Judges Scientific Plc (JDG) 2023年年度報告「LSE」.pdf

《Judges Scientific Plc (JDG) 2023年年度報告「LSE」.pdf》由會員分享，可在線閱讀，更多相關《Judges Scientific Plc (JDG) 2023年年度報告「LSE」.pdf（106頁珍藏版）》請在三個皮匠報告上搜索。

1、ANNUAL REPORT AND ACCOUNTS 2023Building on our performanceJudges Scientific plc is an AIM-quoted group focused on acquiring and developing companies within the scientific instrument sector.Corporate expansion is being pursued,both through Organic growth within its subsidiary companies and through th

2、e acquisition of top-quality businesses with established reputations in worldwide markets.Robust business model;pursued with discipline Large pool of targets,every acquisitionis earnings enhancing;twenty three acquisitionssince May 2005 Strong long-term growth drivers in highereducation and process

3、optimisation Well diversified by geographyand by scientific application Management focused on shareholder value profitability,cash generation,debt reduction,dividend growth and return on capital Dividend growth of 10+%forpast 15 years,CAGR 23%Total revenue CAGR of 21%and EBIT CAGRof 28%Cover image:O

4、xford Cryosystems Phenix Front Loader,enables fast change of powder samples in x-ray diffraction experiments at temperatures as low as 40K.This page:MiniQ GD(Single Chamber Glow Discharge Unit):a compact unit for glow discharge processes.Investment caseHIGHLIGHTSStrategic report1 Highlights2 At a gl

5、ance10 Chairmans statement12 Chief Executives report15 Business model 16 Strategy17 Section 172 statement18 Sustainability report26 Task Force on Climate-related Financial Disclosures28 Principal risks and uncertainties30 Finance Directors reportGovernance report34 Board of Directors36 Corporate Gov

6、ernance statement40 Audit Committee report42 Remuneration Committee report46 Directors reportFinancial statements50 Independent auditors report59 Consolidated statement of comprehensive income60 Consolidated balance sheet61 Consolidated statement of changes in equity62 Consolidated cashflow statemen

7、t63 Notes to the consolidated financial statements93 Parent company balance sheet94 Parent company statement of changes in equity95 Notes to the parent company financial statements101 Ten-year financial history102 Company informationFor more information visit:Financial highlights Revenues up 20%to a

8、 record 136.1m(2022:113.2m),including 15%Organic*growth.Adjusted*operating profit up 16%to 34.8m(2022:30.1m):Statutory operating profit of 21.6m(2022:18.2m).Adjusted*basic earnings per share up 3%to 374.6p(2022:363.8p):Statutory basic earnings per share of 145.8p(2022:196.1p).Final dividend of 68.0p

9、,totalling 95.0p for the year,an increase of 17%;covered 3.9 times by adjusted earnings.Organic*order intake up 7%compared with 2022.Organic*order book at 17.0 weeks(31 December 2022:21.1 weeks);total order book 16.2 weeks.Cash generated from operations of 31.3m(2022:24.0m).Adjusted*net debt of 45.1

10、m as at 31 December 2023(31 December 2022:52.0m):Statutory net debt of 51.6m at 31 December 2023(31 December 2022:39.1m).Cash balances of 13.7m as at 31 December 2023(31 December 2022:20.8m).Strategic highlights Two small acquisitions,Henniker Scientific and Bossa Nova Vision,for a total considerati

11、on of 3.6m(including earn-out but excluding excess cash).Strengthened Executive team following the appointment of Dr Tim Prestidge as Group Business Development Director in February 2023.Appointment of Sue Nyman to the Board as independent Non-Executive Director.Revenue(m)136.1+20%222322232223202020

12、21212119191982.579.991.3113.2136.1Adjusted*basic earnings per share(pence)374.6+3%222.5177.2238.1363.8374.6Adjusted*operating profit(m)34.8+16%17.414.418.830.134.8*Organic describes the performance of the Group including businesses acquired prior to 1 January 2022.*Adjusted earnings figures exclude

13、adjusting items relating to amortisation of acquired intangible assets,acquisition-related costs,share-based payments and hedging of risks materialising after the end of the year.Adjusted net cash/debt includes acquisition-related liabilities and excludes IFRS 16 liabilities.Key financials 1Judges S

14、cientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsJudges Scientific plc Annual report and accounts 20232AT A GLANCETimeline of our acquisitionsUKRest of EuropeNorth AmericaChina/Hong KongRest of the WorldFTTSircalPFOGDSArmfieldDiastronTHTQuorumMoorfiel

15、dUHVDebenOxford CryoScientificaCooLEDEWBKorvusGeotekHennikerSpecialist portfolioJudges Scientific plc is an AIM-quoted group focused on acquiring and developing companies within the scientific instrument sector.The Group consists of twenty businesses and maintains a policy of selectively acquiring b

16、usinesses that generate sustainable profits and cash.Fire Testing TechnologyPE.fiberopticsUHV DesignAitchee EngineeringQuorum TechnologiesSircal InstrumentsDebenKE DevelopmentsGDS InstrumentsScientifica2005200620072008200920102011201220132014Group revenue by geographyKey statisticsGroup revenue3Judg

17、es Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsOur businessesArmfieldDia-Stron2015201620242017201820192020202120222023CoolLEDFIREEWB SolutionsMoorfieldOxford CryosystemsTHTHennikerKorvusBNVGeotekLuciolGeotek specialises in high-resolution,non-de

18、structive analysis of geological cores and samples.We have designed,built,and supplied our range of Multi-Sensor Core Logger(“MSCL”)systems for over 30 years,using a suite of geophysical,geochemical and imaging sensors.Geotek provides equipment sales and services to science and industry worldwide.Th

19、e Geotek Multi-Sensor Core Logger(“MSCL”)systems enable a suit of measurements to be obtained rapidly,accurately and automatically on sediment,rock cores and a range of cuttings and chip sample types.The rugged and field deployable design of the equipment makes it suitable for use in either an in co

20、untry laboratory or repository environment,onboard survey and drilling vessels and at drill site applications.Additionally Geotek design and manufacture a full range of cabinet-based digital 2D and 3D X-ray imaging systems for structural analysis in a variety of geoscience markets.Geotek Coring offe

21、rs customised services using its long term experience to collect cores(under full in situ pressures if required),to specialist laboratory testing.Acquiring geological cores is expensive;but the data locked within these samples determines the outcome of the oil and gas field development,research expe

22、dition,wind turbine location,foundation or tunnel design,pipeline and cable routes,or mineral exploration risk.Maximising the data recovered from every metre,centimetre and millimetre of core is therefore imperative in order to balance the cost of acquisition against the reward of development regard

23、less of the industrial purpose.Geoteks specialist core logging services team utilises non-destructive MSCL and X-ray CT core logging techniques to maximise the value of geological material for nearly any industry.Our specialist laboratories,located in the UK/Europe,North America,Australia and South

24、America,give our team of geoscientists and engineers a worldwide presence regardless of whether the project is onshore or offshore.Our MSCL instruments deployed into field applications are the focus of our Services business addressing applications in Geotechnical,Oil&Gas and Mining applications via

25、leasing of equipment or fully serviced projects to deliver high value data deliverables to our clients,this comprises our sample digitisation work flow via our supporting software“Atlas”to provide data management,visualisation and analysis as a“turnkey”service.Image:MSCL-XYZ automated multi-sensor s

26、canning system for high capacity unattended analysis of box cores,cuttings,chips,soils and pulps.Judges Scientific plc Annual report and accounts 20234Quorum Technologies manufactures market-leading scientific instrumentation used for Electron Microscopy(“EM”)sample preparation.Electron Microscopy i

27、s an essential research tool in many areas of scientific study,from the fight against major diseases,through to food safety and the development of advanced microelectronics and new materials.At Quorum Technologies we understand that exacting EM sample preparation is the only way to provide our custo

28、mers with clear results.Leading the way in sample preparation techniques such as cryo-SEM,sputter and carbon coating,critical point drying and glow discharge,Quorum Technologies full range of high-quality instruments offer unparalleled ease of use and reproducibility time and time again.With three n

29、ew products delivered in 2023,Quorum Technologies continues to drive innovation in EM sample preparation,benefiting researchers worldwide.Key products include:P3010 Cryo Preparation System:A market-leading system designed for cryo SEM preparation.QSeries Sputter and Carbon Coaters:Renowned for their

30、 quality,ease of use and reproducibility.New for 2023:Automated Critical Point Dryer(Qdry):a cutting-edge solution for Critical Point Drying.MiniQ GD(Single Chamber Glow Discharge Unit):a compact unit for glow discharge processes.MiniQS entry-level sputter coater:a robust,compact sputter coater.Imag

31、e:The image depicts Silk Worm Cocoon and was prepared using the Q150T ES,applying a fine layer of Pt.For imaging,the Tescan Amber was used.GDS designs,develops and manufactures equipment and software used for the computer-controlled testing of soils and rocks.This technology is used to evaluate the

32、mechanical properties that are key in geotechnical and earthquake engineering design.Services include:advanced systems for commercial soil and rock testing laboratories;and bespoke systems for university research in the engineering properties of soil and rock.Image:The GDS VDDCSS(Variable Direction

33、Dynamic Cyclic Simple Shear)is an electromechanically controlled soil testing system that allows independent control of stress and strain in 3 discrete directions.The system is specifically designed to recreate the simultaneous application of wave and wind loading in different directions for the ass

34、essment and design of wind turbine foundations.UHV Design,founded in 1993,specialises in the design,manufacture and supply of high precision motion,manipulation,heating and cooling(cryogenic)of samples for use in the high and ultra-high vacuum environments for materials research.Globally,our product

35、s are essential in major big physics experiments including:high energy particle accelerators such as CERN and SLAC;and synchrotron light sources including PSI(Swiss),Argonne(USA)and the UKs own facility,Diamond.They are also used routinely in laboratory-scale R&D instrumentation focused on new state

36、-of-the-art materials in:semiconductors,photovoltaics,catalysis and bio-compatible materials.Image:High performance beamline diagnostic device(Wire Scanner)for use in particle accelerators.AT A GLANCE continuedOur businesses continuedFTT is internationally recognised as the worlds leading supplier o

