Maynard Paton | Category: My Shares

World Careers Network: Better-Than-Expected Results Give Cash-Adjusted P/E Of Less Than 7

27 April 2016
By Maynard Paton

Quick update on World Careers Network (WOR).

Event: Interim results for the six months to 31 January 2016 published 26 April

Summary: These figures were not as bad as I had feared, given WOR’s previous results had confessed to higher costs and lower profit. The outcome for the current year looks set to be better than I had anticipated, too. Notably, revenue moved higher despite one of the software group’s largest customers significantly reducing its payments. Meanwhile, the accounts remain cash-rich and the underlying P/E is less than 7. I continue to hold.

Getech: The Dividend Has Gone But All Is Not Lost Just Yet

07 April 2016
By Maynard Paton

Quick update on Getech (GTC).

Event: Interim results for the six months to 31 January 2016 published 05 April

Summary: These interim results were poor, but that was no great surprise given GTC supplies specialist data and services to the battered oil and gas sector. At least the promise of cost cuts and a few new contracts ought to signal a better second half. Valuation remains tricky here with reported losses and a scrapped dividend, but the asset-rich balance sheet should see the business through the downturn. I continue to hold.

Tasty: Profit Up 28% But I Am Not Entirely Satisfied

30 March 2016
By Maynard Paton

Quick update on Tasty (TAST).

Event: Preliminary results for the 52 weeks to 27 December 2015 published 30 March

Summary: An acceptable but not a spectacular set of results from this restaurant group, with the second half showing a slower rate of expansion. I also note revenue per outlet has declined while management is hinting strongly at greater investment spend. Nonetheless, the board is a class act, the opening schedule for new restaurants is accelerating and the longer-term potential remains sizeable. I continue to hold.

M Winkworth: I Just Don’t Know If Online Rivals Will Crush These 31% Margins

23 March 2016
By Maynard Paton

Quick update on M Winkworth (WINK).

Event: Final results for the year to 31 December 2015 published 23 March

Summary: A somewhat better set of figures than I had been anticipating from this estate-agency franchising business. The second-half looks to have been bolstered by extra franchisee fees, which helped WINK register a decent second half and improve its cash flow. Margins and returns on equity remain superb at 31%, the shares do not seem over-priced — but will the Internet crush the income of traditional estate agents? I just don’t know, but continue to hold.

FW Thorpe: A Welcome 2p Special Dividend But The Board Could Pay Far More

21 March 2016
By Maynard Paton

Quick update on FW Thorpe (TFW).

Event: Interim results for the six months to December 2015 published 21 March

Summary: A respectable but not a spectacular set of figures, with underlying revenue and profit both advancing by 5%. Although progress at the group’s main Thorlux division looks to have stagnated, last year’s Dutch acquisition appears to be performing very well. A special 2p per share dividend was a welcome move, but a cash pile of 30p per share suggests much more could be distributed. I continue to hold.

French Connection: The Cash Pile Really Can’t Afford Another £9m Outflow

15 March 2016
By Maynard Paton

Quick update on French Connection (FCCN).

Event: Preliminary results for the year to January 2016 published 15 March

Summary: An improved set of figures following last year’s awful interims. However, the numbers do suggest FCCN experienced a weaker Christmas while the cash pile really can’t afford another £9m outflow. Online sales were miserable, too. Still, Retail gross margins during H2 were the highest since 2011 and new board members may well help the moribund management. This value investment still requires inordinate patience… and I continue to hold.

Mincon: Subdued Q4 Hidden In Satisfactory 2015 Results

10 March 2016
By Maynard Paton

Quick update on Mincon (MCON).

Event: Preliminary results for the year to December 2015 published 9 March

Summary: A satisfactory set of results from this specialist drill manufacturer. Sadly the bumper Q3 reported in November was followed by a more subdued Q4, so I’ve had to trim my valuation estimates a little. Nonetheless, the shares do not appear outlandishly valued and I’m hopeful the stronger second-half bodes well for 2016. The books are still cash rich and management has started to improve cash flow, although the dividend remains at a standstill. I continue to hold.

Tristel: These Results Were A Letdown And I Have Been Selling

24 February 2016
By Maynard Paton

Quick update on Tristel (TSTL).

