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(Sharecast News) - Judges Scientific posted a slump in sales and profits on Wednesday, following a "very poor" first half.
The Aim-listed company, which buys and develops businesses in the scientific instrument sector, saw revenues slide 21% in the six months to 30 June, to £55.7m. Adjusted pre-tax profits tumbled 75% to £3.2m, while pre-tax losses came in at £1.7m. A year previously, Judges posted pre-tax profits of £6.6m.
The company said trading had been hit by ongoing uncertainties in US research funding, delayed offshore wind projects, procurement disruption in China and the expected absence of a Geotex coring expedition.
David Cicurel, founder and non-executive chair, said: "The result, I'm afraid, is a very poor first half performance."
Looking ahead, and Judges - which currently owns 25 companies - maintained its full-year guidance for earnings per share. "Order intake through the summer months was encouraging and significantly improved from 12% down on the prior year at the end of June to only 1% down at the date of this report," it noted.
But it also acknowledged that an expected 2027 Geotex coring expedition would now not take place until 2028 at the earliest. It also warned: "While there is resilience in many of the commercial and industrial sectors to which the group continues to build its exposure, the scientific research environment, where there is reliance both upon public spending and clarity of policy, is expected to remain challenging into 2027."
However, Cicurel concluded: "While market headwinds are lasting longer than we could have wished, the group's strategy is intact and its fundamentals remain robust."
Judges also announced on Wednesday that chief financial officer Brad Ormsby was stepping after 11 years in the role. He will remain with the firm until September 2027, to allow time for a successor to be appointed and the handover to be completed.
Earlier this year Cicurel, who founded the company in 2002, stepped down as chief executive to become chair. He has been replaced by former business development director Tim Prestidge.
As at 1430 BST, the stock was off 1% at 3,750p.
Berenberg said: "[The] results reflect a very challenging first half. While conditions remain challenging, we expect reiteration of guidance and the comments on order trajectory to be taken well, given the weakness in the shares in recent weeks, and we maintain our 'buy' rating."
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