37、f fire testing instrumentation and has supplied the majority of leading fire research groups and testing laboratories around the world.Our directors and senior researchers participate in UK,ISO,CEN and ASTM standardisation committees to ensure that our instruments are always compliant.These include

38、committees dealing with construction products,electro-technical products,furnishing products and transport applications for instruments such as the Cone Calorimeter,NBS Smoke Density Chamber,EN 50399 and SBI.Oxford Cryosystems specialises in the design and manufacture of world-class cryogenic device

39、s.Our first product launched in 1985 was the Cryostream cooler,which revolutionised the process of low temperature data collection in X-ray diffraction.Today the company has a broad range of products aimed at low temperature data collection in X-ray diffraction as well as a range of single-stage and

40、 two-stage GM cryocoolers and associated helium compressors.These are used in a range of applications from our own cryostats to use in radioastronomy and HTS magnets.Image:The Cobra is a cryogen free open-flow cooler with precise temperature controls in the range of 80-500K.Aitchee Engineering is a

41、well-established precision engineering company that can offer high end sheet metalwork,laser cutting and CNC machining.We use state-of-the-art software to take customers drawings and turn them into manufactured goods in steel,aluminium,stainless steel,yellow metals or plastics.We can supply large ba

42、tch-work,call off orders and R&D including prototypes;we can also offer manufacturing process assistance and value engineering.5Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsEWB Solutions specialises in the design and manufacture of edge-we

43、lded metal bellows where a high integrity hermetic seal is required in the presence of an applied movement.Supplied globally,EWB bellows are produced in a wide range of materials,meeting a variety of life and environmental constraints for applications within a diverse range of industries such as sem

44、iconductor processing,particle physics experimentation,material/surface analysis,oncology therapy and petrochemical processing.AT A GLANCE continuedImage:Custom tri-axial system for University of Manchester,installed on a Leica Optical microscope.Image:The pE-400 offers intense,broad-spectrum covera

45、ge for the most popular fluorophores,ranging from DAPI through YFP to Cy5.Deben provides innovative tensile and compression testing solutions for in situ applications used with Scanning Electron Microscopes(SEM),X-ray CT,Optical Microscopes,AFM,Benchtop and Synchrotrons,with typical force measuremen

46、ts from 1N to 25kN and torsion to 100Nm available.Deben also manufactures SEM detectors and a range of SEM accessories such as heating and cooling stages and beam blanking systems for E-Beam lithography.Product groups:In situ tensile and compression testing systems.Detectors for SEM.Accessories for

47、SEM.CoolLED designs and manufactures cutting-edge illumination systems,transforming optical inspection and imaging research by pioneering the use of LEDs as controllable and sustainable replacements for halogen and mercury-based lamps.Our broad expertise across engineering and the life sciences driv

48、es the development of solutions for applications including:Advanced fluorescence microscopy with our 16-wavelength pE-4000 Universal Illuminator and lightning-fast pE-800 Series for calcium imaging and beyond.Routine to advanced fluorescence microscopy utilising the powerful four-LED pE-400 Series a

49、nd popular triple-LED pE-300 Series.Automated fluorescence and industrial inspection,where our enhanced focus is backed up by the customisable Amora Series,strengthening our reputation as a leading OEM.We also continue to push the boundaries with an exciting product development plan.Judges Scientifi

50、c plc Annual report and accounts 20236Armfield Limited is a global supplier of equipment for engineering education and research and development systems for the food industry.Typically,Armfields engineering education and research products are sold into the tertiary education sector.Customers are inst

51、itutes teaching disciplines in civil,chemical,mechanical and food engineering including vocational schools,technical institutes,specialised engineering universities and training establishments or government bodies such as the Ministry of Defence,Ministry of Education or Petroleum authorities.Armfiel

52、ds industrial food research products are for the development of beverages,dairy,ingredients,edible oils,flavours,fragrances,liquid foods and nutraceuticals and are sold into the food and pharmaceutical sectors.Customers include start-up companies,established businesses,multinationals and R&D centres

53、 of excellence.Our businesses continuedImage:The new FT102XA carbonator enables food research developers to experiment and test their beverage formulas at a variety of carbonation levels and then fill and seal into cans,glass and PET bottles and kegs.The Armfield Team will be presenting this unit at

54、 the Institute of Food Technologists(“IFT”)exhibition in Chicago this July,and we are excited to get this product out into the market.7Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsTHT is a world leader in the design,manufacture and supply

55、of specialised calorimeters for use in the chemical and battery industries.With a full range of adiabatic,reaction,and isothermal calorimeters,application areas include process development,optimisation and safety of chemical reactions,and determining performance and safety characteristics of Lithium

56、-Ion batteries.THTs products allow measurement of heats of reaction,derivation of kinetic parameters,assessment of maximum safe temperatures,and pressure generation.THTs flagship product,the Accelerating Rate Calorimeter(ARC),is the worlds benchmark adiabatic calorimeter and provides full adiabatic

57、runaway information for both temperature and pressure events.Image:Pouch cell battery being prepared for testing in THT EV+ARC.Image courtesy of Dr Carlos Ziebert,Head of Battery Safety Centre,Karlsruhe Institute of Technology,Germany.KIT/Almut Ochsman,Markus Breig.Moorfield are a team of scientists

58、 and engineers specialising in the design,manufacture,supply,and support of vacuum deposition(PVD and CVD),etching and annealing systems.All tools are highly modular with a range of options to suit uses and budgets.Customisations are routine.The company also offers components,consumables,and coating

59、 services.Moorfield systems are applied for research,product development and batch production.Applications include semiconductors,photovoltaics,superconductors,sensors,optics,graphene and 2D materials.Academic and industrial markets are served,worldwide.Image:Moorfield MinLab125 magnetron sputtering

60、 system.MiniLab systems provide research-grade thin-film deposition for R&D applications in cutting-edge fields such as 2D materials,organic electronics and renewable energies.Korvus Technology manufactures the HEX Series of benchtop thin film deposition systems.The fully interchangeable HEX system

61、allows the User to construct and re-assemble their system in a modular fashion without requiring expert knowledge,specialist tools and/or expensive design resource.Korvus offers a wide range of thin film deposition instruments to integrate/upgrade to within the HEX,including E-Beam Evaporators,RF an

62、d DC Sputtering Sources,Low Temperature Organic Evaporators and Thermal Evaporators.The HEX is used within Universities and Laboratories worldwide for applications including research into new materials for battery technology,OLED,nanomaterials,contact metallisation,coating of electrical contacts and

63、 EM sample preparation.Equally the HEX systems ease of use makes it the ideal tool for thin film teaching and training programmes.Image:Korvus HEX highly modular thin film deposition system.AT A GLANCE continuedJudges Scientific plc Annual report and accounts 20238Our businesses continuedDia-Stron i

64、s the global leader in fibre testing instrumentation.Measurement systems provide scientific insights and performance data to customers,being academia or industry,in the cosmetic and composite materials sectors.Dia-Stron supplies automated and high-throughout testing systems to evaluate properties su

65、ch as diameter,tensile strength,fatigue,shear,or bending modulus on hair,natural,and synthetic fibres.One of the latest developments is the LEX-IFSS used in assessing interfacial properties between a plastic matrix droplet and a single fibre,to predict mechanical behaviour of fibre reinforced plasti

66、cs in the composite field.Our state-of-the-art applications laboratory supports customers through contract testing services based on both Dia-Stron and Bossa Nova Vision(BNV)evaluation methods and enables company scientists to generate data to stay at the forefront of fibre research,connecting with

67、scientific communities around the world.Dia-Stron works closely with BNV with a common management team ensuring we provide best possible visual and physical test instrumentation to our global customers.Image:Dia-Strons new fibra.stress combining dimensional and tensile measurements of natural and sy

68、nthetic single fibres in one instrument.Luciol is a leading manufacturer of high-resolution OTDR-instruments used to characterise short lengths optical fibers and to locate fibre faults in aircraft,vehicles,machines or other structures with minimal disruption and downtime,locating issues with sub-ce

69、ntimetre accuracy that allow leading OEMs around the world to get their valuable assets back online in no time.PE.fiberoptics is a leading manufacturer of test equipment that measures optical and physical properties of optical fibres and cables.Optical fibres are the main medium for long-distance tr

70、ansmission of telecommunication data and form the backbone of the worlds internet and telecommunications networks.Our products support the leading fibre and cable manufacturing companies around the world during production and in their quality assurance and R&D laboratories.Scientifica is a globally

71、trusted designer,manufacturer,and installer of market leading life science research equipment.We develop pioneering equipment to enhance discoveries in electrophysiology,multiphoton imaging and optogenetics research within neuroscience,cardiology,and other areas.These discoveries lead to advancement

72、s the understanding and treatment of diseases.All our equipment is manufactured in the United Kingdom and exported to more than 40 countries worldwide.Our diverse team of experts brings experience from across the globe and from all levels of academic and professional backgrounds.Image:Scientifica co

73、ntinue to develop their globally recognised portfolio with the PatchScope Pro range these are fully integrated electrophysiology systems built for patching in single cells,cultures or cell monolayers.Henniker develops advanced plasma surface treatment equipment and processes that solve common materi

74、al compatibility issues faced by STEM researchers and in high-tech manufacturing.Our technology helps to deliver competitive advantages to our customers,allowing them to increase product life-cycles and to reduce costs.Plasma technology modifies the surface properties of materials by applying an inv

75、isible ultra-thin layer to polymers,glass,ceramics and metals,making them easier to bond,or to impart other functionality such as biocompatibility and low friction behaviour.Hennikers systems are relied upon in a wide range of key processing steps in industries including life science,automotive and

76、aerospace engineering.Image:Hennikers Nebula Advanced Plasma Coating System.Bossa Nova Vision(BNV)is a global leader in visual test instrumentation for the cosmetic industry.Measurement systems based on vision technologies are dedicated to evaluating the visual appearance of hair and skin for claim

77、substantiation,ingredient performance,or product efficacy.Properties such as shine,colour,optical texture,or shape can easily be assessed on BNV turnkey testing equipment.BNV instruments are found around the world in the laboratories of major cosmetic companies,such as LOral,P&G,Unilever,Colgate-Pal

