MIDAS SHARE TIPS UPDATE: Quick scan reveals this winner

Airport security is a nightmare for most passengers. Is toothpaste a liquid? What if a 200ml bottle is half filled with sunscreen? Should laptops be taken out of their bags? And why is a member of the tour group always held up because there is something suspicious in his backpack?

Dull at best, unnerving at worst, the whole farrago has become a part of air travel since 9/11 and turned travel upside down.

Now things are finally changing, as highly sophisticated scanners are able to distinguish whether objects are dangerous even if they remain in passengers’ luggage.

The equipment is already in use at many US airports and is expected to be rolled out across Europe soon, facilitating air travel for millions and helping airports handle many more passengers on the move.

Guildford-based Discover IE is a crucial part of these scanners and business is booming. The company last month reported an 18 percent increase in revenue to £449 million for the year to 31 March 2023, with profits up 23 percent to £46 million and dividends up 6 percent to 11.45 pence.

CEO Nick Jefferies also said that the new financial year has started well, with current orders exceeding expectations.

Jefferies has been running DiscoverIE since 2009. Formerly called Acal, the company was primarily known for distributing goods from other companies.

Today, DiscoverIE designs and makes everything it sells, focusing on complex electronic components in four areas: renewable energy, transportation, medical devices, and automated industrial equipment. End products range from components for magnetic resonance imaging (MRI) scanners to sensors on train doors.

In each case, DiscoverIE works with manufacturers and designs products for their specific needs.

That means the parts are an integral part of every piece of equipment and contracts often last for many years.

Jefferies believes the future looks bright for DiscoverIE. He is also keen on acquisitions and has a number of deals in the pipeline, which should further boost the outlook.

Analysts are also bullish on the company, forecasting further growth this year and beyond, with the dividend rising to 12.1p next year and nearly 13p in 2025.

Midas verdict: Midas recommended DiscoverIE in 2014 when the shares were £2.32. It tipped them £6.72 again in 2021, telling them to keep gaining ground. The price has since risen to £8.40 and supporters believe they will cross the £10 mark within a year or two. Existing shareholders must continue to believe in it. Investors looking for a strong UK company with a bright long-term future can also buy some shares.

Traded on: Main market ticker: DSCV Contact: disoverieplc.com or 01483 544 500