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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Judges Scientific Plc | LSE:JDG | London | Ordinary Share | GB0032398678 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -150.00 | -1.37% | 10,800.00 | 10,750.00 | 10,900.00 | 10,975.00 | 10,825.00 | 10,975.00 | 7,760 | 16:35:26 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Lab Analytical Instruments | 113.21M | 12.44M | 1.8823 | 57.51 | 715.29M |
From Apr 2019 to Apr 2024
TIDMJDG
RNS Number : 0823R
Judges Scientific PLC
19 September 2017
Judges Scientific PLC
19 September 2017
Press release 19 September 2017
Judges Scientific plc
("Judges Scientific", "the Company", or "the Group")
Interim results for the six months ended 30 June 2017
Key financials
-- Revenues up 20% to a record GBP32.7 million (H1 2016: GBP27.3 million) including 14% organic growth;
-- Adjusted* pre-tax profit up 48% to GBP4.4 million (H1 2016: GBP3.0 million); -- Adjusted* basic earnings per share up 65.1% to 54.8p (H1 2016: 33.2p);
-- Interim dividend of 10.0p (H1 2016: 9.0p), an increase of 11%; covered 5.5 times by adjusted earnings;
-- Organic order intake up 28% compared with H1 2016; -- Organic order book at 16.5 weeks (H1 2016: 11.2 weeks); -- Cash generated from operations of GBP4.4 million (H1 2016: GBP2.4 million);
-- Adjusted* net debt of GBP5.8 million as at 30 June 2017 (30 June 2016: GBP10.3 million and 31 December 2016: GBP9.9 million);
-- Cash balances of GBP8.9 million as at 30 June 2017 (30 June 2016: GBP6.0 million and 31 December 2016: GBP7.9 million);
-- Post period end acquisition by Bordeaux of Oxford Cryosystems for GBP4.5 million and increase of Group's share in Bordeaux from 51% to 75.5% for a cash consideration of GBP1.3 million.
* Adjusted earnings figures are stated before adjusting items relating to hedging of risks materialising after the end of the period, amortisation of intangible assets, share based payments and acquisition-related costs. Adjusted net debt notionally includes acquisition-related payments which had yet to be settled at the balance sheet date and excludes subordinated debt owed by subsidiaries to minority shareholders.
Alex Hambro, Chairman of Judges Scientific, commented:
"The first half of 2017 has seen the Company deliver record figures across revenues, adjusted profit before tax, adjusted earnings per share, and dividends. This is a robust recovery from the Company's performance in the first half of 2016.
"The Company has a healthy order book which provides the Board with confidence that the Group can deliver a full year performance in line with market expectations, and the recent acquisition of Oxford Cryosystems demonstrates that the Group continues to deliver on its buy and build strategy with the completion of its 16(th) acquisition."
For further information please contact:
Hot Features
Premium
Judges Scientific plc +44 (0) 20 3829 6970
David Cicurel, CEO / Brad Ormsby, Group FD www.judges.uk.com
Shore Capital (Nomad and Broker)
Stephane Auton / Edward Mansfield +44 (0) 20 7408 4090
Media enquiries:
Abchurch (Financial Public Relations)
Julian Bosdet / Dylan Mark / Alejandra Campuzano Tel: +44 (0) 20 7469 4631
www.abchurch-group.com
Chairman's Statement
I am delighted to be able to report record figures across revenues, adjusted profit before tax, adjusted earnings per share and dividends in a robust recovery when compared to the Company's performance in the first half of 2016.
The Group's results for the six-month period to 30 June 2017 include a full contribution from CoolLED Limited and Dia-Stron Limited, which were acquired in the first quarter of 2016, and a first time contribution from EWB Solutions Limited which was acquired in November 2016. "Organic" in this statement excludes the performance of these three businesses.
Trading performance
Underpinned by strong demand, Group revenues for the six months ended 30 June 2017 progressed 20.0% to GBP32.7 million (H1 2016: GBP27.3 million) as a result of 14% Organic growth and the inclusion of the revenue generated by the businesses acquired after 1 January 2016. Organic sales progressed in all geographic zones except the UK (down 25%), with a particularly strong showing in China / Hong Kong (up 40%), together with healthy 17% growth in the rest of Europe and 4% progress in the USA / Canada. The non-Organic businesses produced revenues in line with your Board's expectations.
We explained last year that the underperformance of three businesses had severely affected the Group's results. Two of these businesses had suffered from weak demand in their respective sectors and both have since experienced satisfactory order intake enabling much improved revenue and EBITA contribution in the first half. The third had been affected by production and supply chain problems. Some limited management changes were made in the summer of 2016 followed by more radical action at the beginning of 2017 and although sales are somewhat ahead of 2016 at the interim stage, much remains to be done.