Event: Interim results published 24 February

Summary: Oh dear — these results were something of a letdown :-( It seems TSTL’s projections of c%15 revenue growth have been dropped as UK turnover starts to stall. At least now we know why December’s AGM statement never mentioned sales! A startling £1m share-based payment and a signal for a pedestrian 5% dividend lift were other features I did not expect. Though I still hold TSTL, I have been selling during recent weeks and sold more today.

City Of London Investment: 7% Yield Buoyed By Greater Prospect Of New Client Money

12 January 2016
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: First-half trading statement published 12 January

Summary: Not a bad statement, given CLIG is an emerging-market fund manager and its markets have slumped since the summer. A particular bright spot was the group’s forward guidance, which for 2016/17 is factoring in an acceleration of new client money. However, I continue to value the shares on today’s funds under management — which suggest the 24p per share dividend and 7% yield remain safe for now. I continue to hold.

Record: Another Mandate Loss But Stronger Dollar Sustains P/E Of 8

07 January 2016
By Maynard Paton

Quick update on Record (REC).

Event: Business Update published 07 January

Summary: Not a great start to 2016 — REC has admitted a significant mandate win from last year has now been ‘suspended’. Despite a more accommodating environment for the specialist currency manager, this update just adds to the disappointing client losses of late . Funnily enough, a stronger dollar appears to sustain my earnings guess even after today’s client withdrawal. Meanwhile, the shares do not look expensive on a possible P/E of 8. I continue to hold.

My Portfolio: Year In Review 2015

01 January 2016
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 2016 provides a short ‘year-in-review’ of each of my current portfolio holdings.

As I mentioned at the start of 2015, 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!

Tristel: This Share Now Represents 18% Of My Portfolio

15 December 2015
By Maynard Paton

Quick update on Tristel (TSTL).

Event: AGM statement published 15 December

Summary: It looks as if this medical-wipes specialist is all set to surpass profit expectations for 2016, and probably its own targets for 2017 as well. Throw in some new (to me) speculation about deals with FTSE multinationals, and it’s no wonder the share price has performed so well of late. In fact, this holding has grown to become 18% of my portfolio — and I must admit to some nerves given the premium growth rating. Anyway, I continue to hold.

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.

French Connection: Wow — £2.4m Compensation For Closing A Loss-Making Store!

30 November 2015
By Maynard Paton

Quick update on French Connection (FCCN).

Event: Trading statement published 30 November

Summary: Phew! A pleasantly surprising update that revealed stable trading and a signal that losses could be narrowing. However, the most welcome news was the redevelopment of the group’s loss-making Regent Street store, for which compensation of £2.4m will be received from the landlord. I just wish FCCN could be paid off for all of its under-performing shops! I continue to hold.

Mountview Estates: I’ve Lifted My NAV Guess To £188 Per Share

26 November 2015
By Maynard Paton

Quick update on Mountview Estates (MTVW).

Event: Interim results published 26 November

Summary: Another set of bumper results from this residential-property trader. Once again gross margins held up very well while management’s outlook continues to be positive. My latest sums point to a possible NAV of £188 per share based on the firm’s previous mark-ups on sold units. I continue to hold.

Patrick Leach: “Hi Patrick, Just replying to your comment as I have held SYS1 for a number of years and exchanged views…” 12 Jul 2024

Andrew Rolfe: “Maynard, I hold through HL, Interactive Investors and a couple of other platforms. I think that CLIG should engage via…” 10 Jul 2024

Maynard Paton: “Thanks Andrew. I hope to be there at the AGM as well. Something I did not mention in the blog…” 10 Jul 2024

Andrew Rolfe: “Excellent review, as ever, Maynard. As you know, I do not think that the disclosures to date that CLIG has…” 10 Jul 2024

Maynard Paton: “Thanks David, glad you found it useful Maynard” 04 Jul 2024

Maynard Paton: “Thanks Patrick. I don’t recommend anybody follow what I do, but happy things have worked out so far! Maynard” 04 Jul 2024

David: “Great analysis, very much appreciated.” 04 Jul 2024

Patrick: “Sparkling results and a very bullish outlook. I followed you in on this one Maynard with a position that in…” 03 Jul 2024