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Judges Scientific PLC on Monday said it acquired 100% of the issued share capital of Henniker Scientific Ltd for an initial £1.8 million, rising to a maximum of £2.3 million. Judges Scientific is a London-based acquirer of scientific-instrument companies, while Henniker is a Runcorn, Cheshire-based company specialising in deposition and plasma technology. Judges Scientific said it will pay an initial consideration of £1.8 million for Henniker, followed by an earn-out payment due in 2024 and equal to four times earnings before interest and tax for the year ended March, 31, 2024 minus £1.8 million. The total consideration, cash plus earn-out is capped at £2.3 million, which would be achieved if EBIT for its financial 2024 equals £578,000, it said. This is alongside an additional payment will be made to reflect any excess working capital over and above the ongoing requirements of the business. The board expects this to be covered by the cash inherited at the completion date. Judges Scientific also expects the acquisition to be immediately earnings enhancing. ‘The board believes that Henniker is a solid, growing and profitable company manufacturing quality products,’ said Judges Scientific Chair Alex Hambro. In late March, Judges Scientific posted revenue of £113.2 million for 2022, up 24% from £91.3 million in 2021, while pretax profit was £16.0 million, up 0.6% from £15.9 million. It also declared a final dividend of 59.0 pence per share, up from 47.0p a year prior, taking its total dividend to 81p, up 23% from 66 pence in 2021. Looking ahead, Judges Scientific said it is starting 2023 with a record organic order book. Shares in Judges Scientific were up 1.0% to 8,583.20p each in London on Monday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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