My Portfolio: Year In Review 2023

02 January 2024
By Maynard Paton

Happy New Year!

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

This 4,833-word post provides a ‘year in review’ of my current holdings. I recap how each business performed during 2023 as well as provide a few remarks about valuation. 

These reviews are very useful to write, not least because they help ensure I am still invested for the right reasons. Any upsets I will suffer during 2024 will most likely be caused by the shares I already own rather than any new shares I will buy.

I undertook the same annual review at the start of 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023.

My portfolio gained 15.3% during 2023. This other post explains that performance in more detail and clarifies how my portfolio begins 2024.

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ANDREWS SYKES: 90% Family Ownership May Explain 4.7% Yield After Satisfactory H1 2022 Reveals European Revenue Up 17%, £34m Net Cash And Welcome £7m Special Dividend

30 April 2023
By Maynard Paton

Results summary for Andrews Sykes (ASY):

  • A satisfactory performance, with H1 revenue reaching a new £38m high, H1 profit gaining 8% and the welcome declaration of a £7m special dividend.
  • Assisted by strong Italian progress, European revenue climbed 17% to represent 27% — a record proportion — of the total top line.
  • A healthy 22% margin and favourable cash conversion lifting net cash to £34m left the accounts in good shape. 
  • A bombshell delisting on AIM brings greater attention to ASY’s 90% family ownership and the associated ‘relationship agreement’ small-print.
  • The 10% free float may explain why the shares yield a useful 4.7% despite the robust financials, upbeat company-blog commentary and potential further European expansion. I continue to hold.

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My Portfolio: Year In Review 2022

01 January 2023
By Maynard Paton

Happy New Year!

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

This 4,680-word post provides a ‘year in review’ of my current holdings. I recap how each business performed during 2022 as well as provide a few remarks about valuation. 

These reviews are very useful to write, not least because they help ensure I am still invested for the right reasons. Any upsets I will suffer during 2023 will most likely be caused by the shares I already own rather than any new shares I will buy.

I undertook the same annual review at the start of 2015, 2016, 2017, 2018, 2019, 2020, 2021 and 2022.

My portfolio lost 23.3% during 2022. This other post explains that performance in more detail and clarifies how my portfolio begins 2023.

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ANDREWS SYKES: FY 2021 Discloses UK Hire Revenue Rebounding 17% To Deliver 34% Margin While Dividend Yield Remains Near 5% Despite Potential FY 2022 Heatwave Bonanza

18 August 2022
By Maynard Paton

Results summary for Andrews Sykes (ASY):

  • An encouraging performance, with profit recovering 35% following the pandemic to almost match the record set during FY 2018.
  • Additional reporting disclosures revealed ASY’s main UK Hire division enjoyed sales rebounding 17% and a wonderful 34% margin.
  • European operations expanded to 27% of group revenue following very strong progress, although Middle Eastern woes included an extra £1m provision. 
  • The books remain in good shape, with useful cash generation lifting net funds to £29m and perhaps increasing the possibility of another special dividend. 
  • An estimated 13-14x P/E and near-5% yield hardly seem expensive given the appealing financials, potential for an FY 2022 heatwave bonanza and scope for further European expansion. I continue to hold.

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ANDREWS SYKES: Better-Than-Expected H1 2021 Witnesses European Sales Rebound 29% As Net Cash Reaches £22m And Potential Dividend Yield Hits 5%

07 March 2022
By Maynard Paton

Results summary for Andrews Sykes (ASY):

  • Following the disappointing finish to FY 2020, a better-than-expected H1 performance with revenue and profit up 7% and 14% respectively.
  • Progress was buoyed by ASY’s European operations, which witnessed sales rebound 29% to set a new divisional H1 record. 
  • A restatement revealed previously undisclosed furlough income had represented 12% of H1 2020 profit.
  • The books remain in good shape, with a robust 22% margin and net funds at a sizeable £22m, although extra pension contributions are still required.
  • A possible P/E of 13.5 and yield of 5% hardly seem expensive for the appealing financials and potential of further European expansion. I continue to hold.

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My Portfolio: Year In Review 2021

01 January 2022
By Maynard Paton

Happy New Year!

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

This 4,609-word post provides a ‘year in review’ of my current holdings. I recap how each business performed during 2021 as well as provide a few remarks about valuation. 

These reviews are very useful to write, not least because they help ensure I am still invested for the right reasons. Any upsets I will suffer during 2022 will most likely be caused by the shares I already own rather than any new shares I will buy.

Read more

ANDREWS SYKES: FY 2020 Small-Print Suggests ‘Comparable’ Performance For FY 2021 After H2 Profit Drops 37%

25 May 2021
By Maynard Paton

Results summary for Andrews Sykes (ASY):

  • H2 revenue down 20% and H2 profit down 37% disappointingly confirmed a lower level of pandemic resilience than H1. 
  • However, the main UK equipment-hire subsidiary apparently delivered a FY 2020 profit only “marginally below” that of FY 2019.  
  • Commendable ‘going concern’ text revealed a “cautiously realistic” assumption of a “comparable” performance for FY 2021.
  • The books remain healthy with robust margins, effective working-capital management and sizeable net cash, although the pension scheme is absorbing extra contributions. 
  • A possible P/E of 16-17 and yield of 4% do not appear completely outrageous given the appealing financials and potential for further European expansion. I continue to hold.