As a consequence of the improvement in Group revenue, Organic EBITA contribution progressed by 40% compared to the first half of 2016 and adjusted pre-tax profit grew by 48% to GBP4.4 million (H1 2016: GBP3.0 million). Adjusted basic earnings per share increased 65.1% to 54.8p (H1 2016: 33.2p) and adjusted diluted earnings per share grew from 32.7p to 54.1p. This rise in earnings per share also includes the effect of a reduction in the Group's tax rate to 15% (H1 2016: 20%) to reflect better the anticipated full year effective tax rate; this accounts for around 2p of this earnings increase. Return on total invested capital ("ROTIC") improved to 17.4% from 15.2% at 31 December 2016 based on the trailing 12 months trading.
Your Directors continue to show adjusted figures, prepared consistently with past reports, in order to communicate to shareholders what is, in the Directors' opinion, the true operating performance of the Group. The total adjustments of GBP2.3 million (H1 2016: GBP3.6 million) include a GBP2.1 million charge for amortisation of acquired intangible assets (H1 2016: GBP2.9 million) primarily arising from recent acquisitions. As no acquisition was completed in the period under review, the impact of transaction costs was GBPnil (H1 2016: GBP0.6 million). The adjusting items reduce profit before tax from GBP4.4 million to GBP2.1 million (H1 2016: loss of GBP0.7 million) and earnings per share to 23.9p basic and 23.6p diluted (H1 2016: negative 16.5p basic and diluted).
Cashflow and net debt
Cash flow during the first half of 2017 was in tune with the improved trading, with cash from operations of GBP4.4 million (H1 2016: GBP2.4 million) representing 95% of adjusted EBIT (H1 2016: 74.7%). The interim balance sheet includes cash balances of GBP8.9 million and adjusted net debt of GBP5.8 million, down from GBP9.9m at the beginning of 2017.
Order intake
As previously reported, order intake recovered significantly after June 2016; this recovery was sustained into 2017 and the first half saw Organic orders 28% ahead of H1 2016. This enabled the build-up of the Organic order book, from 14.9 weeks of sales at the beginning of January to 16.5 weeks at the end of June (June 2016: 11.2 weeks). Most Group businesses participated in this progress. The Group's total order book (including non-Organic businesses) stood at 15.4 weeks.
Geographic Organic order intake, measured since 2016, enable comparisons for the first time. Unsurprisingly, they show a picture which partially resonates with geographic revenue: the UK is down 18% and all other zones are progressing, particularly the USA (up 32%) and in China / Hong Kong (up 85%), the rest of Europe was up 4%.
Dividend
In accordance with the Company's dividend policy, the Board is declaring an interim dividend of 10.0p (2016: 9.0p), which will be paid on Friday 3 November 2017 to shareholders on the register on Friday 6 October 2017. The shares will go ex-dividend on Thursday 5 October 2017. The interim dividend is covered 5.5 times by adjusted earnings.
Post balance sheet events
On 18 July, Bordeaux Acquisition Limited ("BAL"), a majority owned subsidiary of the Company, acquired Crystallon Limited, the holding company of Oxford Cryosystems Limited ("OCL"). OCL's principal activity is the manufacture and marketing of systems to freeze samples for X-ray crystallography. OCL also supplies cooling systems for use in MeerKAT, a precursor to the Square Kilometre Array ("SKA"), a vast multinational radiotelescope project. The purchase price was GBP4.5 million plus excess cash, plus a potential earn-out up to GBP1.6 million dependent on performance for the financial year to 30 November 2017.
Simultaneously, Judges increased its shareholding in BAL, from 51% to 75.5% by purchasing the shares and loans held by Tracey Edwards for an aggregate cash consideration of GBP1.3 million. Following the acquisition BAL is the holding company for Deben UK Limited (acquired in 2011), Crystallon Limited and OCL.
Outlook
The Group's performance will continue to be influenced predominantly by the long term positive drivers of the global scientific sector mitigated somewhat by the worldwide efforts of many governments to contain spending, which are erratic in terms of timing and geographic location. More predictable influences, however, are the enhanced competitiveness of our products due to the current exchange rates and the uncertainty surrounding the financing of scientific research in the UK; both factors are expected to continue until the final resolution of Brexit.
The Group experienced robust order intake performance in the first half. Since the period end Organic order intake has been broadly in line with the second quarter. Cumulative Organic order intake for the first 36 weeks still shows solid progress and the Board is therefore confident of the Group's ability to fulfill market expectations for the year as a whole.
