Maynard Paton | Category: My Sold Shares

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.

French Connection: I Have Finally Given Up On This Turnaround

20 September 2016
By Maynard Paton

Quick update on French Connection (FCCN).

Event: Interim results for the six months to 31 July 2016 published 20 September 2016

Summary: It’s taken me five years to realise that I have wasted my time with FCCN’s purported turnaround. The fashion chain’s latest results were very mixed, and I feel cash may now become tight if there is more bad news. I have belatedly concluded the problem Retail division could well lose money for some years ahead, while an activist investor may not be doing enough to instigate the necessary board changes. I have sold my entire holding.

Tasty: I Felt Uneasy Ahead Of These Results And Sold Some Shares

06 September 2016
By Maynard Paton

Quick update on Tasty (TAST).

Event: Interim results for the 27 weeks to 03 July 2016 published 06 September 2016

Summary: These results were very mixed. I am pleased the restaurant chain’s revenue growth has improved following the ‘blip’ in the second half of last year, but disappointed the roll-out plan has slowed a little. Margins have also shrunk due to greater expansion costs. Mind you, the board here remains a class act while the longer-term potential is still considerable. I sold some shares before these results and I continue to hold the rest.

Tristel: We Celebrated The 3p Special Dividend While Sitting In A Marquee Out In The Car Park

26 July 2016
By Maynard Paton

Long update on Tristel (TSTL).

Event: Shareholder open day, presentation and trading update for the year ending 30 June 2016 published 21 July 2016

Summary: A very useful shareholder event that accompanied a better-than-expected trading update. The bright spot was recovering UK revenue, although management oddly could not explain why the rebound occurred. Another special dividend and the purchase of an Australian distributor were welcome developments, too. Plenty of interesting snippets were disclosed during the day, including certain products having their prices doubled. However, I still disagree with management about past disclosures. I continue to hold.

Daejan: Property Estate Tops £2bn While Shares Trade At 53% Of NAV

06 July 2016
By Maynard Paton

Quick update on Daejan (DJAN).

Event: Preliminary results for the year to 31 March 2016 published 06 July 2016

Summary: I have no complaints about these figures. Rental income and operating profit advanced significantly to new all-time highs, while further valuation gains helped the property group’s balance sheet reach a record £91 per share. Debt remains relatively low and I’m trusting DJAN’s veteran management will be able to take full advantage of any ructions in the post-Brexit property market. The shares trade at 53% of net asset value and I continue to hold.

Record: Cash-Adjusted P/E Of 8 Plus Talk Of Special Dividends

23 June 2016
By Maynard Paton

Quick update on Record (REC).

Event: Final results for the twelve months to 31 March 2016 published 17 June 2016

Summary: These far-from-spectacular figures were no surprise. Indeed, both revenue and profit have stagnated for five years now and there was no real suggestion that improvements will occur anytime soon. What’s more, a new regulatory risk was disclosed that may hinder progress :-( Nevertheless, this specialist currency manager did talk of future special dividends, while the high-margin, cash-rich nature of the business remains attractive. I reckon the underlying P/E is 8 and the yield is 6%-plus, and I continue to hold.

Castings: Satisfactory Results Blessed With 30p Per Share Special Dividend

15 June 2016
By Maynard Paton

Quick update on Castings (CGS).

Event: Annual results for the twelve months to 31 March 2016 published 15 June 2016

Summary: A quite satisfactory set of results from the country’s largest foundry operator. Revenue, profit, the dividend and net cash all headed in the right direction, while a shareholder bonus was news of a 30p per share special payout. However, counter-balancing the 2016 figures was the admission of less work at the higher-margin machining division, which will hurt 2017 progress. Still, the shares do not appear expensive and I continue to hold.

Electronic Data Processing: I Will Happily Swap This 6%-Plus Yield For A Generous Trade Buyer

06 June 2016
By Maynard Paton

Quick update on Electronic Data Processing (EDP).

Event: Interim results for the six months to 31 March 2016 published 02 June 2016

Summary: This was another lacklustre update from the software micro-cap. It was disappointing in particular to see revenue continuing to stagnate and — despite various cost-cutting measures of the past — operating profit dropping lower. Thankfully EDP has put itself up for sale and I am very hopeful a generous trade buyer can be found to conclude what has been a somewhat frustrating investment. In the meantime, there is the prospect of a 6%-plus yield to collect. I continue to hold.

Daejan: This 282-Fold NAV Gain Could Be Just The Beginning

13 May 2016
By Maynard Paton

Today I’m reviewing one of my recent share investments.

The company in question is Daejan (DJAN), which you may recall I added to my watch list last year.

After monitoring the group’s subsequent progress, I decided to buy at an average price of £58 (including all costs) between November 2015 and March 2016. The share price now is £57 and the holding currently represents about 5% of my portfolio.

I have to confess, this new position is not terribly exciting. DJAN is a low-profile business that owns a variety of commercial and residential buildings located mainly in London and the eastern United States.

Nonetheless, I do feel this £929m firm offers many traits of a respectable investment.

Important attractions for me include an impressive record of dividend and net asset growth, a conservatively financed balance sheet, a boardroom staffed by veteran family management, and a modest share-price valuation.

However, I recognise DJAN is by no means a one-way bet.

An obvious danger here is a dependence on what could be a toppy property market. Another potential drawback is that the shares have always appeared ‘cheap’ — due mostly to the directors’ 80% family shareholding and their reticence towards outside investors.

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.

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.

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.

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.

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

Maynard Paton: “Hi James Many thanks for your thoughts. The three AD antibodies moving to full-scale production was highlighted within the FY…” 03 Apr 2025

Maynard Paton: “Hi Gavin, very well spotted, now corrected! Maynard” 02 Apr 2025

Gavin Smith: “Hi Maynard, You have TFW twice in the portfolio contribution graph. I suspect one should be SYS1.” 02 Apr 2025