Judges Scientific (LSE:JDG) told investors on 23 September 2026 that it continued to expect adjusted Earnings Per Share for the year to be in line with market expectations, despite a sharp fall in first-half profit. It also said more Revenue than usual was expected in the final quarter. With the group now midway through that quarter, the focus is on what the company has said it needs to deliver and the obstacles it has identified.

About Judges Scientific

Judges follows a buy-and-build model, acquiring specialist instrument makers that are often owner-managed and leaving them to operate independently under group oversight. Its products include instruments for materials analysis, vacuum technology and other scientific uses. Because each Business serves a niche, results depend on the funding cycles of universities and institutes and on industrial demand, and a few large orders can change a half-year's results.

A buy-and-build instrument specialist

LSE:JDG acquires and owns small, specialist scientific instrument manufacturers, largely in the UK, serving universities, scientific institutes and industrial laboratories worldwide. Its earnings therefore depend heavily on academic and government science budgets and on export markets such as the US and China.

The first half was a difficult one. Revenue fell to £55.7m from £70.2m and adjusted profit before tax dropped to £3.2m from £12.6m. On a statutory basis the group swung to a pre-tax loss of £1.7m, against a £6.6m profit a year earlier, with a loss per share of 19.5p. Adjusted earnings per share were 38.9p, compared with 139.2p. The company attributed the decline to reduced US funding for science, delays in China and weakness in offshore wind.

What the second half requires

Because expectations were maintained, the shortfall in the first half must be recovered in the second, and in particular in the final three months. Management identified two priorities: securing orders expected in the third quarter and delivering the existing order book on time.

There were some supporting signals. Order intake was reported as having improved over the summer, moving from 12% below the prior year at the end of June to 1% below at the time of the report. The company said early signs suggested China's tax exemption process was improving, which matters because delays there had held back shipments. It also pointed to increased Patent Box tax benefits, lower costs and improvements in businesses that had faced product-specific issues as contributors to second-half earnings.

Why it matters

For a company with Judges' record, a heavily second-half-weighted year concentrates risk. LSE:JDG described the execution challenges of a large final quarter as largely manageable, but production, shipping and customer acceptance all need to fall into the remaining weeks of the calendar year. Any slippage into 2027 would shift revenue and profit out of the period against which expectations are set.

The Interim Dividend offers a signal of board confidence. It was raised to 36.0p from 32.7p and paid on 6 November, even though it now nearly matches first-half adjusted earnings per share.

Senior managers have also continued to acquire small numbers of shares through the group's Share Incentive Plan; a notice on 10 November recorded purchases totalling 24 shares across five individuals on 5 November. Such small, routine amounts say little about the outlook.

Risks and dependencies

The main risks are external. US science funding decisions, the pace of Chinese Import and tax-exemption processes, and the health of offshore wind Investment are outside the group's control. A recovery in orders to near prior-year levels does not guarantee that those orders convert into revenue before the year end. Tax benefits support earnings but not underlying demand. The chief financial officer is also due to step down within twelve months, adding a management transition to a demanding period, although banking facilities have been extended to July 2030.

The first-half numbers

Revenue fell about 21% to £55.7m from £70.2m, while adjusted profit before tax fell about 75% to £3.2m from £12.6m. That means the profit Margin dropped to about 5.7% from about 18%, so costs did not fall as quickly as revenue. Adjusted earnings per share of 38.9p compared with 139.2p, a fall of about 72%, which is slightly smaller than the fall in profit because the share count was lower.

What full-year expectations imply

Since the company continues to expect the year to be in line with market expectations, the second half must deliver the bulk of the year's earnings. The first half's adjusted earnings per share of 38.9p is only a small part of what a normal year would produce, so the second half must make up a large amount, with a final quarter that includes more revenue than usual. The company has not given the figures for market expectations in this statement, so the exact size of the gap is not available.

Order intake and China

Order intake that moved from 12% below the prior year at the end of June to 1% below indicates a marked improvement over the summer, because each percentage point reflects a larger part of the order book. Delays in China related to a tax exemption process held back shipments, so an improvement would release deliveries that were waiting. US funding cuts for science have affected Demand from American universities, a large export market for the group.

Dividend and insider buying

The interim dividend of 36.0p, up from 32.7p, is about 10% higher. It is larger than the first-half adjusted earnings per share of 38.9p, apart from a small margin, which means the payment was not covered by earnings in the half. The purchases of shares by senior managers through the Share Incentive Plan are small, but they show continued participation in the group's shares.

Share-based incentives

Purchases through the Share Incentive Plan are made regularly by employees and are typically small, but they align staff with shareholders over time and show continued participation in the business.

What comes next

The next scheduled disclosure is likely to be a full-year trading update in January, in line with the company's past practice; the 2025 statement was published on 22 January 2026. That update will show whether the fourth quarter delivered as planned and whether adjusted earnings per share landed in line with expectations.