Judges Scientific (JDG) H2 2024 earnings summary

Executive summary

• Buy-and-build strategy in scientific instruments, with 25 acquisitions since 2005 and a 20% CAGR in total revenue, emphasizing shareholder value through disciplined M&A and organic growth.

• 2024 was a challenging year due to weak order intake, especially from China, project deferrals, and the absence of a major coring contract, resulting in a decline in sales and profitability.

• Despite headwinds, three acquisitions were completed, the dividend was increased by 10%, and the executive team was strengthened.

Financial highlights

• Total revenue declined 1.8% to £133.6 million, with organic revenue down 8% year-over-year, partially offset by recent acquisitions.

• Adjusted operating profit fell 20% to £27.9 million; adjusted EPS dropped 24% to 283.4p, impacted by lower volumes and higher interest.

• Cash generation from operations was £34 million, with cash conversion at 122% for the year.

• Dividend per share increased to 74.8p (full year £1.045), up 10% from the prior year.

• Adjusted net debt increased to £51.7 million; operating margin reduced to 20.9%.

Outlook and guidance

• Entering 2025 with a strong order book and improved order intake, including a new coring contract in Japan.

• Management expects a better year in 2025, with organic order intake slightly ahead of 2024 year-to-date and performance expected in line with market expectations.

• Macroeconomic and geopolitical uncertainties persist.