78、molive and Henkel,of hair appliance producers(Philips,GHD,etc.),as well as ingredient manufacturers,Croda,BASF,Dow,Solvay,and Symrise to name a few.In addition,BNV offers polarisation camera solutions for non-destructive material testing.BNV works closely with Dia-Stron with a common management team

79、 ensuring we provide best possible visual and physical test instrumentation to our global customers.Image:Bossa Nova Vision Sirtaki instrument to evaluate broken hair fibre fragments following multiple combing cycles.9Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance re

80、portFinancial statementsSircal designs,manufactures and distributes rare gas purifiers typically for use in metal analysis utilising the Arc/Spark spectrometry technique.This technique provides qualitative and quantitative analysis of a metallic sample for determination of its purity.The products ar

81、e sold worldwide to OEM customers(spectrometer manufacturers that use such purifiers in conjunction with their own instruments)or directly to end users such as metal manufacturers and dealers,and test houses.Summary:The Group has again beaten its previous records in Organic order intake,revenue,Adju

82、sted operating profit,cash generation and Adjusted earnings per share in an improving but still challenging environment.We are delighted that the proposed dividend for the full year has now equalled the Groups original IPO price.Another year of records in our performance metrics illustrates the qual

83、ity and dedication of all our colleagues at every level.I trust our shareholders will join the Board in thanking them for delivering these results.The year started in a positive fashion,following the final re-opening of China after successive Covid-19 lockdowns.An exceptionally good order intake in

84、December 2022 laid the foundations for a strong 2023 and the alleviation of supply chain issues during the year enabled the Group to achieve new records in Organic order intake,Organic revenue and Organic Adjusted profits.Pre-tax profits(including a full year of Geotek and the contribution of two sm

85、all acquisitions completed in the spring)and cash generation also reached record levels as well as Adjusted earnings per share,although as previously highlighted to shareholders,the increased UK corporate tax rate tempered post-tax growth.Generating attractive returns for our shareholders remains th

86、e core purpose of the Group.As such,the Board is pleased to be recommending a final dividend of 68p,for a total dividend of 95p in respect of 2023,which was a 17%increase on the prior year(2022:81p),whilst retaining ample cover of 3.9 times to enable sustained progression in line with the Groups div

87、idend policy.Since the payment of the first dividend in respect of 2006,regular dividends have grown at a compound annual rate of 23%and total dividend distributions have aggregated to 7.5x the 2005 re-admission price of 100p.Your Board is delighted to be recommending the payment of a total dividend

88、 for the year equal to the placing price paid by all shareholders when the shares were first admitted in 2003,demonstrating Judges well-established track record of delivering both growth and shareholder value.StrategyThe Groups strategy remains unchanged and is based on creating attractive returns t

89、hrough highly selective and carefully structured acquisitions,underpinned by the diversified,solid and growing earnings and cashflows arising from our existing businesses.The Groups acquisition model is to acquire small/medium-sized scientific instrument manufacturers,paying a disciplined multiple o

90、f earnings and to finance any acquisition,ideally,through existing cash resources and/or bank borrowings.We remain highly selective in seeking to acquire businesses with a history of sustainable profits and cashflows,to obtain immediate and enduring earnings enhancement for our shareholders.It is pa

91、ramount that acquisitions are completed only when the Directors are satisfied that the target business has sound underlying strength with robust and defensible margins and is acquired at a sensible multiple.The Groups strategy remains unchanged and is based on creating attractive returns through hig

92、hly selective and carefully structured acquisitions,underpinned by the diversified,solid and growing earnings and cashflows arising from our existing businesses.”Alex Hambro ChairmanCHAIRMANS STATEMENTFor the year ended 31 December 2023Judges Scientific plc Annual report and accounts 202310Post-acqu

93、isition,the Group provides a favourable environment for these businesses to continue to prosper.Much executive effort is invested into helping their autonomous management teams improve their quality in terms of talent,leadership,innovation,geographic reach,production speed/quality and financial cont

94、rol.Organic revenue growth and operational improvements are an ever-growing component of shareholder returns.As a result of the dependable growth of your Group,it has been possible to promptly reduce debt,thereby generating the financial resources necessary to reinvest in further acquisitions and re

95、ward shareholders with a progressively increasing dividend,subject always to our prudent approach to gearing and earnings cover.The underlying global market for scientific instrumentation remains robust and the sectors long-term growth drivers provide comfort that the Group will continue to deliver

96、durable returns for our shareholders despite the potential for some short-term variability in performance.These long-term market drivers are rooted in the global expansion of higher education;the need for measurement tools to support the relentless worldwide search for optimisation and the desire fo

97、r discovery across industry and science.The nature of Judges business model,combined with managements consistent execution of its strategy,has generated excellent returns for investors.Sustained growth has been delivered through our business model clearly seen through the long-term compound annual g

98、rowth rate(“CAGR”)for revenue and profit,both for the Group as whole and also on an Organic basis.Over the past 17 years,the Group has provided shareholders with a total revenue CAGR of 21%and related EBIT growth of 28%and the Organic measure is 8%and 11%respectively.Our disciplined approach to acqu

99、isitions allied with the aforementioned performance,has resulted in maintaining Return on Total Invested Capital(“ROTIC”)of comfortably over 20%and with the Groups strong ability to convert profit into cash,has enabled us to stick to our policy of increasing the dividend by a minimum of 10%per year

100、with compound annual growth of 23%also over the past 17 years.Our teamAnother year of records in our performance metrics illustrates the quality and dedication of all our colleagues at every level.I trust our shareholders will join the Board in thanking them for delivering these results.Early in the

101、 year,our Board was delighted to strengthen our Executive team with the appointment of Dr Tim Prestidge,as Group Business Development Director.Tim has significant and relevant experience having spent his career to date in senior roles at both Renishaw plc and Halma plc.He is already making a substan

102、tial contribution to the future growth of our Group.In November,the Board welcomed Sue Nyman as a non-executive director;she brings extensive public company and governance experience to the Board and we look forward to working with her as the Group continues to execute its growth strategy.Ralph Cohe

103、n retired at the end of the year after 18 years with Judges,initially as finance director and latterly as a non-executive director.His contribution to the Group and its culture has been invaluable and he has overseen a period of substantial corporate growth and increase in shareholder value and the

104、Board,on behalf of the shareholders,thanks him for his service to the Group.Alex HambroChairman20 March 202411Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsCHIEF EXECUTIVES REPORTFor the year ended 31 December 2023Summary:We welcomed severa

105、l new leaders this year with our continued focus on having the highest quality management teams,who are relentless in delivering incremental growth and new and improved products with which to support the requirements of our ever increasing customer base.We were pleased to have navigated the inflatio

106、nary environment and to have maintained margins at our Organic businesses.The supply chain difficulties,previously encountered by the Group,mostly abated during the year which enabled our businesses to increase capacity,thereby reducing lead-times for our customers,and returning the order book back

107、to more usual levels.2023 started on a positive note as the impact of Covid was finally abating and China had put an end to a succession of strict lockdowns.This resulted in a strong influx of orders in December 2022,particularly from China,which gave us a larger than usual opening order book,which

108、alongside the progressive alleviation of supply chain difficulties,ensured healthy revenue growth.The Groups solid market positioning and continued favourable exchange rates enabled it to mitigate inflationary pressures,and operating margins were maintained.This translated into new record Organic re

109、venues,Adjusted pre-tax profits,cash generation and Adjusted earnings per share.A full year of Geotek and two small acquisitions in the spring contributed to the Groups performance.As previously noted,this and the Organic achievements were largely absorbed by higher tax rates,increased borrowing cos

110、ts and some dilution from the issue of new shares in respect of half of the Geotek earn-out.We were pleased to have navigated the inflationary environment and to have maintained margins at our Organic businesses.The supply chain difficulties,previously encountered by the Group,mostly abated during t

111、he year which enabled our businesses to increase capacity,thereby reducing lead-times for our customers,and returning the order book back to more usual levels.Overall,more than half of our Organic businesses were therefore able to deliver record profits in 2023.We continue to focus on operational an

112、d business information improvements and also piloted a new approach to R&D projects which we hope to roll out across the Group.We also welcomed several new leaders this year with our continued focus on having the highest quality management teams,who are relentless in delivering incremental growth an

113、d new and improved products with which to support the requirements of our ever increasing customer base.Order intakeOrder intake is the main driver of our business.Organic intake was up 7%year on year.This shows a compound growth of 4%since the pre-Covid-19 2019 record.Although Organic intake made s

114、olid progress,this was not uniform and a few of our smaller Organic businesses still found it challenging to restore order intake to 2019 levels.The strongest region was the UK(30%up on 2022 but this included one large single order),followed by China/Hong Kong(up 27%).The rest of Europe and North Am

115、erica were both 4%up and the Rest of the World was down 11%.The best absolute performances by country were achieved in the UK,China/Hong Kong and the USA and the worst in Australia and South Africa.Total Group intake was affected by the fact that the Geotek coring expedition conducted in 2023,had al

116、ready been booked in 2022.RevenuesGroup revenues for the financial year ended 31 December 2023 progressed from 113m to 136m,including Organic growth of 15%,the full-year contribution from Geotek and the part-year contribution of the acquisitions completed during 2023.Supply chain issues that previou

117、sly impacted the Group alleviated during 2023,enabling the Group to convert some of a large order book into sales revenue and hence Organic revenue grew 15%to reach 113m,a new record.Most Group companies have successfully and progressively reduced their large order book.As Organic revenue exceeded O

118、rganic intake by 3m,this produced a small absolute reduction in the Organic order book.When measured in weeks(in accordance with budgeted Organic revenue of the following year)it receded from 21.1 weeks at 31 December 2022 to 17.0 weeks at the end of 2023.The total order book at 31 December 2023 sto

119、od at 16.2 weeks.Despite the elevated tensions in the world,the resilience and adaptability of the Group,combined with supportive long-term drivers,provide confidence in the ongoing delivery of durable returns for shareholders.”David CicurelChief ExecutiveJudges Scientific plc Annual report and acco

