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Judges Scientific - Forecast eps of 70p

May 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • JDG
  • Price:
  • 620p
Judges’ results were in line with best expectations with sales up one third to £21m (15% organic) and a 44% jump in pretax profit before exceptionals to £3.95m. Eps was a mouthwatering 61p, up 35%. The exceptional items relate to what has been on chief executive David Cicurel's mind for some while - the outstanding convertible redeemable shares, which give early investors 12% of the rights over the enlarged share capital at an exercise price of 95p. As the strike price is deep in the money, there is a charge of the fair value of share based payments to Judges profit and loss account. The directors potentially also face significant tax liabilities and Judges is now seeking a mechanism to “encourage early conversion and preven ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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