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My Portfolio: Year In Review 2020

01 January 2021
By Maynard Paton

Happy New Year!

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

This 4,631-word post provides a ‘year in review’ of my current portfolio holdings. I recap how each business performed during 2020 as well as provide a few remarks about valuation. 

These reviews are very useful to write — not least because they help ensure I am still invested for the right reasons! Any upsets I will suffer during 2021 will most likely be caused by the shares I already own rather than any new shares I will buy.

Read more

ANDREWS SYKES: Resilient H1 Results Confirm Profit Up 2% And Bumper £14m Cash Flow

13 October 2020
By Maynard Paton

Results summary for Andrews Sykes (ASY):

  • Resilient” half-year figures that showed revenue down 4% and profit up 2%. 
  • No light was shed on how ASY could sustain its performance when 50% of UK employees were furloughed. 
  • The statement confirmed bumper cash flow of £14m that prompted a special £10m dividend during the summer.
  • The books remain healthy with high margins and net cash, although the pension scheme might require extra funds. 
  • A possible P/E of 17 does not appear completely outrageous for a seemingly pandemic-resistant business. I continue to hold.

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Andrews Sykes: FY 2019 Results Admit 50% Of UK Staff Are Furloughed Although Management Talks Of “Resilient” Trading And Even Declared A Final Dividend

16 June 2020
By Maynard Paton

Results summary for Andrews Sykes (ASY):

  • Creditable full-year figures that showed revenue down 2% and profit down 7% due to less extreme weather. 
  • The decision to furlough 50% of UK staff feels odd given management talks of “resilient” trading, kept company depots open during lockdown and has declared a final dividend.
  • A commendable cash flow projection raises pandemic-profitability questions but suggests extra funding is not needed.
  • An impressive second half ensured the accounts remained healthy with high margins and an appealing return on equity.  
  • A possible P/E of 12-14 and yield of 4.5% does not seem expensive if indeed ASY does “return to normal levels of trading” for 2021. I continue to hold.

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My Portfolio: Year In Review 2019

10 January 2020
By Maynard Paton

Happy January!

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

This 5,562-word post provides a ‘year in review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2019, 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 I double-check my investment logic to ensure I am still invested for the right reasons! The upsets I will suffer during 2020 will most likely be caused by the shares I already own rather than by new shares I purchase.

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Andrews Sykes: Milder Winter Leaves H1 Profit Down 25% Although Margins Remain High, Cash Exceeds Debt And Current Trading Signals A Better H2

02 December 2019
By Maynard Paton

Results summary for Andrews Sykes (ASY):

  • Revenue dropped 8% and operating profit dived 25% following lower demand for ASY’s heaters and boilers.
  • European operations continue to represent almost a quarter of the business, with new depots opened recently in France.
  • Accounts now affected by IFRS 16, although the fundamental attractions of decent margins (19%) and net cash (£20m) remain in place. 
  • Outlook comments appeared encouraging, with the company blog suggesting busy demand for pumps to combat flooding.
  • The underlying P/E could be 16 and the yield is 3.9%. I continue to hold.

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Andrews Sykes: 2018 Results Show Profit Rising 18% To New High But Absence Of ‘Cautiously Optimistic’ Outlook Hints At Weaker 2019 Figures

22 May 2019
By Maynard Paton

Results verdict on Andrews Sykes (ASY):

  • Very favourable weather helped revenue gain 10% and profit jump 18% to set new records.
  • European sales soared 24% to represent almost a quarter of the business, and continue to offer further potential.
  • Accounts showcased wonderful margins, robust returns on equity, reassuring cash levels and respectable cash flow. 
  • Absence of “cautiously optimistic for further success” within management’s outlook hinted that 2019 may not be as buoyant as 2018.
  • The underlying P/E could be 16 while the yield is 3.3%. I continue to hold.

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My Portfolio: Year In Review 2018

01 January 2019
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 2019 provides a ‘year in review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2018, as well as provide a few remarks about valuation.

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Andrews Sykes: I Had Expected H1 Sales To Grow By More Than 7% Following The Heavy Snow And Extended Heatwave

01 October 2018
By Maynard Paton

Update on Andrews Sykes (ASY).

Event: Interim results for the six months to 30 June 2018 published 28 September 2018.

Summary: Widespread snow followed by a glorious heatwave were always going to prompt demand for ASY’s heating products and air conditioners during this first half. However, I did expect the equipment hire firm to have recorded sales growth in excess of the 7% actually reported. Still, operating profit gained 14% while the accounts continue to showcase high margins and surplus cash. Plus, the second-half ought to show bumper figures and help deliver the firm’s best-ever annual performance. I continue to hold.

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