Financial Information

Corporate strategy:

Judges Scientific plc, listed on the Alternative Investment Market of the London Stock Exchange (“AIM”), heads a group dedicated to growth in the scientific instruments sector through a “buy and build” strategy.  Formed towards the end of 2002 with a different business model in mind, the company made its first foray into the world of scientific instruments in May 2005 with the acquisition of Fire Testing Technology.

The directors identified scientific instruments as a sector in which the United Kingdom could justly boast of being a global centre of excellence.  With a large number of privately-owned companies created by entrepreneurial scientists and engineers, the Judges management team recognised the sector as being ripe for consolidation.  Since the FTT acquisition, a further 10 businesses have been brought into the Judges family of companies in furtherance of its strategic aims.

Financial strategy:

The financial strategy of the group can be summed up in just a few key points:

  • businesses are acquired only if they meet exacting performance criteria, including an established product range, an international customer profile and sustainable sales, profits and cash generation;
  • businesses are acquired only if sensible terms can be negotiated with vendors, thereby generating attractive returns on capital invested;
  • debt financing is used to the extent that it is available and remains within prudent parameters;
  • the group’s primary focus is to enrich shareholders through the repayment of debt;
  • the directors believe that a strong balance sheet and healthy cash balances are essential tools for the delivery of their “buy and build” strategy;  and
  • the directors consider that the payment of a prudent but steadily growing dividend to shareholders is essential, both to remunerate those providing capital and to enhance the attractiveness of the group’s equity.