Judges Scientific PLC (AIM:JDG) shares fell 14% after the group warned that full-year profits will come in below expectations, as challenging US trading conditions and weaker government research funding weighed on performance.
The specialist in scientific instruments said that, while group revenue rose 7% in the first half, helped by a major coring contract in Japan, underlying momentum was much weaker, particularly in North America, where sales dropped 20%.
Order intake was up 4% year on year across the group, but North America and the UK both saw declines, and the organic order book has shrunk compared to last year.
Profits from core businesses (excluding the recently improved Geotek division) were down 7%, with operating profit contribution falling by a third.
Adjusted earnings per share are expected to rise about 15% for the first half, but the Judges now forecasts full-year earnings of 285p to 330p per share, below what the market had been expecting.
The company stressed that it retains a healthy order book and solid cash position, with improvement efforts underway at underperforming units, but flagged that US public spending remains a major headwind.
The stock fell 1,140p to 6,760p.