120、unts 202312The Group continues to be a strong exporter and is well diversified,both via its end markets and across the globe,with 28%of the Groups revenues earned in North America,25%in the Rest of Europe and 14%in China/Hong Kong.Organic revenues grew in all regions:China/Hong Kong progressed 33%an

121、d the Rest of the World 31%;North America advanced 16%.The UK grew 4%and the Rest of Europe 2%.The highest absolute increases were China/Hong Kong,the USA,Taiwan,South Africa and Japan;the most notable decreases were Germany and the Czech Republic.ProfitsThe most important driver of Judges operating

122、 margins is volume.The 15%growth in Organic revenue maintained our Organic EBITA margin before central costs at 25%(2022:25%).Inflationary pressures and the resumption of travel and exhibition costs were well absorbed thanks to our strong market positions and favourable exchange rates.The growth in

123、Organic revenue produced growth of 17%in Adjusted Organic EBIT contribution;this was supplemented by the two small acquisitions made in 2023,and by a full year of Geotek which generated EBIT that was 9%lower than its earn-out EBIT threshold.Adjusted profit before tax progressed to a record 31.7m(202

124、2:28.3m).Return on Total Invested Capital(“ROTIC”)progressed to 22.7%(2022:20.6%adjusted as explained in the Chief Financial Officers Report).Statutory profit before tax was 13.4m(2022:16.0m),reflecting a full year impact of large adjusting items primarily arising from the amortisation of acquired i

125、ntangible assets and of the premium on the shares issued in respect of the Geotek earnout.The Group continued to invest in the improvement of its existing products and the development of new products.Investment in research and development amounted to 6.8m in 2023(2022:6.8m),equivalent to 5.7%of Grou

126、p revenue(2022:6.0%).The 12%increase in Adjusted pre-tax profit did not produce a similar increase in EPS,due largely to the increase in tax rates in April 2023 from 19%to 25%and,to a lesser degree,to the issue of shares in respect of the Geotek earn-out.Adjusted earnings per share progressed by 3%t

127、o 374.6p from 363.8p;adjusted fully diluted earnings per share similarly progressed to 368.5p(2022:359.0p).Statutory basic earnings per share was 145.8p(2022:196.1p)and statutory diluted earnings per share was 143.5p(2022:193.5p)affected by the large non-cash adjusting items.CashflowCash conversion

128、was still impacted by caution and an appropriate desire to avoid any return to the lengthy delays for our customers that the long-persisting supply chain difficulties had caused.It was improved but lower than usual at 90%(2022:80%),with cash generated from operations of 31.3m(2022:24.0m).Cash conver

129、sion is an essential element of our business model and we must strive to return to our pre-Covid-19/Ukraine performance in this area.Year-end cash balances decreased to 13.7m from 20.8m at 31 December 2022.Adjusted net debt(excluding IFRS 16 lease liabilities but including sums still due in respect

130、of acquisitions)at the year end amounted to 45.1m(2022:52.0m).Corporate activityGeotek,which the Group acquired in May 2022,delivered sufficient profits during that calendar year to trigger the payment of the maximum 35m earn-out,half payable in shares,half in cash.This was settled in the first half

131、 of 2023.On 3 April 2023,the Group acquired 100%of the issued share capital of Henniker Scientific Limited(“Henniker”),a leading supplier of instruments,systems and technologies for plasma and surface science applications,supplying solutions for cleaning,surface activation to improve adhesion and fu

132、nctional nano-scale coatings,for a total price capped at 2.3m including 1.85m at completion and an earn-out capped at 0.46m.On 2 May 2023,our subsidiary Dia-Stron acquired 100%of the issued share capital of Bossa Nova Vision LLC(“BNV”),a company specialising in imaging measurement technology for the

133、 cosmetics industry based in Los Angeles,California,USA,for$1.6m in cash.Post-year end,on 1 February 2024,our subsidiary PE.fiberoptics acquired 100%of the shares of Luciol Instruments SA(“Luciol”)for CHF 2m plus a potential earn-out capped at CHF 0.5m.The Board believes that the BNV and Luciol tran

134、sactions have synergistic potential with other businesses in our Group.Given the widening number of sectors we operate in,it naturally becomes more likely that we will acquire businesses adjacent to existing Group activities.As a buy and build focused group,the acquisition of new businesses is a fun

135、damental feature of the Groups strategy.Executing this effectively ensures that long-term value is generated for shareholders.We retain a strict acquisition discipline and are highly selective in relation to both the acquisition multiple and long-term quality of any potential addition to our Group.T

136、he industry in which we operate contains a multitude of small global niches,as illustrated by the diverse nature of the new entrants to our Group.The UK is recognised in this arena as a centre of excellence for product innovation and manufacturing with world-leading businesses.Our Group has built a

137、strong reputation over the past decade as an ethical,experienced and well-financed buyer and a supportive home for businesses in our sector whose owners wish to sell.We are trusted to act decisively and to complete deals under the initial terms agreed.For the businesses we acquire,the Group offers a

138、dvice and support wherever necessary,stimulates intra-Group co-operation,participates in succession planning and implements robust financial controls.We trust subsidiary management teams with the day-to-day running of their businesses.This has been a successful operating model for the Group,as manag

139、ement teams are given responsibility for their own destinies,as well as an environment in which they can thrive.13Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsCHIEF EXECUTIVES REPORT continuedFor the year ended 31 December 2023DividendsThe

140、 Board is recommending a final dividend of 68p per share subject to approval at the forthcoming Annual General Meeting on 21 May 2024,which will make a total distribution of 95p per share in respect of 2023(2022:81p per share).The total dividend per share is 3.9 times covered by adjusted earnings pe

141、r share(2022:4.5 times).Our policy of increasing the dividend by a minimum of 10%per year remains sustainable as long as we have ample cover.The proposed final dividend,if approved by shareholders,will be payable on Friday 5 July 2024 to shareholders on the register on Friday 7 June 2024.The shares

142、will go ex-dividend on Thursday 6 June 2024.The Companys shareholders are reminded that a Dividend Reinvestment Plan(“DRIP”)is in place to enable shareholders to automatically reinvest their dividends into additional Judges shares should they so wish.Trading environmentThe long-term fundamentals sup

143、porting demand for scientific instruments and related techniques and services remain positive.In addition to the global expansion of higher education,market demand is driven by continuing strong worldwide growth of scientific research across academic,corporate,and industrial sectors,and the increasi

144、ng number of industrial applications for scientific techniques and technologies driven by the enduring pursuit for process control and optimisation.Of course,control and optimisation require measurement.In parallel to these positive long-term trends,the markets across which Judges and its peers oper

145、ate are also characterised by a degree of shorter-term variability,influenced mostly by government spending,research funding,currency fluctuations and the business climate in major trading blocs,particularly the USA and China.In the medium term,the competing goals in the various jurisdictions where

146、the Group operates,of stimulating recovery and of reducing ballooning government deficits should increase uncertainty in worldwide research funding.Whilst it now appears that inflation may finally be under control and interest rates could slowly decline,government debt worldwide is an issue and may

147、cause the return of austerity.As a large percentage of the Groups revenue is overseas,exchange rates have a significant influence on the Groups business.Judges manufacturing costs are largely denominated in Sterling and most of the Groups revenue originates from countries where the standard of value

148、 is the US Dollar(approximately one half of total revenue)or the Euro(around one-third of total revenue).The currency movements since the Brexit referendum vote in 2016 have had a positive influence on our margins and our competitiveness;exchange rates have continued to remain favourable to our Grou

149、p although Sterling firmed up toward the year end.Outlook Judges business is very international and thrives with peace and free trade.The macro environment remains uncertain,and while the disruptions due to Covid-19 and the war in Ukraine have now receded,the after-effect of budget deficits may stil

150、l make itself felt on research budgets in the years to come.Despite the elevated tensions in the world,which are of great concern,the resilience and adaptability of the Group,combined with supportive long-term drivers,provide confidence in the ongoing delivery of durable returns for shareholders.For

151、 the immediate future,the new year has started with a healthy order book;order intake for the first 11 weeks of the year has been marginally below the 2023 comparative which included an exceptionally large post-lockdown contribution from China.At this point,we are still envisaging another coring exp

152、edition during the course of 2024,however,Geotek has not yet contracted for this expedition and there is uncertainty regarding its timing and the amount of any related revenue to be recognised in 2024.Exchange rates remain favourable to the Groups competitive position,but this year will see the fina

153、l impact of the April 2023 corporation tax rate increases.The Board remains comfortable with current market expectations.David CicurelChief Executive20 March 2024Judges Scientific plc Annual report and accounts 202314Buy and build modelBUSINESS MODELShareholder value+Long-term Organic growth trends

154、in science:global higher education and process optimisationLow working capital and capex requirementsLarge pool of potential acquisitions in global nichesFavourable market Fragmented market with over 2,000 privately held businesses in the UK The UK is a recognised worldwide centre of excellence for

155、scientific instrument development and manufacture Strict acquisition discipline;buying sustainable businesses at sensible prices Judges has a strong reputation for being a good acquirer;twenty three acquisitions since May 2005 Organic growth;business autonomy and performance optimisationOur acquisit

156、ion strategy points Trusted to honour the terms agreed Trusted to act quickly with secured funding Treats vendors and staff with respect No micromanagement post-acquisitionTrack record of successful acquisitionsLow capital useLarge deal poolLong-term Organic growth driversDiverse portfolioSustainabl

157、e returnsGrowing dividends15Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsWe use our knowledge of the scientific instrument sector to identify and progress suitable acquisition targets.Through longstanding relationships,we leverage our acce

158、ss to capital enabling us to act decisively and in a timely fashion.We buy successful businesses with long-term futures.Our approach is to create additional opportunities through guidance,business support,expertise and capital,under an umbrella of robust financial controls.The companies we acquire h

159、ave established reputations in worldwide niche markets.Target companies need to meet exacting performance criteria that support sustainable sales,profits and cash generation.We pay three to seven times EBIT according to size and borrow up to 3.0 times EBITDA at 38%depending on the Groups level of ge

160、aring.Core value is created through the repayment of debt used to acquire target companies and Organic sales growth.STRATEGYA focused strategyDevelop the Group through a“buy and build”programme of carefully structured acquisitions,supported by long-term Organic individual business development.1324As

