Earnings call transcript: Judges Scientific H1 2026 profit drops as orders improve

Judges Scientific reported a sharp decline in first-half profit for the period ending June 30, 2026, with adjusted earnings per share falling to GBP 0.389 from GBP 1.50 a year earlier. Revenue for the same period dropped 21% to GBP 55.7 million, down 13% on a like-for-like basis. Despite the revenue decline, the company noted improving order trends and strong cash conversion, maintaining its full-year outlook.

The company cut about GBP 2 million in costs at underperforming businesses while continuing investment in innovation. Cash conversion remained high at 90%, and the interim dividend rose by 10% to 36 pence per share. The company faced challenges in U.S. and Chinese research markets, with uncertainty over U.S. federal funding impacting demand and delays in China's tax exemption process affecting orders and shipments.

However, eight of the 19 businesses grew during the period, driven by new products, market development, and stronger demand in industrial areas. The company's decentralized model allows local teams to react quickly while keeping the group asset-light and cash-generative. Revenue and adjusted EPS were impacted due to the overall slowdown in demand, but the company remains optimistic about long-term growth in niche scientific markets.