MIDAS SHARE TIPS UPDATE: The 11-fold increase in Judges Scientific from our tip
Long-serving CEOs are uncommon in today’s stock market, but just as Andrew Williams’ 17 years at the top have been beneficial to Halma, so has David Cicurel’s lengthy tenure at Judges Scientific.
In 2002, Cicurel established the scientific instruments industry and has held the position ever since.
Although the early going was difficult, he persisted, and the company has recently experienced rapid growth.
When the shares were trading at £7.45 in 2012, Midas recommended the business.
They closed at £85.00 last week, and according to brokers, the stock should reach £95 in the near future.
Judges purchases cutting-edge, high-quality businesses and supports their expansion.
18 companies are owned by the group, ranging from GDS Instruments, which manufactures computer testing equipment for rocks and soil, to Thermal Hazard Technology, which makes calorimeters to ensure batteries are reliable and safe.
This year, Geotek, a manufacturer of geoscience instruments used by mining, energy, and climate research companies, was added to Cicurel’s portfolio.
2020 saw a small decline in Judges’ profits, but last year’s figures improved, with sales rising 14% to £91.3 million, profits rising 21% to £18.1 million, and the dividend rising 20% to 66p.
Cicurel acknowledged that the market remains difficult in a recent trading update, but added that the company had a strong order book and should continue to advance.
Analysts have faith in the company as well; they forecast sales of £107 million, profits of £23 million, and a dividend of 72.6p for the current year.
Up until 2023 and beyond, there will likely be more growth.
Judges Scientific’s largest shareholder, Cicurel, owns 11.2% of the company, according to the Midas touch.
Cicurel is a wealthy man because his company is worth almost £550 million on the stock market.
But he wants to maintain the status quo.
He exercises caution when making purchases and managing the company’s cash to make sure there is always enough to pay out enticing dividends.
Existing shareholders may be tempted to cash in on some profits at the current price, but they should keep a sizable position at £85.00 because the company should continue to reward shareholders.
Contact judges.uk.com or 020 3829 6970 Traded on: JDG Ticker: AIM