Last checked at 17 Jul 2014 07:00
Judges Scientific plc ('Judges Scientific', the 'Company' or the 'Group')
Trading Update
The Directors of Judges Scientific, the parent company of a group specialising in the design, manufacture and sale of scientific instruments, update shareholders and the market with regard to the Group's trading performance during the first half of the current financial year.
The trading performance of the Group's businesses during the period proved challenging. The interim results, scheduled to be announced in September 2014, are expected to show revenue growth of 43% compared with the corresponding figures for the six months to 30 June 2013; this includes for the first time the results from Scientifica Ltd ("Scientifica"), which was acquired on 26 June 2013; without Scientifica, the Group would have produced organic growth of 3.2%. The Board anticipates that interim profits before exceptional items will also progress but only to the extent that could have been expected as a result of the inclusion of Scientifica. This also applies to adjusted basic earnings per share, which are expected to increase despite the 9% dilution resulting from the October 2013 share placing.
Order intake during the six-month period (excluding Scientifica) was 4.8% below that recorded during the first half of 2013; total intake (including Scientifica) was 11% below the level required to meet our sales budget for the year without consuming our order book. The second quarter showed a moderate but insufficient improvement compared to the first. The order book at 30 June 2014 represented 7.8 weeks of sales, compared to 10.6 weeks at 30 June 2013.
After displaying a resilient performance during the extremes of the global financial crisis, our sector suffered in 2013, with exports from the UK down 3.5%. Against this background, Judges still managed to achieve 4.5% organic growth in that year. We appear to be experiencing this slowdown, albeit with some delay. The efforts to contain public sector spending have been compounded by the 10% appreciation of Sterling against the US$ during the last twelve months. The US$ remains the benchmark of value outside Europe, where we export half of our turnover.
Operating cash flow was healthy throughout the period. The Company's balance sheet remains robust and net debt rests at a modest multiple of operating profit. Consequently, the disappointing performance in the first half and prevailing trading headwinds do not inhibit the two factors which have primarily delivered shareholder value: selective acquisitions and our progressive dividend policy.
For further information please contact:
Judges Scientific plc
David Cicurel, CEO
Tel: 01342 323 600
Shore Capital (Nominated Adviser & Broker)
Pascal Keane
Edward Mansfield
Tel: 020 7408 4090
Cardew Group (Financial Public Relations)
Melvyn Marckus
Tel: 020 7930 0777 or 07775 896 491
Website:
Judges Scientific: www.judges.uk.com