20th Sep 2016 09:51
LONDON (Alliance News) - Judges Scientific PLC Tuesday warned it will miss market expectations for 2016, as it saw slower order intake in the first half, and reported a narrowed pretax loss.
For the half year to the end of June the company reported a pretax loss of GBP665,000, narrowed from a pretax loss of GBP1.5 million, as revenue rose to GBP27.3 million from GBP25.0 million, and it saw lower one-off costs.
Revenue was bolstered by three acquisitions Judges Scientific completed in the half year, however, it saw a weaker performance on an organic basis, as sales in the UK fell 13%, and 10% in China and Hong Kong, meanwhile its Armfield business saw revenue fall due to slow order intake.
Furthermore, its revenue was also restrained by production issues in one of the constituents of its Vacuum division.
Judges Scientific proposed an interim dividend of 9.0 pence, up from the 8.1 pence paid the prior year.
The company warned that its business environment remains uneven. Judges Scientific cautioned that although exports represent a vast majority of its sales, the UK is not an insignificant market, and may remain adverse until Brexit negotiations are concluded. However, whilst the long term effect of Brexit is difficult to gauge, it is benefiting from exchange rates in the short term.
"This has been a period of contrast, with success in the pursuit of earnings-enhancing acquisitions and frustration in respect of short-term trading performance. At this stage, the board therefore believes that the full year results will be significantly below market expectations," it said in a statement.
Shares in Judges Scientific were down 9.2% at 1,290.00 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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