MIDAS SHARE TIPS UPDATE: Our Tip Judges Scientific’s 11-fold Rise Passes the Test
Long-acting chief executives are a rarity in the stock market these days, but just as Andrew Williams’ 17-year tenure at the top has served Halma well, so has David Cicurel’s long tenure at Judges Scientific.
Cicurel founded the scientific instrument business in 2002 and is in position to this day. The early days were tough, but he persevered and the company has grown at a rapid pace in recent years.
Midas advised the company in 2012, when the shares were £7.45. Last week they closed at £85.00 with brokers suggesting the stock should reach £95 in the coming months.
Futuristic: Midas recommended the company in 2012, when the shares were £7.45
Judges acquires high-quality, technologically advanced companies and helps them grow. The group owns 18 companies, from GDS Instruments, which makes computer test kits for soil and rocks, to Thermal Hazard Technology, which produces calorimeters that ensure batteries are safe and effective.
Earlier this year, Cicurel added to the portfolio with Geotek, which makes geoscience instruments used by mining and energy companies and in climate research.
Judges saw a slight drop in profits in 2020, but last year the numbers recovered, with sales up 14 per cent to £91.3m, profits up 21 per cent to £18.1m and a 20 per cent increase in dividend to 66 pennies.
In a recent trading update, Cicurel acknowledged that market conditions remain challenging but said the group had a strong order book and should continue to make progress.
Analysts are also confident in the company, forecasting a turnover of £107m and a profit of £23m for the current year, in addition to a 72.6p dividend. Further growth is expected for 2023 and beyond.
Midas verdict: Cicurel is Judges Scientific’s largest shareholder and owns 11.2 percent of the company. With the company valued on the stock market at nearly £550 million, Cicurel is a wealthy man. But he would like to keep it that way. He is careful with what he buys and is careful with group cash so that there is enough to pay attractive dividends each year. Existing investors may be tempted to make some profit at current levels, but they should maintain a decent position of £85.00 as the company should continue to reward investors.
Traded on: JDG ticker: GOAL Contact: judges.uk.com or 020 3829 6970