Tag Archives: EDP

Electronic Data Processing: ELEVEN Months On And The Strategic Review Has Gone Nowhere… And I Have Given Up Waiting

23 March 2017
By Maynard Paton

Quick update on Electronic Data Processing (EDP).

Event: Strategic review and pensions update issued 06 March 2017

Summary: Oh dear — EDP’s strategic review has not gone as well as I had hoped. The software minnow has taken ELEVEN months to finally own up to holding early-stage talks with just the one interested bidder. Other approaches have disappeared, due in part to unfavourable developments within the group’s defined-benefit pension scheme. I doubt EDP’s main shareholders can force anyone to bid and, without any sign of EDP having a Plan B, I have sold my entire holding. Continue reading

Year In Review 2016

01 January 2017
By Maynard Paton

Happy New Year!

I trust you enjoyed the festive break and are now raring to do battle with the market for another twelve months!

This first Blog post of 2017 provides a ‘year-in-review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2016, as well as provide a few remarks about valuation.

As I mentioned this time last year, I find writing such reviews extremely useful — not least because it encourages me to double-check my investment logic to ensure I am still invested for all the right reasons! Continue reading

Electronic Data Processing: 8 Months On And I’m Still Waiting For A Buyer

20 December 2016
By Maynard Paton

Quick update on Electronic Data Processing (EDP).

Event: Preliminary results for the twelve months to 30 September 2016 published 20 December 2016

Summary: What a letdown! I had hoped EDP could announce the conclusion of its strategic review within these results, but no such luck I’m afraid. Instead, shareholders have been left in the dark about possible corporate action as the underlying business puts in another dismal revenue performance. The irony is this company actually develops software for others to improve sales! I can only hope 2017 will see a generous buyer emerge and I can then move on. I continue to hold. Continue reading

Electronic Data Processing: I Will Happily Swap This 6%-Plus Yield For A Generous Trade Buyer

06 June 2016
By Maynard Paton

Quick update on Electronic Data Processing (EDP).

Event: Interim results for the six months to 31 March 2016 published 02 June 2016

Summary: This was another lacklustre update from the software micro-cap. It was disappointing in particular to see revenue continuing to stagnate and — despite various cost-cutting measures of the past — operating profit dropping lower. Thankfully EDP has put itself up for sale and I am very hopeful a generous trade buyer can be found to conclude what has been a somewhat frustrating investment. In the meantime, there is the prospect of a 6%-plus yield to collect. I continue to hold. Continue reading

Electronic Data Processing: I’m Collecting A 7.9% Yield And Trusting A Trio Of Investors Will (Eventually) Take Action

11 December 2015
By Maynard Paton

Quick update on Electronic Data Processing (EDP).

Event: Preliminary results published 11 December

Summary: As expected, this dull software microcap reported no miracles. Cost savings should underpin the firm’s near-term progress, but revenue growth remains as elusive as ever.  At least  EDP still enjoys plenty of recurring income and has committed again to a hefty 5p per share dividend. I’m trusting the trio of North American funds that hold 28% of this stock will one day stir-up some corporate action so we can all exit at an advantageous price. I continue to hold.

Continue reading

Electronic Data Processing: I’ll Just Have To Make Do With The Uncovered 7.2% Income

26 May 2015
By Maynard Paton

Quick update on Electronic Data Processing (EDP).

Event: Interim results published 26 May.

Summary: Another rather dull update from this rather dull software microcap. These results were a little disappointing on the revenue and profit fronts, but at least there was some useful progress on the balance sheet. One day I trust EDP’s business can advance significantly and provide some long-awaited excitement. Until then I’ll just have to make do with the uncovered 7.2% dividend yield. I continue to hold.

Continue reading

Electronic Data Processing: This Obscure, Dull Small-Cap Should Pay Me An 8% Income

15 January 2015
By Maynard Paton

Legendary American investor Peter Lynch was always very keen on dull small-caps with dull names and dull operations. His theory was that such obscure businesses would not attract much industry competition or market enthusiasm, and so would be better investments for patient investors.

Electronic Data Processing (EDP) certainly has the dull name and the dull operations, but sadly its dull financial history has meant its share price has also been, well, rather dull.

But don’t stop reading just yet!

…because this small-cap dullard intends to pay a 5p dividend in future years — and shareholders such as me remain in line to collect a not-so-dull 8%-plus income.

Additional excitement comes in the form of EDP’s cost-saving measures, which I reckon could support an underlying P/E of just 6.

In fact, if you mix in contracted revenues, surplus assets, upfront customer payments — plus an intriguing shareholder register — then all of a sudden this £8m software supplier to builders merchants might not be that dull after all. Continue reading