1) Leadership Transition and Strategy Overview
- CEO Tim Prestidge announced the retirement of CFO Brad Ormsby, who will assist in the transition for 12 months.
- Judges Scientific operates as a buy-and-build group in scientific instruments, focusing on acquiring successful, asset-light businesses with high cash conversion.
- The company emphasizes long-term growth driven by secular trends in scientific research and a large pool of acquisition opportunities.
- The management team is experienced, with a strong focus on innovation and operational excellence.

2) Financial Performance and Segment Results
- Revenue decreased by 21% YoY, with a 13% decline on a like-for-like basis, excluding the Geotek coring expedition from the previous year.
- Adjusted earnings per share fell 72%, reflecting high operational leverage in a challenging market.
- Despite the downturn, cash conversion remained strong at 90%, and the interim dividend was increased by 10% to GBP 0.36 per share.
- Eight of the company’s businesses reported growth during the first half, supported by internal initiatives and market dynamics in sectors like semiconductors and battery development.

3) Market Challenges and Headwinds
- The company faced significant external headwinds, including uncertainties in U.S. research funding and delays in offshore wind investments.
- The new Chinese tax exemption processes caused order delays, impacting overall revenue.
- The absence of the Geotek coring expedition in 2026 was anticipated and contributed to the revenue decline.
- Management acknowledged the need for careful execution in the second half to mitigate risks associated with high-value orders.

4) Operational Improvements and Growth Plans
- Judges Scientific is focused on controlling costs, having reduced expenses by GBP 2 million in underperforming businesses while investing in innovation and talent elsewhere.
- There is a strong emphasis on decentralized decision-making, allowing individual businesses to define their growth strategies.
- The company is optimistic about order intake momentum, with recent trends showing improvement, particularly in industrial applications.
- The management team remains committed to a disciplined acquisition strategy, with a healthy pipeline of opportunities despite a lack of acquisitions in the first half.

5) Guidance and Future Outlook
- The company maintains guidance in line with market expectations for the full year, anticipating a significant weighting of revenue in the second half.
- Management highlighted resilient markets in industrial sectors but acknowledged ongoing challenges in scientific research funding.
- The outlook remains cautious, with execution risks identified, particularly regarding high-value orders and geopolitical uncertainties.
- The management expressed confidence in the long-term drivers of the business model and the ability to weather current challenges.

Bottom line: Judges Scientific is navigating a challenging market environment with a focus on operational efficiency and strategic growth. Despite a significant decline in revenue and earnings, the company is optimistic about improving order intake and maintaining its dividend policy, positioning itself for recovery in the latter half of 2026.