Last checked at 8 Aug 2018 07:00
Press Release | 8 August 2018 |
Judges Scientific plc
("Judges Scientific", "Judges", the "Company" or the "Group")
Increase in shareholding in PE Fiberoptics Limited
Judges Scientific, a group involved in the buy and build of scientific instrument businesses, announces that its interest in its majority owned subsidiary PE Fiberoptics Limited ("PFO") has increased from 51% to 67.5%.
In 2005, Judges financed the management buy-out of a business manufacturing instruments to test fibre optics. The buy-out vehicle, PFO, was owned by Judges (51%), the seller (14%) with the management of PFO owning the balance of the equity (35%).
PFO has now purchased half of the shares owned by all shareholders other than Judges, satisfied by a portion of its surplus cash balances. As a result, PFO purchased 24.5% of its issued share capital. The total value of the repurchase was £1.5m, based on an enterprise value of £3.8m for 100% of PFO. In 2017, PFO generated £1.1m EBIT.
Following the repurchase PFO retains substantial cash resources and Judges Scientific's board expects the transaction to be immediately earnings enhancing for the Group.
For further information please contact:
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Notes to editors:
Judges Scientific plc (AIM: JDG), is a group involved in the buy and build of scientific instrument businesses. The Group currently consists of 16 businesses acquired since it was re-admitted to AIM in 2005. The acquired companies are primarily UK-based with products sold worldwide to a diverse range of markets including higher education institutions, the scientific communities, manufacturers and regulatory authorities. The UK is a recognised centre of excellence for scientific instruments. The Group companies have been awarded five Queen's Awards for innovation and export.
Judges Scientific maintains a policy of selectively acquiring businesses that generate sustainable profits and cash. Shareholder returns are created through the repayment of debt, organic growth and dividends.
The Group's companies predominantly operate in niche end markets, with long term growth fundamentals and resilient margins.
For further information, please visit www.judges.uk.com