Maynard Paton | Category: My Shares

FW Thorpe: Impressive H1 Results As All Divisions Grow By 15% Or More

17 March 2017
By Maynard Paton

Quick update on FW Thorpe (TFW).

Event: Interim results for the six months to 31 December 2016 published 16 March 2017

Summary: Once again this lighting specialist has issued a very satisfactory set of results. The highlight was the performance of the group’s main division, which following a few subdued years has suddenly enjoyed a step-change to its financial progress. TFW’s other divisions reported impressive numbers, too, while the balance sheet remains teeming with surplus cash and investments. Throw in a coded management ‘upgrade’ for the full year and it’s perhaps no surprise the shares presently trade on an extended rating. I continue to hold.

Tristel: H1 Results Showcase Impressive 20%-Plus Revenue Gains, Although North American Potential Remains As Distant As Ever

02 March 2017
By Maynard Paton

Quick update on Tristel (TSTL).

Event: Interim results, City presentation and investor webinar for the six months to 31 December 2016 published 23 February 2017

Summary: These first-half figures were slightly better than I had expected, with the finer details confirming December’s AGM statement had downplayed the group’s underlying progress. Impressive 20%-plus revenue advances — both in the UK and abroad — were delivered by the group’s main medical disinfectant products, while adjusted profit would have soared 29% were it not for the costs of entering North America. Sadly it remains anyone’s guess as to when those costs will first see any payback. Nonetheless, TSTL remains on course to meet management’s ambitious three-year growth projections… and the shares are priced accordingly. I continue to hold.

BrainJuicer: Bumper 2016 Results Suggest Growth Accelerated Towards 20% During H2

10 February 2017
By Maynard Paton

Quick update on BrainJuicer (BJU).

Event: Annual results and shareholder presentation for the twelve months to 31 December 2016 published 09 February 2017

Summary: These impressive annual figures confirmed BJU had enjoyed a magnificent second half. The market-research pioneer confirmed all of its core products had performed well, including the group’s best-selling system that had suffered a wobble during H1. I’m also pleased the accounts remain first class, while it’s not surprising the share-price rating is now expecting further robust growth. However, the usual “limited visibility” of client orders remains a drawback. I continue to hold.

S & U: Why I’m Backing These Moneylenders And Their £103m Family Fortune

03 February 2017
By Maynard Paton

Today I’m reviewing my latest new investment.

The company concerned is S & U (SUS), the shares of which I purchased at an average price of 2,070p (including all costs) during January 2017. The bid price is currently 2,045p and the position now represents between 4% and 5% of my portfolio.

I have to confess that SUS may not be everyone’s idea of a great business. The group was for years best known as a doorstep moneylender, but these days it solely provides hire-purchase finance to buyers of used cars.

A lot could go wrong here. SUS’s customers generally have patchy credit histories, while its loans attract 29% interest and are secured on depreciating assets. A deep recession may well cause substantial problems.

However, some impressive under-writing has delivered an illustrious record of expansion. Notably, bad debts have been controlled carefully — even during the difficult banking-crash years. Recent trading appears upbeat, too, with many potential borrowers actually being turned away.

All told, I’m trusting a family executive team that extols the virtues of “steady, sustainable growth” — and has at least £103m riding on the share price — can ensure the business stays out of trouble and instead continues to prosper and grow.

City Of London Investment: Brexit Creates Best H1 Profit For 7 Years

19 January 2017
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Trading update and shareholder presentation for the six months ending 31 December 2016 published 17 January 2017.

Summary: CLIG had already acknowledged it would be a Brexit beneficiary, and this week’s update was the first to give shareholders some actual figures based on the weakened GBP. Even with client money barely moving, this emerging-market fund manager delivered a very welcome 61% profit surge to ensure the near-7% dividend yield remains safe for now. However, the usual downsides remain — not least stagnant funds under management and rising staff costs. I continue to hold.

My Portfolio: 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!

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.

Mountview Estates: £83 Per Share NAV Could One Day Be Worth £200 Per Share

24 November 2016
By Maynard Paton

Quick update on Mountview Estates (MTVW).

Event: Interim results for the six months to 30 September 2016 published 24 November 2016

Summary: These were not the bumper results I had become accustomed to from MTVW. The residential-property trader owned up to lower earnings due to rising stamp duty, although the all-important net asset value did march higher as debt was reduced to a new low. My latest sums point to a possible net asset value of £200 per share based on the firm’s previous mark-ups on sold properties. I continue to hold.

Daejan: NAV Reaches New £96 Per Share High Despite Brexit

23 November 2016
By Maynard Paton

Quick update on Daejan (DJAN).

Event: Interim results for the six months to 30 September 2016 published 23 November 2016

Summary: These results were better than I had anticipated. Boosted in part by the weaker GBP, the commercial property group declared 6% greater rental income alongside a new all-time high for net asset value. There may be a little question mark with cash generation, but debt is still relatively low while DJAN’s seasoned management should be able to cope with any ongoing sector uncertainty. The shares trade at 59% of net asset value and I continue to hold.

