David Circuel has said he believes that having come through the financial crisis and now, Covid, many owners will be thinking about selling up before another crisis hits them. He doesn't think putting more resources into seeking deals would work as you can't persuade someone to retire so JDG will wait to be approached. Owners know JDG will look after the business and its employees which must be important if it's been your life's work.
However, I suspect they have a number of irons in the fire, hence the improved finance available. |
Inference from this announcement is that the board believes there is scope to accelerate their acquisition strategy, but knowing their criteria is set in stone in terms of ratios it may be awhile before any new deals materialise. |
 New GBP60.0 million Bank Facility
Judges Scientific, the group focused on acquiring and developing companies in the scientific instrument sector, is pleased to announce that it has entered into new banking facilities ("Facility") with Lloyds Banking Group plc (the "Bank") which replace its existing banking arrangements with the Bank, which were for an aggregate amount of GBP35.0 million. This new Facility will provide greater acquisition financing capacity, both in terms of higher frequency and/or larger deals, in support of the Group's buy and build strategy.
The Facility is for an aggregate GBP60.0 million consisting of a GBP19.0 million term loan ("Term Loan"), a committed GBP35.0 million revolving credit facility ("RCF") plus a GBP6.0 million accordion facility, which can be drawn at the discretion of the Bank. The Facility replaces the Group's previous facilities of which GBP19.0m remained drawn. The Facility has a five year term ("Borrowing Term") with covenants and interest consistent with the previous bank facilities.
The Term Loan amortises on a straight line basis over the Borrowing Term by quarterly instalments. The RCF is repayable in a bullet at the end of the Borrowing Term. The accordion facility increases by the amount paid off the Term Loan, keeping the overall Facility at GBP60.0 million throughout the Borrowing Term.
The banking covenants remain similar to the previous banking arrangements, namely:
-- Gearing no greater than 2.5 times Adjusted* EBITDA;
-- Interest Cover no less than 3 times; and
-- Adjusted* EBITDA cover of greater than GBP7.5 million plus 75% of any future acquired company's EBITDA.
The existing lending facilities via Bordeaux Acquisition Limited ("Bordeaux"), the Group's 88% owned subsidiary, remain unchanged. Bordeaux owns the trading companies of Deben UK Limited and Oxford Cryosystems Limited .
* Adjusted EBITDA excludes adjusting items relating to amortisation of acquired intangible assets, acquisition-related costs, share based payments and hedging of risks materialising after the end of the year.
Brad Ormsby, Judges' Group Finance Director, commented:
"We are delighted that Lloyds and its Relationship Team have continued to show their long-term desire to stand behind the Group's growth trajectory. This Facility will provide the Group with a substantially larger springboard to continue with the execution of its buy and build growth strategy." |
Judges Scientific (JDG) management team David Cicurel, CEO, Brad Ormsby, FD & Mark Lavelle, COO, present the results for the full year 2020 to analysts followed by Q&A. Overall the group was impacted by CV19, although each company in the group experienced it differently. By the year-end, the group's organic order book had recovered to 14 weeks (2019: 13.2 weeks). There were three acquisitions during the period.
Watch the video here:
Or listen to the podcast version here: |
Here is the programme for tonight
Programme for the evening
5.00 pm Introduction to our Mello Roadshow
5.05 pm Alun @MrContrarian reviews the Mello BASH companies
5.10 pm Company presentation by Judges Scientific
5.40 pm How to join corporate fundraisings with James Deal, Primary Bid
6.00 pm Company presentation by Filta Group
6.30 pm Leon Boros interviews Peter Harrison from Bioventix
7.00 pm Company presentation by Digital Box
7.30 pm A March results round up with Paul Scott, Gordon @glasshalfull & Alan Charlton
8.00 pm Company presentation by Get Busy
8.30 pm New IPO presentation by Parsley Box introduced by James Deal, Primary Bid
8.50 pm Mello BASH with Alan Charlton, Alex Schlich, Richard Crow and Kevin Taylor
Tickets are still available and if you would like one at half price then enter the code MMTADVFN50. |
Just to let shareholders and prospective investors know that Judges Scientific plc will be presenting at Mello Events’ Results Roadshow Special webinar event on Monday 29th March at 5pm-9:30pm. There will also be other fantastic company presentations from GetBusy, Filta Group and Digitalbox plc.
There will be over 600 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions including the popular Mello BASH (Buy, Avoid, Sell or Hold).
Tickets are still available and if you would like one at half price then enter the code MMTADVFN50. |
Final results tomorrow I believe |
Jackdaw - no reason I'm aware of other than it falling to a lower arc of longer term (5yr) price support.
The sudden drop coincided with the recent tech sell off, so maybe that's the lens through which some view the company. |
Why the drop |
Company has increased holding in Bordeaux Acquisition Limited from 75.5% to 88%. In 2020, Bordeaux generated GBP2.8m EBIT with the increased stake expected to be immediately earnings enhancing.
What's not to like...looks like a new share price high is on the cards. |
Almost like a broken record JDG keeps repeating the same old same old.....
"Ahead of market expectations"
BRAVA BRAVO |
Another all time high, but they seem to be too boring for most investors. For the patient these were selling for little more than £1 a decade ago, and have paid ever increasing dividends every year. Long may they continue to bore! |
Another acquisition, Korvus Technology, based in Tavistock, Devon for £2.64m cash. Expected to be immediately earnings enhancing. 'Korvus' operating profit for the year ended 31 March 2020, adjusted to eliminate non-recurring items and to reflect Korvus' ongoing cost base within Judges, would have totalled GBP0.66 million'. The JDG business model continues to pick up successful niche companies. A class act. |
Judges Scientific (JDG) H1 20 results presentation by David Cicurel (CEO), Brad Ormsby (Group FD) & Mark Lavelle (COO).
Video: hxxps://www.piworld.co.uk/2020/09/25/judges-scientific-jdg-h1-20-results-presentation/
Podcast: hxxps://www.piworld.co.uk/podcasts/ |
JDG cautiously confident of meeting existing market expectations for the year – consensus forecasts are for revenue of £74.8m and adjusted Eps of 150p.
More on the Investor's Champion website. |
Appears a triangle formation has been building on the chart since last December which looks like it's due to break (upwards?) soon. |
Topped a little this morning. Wish I had been bolder |
I really like the management with this company. they consistantly aquire decent companies which are cash generative. maybe we will see further special dividends with all this extra cash down the line? |
The current market must be making some business owners think they've had enough and want to find a full or partial (as in this case) exit route that protects the business. That works in Judges' favour of course, with more potential acquisition prospects forthcoming. |
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