Judges Scientific

Judges Scientific Dividend Analysis and Summary

• Declared dividend: Final dividend of 82.3p per share (FY25), up +10% YoY.
• Total FY25 dividends: 115.0p per share (+10% YoY; FY24: 104.5p).
• Coverage: 2.4x by Adjusted EPS (275.3p).
• Ex-dividend date: 11/06/2026 (Thursday).
• Record date: 12/06/2026 (Friday).
• Payment date: 10/07/2026 (Friday), subject to AGM approval on 20/05/2026.
• Cash cost: c.£5.5m for the final dividend (share count ~6.65m).
• Dividend policy: Progressive with a minimum 10% annual increase, subject to prudent cover.
• DRIP: Dividend Reinvestment Plan available.

• Coverage and cash generation: FY25 Adjusted EPS of 275.3p covers the total dividend 2.4x; cash conversion was strong at 118% with £33.0m cash from operations, supporting distributions.
• Balance sheet and liquidity: Adjusted net debt improved to £42.6m (from £51.7m); leverage slightly below 1.5x EBITDA; ample headroom on a £90m RCF plus £50m accordion; interest largely swapped (3.2%–3.7% SONIA legs) limiting rate risk.
• Earnings trajectory: 2026 Adjusted EPS guidance of 200p–250p signals a softer year (lower order book; US funding uncertainty; no Geotek coring expedition until early 2027). If the Board were to lift the total dividend a further 10% in 2026 to ~126.5p, implied cover would compress to ~1.6x–2.0x on guidance. Still serviceable, but with reduced buffer.
• Capital allocation: Despite headwinds, the Group reduced debt by £9.1m in 2025 while funding £7.1m dividends, £5.4m capex and a small minority buyout. Capex is expected to ease, which is supportive of free cash flow and dividend capacity.
• Bottom line: The FY25 dividend uplift is well covered and credibly funded by cash flow. For FY26, sustainability is underpinned by cash generation and balance sheet headroom, but growth beyond the 10% policy “floor” looks unlikely; even maintaining the 10% increase would leave a thinner margin of safety until US demand normalises.