Judges Scientific trading varied amid post-Covid recovery

25th Jul 2022 08:57

(Sharecast News) - Scientific instrument technology investor Judges Scientific reported "continued resilience and progress" in its first half on Monday as it recovered from the Covid-19 pandemic, with "much improved travel" across most of its markets, although supply chain disruptions were worsening.

The AIM-traded firm acquired Geotek Holding and Geotek Coring for up to £80m in May, funded by a new £100m multi-bank facility.

Across the group, organic order intake was up 4.2% in the six months ended 30 June, after a 25.1% gain in the first half of 2021.

The board said that showed 7.8% progress compared to the first half of 2019, although it could not be considered a "full recovery" to the pre-Covid growth trajectory.

The group saw growth of 15.4% in North America, after 41% growth in the first half of 2021, and 13.1% in its rest-of-world geography, after an 8% improvement in the first six months of last year.

The rest-of-Europe was flat after 34% growth in the same period last year, reflecting "varied performances" across the region.

China and Hong Kong, which continued to be affected by strict lockdowns over the period, receded 5.1% after recording 2% growth in the first half of 2021.

The UK, which had progressed 26% in the first six months of last year, was down 9.4%, with order intake still varying "considerably" from business to business, although less so than a year ago.

Judges said its organic order book reached a mid-year record of 21.3 weeks as at 30 June, compared to 17.6 weeks a year ago and 23 weeks on 1 January, aided by a "modest increase" in order intake, and by the ongoing supply chain difficulties.

Organic sales in the first half were up 7% year-on-year.

"Further progress was hindered by supply chain issues, by staff shortages caused both by recruitment difficulties and by numerous colleagues having to isolate," the board said in its statement.

"The board expects the growth in organic revenues to have driven improved profitability in the first half.

"Whilst general market conditions remain challenging, our resilient business model, backed up by a strong order book, gives the board confidence that the current market expectations for the full year - revised to include Geotek - will be met."

Judges Scientific said it would announce its interim results for the six months ended 30 June on 22 September.

At 0839 BST, shares in Judges Scientific were down 3.01% at 7,371p.

Reporting by Josh White at Sharecast.com.