Record: High Margin, High Yield… And High Time New Clients Were Found

21 November 2016
By Maynard Paton

Quick update on Record (REC).

Event: Interim results for the six months to 30 September 2016 published 18 November 2016

Summary: If nothing else, REC’s results are consistent — once again this specialist currency manager revealed stagnant financial progress, a lack of new business and a dependence on a handful of major clients. Nevertheless, the group sports high margins and cash-flush accounts, while the P/E could be as low as 7 thanks to the weaker GBP. Talk of potential special dividends unfortunately remains talk for now, but at least the ordinary payout yields 5.2%. I continue to hold.

Castings: £23m Cash Hoard Can’t Disguise Worst H1 Results For 6 Years

11 November 2016
By Maynard Paton

Quick update on Castings (CGS).

Event: Interim results for the six months to 30 September 2016 published 11 November 2016

Summary: Earlier statements had already signalled lower earnings for 2016/17, and these results were in fact CGS’s worst first-half figures for six years. The engineer still reckons lost work can be replaced, but the immediate outlook remains stagnant at best. The upcoming retirement of the chief executive brings some further uncertainty, too. Still, I don’t think good companies become bad companies overnight and the group’s long track record suggests a recovery will one day arrive. I continue to hold.

World Careers Network: Brexit Boost Could Support Cash-Adjusted P/E Of Just 5

09 November 2016
By Maynard Paton

Quick update on World Careers Network (WOR).

Event: Preliminary results for the year to 31 July 2016 published 08 November 2016

Summary: These figures were better than I had expected, not least because WOR enjoyed the benefits of the weaker post-Brexit pound. However, the software developer did warn that costs would continue to rise — which in turn would keep a lid on earnings for the “foreseeable future”. At least revenue is marching higher while the weaker pound ought to help the group’s progress in the States. The accounts remain simple and flush with cash, and you could argue the underlying P/E is just 5. I continue to hold.

Getech: H2 Profit Reported But I Am Not Entirely Convinced

08 November 2016
By Maynard Paton

Quick update on Getech (GTC).

Event: Final results for the year to 31 July 2016 published 08 November 2016

Summary: A lot happened at GTC before these results and I am no longer as keen on the group as I once was. That said, the figures from this specialist data supplier to the oil and gas industry were not truly awful — a profitable second half gives hope that one day the business will recover. The asset-rich balance sheet also lends support. But a new boss and various acquisitions just don’t make me entirely comfortable. I continue to hold.

Bioventix: £1m Special Dividend Declared As H2 Margin Hits 80%

26 October 2016
By Maynard Paton

Quick update on Bioventix (BVXP).

Event: Preliminary results and shareholder presentation for the year to 30 June 2016 published 17 October 2016

Summary: The antibody developer had already said this statement would reveal bumper results, but the figures were still better than I had expected. Although progress was helped by post-Brexit currency movements, it was clear the underlying business delivered yet another robust performance. The financials remain extremely impressive, with the second-half operating margin hitting an incredible 80%. The icing on the cake was management underpinning its confidence with the declaration of a welcome £1m special dividend. I continue to hold.

Tristel: UK Revenue Improvement Confirmed As Management Issues Bold New Projections

21 October 2016
By Maynard Paton

Long update on Tristel (TSTL).

Event: Audited results, annual report and shareholder presentation for the year to 30 June 2016 published 17 October 2016

Summary: July’s upbeat trading statement from this medical disinfectants specialist had already signalled these record results. The finer details revealed UK revenue enjoying a healthy second-half performance and overseas operations progressing consistently well. The financials appear to be in order, too, although cracking the United States is taking a bit more time and money than expected. The executives remain confident and have issued bold new projections, which is all reflected by the elevated share-price rating. I continue to hold.

Maynard Paton: “City of London Investment (CLIG) AGM attendance 28 October 2024 I attended CLIG’s AGM at the group’s head office in…” 20 Jun 2025

Maynard Paton: “City of London Investment (CLIG) Publication of 2024 annual report continued Here are some further points of interest to accompany…” 20 Jun 2025

Maynard Paton: “Hi Javed, Thanks for the message. You could apply a discount. But my calculations are based on today’s values or…” 20 Jun 2025

Javed Abrahams: “Don’t we need to apply an appropriate discount rate to the vacant possession NAV to calculate the true NAV? A…” 20 Jun 2025

Maynard Paton: “City of London Investment (CLIG) Publication of 2024 annual report Here are some points of interest to accompany those noted…” 19 Jun 2025

Maynard Paton: “System1 (SYS1) Publication of 2024 annual report (continued) Here are more points of interest beyond those noted in the blog…” 25 May 2025

Maynard Paton: “System1 (SYS1) Publication of 2024 annual report Here are the points of interest beyond those noted in the blog post…” 24 May 2025

Maynard Paton: “Well, this is a consultancy and shareholders are arguably left with whatever the partner consultants have not demanded for themselves…” 23 May 2025