The Hon. Alexander Hambro
Chairman
19 September 2017
Condensed consolidated interim statement of comprehensive income
Six months to Six months to Year to
Adjusting 30 June 30 June 31 December
Adjusted items 2017 2016 2016
Note GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------------------- ------ ------------ --------- ------------- ------------- ------------
Revenue 3 32,720 - 32,720 27,258 57,285
Operating costs (28,097) - (28,097) (24,031) (50,141)
----------------------------------------- ------ ------------ --------- ------------- ------------- ------------
Adjusted operating profit 3 4,623 - 4,623 3,227 7,144
Adjusting items 4 - (2,295) (2,295) (3,598) (6,153)
----------------------------------------- ------ ------------ --------- ------------- ------------- ------------
Operating profit/(loss) 4,623 (2,295) 2,328 (371) 991
Interest income 10 - 10 8 9
Interest expense 4 (237) (31) (268) (302) (583)
----------------------------------------- ------ ------------ --------- ------------- ------------- ------------
Profit/(loss) before tax 4,396 (2,326) 2,070 (665) 417
Taxation (charge)/credit (659) 435 (224) (10) 324
----------------------------------------- ------ ------------ --------- ------------- ------------- ------------
Profit/(loss) for the period 3,737 (1,891) 1,846 (675) 741
----------------------------------------- ------ ------------ --------- ------------- ------------- ------------
Attributable to:
Owners of the parent 3,348 (1,888) 1,460 (1,004) 81
Non-controlling interests 389 (3) 386 329 660
----------------------------------------- ------ ------------ --------- ------------- ------------- ------------
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Retirement benefits actuarial gains/(losses) 160 (700) (776)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign subsidiaries (30) 42 126
--------------------------------------------------------------- --------- ------------- ------------- ------------
Other comprehensive income/(expense) for the period, net of tax 130 (658) (650)
-------------------------------------------------------------------------- ------------- ------------- ------------
Total comprehensive income/(expense) for the period 1,976 (1,333) 91
--------------------------------------------------------------- --------- ------------- ------------- ------------
Attributable to:
Owners of the parent 1,590 (1,662) (569)
Non-controlling interests 386 329 660
--------------------------------------------------------------- --------- ------------- ------------- ------------
Pence Pence Pence
------------------------------ ----- ------ -----
Earnings per share - adjusted
Basic 5 54.8 33.2 84.8
Diluted 5 54.1 32.7 83.7
------------------------------ ----- ------ -----
Earnings per share - total
Basic 5 23.9 (16.5) 1.3
Diluted 5 23.6 (16.5) 1.3
------------------------------ ----- ------ -----
Condensed consolidated interim balance sheet
30 June 30 June 31 December
2017 2016 2016
Note GBP000 GBP000 GBP000
-------------------------------------------------- ---- -------- -------- -----------
ASSETS
Non-current assets
Goodwill 13,335 12,860 13,337
Other intangible assets 6 7,586 10,675 9,736
Property, plant and equipment 5,275 5,335 5,288
Deferred tax assets 675 625 776
-------------------------------------------------- ---- -------- -------- -----------
26,871 29,495 29,137
-------------------------------------------------- ---- -------- -------- -----------
Current assets
Inventories 11,205 9,275 9,939
Trade and other receivables 10,842 10,091 11,341
Cash and cash equivalents 8,942 5,963 7,909
-------------------------------------------------- ---- -------- -------- -----------
30,989 25,329 29,189
-------------------------------------------------- ---- -------- -------- -----------
Total assets 57,860 54,824 58,326
-------------------------------------------------- ---- -------- -------- -----------
LIABILITIES
Current liabilities
Trade and other payables (11,914) (10,059) (11,682)
Trade and other payables relating to acquisitions (97) (905) (1,648)
Borrowings (2,692) (2,813) (2,693)
Current tax liabilities (2,073) (1,672) (1,195)
-------------------------------------------------- ---- -------- -------- -----------
(16,776) (15,449) (17,218)
-------------------------------------------------- ---- -------- -------- -----------
Non-current liabilities
Borrowings (12,382) (13,033) (13,855)
Deferred tax liabilities (1,807) (2,188) (2,310)
Retirement benefit obligations (2,036) (2,296) (2,198)
-------------------------------------------------- ---- -------- -------- -----------
(16,225) (17,517) (18,363)
-------------------------------------------------- ---- -------- -------- -----------
Total liabilities (33,001) (32,966) (35,581)
-------------------------------------------------- ---- -------- -------- -----------
Net assets 24,859 21,858 22,745
-------------------------------------------------- ---- -------- -------- -----------
EQUITY
Share capital 7 306 305 305
Share premium 14,479 14,450 14,472
Other reserves 2,100 2,046 2,130
Retained earnings 6,175 3,975 4,425
-------------------------------------------------- ---- -------- -------- -----------
Equity attributable to owners of the parent 23,060 20,776 21,332
Non-controlling interests 1,799 1,082 1,413
-------------------------------------------------- ---- -------- -------- -----------
Total equity 24,859 21,858 22,745
-------------------------------------------------- ---- -------- -------- -----------
Condensed consolidated interim statement of changes in equity
Total attributable Non-
Share Share Other Retained to owners controlling Total
