DiscoverIE, a Guildford-based company, is seeing a surge in business thanks to its involvement in developing highly sophisticated airport scanners. These scanners are capable of discerning whether objects are dangerous even if they remain in passengers’ luggage. This technology, already in use in many US airports, is expected to be rolled out across Europe soon, greatly easing the process of airport security and reducing the hassle for millions of travelers.
DiscoverIE plays a crucial role in the production of these scanners by providing a key component. The company recently reported a significant increase in sales for the year ending March 31, 2023, with a 23% rise in profits and a 6% increase in the dividend. Chief Executive Nick Jefferies also stated that the company has started the new financial year on a positive note, with orders exceeding expectations.
DiscoverIE has come a long way since its days as Acal, primarily known for distributing other companies’ products. Under Jefferies’ leadership since 2009, the company now designs and manufactures everything it sells, specializing in complex electronic components in various sectors such as renewable energy, transport, medical devices, and automated industrial equipment. The company works closely with manufacturers to design products specific to their needs, resulting in long-lasting contracts and integral parts for each piece of equipment.
Jefferies is optimistic about the future of DiscoverIE and has expressed interest in pursuing acquisitions to further enhance the company’s prospects. Analysts also share this positivity, predicting further growth for DiscoverIE in the coming years. The dividend is expected to increase to 12.1p next year and nearly 13p by 2025.
This optimistic outlook is reflected in the company’s stock performance, which has steadily increased since it was first recommended by Midas in 2014. Supporters believe the shares, currently valued at £8.40, could exceed £10 within the next year or two. Existing shareholders are advised to hold on to their investments, while new investors seeking a strong British business with long-term potential may consider buying DiscoverIE stock.
In conclusion, DiscoverIE’s involvement in the development of advanced airport scanners positions the company for growth in the coming years. Its strong financial performance, optimistic outlook, and potential for acquisitions make it an attractive investment opportunity. Furthermore, the easing of airport security measures will greatly improve the travel experience for millions of passengers.
