28th Mar 2014 09:27
LONDON (Alliance News) - Precision instrument maker Judges Scientific PLC raised its total dividend as revenue was boosted by acquisitions, although pretax profit was damped by exceptional costs in 2013.
Judges proposed a final dividend of 13.4 pence, bringing its total dividend for 2013 to 20.0 pence from 15.0 pence in 2012.
The company posted a pretax profit of GBP1.2 million for 2013, up from GBP321,000 in 2012, as revenue rose to GBP36.0 million from GBP28.0 million, boosted by a full year's contribution from the acquisition of Global Digital Systems Ltd and initial contributions from Scientifica Ltd, which Judges acquired in June 2013.
This rise in revenue was partly offset by exceptional items of GBP6.1 million, including a GBP4.5 million charge from the amortisation of intangible assets, GBP158,000 in relocation costs and GBP794,000 relating to the acquisition of Scientifica.
Judges raised GBP8.1 million before expenses through the placing of 500,000 shares at 1,625 pence in October, which it said had restored its ability to complete further acquisitions.
The company faced a challenging 2013, it said, as it saw weak order intake, particularly in the second quarter. However, conditions gradually improved, leading to a strong performance in the fourth quarter, it said.
Judges completed the development of its Stonecross factory in Laughton, East Sussex, during the year, and relocated its UHV design and Quorom businesses to the new facility in August. It expects these business to see benefits during 2014 from operating in the new unit.
As a result of its strong fourth quarter, the company said it continues to enjoy a "robust" order book in 2014, although commercial activity in the early weeks of the year has been sedate. Judges noted the strengthening of sterling, and the weakening of the Chinese economy, and said it was conscious of the potential impact of these factors.
Although the company expressed confidence for its export business given the most positive economic climate, it noted that it "hoped that it will not be spoilt by the political tensions playing out on the world stage."
WH Ireland raised its price target for Judges Scientific by more than 20% following the results. However it said that recent out-performance means the shares now trade at the top end of peer group valuations. The broker has increased its price target to 2,370p, from 2,150p and reiterated a Market Perform recommendation.
Shares in Judges were trading down 0.8% at 2,325.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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