Judges Scientific shares fell 1.6% to 7,474.1p in late afternoon trading on Monday following the release of the group’s HY1 trading update, which reported continued recovery from the challenges of Covid-19.
However, the company mentioned worsening supply chain disruptions, as geopolitical disruption caused difficulties in managing operations across the group.
Judges Scientific highlighted an organic sales climb of 7% year-on-year, with additional progress hindered by supply chain problems and recruitment difficulties, alongside the complication of numerous staff members isolating due to Covid-19.
Judges Scientific confirmed a 4.2% increase in organic order intake, after a 25.1% gain in HY1 2021, representing a 7.8% advance from HY1 2019.
The firm’s North American market grew 15.4% following a 41% growth year-on-year, and the rest of the world saw an increase of 13.1% after an 8% climb the last year.
The rest of Europe was flat after a 34% rise in HY1 2021, reflecting a varied performance across the region.
Order intake in China and Hong Kong shrank 5.1% following a 2% growth in the previous year, as a result of continuous Covid lockdowns in the sector.
Meanwhile, the UK was down 9.4% after a 26% increase, with order intake considerably varied from business to business throughout the financial period.
The group mentioned its organic order book reached a mid-year record of 21.3 weeks compared to 17.6 weeks at 30 June 2021, linked to a modest increase in order intake and ongoing supply chain challenges.
Acquisitions
Judges Scientific also announced its recent acquisition of Geotek Holding Limited and Geotek Coring Limited for a consideration of up to £80 million, funded by a new £100 million multi-bank facility, which will provide the firm with extra capacity to support its buy and build strategy.
Outlook
Judges Scientific said it expected to meet its current FY market projections due to its strong order book and business model, despite the challenging geopolitical market environment.