Judges Scientific (JDG) H1 2025 earnings summary

Executive summary

• Achieved 15.5% total revenue growth and 7% organic revenue growth year-over-year for H1 2025, with adjusted operating profit up 16% and adjusted EPS up 14% to 141.4p.

• Management emphasizes disciplined M&A, organic growth, and shareholder value, with a strong dividend growth record and no acquisitions completed in the last 13 months.

• Geotek segment outperformed, benefiting from a profitable coring contract, while other organic businesses saw reduced profitability.

• Cash from operations reached £12.3m, up from £7.8m in H1 2024, and adjusted net debt reduced to £45.7m.

• Board and management changes included a new Non-Executive Chair, formation of an Executive Committee, and recruitment of a new M&A executive.

Financial highlights

• H1 revenue up 15.5% year-over-year to £70.2m, with 7% organic growth and 4% organic order intake growth.

• Adjusted operating profit rose 16% to £14.3m; adjusted pre-tax profit up 17% to £12.6m; adjusted EPS increased 14% to 141.4p.

• Cash from operations reached £12.3m, with 86-87% cash conversion; net debt reduced from £51.7m to £45.7m.

• Interim dividend increased 10% to 32.7p per share, covered 4.3x by adjusted earnings.

• Operating margin at 20.4%; statutory PAT increased to £5.1m; cash balances at £18.9m.

Outlook and guidance

• Full-year performance expected to be in line with revised market expectations after a July trading statement.

• H2 started with a solid order book, but U.S. research funding constraints and weak summer order intake remain challenges.

• Main uncertainties are U.S. research funding decisions and timing of the next Geotek coring expedition.

• Management remains confident in long-term growth drivers and expects to return to typical 7% sector growth post-turbulence.