Maynard Paton | Category: My Sold Shares

Tristel: 2019 Open Day Yields No Revelations Although Encouraging Sales Developments Have Emerged In The UK, France And Italy

04 September 2019
By Maynard Paton

Trading update and presentation summary on Tristel (TSTL):

TSTL’s 2019 open-day presentation and the associated scuttlebutt did not yield any ground-breaking news.

Unpicking the accompanying trading update suggested second-half UK sales gained an impressive 12%.

However, the contribution from international operations was distorted by the purchase of Ecomed in November.

The former Ecomed boss was confident sales in France could one day exceed those in Germany — TSTL’s largest overseas market.

The purchase of the group’s Italian distributor — which has expanded quickly during recent years — appears very sensible.

Daejan: NAV Reaches New £119 Per Share High But Management Remarks Of Slowing Growth Now Leaves Price-To-Book At 46%

14 August 2019
By Maynard Paton

Results summary for Daejan (DJAN):

These full-year figures set new records for revenue, up 9%, net asset value, up 7% and the dividend, up 3%.

The 3.5% valuation gain was DJAN’s lowest since 2012 following the “uncertainty” caused by Brexit. Management remarks suggested current-year growth could slow further.

A significant purchase in the States has lifted the proportion of US properties to 29% of the group’s estate.

The accounts remain conservatively financed and the property valuations continue to appear prudent.

The share price represents only 46% of net asset value — the lowest percentage for seven years. I continue to hold.

Getech: 2018 Results Showcase Impressive 24% Products Revenue Gain But Full Profit Recovery Remains Dependent On Stronger Oil Price

10 May 2019
By Maynard Paton

Results verdict on Getech (GTC):

Total revenue gained 11% to set the highest level since 2015. The dominant and more attractive Products division impressed with a 24% revenue improvement.

Progress was achieved in particular by a last-gasp $3.2m sale that contributed approximately 30% to the top line.

Profit was hampered by the loss-making Services division, although significant cost savings have since been made.

The direction of the oil price may largely dictate whether GTC’s oil-exploration software sells well (or not) during 2019.

The £11m market cap requires greater earnings to underpin obvious upside potential. I continue to hold.

Oleeo: 155-Word H1 Statement Could Strangely Mark The Low Point For Earnings As £13m Market Cap Compares To £11m Net Cash Position

07 May 2019
By Maynard Paton

Results verdict on Oleeo (OLEE):

A terse 155-word statement revealed an unsurprising 50% profit plunge as OLEE extends its “capacity to suffer” to four years.

At least revenue continues to inch ahead and might even be growing at a reasonable pace if the largest customer is excluded.

Recent client installations include all four Welsh police forces — cementing OLEE’s 50%-plus share of supplying UK police recruitment IT.

A lack of guidance for the full-year could strangely mark the low point for earnings.

A £13m market cap is almost entirely supported by the £11m net cash position. I continue to hold.

Tasty: Equity Placing On The Way As Results Offer Glimmers Of Hope Amid Further Losses And Significant Debt

22 March 2019
By Maynard Paton

Results verdict on Tasty (TAST):

Miserable figures blighted by debts and losses that confirmed — albeit within the small-print — that an equity placing is on the way.

The shares are now a gamble based on how much shareholders are asked to raise and at what price.

Second-half trading offered hope through greater cash generation alongside improved sales per restaurant and per employee.

Restaurants continue to be sold for cash although current trading was described as “slow”.

Market cap now £4.2m for sales of £47m and 58 restaurants. I continue to hold.

Tristel: Record H1 Results Deliver Wonderful 28% Dividend Lift But Further FDA-Project Mishaps Dash Any Hope Of Early US Sales

28 February 2019
By Maynard Paton

Results verdict on Tristel (TSTL):

Very satisfactory double-digit growth supported by encouraging progress both within the UK and abroad.

A new product and a recent acquisition offer attractive medium-term potential.

Continued bungling of the US regulatory project raises awkward questions about the associated consultants and decision-makers.

Accounts remain in good shape with high margins, net cash and conservative reporting of ‘one off’ costs.

Valuation remains understandably rich with an underlying P/E of 26. I continue to hold.

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.

Daejan: 203-Word H1 Statement Reveals £116 Per Share NAV High And Leaves £58 Share Price At A Favourable 50% Discount

07 December 2018
By Maynard Paton

Update on Daejan (DJAN).

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

Summary: The commercial property group once again delivered record first-half revenue and net asset value (NAV) figures — despite the chairman’s persistent economic and political worries. The 203-word statement gave little else away, which has allowed the share price to continue to drift and the discount to NAV widen to 50%. Such a valuation has typically rewarded patient investors of this low-profile share, and I have recently bought more.

Castings: H1 Results Reveal Machining Turnaround Delayed By 2 Years While Depreciation Review Inflates Group Profit By 10%

15 November 2018
By Maynard Paton

Update on Castings (CGS).

Event: Interim results for the six months to 30 September 2018 published 13 November 2018.

Summary: CGS’s results were acceptable but contained several irritating drawbacks. In particular, a recovery at the engineer’s troubled machining division has been seemingly postponed for two years. Furthermore, management has now downgraded customer demand from “strong” to “steady”. Oh, and a depreciation review inflated group profit by 10%. CGS does have strengths — not least its cash pile and dividend history — but I suspect the firm’s stalled earnings will keep the shares marooned for now. I continue to hold.