161、 with all acquisitions Henniker,acquired in April 2023,has an established reputation in a worldwide niche market,and meets exacting performance criteria that support sustainable sales,profits and cash generation.Leverage expertise and capitalCreate an environment where businesses can thriveAccumulat

162、e sustainable,established businessRepay debt and reinvest profits in further acquisitionsJudges Scientific plc Annual report and accounts 202316Engaging with our stakeholdersAs required by section 172 of the Companies Act,a director of a company must act in the way he or she considers,in good faith,

163、would likely promote the success of the company for the benefit of the shareholders.In doing so,the director must have regard,amongst other matters,to the following issues:likely consequences of any decisions in the long term;interests of the companys employees;need to foster the companys business r

164、elationships with suppliers/customers and others;How we engageOur cultureJudges has always espoused a long-term perspective,from its first interaction with a prospective acquisition and thereafter on an ongoing basis.This approach forms part of what makes this Group unique.No change was made to the

165、strategic outlook,despite the ongoing geopolitical environment,and key decisions continued to be made only for the long-term benefit of the Group.Further detail is explained in the Sustainability Report on pages 18 to 25.ShareholdersThe primary mechanism for engaging with shareholders is through the

166、 Companys AGM and also through the annual cycle of investor meetings held alongside the publication of the Groups financial results for the half year and full year.Further information is disclosed in the Corporate Governance Statement on pages 36 to 39.Customers and suppliersOur companies operate in

167、 global niche markets and hence reputation is key to our ongoing success.Maintaining the strong reputation with our customer base for providing instruments and service of the highest quality is therefore of paramount importance.Likewise,we have long-standing close relationships with our locally situ

168、ated suppliers,as evidenced via the payment terms on page 46 in the Directors Report.EmployeesA key to the Groups success has been its engaged workforce.As well-regarded local employers within each of our businesses respective communities,the Groups Directors,alongside our subsidiary management team

169、s,work hard to provide a positive work environment with opportunities for all our staff to grow and achieve their potential.Our management teams remain focused on maintaining staff wellbeing and have created a safe environment for our staff.As disclosed in the Sustainability Report on pages 18 to 25

170、,we are also proud that around forty percent of our staff are shareholders.Community and environmentOur businesses are proud of their positive contribution to the wider,and more local,community both as low carbon intensity businesses and as a well-respected local employer.More information can be fou

171、nd in the Sustainability Report on pages 18 to 25.SECTION 172 STATEMENTFor the year ended 31 December 2023 impact of the companys operations on the community and environment;the companys reputation for high standards of business conduct;and need to act fairly between members of the company.The Group

172、s ongoing engagement with stakeholders and consideration of their respective interests in its decision-making process is as described below.17Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsBuilding on our unique cultureSUSTAINABILITY REPORTF

173、or the year ended 31 December 2023Corporate Social Responsibility is integral to our ongoing business success.It reminds us of the need to minimise our impact on the environment,encourages us to pay attention to the needs of our customers,employees,and other stakeholders,and to build engagement with

174、 local communities.”Judges Scientific is focused on acquiring and developing global niche companies within the scientific instrument sector.It selectively acquires businesses that generate sustainable profits and cash.We produce scientific instruments that enable our customers to push the boundaries

175、 of science and also make the world a little safer.At the same time,Judges Scientific recognises that its operations have an environmental and social impact.Whilst this impact is relatively small,given that we operate a portfolio of low carbon-intensity manufacturing businesses,it is still imperativ

176、e that we seek to minimise our negative impact on the environment.Given the structure of our Group,which consists of 20 small and medium-sized businesses,each of whom employ less than 100 staff,we also have to prioritise our time and resources into those areas that provide the most positive outcome

177、or greatest reduction in negative impact.This report is split into four main areas,Culture,Products,People and Environment because these are the core areas applicable to our business.Providing a good working environment for our employees and maintaining an efficient use of resources have always been

178、 key features of the success of Judges Scientifics businesses.Transparency is important as we want to ensure stakeholders are well informed about our actions and continued progress across the key ESG areas.We know that the focus on sustainability also opens up opportunities for us,for example in the

179、 application of our products and services in industries that will provide environmental or social impact,in the way we do business,and in how we interact with our employees,our suppliers,our communities and the wider society.We expect to continually evolve this strategy,further reduce emissions at o

180、ur businesses,continue to provide a fulfilling place of work,and provide our customers with even better products.Sustainability is becoming more and more important and our businesses do contribute.We are committed to communicate better with our stakeholders as,over time,we gradually increase the vol

181、ume of disclosure in this area,particularly in line with the advent of our reporting requirements under the Task Force on Climate-related Financial Disclosures(“TCFD”)reported on pages 26 and 27 and the companies act 414CB which details the disclosure requirements of the non-financial and sustainabi

182、lity information statement,covered by both the Sustainability Report and the TCFD Statement,but also taking due note of existing recommendations such as the UNs Sustainable Development Goals(“SDGs”)of which objectives 8(Decent Work and Economic Growth)and 5/10(Gender Equality/Reduced Inequalities)ar

183、e most closely linked to our business.We will also update our reporting to reflect the requirements of the IASBs future standard on non-financial reporting in this area.CultureJudges Scientifics unique culture drives decision-making within the organisation.Purpose“Our purpose is to build a portfolio

184、 of businesses with longevity,within the scientific instrument sector,by selectively acquiring businesses that generate sustainable profits and cash.”The Groups strategy is based on creating attractive shareholder returns through highly selective and carefully structured acquisitions,underpinned by

185、the diversified,solid and growing earnings and cashflows arising from our existing businesses.Judges Scientifics unique culture starts from when we first interact with the vendors of acquisition prospects.We expect that each company that joins our Group will remain for the long term,and therefore we

186、 must begin that relationship properly from our first contact with them.We acquire successful businesses and we expect them to remain successful,so it is very important that we treat the vendors with respect,and never seek to change the terms Judges Scientific plc Annual report and accounts 202318of

187、 a deal once heads of terms are agreed.We also treat their staff in the same manner as we treat our own,showing respect,openness,honesty and integrity in all our actions.Whilst we do not manufacture products that directly create an impact on society or the planet,our products are used for research,f

188、or example in finding solutions to pressing global problems.We take our role in the world seriously and recognise that how we do business is as important as what we do.Internally,we work to minimise the environmental footprint of our operations,while investing in our employees to keep them safe and

189、help them develop their own careers.Externally,we focus on delivering on our purpose to support our customers in addressing some of the worlds most difficult challenges,improving scientific understanding and enabling a greener economy.Shared values“Our employees share our long-term values,and we enc

190、ourage all our employees to act like entrepreneurs and treat the Company as if they are its owner.”Approximately forty percent of our team are Judges Scientific shareholders(286 staff at 31 December 2023)(2022:240 staff),the vast majority of whom have acquired shares through the Judges Scientific Sh

191、are Incentive Plan,an HMRC approved scheme,which enables our staff to acquire Judges Scientific shares from pre-tax earnings;Judges Scientific matches our staffs investment up to a certain level which ensures that all staff can benefit from Judges Scientifics maximum matching contribution,not just t

192、he highest paid.We value employee tenure and longevity and always encourage long-term decision-making above the short term as we expect that our businesses build for the future,not just for the present.Consequently we have many long-standing experienced staff happy to work within our businesses thro

193、ughout their career.Our businesses have all built a good reputation as a key employer in their local community,dealing fairly with their own staff,customers and suppliers.We expect them to continue to do this,understanding that as a public company we must continue to uphold high standards of behavio

194、ur.Ethical behaviour“Our belief is that principles of honesty and fairness should apply to our relationships with all stakeholders,internal and external,across the entirety of our value chain.”Judges Scientific has a zero-tolerance policy on bribery and corruption in relation to all business transac

195、tions in which the Group is involved.This policy includes the offering or receiving of inappropriate gifts or making payments to influence the outcome of business transactions.We also require customers and suppliers who contract with the Group on our standard business terms to comply with anti-corru

196、ption and anti-bribery laws,which are summarised in our Code of Conduct(https:/ ensures everyone employed within the Group,together with all our suppliers and customers,are aware of and adhere to this code(https:/ Scientific also supports the provisions set out in the Modern Slavery Act and endorses

197、 the core requirements of the Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work.We do not tolerate practices which contravene these international standards.Additional information is included within the Judges Scientific Modern Slavery Statemen

198、t on our website at https:/ products enable our customers to make the world healthier and safer.We do this by helping our customers to accelerate life sciences research,solve complex analytical challenges and increase laboratory productivity.Purpose“High quality products help our customers develop a

199、nd enhance their own offerings,innovations or research.”Judges Scientifics portfolio businesses are diverse and provide varied products and services that contribute to making a positive societal and planetary impact,although not always directly on their end user.A good illustration is at one of our

200、subsidiaries,Scientifica,which supports researchers in achieving breakthroughs in neuroscience,cardiology,cancer,and various scientific fields by supplying cutting-edge electrophysiology,multiphoton imaging,and optogenetics equipment.Electrophysiology is vital for understanding nerve and muscle func

201、tion,as well as diagnosing and treating related medical conditions,such as Parkinsons and Alzheimers disease.Multiphoton Imaging is a high-precision technique used in biology and neuroscience to visualise living tissues and cells and allows for deep-tissue imaging with minimal damage to the sample,d

202、ecreasing live-tissue waste and improving the environmental impact of the research.Optogenetics are techniques in neuroscience which allow for precise control of neuron activity.This technology is constantly being improved upon within Scientifica,to support their customers in making breakthroughs in

203、 their respective fields.Recently,one of their products,the“VistaScope”was recognised as one of the top ten microscopy innovations in the 2022 Microscopy Today Innovation Awards.19Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsSUSTAINABILITY

204、 REPORT continuedFor the year ended 31 December 2023Products continuedProduct quality“High standards of quality of products and services and ensuring global regulatory compliance.”Judges Scientific businesses design and manufacture highly engineered equipment with long-life applications,providing lo

205、nger lifespan of products and parts.Quality for our customers means they can rely on our products and services to consistently meet their specifications and requirements,and some of our businesses have customers with products greater than ten years old still working as well as the day they were purc

