Judges Scientific cuts profit targets due to order delays

(Sharecast News) - Scientific instrument company Judges Scientific has slashed its profit guidance for the full year on the back of delays in the timing of certain orders.

Judges Scientific had said back in July that 2024 adjusted earnings per share would be 5-10% below the company-compiled consensus forecast at the time of 384.6p, indicating a level of 346.14p to 365.37p, down from 374.6p in 2023.

On Monday, this guidance was cut to just 270p to 300p, with orders having "not yet recovered to the growth path traditional for our group".

Several of Judges Scientific's businesses experienced a challenging first half, as reported at the interim results in September, due to difficult market conditions and the deferral of some projects into the second half or beyond.

"As anticipated, H2 will show progress compared to H1. However, achievement of the expectations for the full year, which were revised downwards in July, was reliant upon the crystallisation and delivery of certain orders. We now believe these will not all occur in time to deliver against the expectations before the end of the year," the company said.

As of the end of October, orders were up 4.2% on an organic basis from last year, which includes a large coring contract by the Geotek division, which will start in 2025. When excluding this contract, order intake would be 1.6% down.

"In spite of the disappointing trading performance, the board is confident that the long-term growth drivers of our business remain solid," the company said.