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Interim Results for the 6M ended 30 June 2017

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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 £32.7 million (H1 2016: £27.3 million) including 14% organic growth;

·        Adjusted* pre-tax profit up 48% to £4.4 million (H1 2016: £3.0 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 £4.4 million (H1 2016: £2.4 million);

·        Adjusted* net debt of £5.8 million as at 30 June 2017 (30 June 2016: £10.3 million and 31 December 2016: £9.9 million);

·        Cash balances of £8.9 million as at 30 June 2017 (30 June 2016: £6.0 million and 31 December 2016: £7.9 million);

·        Post period end acquisition by Bordeaux of Oxford Cryosystems for £4.5 million and increase of Group's share in Bordeaux from 51% to 75.5% for a cash consideration of £1.3 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 16th acquisition."
 

 

For further information please contact: 

 

Judges Scientific plc 

David Cicurel, CEO / Brad Ormsby, Group FD

+44 (0) 20 3829 6970 

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 £32.7 million (H1 2016: £27.3 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 £4.4 million (H1 2016: £3.0 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 £2.3 million (H1 2016: £3.6 million) include a £2.1 million charge for amortisation of acquired intangible assets (H1 2016: £2.9 million) primarily arising from recent acquisitions.  As no acquisition was completed in the period under review, the impact of transaction costs was £nil (H1 2016: £0.6 million).  The adjusting items reduce profit before tax from £4.4 million to £2.1 million (H1 2016: loss of £0.7 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 £4.4 million (H1 2016: £2.4 million) representing 95% of adjusted EBIT (H1 2016: 74.7%).  The interim balance sheet includes cash balances of £8.9 million and adjusted net debt of £5.8 million, down from £9.9m 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 £4.5 million plus excess cash, plus a potential earn-out up to £1.6 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 £1.3 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 

 

 

Note

Adjusted

£000

Adjusting

 items

£000

Six months to

30 June

2017

£000

Six months to

30 June

2016

£000

Year to

 31 December

2016

£000

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 

 

 

Note

30 June

2017

£000

30 June

2016

£000

31 December

2016

£000

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 

 

 

 

Share

capital

£000

Share

premium

£000

Other

reserves

£000

Retained

earnings

£000

Total attributable

to owners

of parent

£000

Non-

controlling

interests

£000

Total

equity

£000

 

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

                   

 

 

 

Share

capital

£000

Share

premium

£000

Other

reserves

£000

Retained

earnings

£000

Total attributable

to owners

of parent

£000

Non-

controlling

interests

£000

Total

equity

£000

 

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

                   

 

 

 

Share

capital

£000

Share

premium

£000

Other

reserves

£000

Retained

earnings

£000

Total attributable

to owners

of parent

£000

Non-

controlling

interests

£000

Total

equity

£000

 

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

30 June

2017

£000

Six months to

30 June

2016

£000

Year to

31 December

2016

£000

 

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 

For the period ended 30 June 2017

Note

Materials

Sciences

£000

Vacuum

£000

Unallocated

items

£000

Total

£000

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

 

For the period ended 30 June 2016

Note

Materials

Sciences

£000

Vacuum

£000

Unallocated

items

£000

Total

£000

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) 

For the year ended 31 December 2016

Note

Materials

Sciences

£000

Vacuum

£000

Unallocated

items

£000

Total

£000

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 

At 30 June 2017

Materials

Sciences

£000

Vacuum

£000

Unallocated

items

£000

Total

£000

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

 

At 30 June 2016

Materials

Sciences

£000

Vacuum

£000

Unallocated

items

£000

Total

£000

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

 

At 31 December 2016

Materials

Sciences

£000

Vacuum

£000

Unallocated

items

£000

Total

£000

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. 

Geographic analysis

Six months to

30 June

2017

£000

Six months to

30 June

2016

£000

Year to

31 December

2016

£000

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

30 June

2017

£000

Six months to

30 June

2016

£000

Year to

31 December

2016

£000

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 

 

Note

Six months to

30 June

2017

£000

Six months to

30 June

2016

£000

Year to

31 December

2016

£000

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

7

6,107,628

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

7

6,115,628

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

amount at

1 January

2017

£000

Acquisitions

£000

Amortisation

£000

Carrying

amount at

30 June

2017

£000

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

amount at

1 January

2016

£000

Acquisitions

£000

Amortisation

£000

Carrying

amount at

30 June

2016

£000

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

amount at

1 January

2016

£000

Acquisitions

£000

Amortisation

£000

Carrying

amount at

31 December

2016

£000

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: 

Ordinary shares of 5p each

Six months to

30 June 2017

Number

Six months to

30 June 2016

Number

Year to

31 December

2016

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: 

on 24 January 2017 when the mid-market share price was 1,502.5p; 

on 7 February 2017 when the mid-market share price was 1,580.0p; 

on 21 March 2017 when the mid-market share price was 1,585.0p; and 

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

2017

£000

Cash flow

£000

Non-cash

items

£000

30 June

2017

£000

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 £4.495 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 £0.899 million; the amount payable will be five times such excess, capped at £1.576 million. 

The acquisition of Crystallon was financed by Bordeaux via a new £4.5 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 £1.15 million and also her 24.5% share in the shareholders' loan to Bordeaux for its nominal amount of £0.19 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 £2.0 million compared to £2.2 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 £1.0 million on 22 March 2016). 

The Company paid a final dividend of 18.5p per share (£1.1 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
 
 
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