Judges Scientific (LON: JDG) presented its interim results for the six months ended 30 June 2026 on 23 September. Adjusted operating profit fell 66% to £4.8 million, and adjusted earnings per share declined 72% to 39.0 pence. Revenue contracted 21% to £55.7 million, representing a 13% drop on a like‑for‑like basis after excluding the prior year’s Geotek coring expedition.
Operating costs were reduced 9% to £50.9 million, reflecting targeted savings of roughly £2 million, but the operating margin narrowed to 8.6% from 20.4% a year earlier. Cash generation from operations amounted to £4.3 million, equating to a 90% cash‑conversion rate. Net debt rose to £45.3 million, giving a leverage ratio of 2.1 times EBITDA, while working capital increased to £28.4 million.
The group paid an interim dividend of 36.0 pence per share, a 10% increase despite the profit decline. Capital expenditure was limited to £2.7 million, largely for internal development. The effective tax rate was 18% after applying the UK Patent Box regime.
Order intake fell 12% year‑on‑year in the first half, but by late September the year‑to‑date order backlog was only 1% below the prior year, improving from an 18% shortfall in Q1. The order book stood at 17.3 weeks at 30 June, essentially unchanged from 15.7 weeks at the end of 2025. Geographic performance showed a 7% decline in North America, a 47% drop in China, and a 20% fall in the rest of Europe, while the UK saw a 5% rise and the rest of the world a 12% increase. Export sales continue to represent more than 85% of total revenue.
Management highlighted a continued pipeline of acquisition opportunities. The group, which has completed 25 acquisitions since its 2005 admission and has raised its dividend for 19 consecutive years, targets niche scientific‑instrument businesses with strong export focus. Typical deal multiples range from 3‑to‑7 times EBIT, most commonly 4‑to‑6 times, funded with cash and debt at leverage up to 3 times EBITDA.
Chief Executive Tim Prestidge said the company does not cut costs indiscriminately for short‑term gains, while CFO Brad Ormsby noted that a 21% revenue decline translates into a two‑thirds drop in adjusted operating profit due to the business’s high operational leverage. The next Geotek coring expedition is not expected before 2028, and the Armfield defined‑benefit pension buy‑out was completed in August 2026.
Following the announcement, Judges Scientific shares traded at $3,720, down 2.38% (approximately £90) and 43% below the peak of $6,500. The 52‑week low stood at $3,480.