206、hased.Quality for regulatory authorities means that we operate at the highest ethical standards and meet or exceed all applicable regulatory requirements.Eight of our businesses are ISO 9001 certified with one also having ISO 14001 certification,with more of our businesses seeking to gain certificat

207、ion.Quality for our colleagues means we take personal ownership to aim to ensure our work meets customer requirements and is error-free from design through use.Quality for our Group means we encourage a continuous improvement culture.PeopleWe believe that our people are fundamental to the success of

208、 the business.We invest in our people to help them to develop the capabilities that they need to succeed in the long term.PurposeOur vision is that all employees are proud to work for businesses that are the best at what they do and understand the positive difference that their products make in the

209、world.Simply put,well-motivated employees are more productive.Our aim is to retain,attract and enable the best people,creating an inclusive environment for all,noting at the same time that recruitment for small companies is often more challenging than for blue-chip businesses.Diversity,equity and in

210、clusion“Our employees share our values and we encourage all our employees to act like entrepreneurs and treat the Company as if they are its owner.”Judges Scientific supports equal opportunity for all our employees and those that wish to join our Group.Our aim is to build a meritocratic work environ

211、ment where everyone can make the most of their skills and talents throughout their career,without discrimination or harassment.In the event of a member of staff becoming disabled,every effort is made to ensure that they can continue their employment with the Group with suitable support.It is the Gro

212、ups policy that disabled people should have access to the same career path,training and promotion opportunities as all other employees.It is a Group policy to not discriminate against staff or candidates on the basis of age,disability,gender reassignment,marital or civil partner status,pregnancy or

213、maternity,race,colour,nationality,ethnic or national origin,religion or belief,or sex or sexual orientation.Our Group believes in providing a secure workplace with meaningful roles for all our staff which is evidenced through employee tenure and staff turnover rates.People who feel safe at work and

214、enjoy their job,stay with their employer longer,it is as simple as that.Our average length of service is six years(2022:six years),with 5%of our team having worked for our businesses for more than 20 years.Staff turnover has always been fairly low and in 2023 it was 14%of our workforce,which is the

215、same as the UK average(2022:14%).We calculate this figure as the number of leavers in the year(excluding any retirements)divided by the average annual number of staff.The average age of our staff is 44.1 years old.As a niche engineering business that produces cleverly designed products that require

216、skilled design,manufacture and assembly,we are happy to employ anyone with a good skill set together with a positive attitude.Often when recruiting,we find more experienced people applying,who sometimes have felt less welcome in other businesses and we are delighted to bring them into our team.We ha

217、ve 256 staff over the age of 50 and our oldest staff member is 82 years old.Our recruitment philosophy is that it doesnt matter what your age is,if you can do the job and want to do the job,you are welcomed.At the same time,we regularly recruit apprentices and younger staff into our Group,who bring

218、in fresh knowhow on emerging technologies and the changing needs of our end-customers.This protects our subsidiaries long-term viability,with 18%of the Group being under the age of 30(2022:18%).Employee length of service(years)1 year 19%12 years 21%25 years 22%510 years 18%10+years 20%Judges Scienti

219、fic plc Annual report and accounts 202320It is clear that there is an over-representation of males in our workforce.As an engineering group we are in an industry that has historically been male-dominated,so consequently for many years we have been challenged with recruiting from a largely male pool

220、for a number of our roles.That having been said,26%of our Group are female(2022:26%).Over the past few years the composition of our Board has changed and during 2023 we appointed Sue Nyman to replace the now retired Ralph Cohen,and we now have two female independent Non-Executive Directors on our Bo

221、ard.Additionally we now have six female directors on our subsidiary boards(2022:three),including one externally appointed managing director.Across the last decade,significant efforts have been made by governments around the world,including the UK,to encourage the study of STEM by females,but there i

222、s only a low flow of these graduates to smaller companies as so many of our blue-chip peers are their first choice.Additionally,we already have challenges in finding good shortlists of potential recruits for open roles,and so whilst we are keen to improve the diversity across all levels of our busin

223、ess,it is not easy for us to change this situation quickly.At the same time,an important aspect of how we are trying to close the diversity gap and build greater inclusion is through flexible working,in a trusting environment,which we have been offering for a number of years to many of our staff.For

224、 example,we have a number of our finance team who are able to work the hours they wish in order to balance their personal and work lives.More recently,and reflective of some of the changes to working practices following the pandemic,we have wherever possible offered hybrid working,and we have accomm

225、odated the needs of many of our staff to work remotely.Senior management diversity Male 77%Female 23%Male 78%Female 22%2023202320222022All employee diversity Male 74%Female 26%Male 74%Female 26%Board diversityMale 78%Female 22%Male 87%Female 13%20232022Male%Female%2023Judges Board778%222%Senior mana

226、gement 7577%2323%Total workforce52674%18826%2022Judges Board787%113%Senior management8278%2322%Total workforce48774%16826%21Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsThe Gender Pay Gap Regulations state that employers with more than 250

227、 employees in Great Britain are required to report their Gender Pay Gap.Judges Scientific,with its group of smaller trading businesses,each below this level,is not required to report under these criteria,but has taken the decision to do so in order to provide greater transparency.Having collected an

228、d analysed our Group pay data,the overall result shows a 7%average gender pay gap between males and females across all employees excluding senior management.This has Gender Pay Gap Reportincreased by 3%from 2022,whilst the median gap has increased by 2%.If one also includes senior management(both Ju

229、dges Scientific and subsidiary level directors),the mean pay gap becomes larger due to the majority male demographic of this group;this gap has also increased from 18%in 2022 to 20%in 2023,and the median gap has remained flat at 16%.In relation to bonuses,there is a larger gap due to bonuses paid to

230、 senior management and also from commissions payable to salespeople,who are predominantly male.In 2023 82.1%of women received a bonus with 74.9%of men(2022:71.7%of women and 64.8%of men).SUSTAINABILITY REPORT continued For the year ended 31 December 2023As our businesses are fairly small,we do not h

231、ave a consistent staff structure across them all.It is therefore not straightforward to collate groups of staff in similar roles across all regions in order to benchmark pay between males and females to establish whether there were any significant differences.Where we have been able to do this,parti

232、cularly in more senior roles,where it is easier to compare like for like e.g.Non-Executive Directors,Sales or Operations Director or Finance Managers of our subsidiary companies,we have not noted any significant variance in pay.That having been said,this does not exclude us from looking at opportuni

233、ties to bridge any apparent gap.The table below provides quartile hourly pay data,ordered from highest to lowest,into four equal groups.This provides a picture of where male and female employees are in the pay hierarchy.2023Female2023Male2022Female2022MaleUpper20%80%20%80%Upper middle21%79%24%76%Low

234、er middle24%76%19%81%Lower38%62%38%62%Excluding senior managementIncluding senior management2023MeanMedianMeanMedianPay gap7%15%20%16%Bonus pay gap-14%6%28%12%2022MeanMedianMeanMedianPay gap4%13%18%16%Bonus pay gap-11%-14%45%20%The pay gap is summarised in the following tables/graphs:Excluding senio

235、r management20%10%020232022Including senior management30%20%10%020232022 Mean MedianPay gap progress:Diversity,equity and inclusion continuedWe know that a highly capable,diverse workforce will be important to Judges Scientifics long-term success.Having a diverse team enables the Group to better und

236、erstand our different customers and markets,particularly as we sell to blue-chip universities and commercial businesses whose own demographics are changing quickly,together with having broader perspective to ensure we maximise our ability to make the right decisions and thereby deliver solutions to

237、our customers that exceed their expectations.To achieve this,we must continue to make our workplace an environment that everyone looks forward to working in and to continue to offer career development so that all women and men realise they can develop their careers and be rewarded fairly at Judges S

238、cientific.People continuedJudges Scientific plc Annual report and accounts 202322Health and safetyHealth and safety is of paramount importance across the entire Judges Scientific Group and a key priority for our subsidiary management teams.Our employees must be and feel safe at work and we therefore

239、 aim to provide a safe and comfortable working environment for them.The Group encourages all of its subsidiary companies to seek continuous improvement and promote a strong health and safety culture.The Group routinely monitors health and safety adherence across our trading subsidiaries.As we operat

240、e a decentralised autonomous operating structure,performance is monitored at a Group level with the board of each trading subsidiary directly responsible for compliance with local health and safety regulations.We have also instituted a Group-wide annual independent health and safety review which ass

241、esses compliance and provides local management with feedback to continually improve health and safety.During 2023,we had 8 minor incidents and no significant injuries across all our businesses(2022:16 minor incidents and no significant injuries).All incidents are followed up with changes to procedur

242、es and/or training of our employees as appropriate to prevent recurrence.Employee engagement and training“Only by fully engaging with our workforce,embedding our values across all that we do and developing progressive people management practices,will we achieve a culture that aims to allow employees

243、 to maximise their potential.”As seen over the past few years,the commitment and dedication of our people enables us to fulfil our Groups potential and successfully deliver on our business strategy.We strive to continuously improve Judges Scientific as a great place to work and to achieve personal g

244、oals.Having a sustained focus on engagement will help us retain our talent,which is crucial to our future success.Improving engagement also helps us to build on our core values,resulting in committed,hardworking and loyal employees.Over 80%of our subsidiary leadership teams have attended our Judges

245、Scientific leadership development programme.During 2023 we further continued our new management development course with another cohort of our most promising managers attending,which aids with their progression towards becoming the next generation of senior leadership.We will continue with both these

246、 types of course over the coming years,as this will ensure we have the highest quality of junior and senior management across our businesses.We further encourage all our businesses to invest in other skills training for staff to enable everyone to become more proficient in their roles.An added benef

247、it in being part of a diversified group of companies is staff mobility.Where we have good employees,but where there may be structural barriers to their career advancement in a particular business or a change in their circumstances which stops them from performing their current role,we have the capac

248、ity for staff to join a sister company rather than continuing their career outside the Group and this has worked well for a number of our team during the past few years.Total number of accidents201510502023202220212020Accident frequency per million hours151050202320222021202023Judges Scientific plc

