REG - Judges ScientificPLC - Acquisition of Rockwash Geodata Ltd

Judges ScientificAnnouncement

28/06/2024 07:00

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RNS Number : 2485U  Judges Scientific PLC  28 June 2024

Judges Scientific plc

("Judges Scientific", "Judges", the "Company" or the "Group")

Acquisition of Rockwash Geodata Ltd

Judges Scientific, a group focused on acquiring and developing companies in
the scientific instrument sector, announces that its subsidiary Geotek Limited
("Geotek") has acquired 100% of the issued share capital of Rockwash Geodata
Ltd ("Rockwash" or the "Acquisition"), a company specialising in rock cuttings
and chippings digitalisation.  The Board expects the Acquisition to be
strongly synergistic with the core digitalisation activities of Geotek as they
share similar customers and a common purpose of digitalising information from
geological samples.

The initial consideration for Rockwash is £2.25m in cash plus an earn-out
payment due in 2025 (and/or 2026) equal to six times the adjusted EBIT for the
years ended 31 December 2024 (or 2025 if higher) minus £2.25m. The total
consideration, cash plus earn-out, is capped at £6m, which would be achieved
if adjusted EBIT for either period equals or exceeds £1m.  An additional
payment will be made to reflect any excess working capital over and above the
ongoing requirements of the business, which the Board expects to be covered by
the cash inherited at the completion date.

The initial consideration for the Acquisition and associated transaction costs
have been funded from the Group's bank facilities.

Alex Hambro, Chairman of Judges, said: "We are pleased to
incorporate Rockwash, a market leader in its niche, into the Judges group.
The Board believes that the cooperation of Geotek and Rockwash will benefit
their customers and the growth of their digitalisation businesses. We welcome
Dr Mike Snape and his team to the Judges team."

 

Information on Rockwash

 

Rockwash is based in Llandudno Junction, Conwy. It specialises in the
digitalisation of rock cuttings samples, an underutilised resource of both the
mining and oil and gas exploration companies. Rockwash cuttings digitalisation
is underpinned by its automated and patented sample preparation and data
capture process, unlocking additional geological knowledge and value from
existing rock sample resources. The general purpose is similar to that
deployed by Geotek in digitalising repositories of geological cores.  The
newly digitalised rock from both cuttings and core samples is made available
for both traditional exploration & production workflows and modern-day
machine learning applications.  Rockwash generated a slightly positive EBITDA
in 2023 and £0.1m EBIT in the first 4 months of 2024.

 

For further information please contact:

 Judges Scientific plc                                        Shore Capital (Nominated Adviser & Joint Broker)

 David Cicurel, CEO                                           Stephane Auton

 Brad Ormsby, CFO                                             Harry Davies-Ball

 Tel: +44 (0) 20 3829 6970

Tel: +44 (0) 20 7408 4090

 Liberum (Joint Broker)                                       Investec Bank plc (Joint Broker)

 Edward Mansfield                                             Virginia Bull

 Nikhil Varghese                                              Carlton Nelson

 Tel : +44 (0) 20 3100 2222                                   Tel: +44 (0) 20 7597 4000

 Alma (Financial Public Relations)

 Sam Modlin

 Rebecca Sanders-Hewett

 Joe Pederzolli

 Tel: +44 (0) 20 3405 0205

 judges@almastrategic.com (mailto:judges@almastrategic.com)

 

 

Notes to editors:

Judges Scientific plc (AIM: JDG), is a group focused on acquiring and
developing companies in the scientific instrument sector.  The Group now
consists of 24 businesses acquired since 2005.

The acquired companies are primarily UK-based with products sold worldwide to
a diverse range of markets including: higher education institutions,
scientific research facilities, manufacturers and regulatory authorities.
The UK is a recognised centre of excellence for scientific instruments.
The Group has received five Queen's Awards for innovation and export.

The Group's companies predominantly operate in global niche markets, with long
term growth fundamentals and resilient margins.

Judges Scientific maintains a policy of selectively acquiring businesses that
generate sustainable profits and cash.  Shareholder returns are created
through the reduction of debt, organic growth and dividends.

For further information, please visit www.judges.uk.com
(http://www.judges.uk.com/)

 

 

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