capital premium reserves earnings of parent interests equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
At 1 January 2017 305 14,472 2,130 4,425 21,332 1,413 22,745
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Share-based payments - - - 130 130 - 130
Issue of share capital 1 7 - - 8 - 8
---- --------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Transactions with owners 1 7 - 130 138 - 138
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Profit for the period - - - 1,460 1,460 386 1,846
Retirement benefit actuarial
gains - - - 160 160 - 160
Foreign exchange differences - - (30) - (30) - (30)
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Total comprehensive
(expense)/income for the
period - - (30) 1,620 1,590 386 1,976
--------------------------- -------- -------- --------- --------- ------------------ ------------ -------
At 30 June 2017 306 14,479 2,100 6,175 23,060 1,799 24,859
--------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Total attributable Non-
Share Share Other Retained to owners controlling Total
capital premium reserves earnings of parent interests equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
At 1 January 2016 305 14,441 2,004 6,532 23,282 802 24,084
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Dividends - - - (970) (970) (49) (1,019)
Share-based payments - - - 117 117 - 117
Issue of share capital - 9 - - 9 - 9
---- --------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Transactions with owners - 9 - (853) (844) (49) (893)
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
(Loss)/profit for the period - - - (1,004) (1,004) 329 (675)
Retirement benefit actuarial
losses - - - (700) (700) - (700)
Foreign exchange differences - - 42 - 42 - 42
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Total comprehensive
income/(expense) for the
period - - 42 (1,704) (1,662) 329 (1,333)
--------------------------- -------- -------- --------- --------- ------------------ ------------ -------
At 30 June 2016 305 14,450 2,046 3,975 20,776 1,082 21,858
--------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Total attributable Non-
Share Share Other Retained to owners controlling Total
capital premium reserves earnings of parent interests equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
At 1 January 2016 305 14,441 2,004 6,532 23,282 802 24,084
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Dividends - - - (1,581) (1,581) (49) (1,630)
Issue of share capital - 31 - - 31 - 31
Share-based payments - - - 169 169 - 169
---- --------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Transactions with owners - 31 - (1,412) (1,381) (49) (1,430)
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Profit for the year - - - 81 81 660 741
Retirement benefit
actuarial losses - - - (776) (776) - (776)
Foreign exchange differences - - 126 - 126 - 126
-------------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Total comprehensive
income/(expense) for the
year - - 126 (695) (569) 660 91
--------------------------- -------- -------- --------- --------- ------------------ ------------ -------
At 31 December 2016 305 14,472 2,130 4,425 21,332 1,413 22,745
--------------------------- -------- -------- --------- --------- ------------------ ------------ -------
Condensed consolidated interim cash flow statement
Six months to Six months to Year to
30 June 30 June 31 December
2017 2016 2016
GBP000 GBP000 GBP000
----------------------------------------------------------- ------------- ------------- ------------
Cash flows from operating activities
Profit/(loss) after tax 1,846 (675) 741
Adjustments for:
Financial instruments measured at fair value:
Hedging contracts 15 48 21
Share-based payments 130 117 241
Depreciation 338 281 592
Amortisation of intangible assets 2,150 2,871 5,155
(Profit)/loss on disposal of property, plant and equipment (1) 11 30
Foreign exchange gains on foreign currency loans 35 134 166
Interest income (10) (8) (9)
Interest expense 237 275 523
Retirement benefit obligation net interest cost 31 27 60
Contributions to defined benefit plans - - (198)
Tax recognised in Income Statement 224 10 (324)
Increase in inventories (1,266) (823) (1,442)
Decrease in trade and other receivables 499 1,623 620
Increase/(decrease) in trade and other payables 180 (1,480) 37
----------------------------------------------------------- ------------- ------------- ------------
Cash generated from operations 4,408 2,411 6,213
Finance costs paid (239) (275) (522)
Tax received/(paid) 216 (512) (1,080)
----------------------------------------------------------- ------------- ------------- ------------
Net cash from operating activities 4,385 1,624 4,611
Cash flows from investing activities
----------------------------------------------------------- ------------- ------------- ------------
Paid on acquisition of new subsidiaries (1,507) (7,248) (9,847)
Gross cash inherited on acquisition - 2,036 3,714
----------------------------------------------------------- ------------- ------------- ------------
