FY25 at a glance: revenue up, profits flat, dividend up
Judges Scientific’s unaudited preliminary results for the year to 31 December 2025 are a mixed bag. Revenue grew 9.1% to £145.8 million, but adjusted operating profit was flat at £28.0 million and adjusted EPS dipped 2.9% to 275.3p. Statutory numbers were weaker due to amortisation and impairment charges. Despite the softer earnings, the Board is sticking to its long-standing dividend policy, proposing a 10% hike in the final dividend to 82.3p, taking the full-year payout to 115.0p covered 2.4 times by adjusted earnings.
The headline culprit is clear: a sharp slowdown in US academic research orders after moves to restrict federal funding. That headwind more than offset otherwise steady progress, including a profitable Geotek coring expedition in Q1 and resilient cash generation.
Key figures investors should note
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | £145.8m | £133.6m | +9.1% |
| Adjusted operating profit | £28.0m | £27.9m | +0.4% |
| Adjusted basic EPS | 275.3p | 283.4p | -2.9% |
| Statutory operating profit | £13.9m | £16.7m | n/a |
| Statutory basic EPS | 82.7p | 156.7p | n/a |
| Cash generated from operations | £33.0m | £34.0m | -2.9% |
| Cash conversion | 118% | 122% | – |
| Adjusted net debt (excl. IFRS 16) | £42.6m | £51.7m | Improved |
| Final dividend per share | 82.3p | 74.8p | +10.0% |
Note: results are unaudited, with completion expected within two weeks. No changes are expected as part of audit finalisation.
What drove the shortfall: US research freeze and softer end-markets
Judges started FY25 with momentum and delivered a Geotek coring expedition in Q1. Then the brakes went on. Organic order intake finished the year down 10% year-on-year (down 6% excluding the coring effect), with the USA – the Group’s largest market – the notable weak spot.
- USA orders down 23% year-on-year; organic sales to the USA declined 22%.
- China/HK picked up (+8% orders; +7% organic sales), Rest of Europe was up, and the UK was mixed.
- Industrial-facing niches were resilient, but telecoms and parts of the energy transition (offshore wind, EV batteries) softened in H2.
Order intake and order book: lighter than ideal
Order intake weakened through the year after a solid Q1. The organic order book ended at 15.7 weeks of future sales versus 18.7 weeks in 2024 (16.9 weeks excluding coring in the prior year). The total order book stands at 13.4 weeks. That lower starting platform matters for 2026 trading run-rate.
Profitability, cash and balance sheet: resilience where it counts
Margins and earnings
Adjusted operating margins fell to 19.2% (2024: 20.9%) as costs set for growth met weaker volumes – a classic operational leverage squeeze. Even so, the adjusted organic EBIT margin before central costs held at 23.6%.
Statutory results reflect non-cash items: around £9.7m of acquired intangibles amortisation and about £4.3m of impairments (including a full goodwill write-down at Armfield and a Rockwash-related adjustment alongside reversal of its earn-out payable). A £1.4m reduction in the interest rate swap asset also hit statutory finance costs.
R&D investment stepped up to £10.2m, or 7.0% of revenue (2024: 6.3%), which is a sensible lever for future product-led growth.
Cash generation and debt
Cash is the bright spot. Cash generated from operations was £33.0m with 118% cash conversion, even after unwinding last year’s coring advance payment. Working capital is improving but still elevated at 16% of sales versus c.10% pre-Covid – there is more to go, and management knows it.
- Adjusted net debt improved to £42.6m (2024: £51.7m).
- RCF was £59.6m drawn at year-end with £30.4m undrawn plus a £50m accordion facility.
- Leverage sits slightly below 1.5x Adjusted EBITDA, comfortably within a 3.0x covenant.
Strategy and portfolio moves: steady hands on the wheel
Judges’ model remains unchanged – buy high-quality niche scientific instrument businesses at disciplined multiples, then support autonomous teams to compound margins and cash. That long-term playbook has delivered strong CAGRs over two decades and sustained Return on Total Invested Capital (ROTIC), which rose to 17.8% (2024: 16.5%). The medium-term target is 30%, so there is rebuilding to do.
Management changes and acquisitions
- Leadership: CEO succession executed – Dr Tim Prestidge is now CEO; founder-CEO David Cicurel moved to Non-Executive Chair. Ralph Elman is Deputy Chair. The team also added a Group M&A Executive and a Portfolio CEO.
- Corporate: acquired the remaining 18% in Geotek do Brasil for £1.9m plus an earn-out capped at £0.7m, paid in instalments.
Outlook and 2026 guidance: lower starting point, eyes on the US tap
2026 began with a thinner order book, and the first 11 weeks’ order intake is 17% below the prior year-to-date, which itself was not yet hit by the US freeze. Congress has restored US research funding, but the timing of cash actually flowing to labs remains uncertain. No Geotek coring expedition is expected until early 2027.
Management guides to 2026 Adjusted EPS of 200p – 250p, assuming no US recovery this year and no coring expedition. Macro conditions are expected to stay challenging, but the Board emphasises the long-term structural growth drivers for scientific instruments remain intact.
Josh’s take: balancing the wobble with the fundamentals
This is a disappointing second year on the trot, driven by something outside management’s control – a policy shock in the Group’s biggest market. The negatives are obvious: order intake down, a lighter order book, lower margins, statutory profit hit by non-cash charges, and a cautious 2026 guide.
But the positives matter: cash conversion at 118%, adjusted net debt down £9.1 million, leverage comfortably contained, dividend up 10%, R&D upped to 7.0% of revenue, ROTIC ticking higher, and a seasoned leadership bench now in place. The model is doing what it should in a downturn – preserve cash, keep investing sensibly, and avoid panicked moves.
What to watch next
- US funding release cadence – watch for inflection in US order intake. Management will likely call it out as soon as it turns.
- Order book rebuild – the 15.7 weeks organic figure needs to step up through 2026 to underpin 2027.
- Delivery vs guidance – progress within the 200p – 250p EPS range will be a key credibility marker.
- Working capital – further normalisation from 16% of sales would free more cash for M&A and dividends.
- Acquisition pipeline – sellers were hesitant in 2025; a calmer backdrop could reopen deal flow at sensible multiples.
- Geotek coring schedule – confirmation of an early 2027 expedition would help visibility.
Net-net, FY25 shows strain but not structural damage. If US funding starts to flow and order intake normalises, Judges’ decentralised model and cash discipline should have the gears to re-accelerate. Until then, expect a year of blocking and tackling – tight costs, cash focus, and patient portfolio stewardship, with a rising dividend softening the wait.
