Judges Scientific (JDG) overcame a poor start to 2013 to end the year with an "excellent" fourth quarter and another set of record numbers. That, however, should surprise no one. It's been the norm since 2006, and the scientific instrument maker is well set to do it again this year.
Strip out one-offs, such as acquisition costs and the previous year's £1.6m accounting loss on revaluing convertible redeemable shares, and pre-tax profit jumped by a bigger-than-expected 30 per cent to £7.3m. Of course, the acquisition of Global Digital Systems in 2012 and Scientifica Limited last June helped. Yet, even without them, like-for-like revenue grew by over 4 per cent and operating profit by 14 per cent. This year will get an extra six months' money from Scientifica - roughly £1m, according to chief executive David Cicurel, who spends two-thirds of his time tracking down new targets. He certainly has the fire-power - a placing in October at 1,625p was heavily oversubscribed - but finding suitable bolt-ons at the right price is hard.
Still, currency headwinds and "sedate" commercial activity so far this year mean broker Shore Capital expects a less dramatic rise in adjusted pre-tax profit this year to £8.3m, giving adjusted EPS of 106p (from 100p in 2013).
JUDGES SCIENTIFIC (JDG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,300p | MARKET VALUE: | £136m | |
| TOUCH: | 2,275-2,325p | 12-MONTH HIGH: | 2,438p | LOW: 1,133p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 98 | |
| NET ASSET VALUE | 349p* | NET DEBT: | 27% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 11.3 | 1.2 | 20.6 | 5 |
| 2010 | 16.0 | 0.7 | 8.1 | 7.5 |
| 2011 | 20.8 | 2.9 | 45.2 | 10 |
| 2012 | 28.0 | 0.3 | -4.2 | 15 |
| 2013 | 36.0 | 1.2 | 23.4 | 20 |
| % change | +29 | +286 | - | +33 |
Ex-div: 4 Jun Payment: 4 Jul *Includes intangible assets of £21.6m, or 366p a share | ||||