Acquisition of subsidiaries, net of cash acquired (1,507) (5,212) (6,133) Paid on the acquisition of trade and assets (11) (243) (261) Purchase of property, plant and equipment (339) (571) (835) Proceeds from the sale of assets 8 - - Interest received 10 8 9 ----------------------------------------------------------- ------------- ------------- ------------ Net cash used in investing activities (1,839) (6,018) (7,220) ----------------------------------------------------------- ------------- ------------- ------------ Cash flows from financing activities Proceeds from issue of share capital 8 9 31 Repayments of borrowings (1,503) (2,693) (3,945) Proceeds from bank loans - 5,500 7,545 Repayment of loan notes - - (117) Equity dividends paid - (970) (1,581) Dividends paid - non-controlling interest in subsidiary - (49) (49) ----------------------------------------------------------- ------------- ------------- ------------ Net cash (used in)/from financing activities (1,495) 1,797 1,884 ----------------------------------------------------------- ------------- ------------- ------------ Net change in cash and cash equivalents 1,051 (2,597) (725) Cash and cash equivalents at start of period 7,909 8,530 8,530 Exchange movements (18) 30 104 ----------------------------------------------------------- ------------- ------------- ------------ Cash and cash equivalents at end of period 8,942 5,963 7,909 ----------------------------------------------------------- ------------- ------------- ------------
Notes to the interim report
1. General information and basis of preparation
The Judges Scientific plc group's principal activities comprise the design, manufacture and sale of scientific instruments. The subsidiaries are grouped into two segments: Materials Sciences and Vacuum.
The financial information set out in this interim report for the six months ended 30 June 2017 and the comparative figures for the six months ended 30 June 2016 are unaudited. The interim report has been prepared in accordance with IAS 34 "Interim Financial Reporting". The interim report does not contain all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2016, which have been prepared in accordance with IFRS as adopted by the European Union.
The financial information for the year ended 31 December 2016 set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2016 have been filed with the Registrar of Companies. The Auditor's Report in respect of those financial statements was unqualified and did not contain statements under section 498 of the Companies Act 2006.
Judges Scientific plc is the Group's ultimate parent company. The Company is a public limited company incorporated and is domiciled in the United Kingdom. Its registered office and principal place of business is 52c Borough High Street, London SE1 1XN and the Company's shares are quoted on the Alternative Investment Market. The interim report is presented in Sterling, which is the functional currency of the parent company. The interim report has been approved for issue by the Board of directors on 18 September 2017.
2. Significant accounting policies
The interim report has been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 December 2016, except for the taxation policy where, for the purposes of the interim results, the tax charge on adjusted business performance is calculated by reference to the estimated effective rate for the full year.
3. Segmental analysis
Materials Unallocated
Sciences Vacuum items Total
For the period ended 30 June 2017 Note GBP000 GBP000 GBP000 GBP000
---------------------------------- ---- --------- -------- ----------- --------
Revenue 16,274 16,446 - 32,720
Operating costs (12,906) (13,973) (1,218) (28,097)
---------------------------------- ---- --------- -------- ----------- --------
Adjusted operating profit 3,368 2,473 (1,218) 4,623
Adjusting items 4 (2,326)
---------------------------------- ---- --------- -------- ----------- --------
Operating profit 2,297
Net interest expense (227)
---------------------------------- ---- --------- -------- ----------- --------
Profit before tax 2,070
Income tax charge (224)
---------------------------------- ---- --------- -------- ----------- --------
Profit for the period 1,846
---------------------------------- ---- --------- -------- ----------- --------
Materials Unallocated
Sciences Vacuum items Total
For the period ended 30 June 2016 Note GBP000 GBP000 GBP000 GBP000
---------------------------------- ---- --------- -------- ----------- --------
Revenue 12,555 14,703 - 27,258
Operating costs (10,634) (12,693) (704) (24,031)
---------------------------------- ---- --------- -------- ----------- --------
Adjusted operating profit 1,921 2,010 (704) 3,227
Adjusting items 4 (3,625)
---------------------------------- ---- --------- -------- ----------- --------
Operating loss (398)
Net interest expense (267)
---------------------------------- ---- --------- -------- ----------- --------
Loss before tax (665)
Income tax charge (10)
---------------------------------- ---- --------- -------- ----------- --------
Loss for the period (675)
---------------------------------- ---- --------- -------- ----------- --------
3. Segmental analysis (continued)
Materials Unallocated
Sciences Vacuum items Total
For the year ended 31 December 2016 Note GBP000 GBP000 GBP000 GBP000
------------------------------------ ---- --------- -------- ----------- --------
Revenue 28,162 29,123 - 57,285
Operating costs (22,937) (25,731) (1,473) (50,141)
------------------------------------ ---- --------- -------- ----------- --------
Adjusted operating profit 5,225 3,392 (1,473) 7,144
Adjusting items 4 (6,153)
------------------------------------ ---- --------- -------- ----------- --------
Operating profit 991
Net interest expense (574)
------------------------------------ ---- --------- -------- ----------- --------
Profit before tax 417
Income tax credit 324
------------------------------------ ---- --------- -------- ----------- --------
Profit for the year 741
------------------------------------ ---- --------- -------- ----------- --------
Unallocated items relate to the Group's head office costs.