249、Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsSUSTAINABILITY REPORT continued For the year ended 31 December 2023kWh used3,000,0002,000,0001,000,000 Electricity Gas20232022EnvironmentJudges Scientific recognises that concerns about the environment,including clim

250、ate change,must be addressed by all its businesses.PurposeWe work to minimise the environmental impact of our operations wherever possible.As a manufacturer of niche scientific instruments,we do not have carbon-intensive manufacturing facilities,instead the vast majority of our businesses are assemb

251、ling instruments.Our niche instruments are largely used for research,to help progress scientific advancement.Through our culture of sustainable ownership,it is often our colleagues who identify areas for improvement to combat climate change.Best practices in individual businesses are shared across t

252、he Group,and implemented where feasible.This year,we instituted the Judges Sustainability Committee,with members drawn from across the Judges Group companies,to help drive sustainability and environmental practices both at individual Judges businesses and sharing best practices and ideas across the

253、Group.Energy use“Efficient use of energy makes commercial sense.”Due to our low capital-intensity manufacturing processes,we use comparatively little fossil fuels.We are a business founded on technological innovation,and this mindset translates into our businesses adopting energy efficient technolog

254、ies wherever sensibly achievable.The vast majority of our facilities have used energy efficient LED lighting for a number of years,and we have almost completed the conversion of the remainder.We have energy management technologies in many of our facilities;simple things like having motion-sensor lig

255、hting in low-footfall areas and making sure lights are turned off at the end of the day ensure we keep a low-waste mindset.Further,as part of all new buildings acquired for our businesses,we encourage the addition of solar panelling to help generate a portion of the energy required to operate,and UH

256、V Designs new offices,which they expect to move into in the first half of 2024,incorporate these aforementioned features.Energy use and GHG(Scope 1)emissions202320222021Global energy usage(KWh)2,678,2602,289,1072,442,838EmissionsScope 1(direct emissions)tCO2e200.0154.1182.0Scope 2(indirect emissions

257、)tCO2e53.863.1189.1Normalised valuesScope 1(direct emissions)tCO2e/m revenue1.861.914.06 Renewable Non-renewableCarbon emissions(tCO2)Carbon emissions and fuel mix300200100 Electricity Gas20232022Electricity energy source20%40%60%80%100%FY23FY220%Judges Scientific plc Annual report and accounts 2023

258、24Our businesses continue to seek ways of reducing energy consumption and despite adding two further businesses into the Group this year,the Groups energy usage increased by 17%with an increase of 20%in revenue,positively affected by relocations into more energy efficient buildings and our energy us

259、age per of revenue has again improved.We continue to look at best practices across the Group,and seek to implement other innovations that may improve this performance.Of the electricity we use,84%comes from renewable sources(2022:79%)and we will continue to encourage adoption across our businesses t

260、o renewable energy sources.The UKs share of the Groups global energy usage was 97%for gas and 94%for electricity(2022:96%and 99%respectively).As mentioned in the Products section,much design effort also goes into reducing the energy requirements of our products such that our customers benefit from l

261、ower energy consumption per use.Environmental accreditations“We believe that it is important that our facilities are operating to the highest environmental standards.”We continue to look at new ways through certification to improve our environmental performance,both through achieving ISO 14001 certi

262、fication,proving their facilities are in compliance with environmental laws and regulation in the UK and EU,and via a My Green Lab ACT Label Certification for sustainability.Benefits of certification so far have included cost savings,energy use improvement and allowing us to align ourselves with the

263、 ethical values of our customers.We will seek to achieve ISO 14001 certification in other facilities as appropriate.Other environmental concerns“Climate change should not only include energy and carbon emissions.”We understand that concerns about the climate should not be confined to the remit of en

264、ergy use and carbon,and are aware that water,waste and recyclability are other areas that must be addressed.We continue to be at an early stage of our journey,but we are exploring ways to further improve,such as looking at how to measure our waste and water use,and how to further extend our use of e

265、co-packaging wherever possible.As a Group,we continue to examine further ways to package our products more sustainably,particularly given the inevitable volume of packaging that we use in transporting our instruments to our customers around the world.We will continue to provide this report in order

266、to support our stakeholders understanding of our business and whilst our Group is a collection of small businesses with limited resources,we will continue to focus on the greatest opportunities to improve our impact on society.Brad OrmsbyDirector20 March 202425Judges Scientific plc Annual report and

267、 accounts 2023Strategic reportGovernance reportFinancial statementsTASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES For the year ended 31 December 2023IntroductionJudges recognises the importance of business operational resilience in response to the rapidly changing climate,such as the 40 degree

268、Celsius heatwaves in Europe in 2023.Despite the small size of the Group and its low carbon intensity operations,rising global temperatures and weather-related disasters will impact businesses of all sizes,making them vulnerable to change and disruption.The physical and transition risks due to climat

269、e change may be felt along entire value chains,such as through increased operating and compliance costs.Opportunities to make environmental operational improvements to address such risks such as utilising solar panels,introducing production standardisation and efficiency processes,along with using e

270、fficient new equipment,can deliver real benefits.These include reducing costs and material wastage,increased business opportunities and a positive image of our businesses to our staff,customers,suppliers,and investors.This is Judges first Task Force on Climate-related Financial Disclosures(“TCFD”)Re

271、port.The Group is now governed by the mandatory Climate-related Financial Disclosure Regulations which were published by the UK government in 2022.These have slightly lower requirements than TCFD regulations,but instead,to aid users of the Group accounts,the Group has elected to report voluntarily u

272、nder TCFD.Whilst our disclosures are consistent with the recommendations made by the TCFD,we intend to improve the level of disclosure over time.We will continue to use the TCFD framework to help enhance our understanding of the climate-related risks and opportunities facing our organisation to enab

273、le informed decision-making.Overview of the organisationJudges Scientific is focused on acquiring and developing global niche companies within the scientific instrument sector.It selectively acquires businesses that generate sustainable profits and cash.We produce scientific instruments to support o

274、ur customers in the relentless worldwide search for optimisation and discovery across industry and science.At the same time,Judges recognises that its operations have an environmental impact.Whilst the impact is relatively small,given that we operate a portfolio of low carbon-intensity manufacturing

275、 businesses,it is still key for us to do our bit in minimising any negative environmental effect.StrategyJudges has a culture of sustainable ownership,where we empower colleagues to drive change and deliver improvements within the businesses they work in.In 2023,Judges established the Judges Sustain

276、ability Committee(“JSC”),set up to help optimise sustainability across Judges and is sponsored by Brad Ormsby,CFO.The JSC consists of a member of staff from each business,ranging from supply chain analysts to members of a subsidiary senior leadership team(“SLT”),with each business responsible for it

277、s own plan,which is reported up to,and monitored by,the Group.Best practices in individual businesses are shared across other Group companies and implemented where feasible,with increased capital expenditure budgets made available for specific sustainability projects.The Group understands that clima

278、te change will bring a wide range of both positive and negative impacts to businesses and Judges preliminary focus over the next year is to identify the priority risks and opportunities to which the business is exposed.The Group intends to start with physical and transition risks and opportunities,b

279、efore prioritising them based on the potential impact,likelihood and stakeholder relevance.The Group encourages its portfolio of subsidiaries to improve quality and achieve efficiencies in manufacturing processes and attain accreditation,firstly in ISO 9001,where process improvement delivers reducti

280、ons in waste thereby reducing our use of resources.Subsequently,our businesses can then seek to attain the more environment focused ISO 14001.It is becoming increasingly apparent that there will be opportunities for Judges due to the application of our products and services in industries that will p

281、rovide environmental or social impact,in the way we do business,and in how we interact with our employees,our suppliers,our communities and the wider society.The Group is developing an environmental policy during 2024.GovernanceThe structure of the Group consists of 20 small and medium-sized busines

282、ses,each of whom employs less than 100 staff.This decentralised business model with locally-managed autonomous companies enables us to deliver real competitive advantage by allowing us to place our operational resources close to our customers.We therefore prioritise our time and resources into those

283、 areas that provide the best outcome or greatest reduction in negative impact.Judges Scientific plc Annual report and accounts 202326For businesses that have been acquired,the Group offers advice and support,stimulates intra-Group co-operation,participates in succession planning and implements robus

284、t financial controls.We trust subsidiary management teams with the day-to-day running of their businesses.This has been a successful operating model for the Group,as management teams are given responsibility for their business strategy,and an environment in which they can thrive.Despite the complexi

285、ty of this decentralised business model,Judges understands the importance in managing climate-related risks and addressing the market opportunities through robust governance processes,controls and procedures.Climate-related change is a standing agenda item in subsidiary SLT meetings with the Group C

286、hief Operating Officer(“COO”)and Group Business Development Director(“GBDD”).Judges Board of Directors has oversight of ESG.The COO and GBDD report to the Board quarterly on progress with sustainability.This consistent reporting and oversight of climate transition planning enables the Group to embed

287、 climate transition targets into Group strategy and ensures actions are taken to meet these targets as appropriate.The JSC serves as a platform for knowledge sharing on ESG-related issues,including climate-related risks and opportunities.The JSC meets on a periodic basis,where progress on sustainabi

288、lity-related work is reported,along with further targets and improvements set.The structures and processes in place for the governance of ESG and climate-related issues have been in operation during 2023,with formal documentation of the governance structure for TCFD planned for 2024.Risk managementJ

289、udges is at the start of its journey and is in the process of integrating climate-related risk into our risk management processes.Over time we expect to rank,and respond to,climate-related risks in relation to other risks.We expect that a greater understanding of our climate-related risks and opport

290、unities will inform our processes for prioritising climate-related risks,including how they are assessed,quantified and reviewed.Judges expects to take steps to ensure that TCFD-related risks are captured in the Groups risk management system in the same manner and rigour as other business risks.This

291、 will include TCFD-specific reviews with each of our businesses.In time,we will perform a comprehensive TCFD-specific review of our business which is a significant exercise,and will absorb much management effort.This will include running specific scenario assessments to ensure that the level and typ

292、e of risks that might arise in a number of different climate scenarios are captured by our risk management systems.Due to the diversified nature of our businesses,we do not expect there to be significant climate-related risks to the Group arising at an individual company level.Metrics and targetsJud

