 million, with an additional maximum earn-out potential of £4.2 million, along with excess cash.
Strategic Developments
Judges Scientific remained active in executing its acquisition strategy, which has been a key growth driver over the years. The two acquisitions, Luciol and Rockwash, are expected to enhance the group's portfolio within the scientific instrument space.
In addition to these deals, the group has been proactive in strengthening its leadership team with the recruitment of Dr. Ian Wilcock as Group Commercial Director. His appointment is expected to bolster the company's commercial activities and contribute to its strategic growth plans.
Post-Period Highlights
Several significant developments occurred after the reporting period, further strengthening the company's prospects:
- Magsputter Acquisition: Judges Scientific completed the acquisition of Magsputter, a strategic move to enhance its technological offering, for £12.3 million plus excess cash.
- Banking Facility Expansion: The group extended and increased its banking facility to £140 million, including a £50 million accordion, providing ample financial flexibility for future investments and operational needs.
- Geotek Coring Contract: The group secured a new Geotek coring contract for an early 2025 expedition, reflecting ongoing demand for its services in niche markets.
Outlook
Judges Scientific remains cautiously optimistic about the second half of 2024. While market conditions continue to be challenging, the company has seen some recovery in order intake during the first few months of the second half, including the signing of the 2025 Geotek coring contract. The group expects a stronger second half, though it remains vulnerable to the timing of orders and revenue.