Segment assets and liabilities
Materials Unallocated
Sciences Vacuum items Total
At 30 June 2017 GBP000 GBP000 GBP000 GBP000
-------------------- --------- ------- ----------- --------
Assets 16,450 21,469 19,941 57,860
Liabilities (7,579) (7,380) (18,042) (33,001)
-------------------- --------- ------- ----------- --------
Net assets 8,871 14,089 1,899 24,859
-------------------- --------- ------- ----------- --------
Capital expenditure 174 165 - 339
Depreciation 114 206 18 338
Amortisation 1,115 1,035 - 2,150
-------------------- --------- ------- ----------- --------
Materials Unallocated
Sciences Vacuum items Total
At 30 June 2016 GBP000 GBP000 GBP000 GBP000
-------------------- --------- ------- ----------- --------
Assets 13,531 16,257 25,036 54,824
Liabilities (6,043) (6,872) (20,051) (32,966)
-------------------- --------- ------- ----------- --------
Net assets 7,488 9,385 4,985 21,858
-------------------- --------- ------- ----------- --------
Capital expenditure 217 350 4 571
Depreciation 104 136 41 281
Amortisation 1,376 1,495 - 2,871
-------------------- --------- ------- ----------- --------
Materials Unallocated
Sciences Vacuum items Total
At 31 December 2016 GBP000 GBP000 GBP000 GBP000
-------------------- --------- ------- ----------- --------
Assets 14,963 22,445 20,918 58,326
Liabilities (6,622) (7,482) (21,477) (35,581)
-------------------- --------- ------- ----------- --------
Net assets 8,341 14,963 (559) 22,745
-------------------- --------- ------- ----------- --------
Capital expenditure 305 523 7 835
Depreciation 223 289 80 592
Amortisation 2,865 2,290 - 5,155
-------------------- --------- ------- ----------- --------
Unallocated items are borrowings, intangible assets and goodwill arising on acquisition, deferred tax, defined benefit obligations and parent company net assets.
Six months to Six months to Year to
30 June 30 June 31 December
2017 2016 2016
Geographic analysis GBP000 GBP000 GBP000
--------------------- ------------- ------------- ------------
UK (domicile) 4,003 4,263 8,732
Rest of Europe 7,825 6,459 13,794
United States/Canada 8,103 7,427 15,489
Rest of the world 12,789 9,109 19,270
--------------------- ------------- ------------- ------------
Revenue 32,720 27,258 57,285
--------------------- ------------- ------------- ------------
4. Adjusting items
Six months to Six months to Year to
30 June 30 June 31 December
2017 2016 2016
GBP000 GBP000 GBP000
------------------------------------------------- ------------- ------------- ------------
Amortisation of intangible assets 2,150 2,871 5,155
Financial instruments measured at fair value:
Hedging contracts 15 48 21
Share-based payments 130 117 241
Acquisition costs - 562 736
------------------------------------------------- ------------- ------------- ------------
Total adjusting items within operating profit 2,295 3,598 6,153
Retirement benefits obligation net interest cost 31 27 60
------------------------------------------------- ------------- ------------- ------------
Total adjusting items 2,326 3,625 6,213
Taxation (435) (575) (1,091)
------------------------------------------------- ------------- ------------- ------------
Total adjusting items net of tax 1,891 3,050 5,122
------------------------------------------------- ------------- ------------- ------------
Attributable to:
Owners of the parent 1,888 3,028 5,092
Non-controlling interests 3 22 30
------------------------------------------------- ------------- ------------- ------------
1,891 3,050 5,122
------------------------------------------------- ------------- ------------- ------------
5. Earnings per share
Six months to Six months to Year to
30 June 30 June 31 December
2017 2016 2016
Note GBP000 GBP000 GBP000
----------------------------------------------------------- ---- ------------- ------------- ------------
Profit for the period attributable to owners of the parent
Adjusted profit 3,348 2,024 5,173
Adjusting items 4 (1,888) (3,028) (5,092)
----------------------------------------------------------- ---- ------------- ------------- ------------
Profit/(loss) for the period 1,460 (1,004) 81
----------------------------------------------------------- ---- ------------- ------------- ------------
Pence Pence Pence
------------------------------ ----- ------ -----
Earnings per share - adjusted
Basic 54.8 33.2 84.8
Diluted 54.1 32.7 83.7
------------------------------- ----- ------ -----
Earnings per share - total
Basic 23.9 (16.5) 1.3
Diluted 23.6 (16.5) 1.3
------------------------------- ----- ------ -----
Number Number Number
---------------------------------------------------- --------- --------- ---------
