Judges Scientific (JDG) H1 2026 earnings summary

Executive summary

• Revenue declined 21% year-over-year in H1 2026, with like-for-like revenue down 13% excluding a non-recurring Geotek coring expedition in 2025.

• Adjusted earnings per share fell 72% to 39.0p, driven by high operational leverage and external headwinds, including U.S. research funding uncertainty, offshore wind investment delays, and Chinese tax exemption process disruptions.

• Eight businesses achieved growth, mainly in industrial markets such as semiconductors and batteries, while others faced significant short-term profitability declines.

• Cost reductions of nearly £2 million were implemented in underperforming businesses, while investment in talent and innovation continued elsewhere.

• Order intake momentum improved significantly by late Q3/early H2, with year-to-date order intake nearly at parity with the prior year.

Financial highlights

• Total revenue fell to £55.7m from £70.2m, a 21% decrease year-over-year; like-for-like revenue (excluding Geotek coring) declined 13%.

• Adjusted operating profit dropped 66% to £4.8m; adjusted pre-tax profit down 75% to £3.2m; adjusted basic EPS at 39.0p.

• Cash conversion remained strong at 90%, generating £4.3 million from operations.

• Interim dividend increased by 10% to 36.0p per share.

• Adjusted net debt increased to £45.3m due to higher working capital needs; gearing increased to 2.1x.

Outlook and guidance

• Trading is guided in line with FY 2026 market expectations, with a significant H2 and Q4 revenue weighting.

• Execution risk remains due to high-value, timing-sensitive orders and Q4 revenue concentration, but improved order book visibility supports confidence.

• Continued headwinds expected in U.S. scientific research funding and delayed Geotek coring expedition until at least 2028.

• Early signs of recovery in China as tax exemption processes resolve and delayed orders begin to ship.

• Confidence in long-term growth drivers and business model remains high.