[Podcasts] KITWAVE, M WINKWORTH, SOLID STATE And More

28 August 2023
By Maynard Paton

I recorded two podcasts during August with good friends and fellow investors Roland Head, Mark Simpson and Bruce Packard:

Our Investor’s Roundtable Podcast discussed Roland’s investment in wholesaler Kitwave, my investment in estate agency M Winkworth and Bruce’s investment in electronics specialist Solid State.

Roland and I also discussed an attractive FTSE 250 business for the latest Private Investor’s Podcast.

During the Investor’s Roundtable Podcast, we covered:

• Kitwave (321p/£225m):
  • Roland recaps why he owns Kitwave.
  • The low margin, recent EPS upgrades and the potential for a re-rating. 
  • Stock turn, returns on capital and buying smaller companies with much higher margins.
  • Ebitda multiples, significant acquisitions, owner management and successful buy-and-build distributors.

• M Winkworth (150p/£20m):
  • I recap why I own M Winkworth.
  • Returns on capital, barriers to entry and becoming a quality compounder.
  • The dividend record, self-motivated franchisees and the low number of new branches.
  • The P/E and yield ranges, the potential for capital gains and comparisons with Foxtons and other quoted agents.  

• Solid State (£13/£150m):
  • Bruce recap why he owns Solid State.
  • Management talk of 20% annual total shareholder returns, the ‘rugged computing’ niche and the competitive moat.
  • Acquisitions becoming much larger and more expensive, the wider acquisition strategy and doubts concerning Custom Power. 
  • The outlook for industrial companies, favourable sector trends and recent organic growth.

During the Private Investor’s Podcast, Roland and I covered a FTSE 250 share with an illustrious growth record. We talked about: 

• Why this mid-cap is among Roland’s highest-scoring watch-list shares.
• The business growing 15-20 times since the mid-1990s, with the payout rising from 2.5p towards 70p per share.
• How serving customers such as BMW, Heathrow Airport, Costa Coffee and Yorkshire Building Society has led to returns on capital of more than 20%.
• Growth opportunities that include cloud computing and cyber security. 
• The growing cash position, the impressive cash conversion and returning further surplus cash to shareholders.
• The chief exec’s straight-talking manner, his £20m-plus shareholding and being among the longest-serving FTSE 350 bosses. 
• The co-founders’ near-£600m shareholding, and meeting the pair at an AGM.
• The company’s modest valuation, its ability to compound earnings and at what price to buy the shares.

You can listen to both of these podcasts (and more conversations!) though this premium podcast service >>

Happy listening!

Maynard Paton

Disclosure: Maynard owns shares in M Winkworth.