293、ges understands that developing a complete emissions breakdown will allow the Group to focus its efforts on reducing greenhouse gas emissions.Judges currently reports energy consumption data across Scope 1 and 2 in line with GHG reporting protocol.This can be found on page 24.We understand that Scop

294、e 3 emissions form most of our emissions.We are currently building a more thorough understanding of our Scope 3 emissions,and expect to provide more comprehensive disclosure in the future.We are in the process of setting appropriate climate-related goals and objectives and expect to implement them i

295、n 2024.Judges believes that integrating climate-related performance metrics into executive compensation is important to hold management accountable for achieving climate goals and capturing climate transition opportunities.The Remuneration Committee has assigned an element of Executive incentivisati

296、on for 2024 to encourage creation of an appropriate Group system of measurements and targets for the future.Brad OrmsbyDirector20 March 202427Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsPRINCIPAL RISKS AND UNCERTAINTIESFor the year ended

297、31 December 2023POLITICAL TENSIONSWhy is it important?The tensions between the West and China may well degenerate into an open conflict;China is an important destination for our products and an open conflict or even a strict sanction regime would affect our sales to China and Taiwan but also profoun

298、dly disrupt the stability of industrial activity worldwide.More generally,heightened political tensions may have a detrimental effect on our ability to trade worldwide and divert government funding priorities away from research.ACQUISITIONSWhy is it important?What are we doing to mitigate the risk?A

299、 most significant risk for the Group is that an acquired company does not meet its expected profitability.As an important element of the Groups business strategy is development through acquisition,the Groups growth is also exposed to the risk of insufficient availability of target companies of requi

300、site quality or available within the disciplined price range to which the Group adheres.The emergence of competing acquirers and the aggressive search for returns by private equity funds may increase competition for acquisition targets.The Group manages these risks by maintaining relationships with

301、organisations that market appropriate targets,by performing detailed research into potential acquisitions and through its honourable behaviour during and after an acquisition.Post-acquisition,the Group provides advice and support to entity management teams as appropriate,in order to facilitate their

302、 ongoing performance.ECONOMIC CONDITIONSWhy is it important?The Groups customers are internationally located and are often state owned or their liquidity is closely linked to government spending.The stress in the world economy and in public finances resultant from Covid-19,will affect the Groups pro

303、spects.In the short to medium term,individual countries are likely to oscillate between austerity and economic stimulation and this will affect research funding worldwide.Persistent inflation and related higher interest rates may disrupt the stability of the Groups environment.KEY PERSONNELWhy is it

304、 important?What are we doing to mitigate the risk?The Groups future success is dependent on high quality senior management and key personnel and,given the small niche-serving nature of the Groups businesses,it is often a challenge to maintain back-up support in respect of key roles or to replace key

305、 staff should they leave our organisation.Finding quality executives in our sector is a challenge and it can take a long time to replace and/or to prove the suitability of any new executive.The Group encourages succession planning wherever possible and seeks to provide a positive work environment wi

306、th opportunities for career growth coupled with appropriate remuneration and,where appropriate,longer-term rewards.CURRENCY AND FOREIGN EXCHANGEWhy is it important?What are we doing to mitigate the risk?The Group exports the large majority of its products,hence it is exposed to fluctuations in excha

307、nge rates which may impact on its competitiveness.Rates are affected by macro-economic factors such as Brexit and the levels of government borrowings due to Covid-19 and the Ukraine war;should Sterling appreciate this may reduce the Groups competitiveness.The Group seeks,so far as is practicable,to

308、mitigate currency effects for the financial year via hedging foreign exchange rates.Additional detail is set out in note 27.Managing our risksJudges Scientific plc Annual report and accounts 202328TAXATION AND INTEREST RATES Why is it important?What are we doing to mitigate the risk?Higher rates of

309、corporation tax and higher interest rates directly impact our net profitability and reduce the level of returns for our shareholders.Additional government efforts to control public debt may further increase this burden.Where appropriate the Group seeks to mitigate fluctuations in interest rates thro

310、ugh hedging external debt(see note 27).R&D AND PRODUCTS Why is it important?What are we doing to mitigate the risk?The Group continues to invest in the development of new products to meet the needs of our end customers.There is a risk that our businesses may be unable to develop suitably commercial

311、and technically reliable new products with which to maintain and drive revenue performance.There is also a risk that new developments in science will make certain of the Groups products obsolete.The Group maintains a focus on ensuring there are ongoing R&D roadmaps for our businesses and that we con

312、tinue to invest in well trained and qualified R&D and operations teams to deliver quality,well-engineered products for our customers.COMPETITIONWhy is it important?What are we doing to mitigate the risk?The Group faces competition across its businesses and there can be no certainty that each busines

313、s will achieve the market penetration it seeks.There is also no guarantee that there will be no new competition or new entrant to the market with better products.The Group seeks to mitigate this through relevant analysis of market and scientific developments when considering acquisitions and seeks t

314、o acquire companies in small global niches.Additionally,the Group continues to listen carefully to its customers aspirations for product development and,where possible,satisfy those product development aspirations.CYBER SECURITYWhy is it important?What are we doing to mitigate the risk?The Group fac

315、es the risk of cyber-attacks which could compromise the confidentiality,integrity and availability of IT systems and data.This could impact our ability to respond and deliver to our customers and ultimately affect our reputation and financial performance,including potentially significant financial l

316、oss as a result of the effects of ransomware or breach of the General Data Protection Regulation(“GDPR”).The Group is partnering with cyber security experts to monitor our resilience to cyber-attacks and also provide early warnings of risks or attempted intrusions,together with providing our staff w

317、ith regular cyber security training.On behalf of the BoardDavid CicurelDirector20 March 2024Company registration number:0459731529Judges Scientific plc Annual report and accounts 2023Strategic reportGovernance reportFinancial statementsFINANCE DIRECTORS REPORTFor the year ended 31 December 2023Organ

318、ic growth continued,cash generation improved,and we maintained a healthy balance sheet with conservative leverage.Consequently,we remain well positioned to continue the Groups strategy of delivering growth in earnings via selective,reasonably priced acquisitions of strong niche businesses in the sci

319、entific instruments sector,alongside encouraging long-term organic growth in its existing group of businesses.The Groups strategy is based on acquiring companies within the scientific instruments sector and ensuring continued profitable performance and growth at its existing subsidiary businesses.Ke

320、y Performance IndicatorsThe Groups financial Key Performance Indicators(“KPIs”),which are aligned with the ability to deliver Organic growth,reduce acquisition debt and fund dividend payments to shareholders,are Adjusted basic earnings per share,Adjusted Organic operating margins,Organic Return on T

321、otal Invested Capital and cash conversion.We have a further non-financial KPI of Organic order intake which is the bellwether of future short-term financial performance.All five KPIs are commented on during this report.20232022Adjusted basic earnings per share374.6p363.8pAdjusted Organic operating p

322、rofit margin20.5%21.5%Organic Return on Total Invested Capital33.5%28.7%Cash conversion90%80%Organic order intake+7%+0.5%Alternative performance measuresThe Group uses alternative performance measures(“APMs”)in order to provide readers of the accounts with a clearer picture of the Groups actual trad

323、ing performance and future prospects.Amongst these measures are:(1)Organic,which describes the performance of the Group only including those businesses acquired prior to the start of the comparative period,and for these accounts the reference date is 1 January 2022;(2)Adjusted earnings figures,which

324、 exclude adjusting items(as disclosed in note 4);(3)Adjusted net debt,which(a)includes acquisition payables not yet settled at the balance sheet date and(b)excludes IFRS 16 lease liabilities;and(4)Return on Total Invested Capital and cash conversion which are defined within the relevant sections of

325、this report.Revenue Group revenues increased from 113.2m in 2022 to 136.1m,an increase of 20%.Organic revenues improved by 15%(2022:Organic growth of 8%)supported by a strong opening order book and full year Organic order intake,itself ahead of 2022 by 7%.The remainder of the increased revenue arose

326、 from a full years ownership of Geotek and from the two small acquisitions of Henniker and BNV during the year.Across our two segments,Materials Sciences total revenues rose by 12.6m to 72.5m(2022:59.9m)and Vacuum revenues increased by 10.3m to 63.6m(2022:53.3m).Profits Adjusted operating profit inc

327、reased from 30.1m to 34.8m as a result of the strong revenue growth.We benefited from improved supply chain conditions which allowed our Organic businesses to deliver a higher capacity and whilst costs did increase,as travel and marketing returned to more normal pre-Covid-19 levels,we were able to o

328、ffset this with suitably balanced price increases,the consequence of which meant that we were able to maintain our Organic operating margins(before central costs)however,Adjusted Organic operating margins reduced from 21.5%to 20.5%due to increased central costs,including the recruitment of one addit

329、ional Executive Director.Total Adjusted operating margin similarly reduced from 26.6%to 25.6%.Sterling remained stable on average against both the Euro and US Dollar across the year which enabled us to maintain our competitiveness as a high exporter and,overall,exchange rates continue to be usefully

330、 positioned for the Group.Statutory operating profit increased to 21.6m(2022:18.2m),and statutory profit before tax was 13.4m compared to 16.0m in 2022.Both figures were affected by significantly increased adjusting items,which are detailed further below and,for the profit before tax figure,also inc

331、reased borrowing costs.Overall,2023 was positive for the Group,supported by a team that continue to deliver improvements every year,despite the wider economic and geopolitical challenges that abound.”Brad Ormsby Chief Financial OfficerJudges Scientific plc Annual report and accounts 202330Capitalisa

332、tion of development costsWe capitalised 1.2m(2022:1.5m)of our total R&D expense relating to development of new or significantly improved products.Amortisation on the total amounts capitalised(inclusive of prior years)is 0.4m(2022:0.1m)reflecting an increase in the number of completed projects this y

333、ear.Many projects are still not yet commercialised,often due to long lead times in acquiring parts to complete prototypes,and hence these products are not yet production ready.Adjusting items 18.3m of pre-tax adjusting items were recorded in 2023(2022:12.3m).The two main constituents were 11.8m of amortisation of the intangible assets recognised upon acquisition(2022:8.4m),primarily arising as a r