Results snapshot: growth delivered, but with clear headwinds
Judges Scientific has posted a mixed set of H1 2025 numbers. On the face of it, revenue and profit grew solidly and cash generation improved. Under the bonnet, the US market has turned tricky and several businesses are underperforming, while Geotek had a strong half helped by a coring expedition in Japan.
The Group says full-year trading remains in line with market expectations, but it flags a tougher summer for US orders and uncertainty over the timing of Geotek’s next coring expedition.
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Revenue | £70.2m | £60.8m | +15% |
| Adjusted pre-tax profit | £12.6m | £10.8m | +17% |
| Adjusted basic EPS | 141.4p | 123.7p | +14% |
| Cash generated from operations | £12.3m | £7.8m | +59% |
| Interim dividend per share | 32.7p | 29.7p | +10% |
| Statutory pre-tax profit | £6.6m | £5.8m | — |
| Statutory basic EPS | 72.2p | 63.3p | — |
| Adjusted net debt (30 Jun) | £45.7m | — | £51.7m at 31 Dec 2024 |
| Cash balances (30 Jun) | £18.9m | £17.9m (31 Dec 2024) | +£1.0m vs Dec |
| Organic revenue growth | +7% | — | vs H1 2024 |
| Organic order intake | +4% | — | vs H1 2024 |
| Organic order book | 17.4 weeks | 17.2 weeks | — |
What’s driving the numbers: Geotek strength vs wider softness
Management describes trading as “subdued”. The standout positive was Geotek, which delivered a strong contribution, boosted by a Japan coring expedition and the delivery of some orders that slipped from 2024. Outside Geotek, profitability across the Organic businesses fell by about a third despite a handful of bright spots.
The chief drag is the USA, where a “material reduction in US federal government research funding” has hit demand. Organic order intake fell 18% in North America in H1, and management has since seen poor US intake over the summer. Year-to-date Organic intake (excluding coring) is now flat versus 2024.
Regional picture: US weak, Asia improving
- Organic revenues in North America fell 18% year-on-year.
- China/Hong Kong improved from a low base, with order intake up 120% and Organic revenue up 12%.
- Rest of the World was strong (Organic revenue up 41%), helped by the Japan coring expedition.
- UK was broadly flat on revenue (+1%) and down 7% on order intake.
The Organic order book held steady at 17.4 weeks (17.2 weeks a year ago), though that is below the 19.2 weeks reported at the 2024 year-end, which included the Geotek expedition.
Profit quality, adjustments and returns
Adjusted operating profit rose 16% to £14.3m and adjusted pre-tax profit increased 17% to £12.6m. Statutory profit before tax was £6.6m after £6.0m of adjusting items. Adjusting items were largely non-cash: £4.9m amortisation of acquired intangibles and a £0.5m goodwill impairment related to Rockwash’s lower expected earn-out.
Adjusted basic EPS climbed 14% to 141.4p; statutory basic EPS was 72.2p. Return on Total Invested Capital ticked up to 17.9% from 16.8% at December 2024, though still below June 2024’s 20.7%.
Cash flow and balance sheet: better conversion, lower leverage
Cash generation improved markedly. Cash from operations came in at £12.3m, equating to 86% cash conversion of adjusted operating profit (63% in H1 2024). Management notes conversion would have been greater than 100% if not for the unwinding of an advance payment taken for the Geotek expedition at year-end.
Adjusted net debt fell to £45.7m from £51.7m at 31 December 2024, taking gearing to 1.5 times (31 December 2024: 1.7 times). Statutory net debt was £50.4m and cash balances were £18.9m. The revolving credit facility was £63.6m drawn with £26.4m undrawn, plus an uncommitted £50m accordion. Facilities run to 1 July 2028 with covenants of gearing no greater than 3x adjusted EBITDA and interest cover at least 3x.
Dividend: policy intact, 10% raise
Judges has stuck to its progressive dividend policy. The interim dividend is 32.7p, up 10% year-on-year and covered 4.3 times by adjusted earnings (4.2 times in H1 2024). The company also paid a final dividend of 74.8p in July for FY 2024. No acquisitions were completed in the half; the group continues to apply strict M&A criteria and has strengthened its deal team with the appointment of a Group Acquisitions Executive.
Operations and leadership: sharpening the toolkit
The group has been investing in senior management both centrally and within subsidiaries. That investment carries cost, which is more visible when sales growth slows versus the historical ~7% organic run-rate. The formation of a new Executive Committee, plus the recruitment into the acquisitions role, should help execution as and when the environment improves. Mark Lavelle, COO, plans to retire by September 2026 and has stepped down from the Board but remains active operationally.
Outlook: guidance held, but two big swing factors
Judges says trading is in line with market expectations for 2025. The RNS references current consensus for adjusted basic EPS of 288.7p. However, management calls out two uncertainties that could swing the second half: decisions on US research funding and the timing of Geotek’s next coring expedition.
The half started with a solid order book, but US orders were poor over the summer, leaving year-to-date Organic intake (excluding coring) flat against 2024. In short: visibility is OK, but momentum in the US is the watch-out.
Why this matters for shareholders
My read is that the core “buy-and-build” engine is intact: good cash generation, sensible leverage, and disciplined M&A. The 10% dividend increase signals confidence. But the earnings mix in H1 leant on Geotek, and without another expedition confirmed, the second half looks more finely balanced if US demand stays weak.
The longer-term backdrop for scientific instruments – universities, research labs, regulated industries – remains attractive, but the group is currently navigating political budget decisions rather than structural decline. If funding stabilises, Judges’ niche brands and high returns should reassert themselves. If the US tightens further, expect more focus on cost, working capital and selective pricing to defend margins.
Key things to watch in H2
- US order intake trend month-by-month and any signs of funding thawing.
- Confirmation – or not – of the next Geotek coring expedition and its timing.
- Organic order book duration vs June’s 17.4 weeks.
- Cash conversion staying strong and further progress on adjusted net debt from £45.7m.
- Any green shoots in the underperforming businesses flagged by management.
Bottom line: steady hands, bumpy road
H1 delivered respectable growth and better cash despite a tough backdrop. Judges is holding guidance and lifting the dividend, which is reassuring. The near-term story hinges on two external levers – US budgets and Geotek scheduling – so expect some lumpiness. For patient investors, the combination of high returns, disciplined M&A and strong cash discipline remains the core attraction, but the next few months may test nerves as those swing factors play out.