Issued Ordinary shares at start of the period 76,107,628 6,098,549 6,098,549
Movement in Ordinary shares during the period 7 8,000 3,500 9,079
---------------------------------------------------- --------- --------- ---------
Issued Ordinary shares at end of the period 76,115,628 6,102,049 6,107,628
---------------------------------------------------- --------- --------- ---------
Weighted average number of shares in issue 6,113,982 6,100,557 6,102,463
---------------------------------------------------- --------- --------- ---------
Dilutive effect of share options 71,371 83,414 80,957
---------------------------------------------------- --------- --------- ---------
Weighted average shares in issue on a diluted basis 6,185,353 6,183,971 6,183,420
---------------------------------------------------- --------- --------- ---------
Adjusted basic earnings per share is calculated on the adjusted profit, which is presented before any adjusting items, attributable to the Company's shareholders divided by the weighted average number of shares in issue during the period.
Adjusted diluted earnings per share is calculated on the adjusted basic earnings per share, adjusted to allow for the issue of Ordinary shares on the assumed conversion of all dilutive options and any other dilutive potential Ordinary shares. The calculation is based on the treasury method prescribed in IAS 33. This calculates the theoretical number of shares that could be purchased at the average middle market price in the period out of the proceeds of the notional exercise of outstanding options. The difference between this theoretical number and the actual number of shares under option is deemed liable to be issued at nil value and represents the dilution.
Total earnings per share is calculated as above whilst substituting total profit for adjusted profit.
6. Other intangible assets
The following tables show the significant additions to and amortisation of intangible assets:
Carrying Carrying
amount at amount at
1 January 30 June
2017 Acquisitions Amortisation 2017
GBP000 GBP000 GBP000 GBP000
------------------------- ---------- ------------ ------------ ----------
Distribution agreements 481 - (190) 291
Research and development 3,547 - (638) 2,909
Customer relationships 1,525 - (341) 1,184
Brand and domain names 4,093 - (891) 3,202
Sales order backlog 90 - (90) -
------------------------- ---------- ------------ ------------ ----------
Total 9,736 - (2,150) 7,586
------------------------- ---------- ------------ ------------ ----------
Carrying Carrying
amount at amount at
1 January 30 June
2016 Acquisitions Amortisation 2016
GBP000 GBP000 GBP000 GBP000
------------------------- ---------- ------------ ------------ ----------
Distribution agreements 750 272 (298) 724
Research and development 2,903 1,841 (713) 4,031
Customer relationships 858 1,077 (682) 1,253
Brand and domain names 4,577 1,058 (968) 4,667
Sales order backlog - 210 (210) -
------------------------- ---------- ------------ ------------ ----------
Total 9,088 4,458 (2,871) 10,675
------------------------- ---------- ------------ ------------ ----------
Carrying Carrying
amount at amount at
1 January 31 December
2016 Acquisitions Amortisation 2016
GBP000 GBP000 GBP000 GBP000
------------------------- ---------- ------------ ------------ ------------
Distribution agreements 750 272 (541) 481
Research and development 2,903 2,132 (1,488) 3,547
Customer relationships 858 1,613 (946) 1,525
Brand and domain names 4,577 1,486 (1,970) 4,093
Sales order backlog - 300 (210) 90
Total 9,088 5,803 (5,155) 9,736
------------------------- ---------- ------------ ------------ ------------
7. Share capital
Movements in the Group's Ordinary shares in issue are summarised as follows:
Year to
Six months to Six months to 31 December
30 June 2017 30 June 2016 2016
Ordinary shares of 5p each Number Number Number
--------------------------- ------------- ------------- ------------
Issued and fully paid
Start of the period 6,107,628 6,098,549 6,098,549
Exercise of share options 8,000 3,500 9,079
--------------------------- ------------- ------------- ------------
End of the period 6,115,628 6,102,049 6,107,628
--------------------------- ------------- ------------- ------------
During the first six months of 2017 the following allotments took place:
- 8,000 Ordinary shares were issued to satisfy the exercise of share options as follows:
o on 24 January 2017 when the mid-market share price was 1,502.5p;
o on 7 February 2017 when the mid-market share price was 1,580.0p;
o on 21 March 2017 when the mid-market share price was 1,585.0p; and
o on 27 April 2017 when the mid-market share price was 1,537.5p.
