Law firm Dadds makes a case for expansion

BACK in January, our three top picks for 2018 were law firm Gordon Dadds, life sciences group Syncona and specialist engineer Porvair.

Dadds has risen 27 per cent to £1.82p, as revenues and profits have grown significantly. But the shares have been suspended since September, when chief executive Adrian Biles revealed he was pursuing a merger with Ince International, a larger rival. Trading will resume once the deal has been concluded, which may even be later this week. Biles believes the transaction will make Gordon Dadds a bigger and better company, but investors will have to peruse the details before deciding whether to continue holding the shares.

Life sciences group Syncona has risen 22 per cent to £2.57, as the firm – which invests in promising healthcare businesses - has delivered strong growth and shown that it can source rewarding investments. Backed by the Wellcome Trust, Syncona should have a strong future ahead of it.

Porvair has fared less well, falling more than 8 per cent to £4.16, despite revealing this month that earnings for the year to November 30 would be above expectations, while revenues would show an increase of more than 10 per cent. The company has suffered from widespread disaffection with the manufacturing sector but brokers remain positive about the long term and investors should too.