Oleeo: The 4:28pm Results Revealed A Further Earnings Slump As Anonymous Tip-Off Corrects My HMRC Mistake

07 November 2018
By Maynard Paton

Update on Oleeo (OLEE).

Event: Preliminary results for the twelve months to 31 July 2018 published 02 November 2018.

Summary: Publishing results at 4:28pm on a Friday is never a good sign. And sure enough, the recruitment software outfit warned of yet another profit slump. Still, at least revenue inched to a new record as the firm enjoyed greater subscription income. Meanwhile, an anonymous tip-off has set me straight about OLEE’s contract with HMRC — the deal appears not to have been lost after all. All I can do now with this illiquid share is hope for an earnings rebound. I continue to hold.

Tristel: 2018 Profit Advances 14% (Before Hefty Share-Based Payments) As Bizarre Management Decision Delays FDA Application Once Again

26 October 2018
By Maynard Paton

Update on Tristel (TSTL).

Event: Final results for the twelve months to 30 June 2018 published 17 October 2018 and shareholder presentation hosted 18 October 2018.

Summary: I was broadly satisfied with these full-year figures, which set new records for revenue, profit and the dividend. However, the statement and City presentation provided numerous little niggles — not least a bizarre management decision that has delayed product approval within the United States for a further six months. Still, TSTL’s collection of medical disinfectants continue to produce attractive accounts and perhaps their biocidal qualities have been underlined by recent deals with the NHS and Parker Laboratories. I continue to hold.

Getech: H1 Revenue Hits A 7-Year Low And For Now My Hopes Rest On A Stronger Oil Price

08 October 2018
By Maynard Paton

Update on Getech (GTC).

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

Summary: These figures were not as good as I had hoped. The lowest first-half sales for seven years created a not-insignificant operating loss and left cash flow dependent on tax refunds. Still, the geoscience software specialist talked of a stronger second half and I remain hopeful the accounts will eventually showcase the high margins and expanding revenue the directors continue to predict. For the time being, I just have to trust a stronger oil price can one day tempt GTC’s customers to increase their spending. I continue to hold.

Tasty: Hapless Restaurant Chain Reveals Dismal H1 Loss Although Some Outlets Are Apparently ‘Outperforming Expectations’

25 September 2018
By Maynard Paton

Update on Tasty (TAST).

Event: Interim results for the 26 weeks to 1 July 2018 published 21 September 2018.

Summary: The hapless restaurant chain delivered a rather dismal — but not completely disastrous — set of first-half figures. “Unfavourable” weather was partly blamed for underlying sales falling approximately 4%, which in turn led to an operating loss. The numbers also carried a further substantial write-down while net debt jumped following adverse cash movements. But recovery hopes still remain — costs have been cut, menus have been re-jigged and some sites are even “outperforming expectations”. I continue to hold.

Daejan: NAV Hits New £111 Per Share Peak As £64 Share Price Offers Theoretical 14% Earnings Yield

27 July 2018
By Maynard Paton

Update on Daejan (DJAN).

Event: Preliminary results for the year to 31 March 2018 published 17 July 2018

Summary: The commercial property group once again left its numbers to do most of the talking, as new all-time highs for revenue, net asset value and the dividend were accompanied by only two paragraphs of management commentary. A bonus this year was US tax changes adding £40m to the balance sheet, which now stands at £111 per share and continues to dwarf the £64 share price. Conservative borrowing levels, veteran family management and an illustrious track record remain the foundations of this investment, and, in theory at least, a 14% earnings yield is available, too. I continue to hold.

Tristel: ‘Core’ 2018 Revenue May Have Advanced 18% As The Chairman Looks To Sell His (Now) 15% Shareholding In An ‘Orderly Manner’

20 July 2018
By Maynard Paton

Update on Tristel (TSTL).

Events: Trading update for the year ending 30 June 2018 published 13 July 2018, director share sales published 16 July 2018 and shareholder open-day presentation hosted 17 July 2018.

Summary: Earlier this week I attended TSTL’s third annual open day, and this year the event was accompanied by news of hefty director selling as well as confirmation of record revenue and profit. The chairman has reduced his shareholding from 19% to 15%, and confirmed he is looking to sell more during the next few years. The marquee presentation did not provide any great revelations, but one slide did show a useful sales comparison between the UK and overseas, while another slide suggested full-year sales of the group’s ‘core’ disinfectants had just advanced an impressive 18%. I continue to hold.

Maynard Paton: “Hi Adrian, well spotted, I did not think anyone would notice! There was some discrepancy between the figures BVXP published.…” 09 Apr 2025

Adrian: “It was £239k of Chinese revenues, not £235k – small point!” 06 Apr 2025

Maynard Paton: “S & U (SUS) FCA Written submission to the Supreme Court – 10 March 2025 published 01 April 2025 A…” 05 Apr 2025

Maynard Paton: “Thanks Andrew. Yes we won’t know anything about the commercial prospects for Tau until later this year. But I am…” 04 Apr 2025

Maynard Paton: “Thanks Simon!” 04 Apr 2025

Simon Brenncke: “Thanks for sharing, always instructive to read! :-)” 04 Apr 2025

Andrew Rolfe: “Thought provoking post as ever, Maynard. I have also been picking up BVXP stock at prices that I had not…” 03 Apr 2025

Maynard Paton: “M Winkworth (WINK)   Publication of 2023 annual report Here are the points of interest beyond those noted in the blog…” 03 Apr 2025