8. Changes in net debt
Changes in net debt for the six months ended 30 June 2017 were as follows:
1 January Non-cash 30 June
2017 Cash flow items 2017
GBP000 GBP000 GBP000 GBP000
---------------------------------------------------------------------------- --------- --------- -------- --------
Cash at bank and in hand 7,909 1,051 (18) 8,942
Bank debt (16,157) 1,503 (34) (14,688)
---------------------------------------------------------------------------- --------- --------- -------- --------
Net senior debt (8,248) 2,554 (52) (5,746)
Effect of payments relating to the acquisition of EWB Solutions Limited not
settled at 30
June 2017 (included within current liabilities) (1,604) 1,507 - (97)
Effect of payments relating to the 2012 acquisition of the trade and certain
assets of KE
Developments Limited not settled at 30 June 2017 (included within current
liabilities) (44) 11 33 -
---------------------------------------------------------------------------- --------- --------- -------- --------
Adjusted net debt (9,896) 4,072 (19) (5,843)
Subordinated loans (379) - - (379)
---------------------------------------------------------------------------- --------- --------- -------- --------
Total net debt (10,275) 4,072 (19) (6,222)
---------------------------------------------------------------------------- --------- --------- -------- --------
Non-cash items represent foreign exchange differences on bank loans.
9. Post Balance Sheet Events
On 18 July 2017, Judges' majority owned subsidiary Bordeaux Acquisition Limited ("Bordeaux") acquired 100% of the issued share capital of Crystallon Limited ("Crystallon"), the holding company of Oxford Cryosystems Limited ("Oxford Cryosystems"). Oxford Cryosystems is based in Long Hanborough, Oxfordshire and manufactures cryogenic cooling systems used for X-Ray crystallography and other applications.
The purchase price of Crystallon amounted to GBP4.495 million in cash. An additional payment will be made to reflect any excess cash and working capital over and above the ongoing requirements of the business and it is expected that such payment will be covered by the cash inherited at the completion date. In addition, an earn-out will be payable if Crystallon's adjusted EBITA in the financial year ending 30 November 2017 exceeds GBP0.899 million; the amount payable will be five times such excess, capped at GBP1.576 million.
The acquisition of Crystallon was financed by Bordeaux via a new GBP4.5 million five-year term loan granted by Lloyds Bank Corporate Markets and guaranteed by Judges, with associated transaction costs being funded from Bordeaux's cash resources.
Simultaneously with the acquisition of Crystallon, Judges purchased the 24.5% shareholding held by Tracey Edwards in Bordeaux for a cash consideration of GBP1.15 million and also her 24.5% share in the shareholders' loan to Bordeaux for its nominal amount of GBP0.19 million. As a result, Judges has increased its ownership of the shares in, and shareholders loans to, Bordeaux from 51% to 75.5%. The increase in shareholding was financed out of Judges' existing cash resources.
10. Defined Benefit Scheme
The Group's defined benefit pension scheme liability has reduced to GBP2.0 million compared to GBP2.2 million at 31 December 2016. This decrease in liability is mainly attributable to a small change in inflation and also certain member exits or encashments.
11. Dividends
During the period, the Company paid no dividends (2016: second interim dividend of 15.9p per share totalling GBP1.0 million on 22 March 2016).
The Company paid a final dividend of 18.5p per share (GBP1.1 million) on 7 July 2017 relating to the financial year ended 31 December 2016.
The Company will pay an interim dividend for 2017 of 10.0p per share on 3 November 2017 to shareholders on the register on 6 October 2017. The shares will go ex-dividend on 5 October 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EVLFFDKFEBBB
(END) Dow Jones Newswires
September 19, 2017 02:00 ET (06:00 GMT)
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