Judges Scientific swings to net cash amid 'more normalised' trading

Scientific instrument company Judges Scientific reported a 14% improvement in revenue in its final results on Wednesday, to £91.3m, as organic revenue rose 10% year-on-year.

The AIM-traded firm said its adjusted operating profit was 31% firmer for the 12 months ended 31 December, at £18.8m, while adjusted basic earnings per share were up 34% at 238.1p.

Cash generated from operations was ahead 34% at £19.6m, as the board lifted the final dividend by 22% to 47p per share.

That would take the total dividend up 20% for the year to 66p per share, which was covered 3.6 times by adjusted earnings.

Judges Scientific reported a statutory operating profit of £15.6m, up 53% year-on-year, while statutory basic earnings per share were ahead 53% at 201p.

At year-end on 31 December, the company’s adjusted net cash totalled £1.4m swinging from adjusted net debt of £5.7m at the end of 2020, while its cash balance rose to £18.4m, from £15.4m at the end of 2020.

Judges’ statutory net cash was £1.4m at the end of 2021, compared to net debt of £5.7m at the end of the prior year.

The firm’s board said its organic order book stood at 22.6 weeks at the end of the year, up from 14.7 weeks a year earlier, as its total order book stood at 23.0 weeks.

During the year, the company signed a new £60m five-year bank facility to provide greater acquisition financing capability, while it increased its holding in Bordeaux Acquisition to 88% from 75.5%.

Looking ahead, Judges said a “more normalised” trading environment was resuming, adding that the war in Ukraine was further exacerbating supply chain issues.

Its record order book, however, was described as a “strong indicator” of further recovery.

“I am pleased to report that your group has delivered record revenue, profits, cash generation and dividends in a year which still presented challenges as a consequence of the pandemic,” chairman Alex Hambro said to shareholders.

“The resilience of the group's business model and a good performance from recent acquisitions alongside the hard work by all our colleagues have enabled Judges to stage a solid recovery.”

At 1256 GMT, shares in Judges Scientific were up 4.57% at 7,320p.