TASTY: Re-Opening Closed Restaurants, Rents Cut By 27% And ‘Extremely Encouraging’ Trading Support Hope Of A Recovery Following Pandemic-Disrupted H1 2021

28 January 2022
By Maynard Paton

Results summary for Tasty (TAST):

  • A predictably poor performance due to the pandemic, albeit with revenue up 33% on the even worse H1 2020 following greater takeaway and delivery sales.
  • Favourable changes to both the ‘going concern’ small-print and CVA commentary suggest the risk of failure has diminished.
  • But underlying net cash of £4m does not leave enormous room for error given an estimated underlying cash outflow of £1m for this H1.
  • IFRS 16 total lease obligations remaining at £55m looks odd given annual rents may have been reduced by 27%.
  • A post-results update citing “extremely encouraging” trading plus plans to re-open the remaining closed restaurants provide hope of a recovery. I continue to hold.

Read more

[SharePad] Small-Cap Spotlight Report: CAKE BOX

***ShareScope New Subscriber Special Offer***
Readers of my blog can enjoy a 20% first-year discount! Click here for details >>

21 January 2022
By Maynard Paton

Oh dear. I had expected this article to celebrate a dynamic growth company that had commendably prospered during the pandemic.

I find myself instead relaying some unusual financial reporting after digging deep into a few annual reports.

Read on to discover:

  • An erroneous £2 million entry within the cash flow statement;
  • The inconsistent disclosure of related-party transactions;
  • The delayed reporting of a website breach to the auditor (and customers);
  • “Historic errors” with stock control;
  • The auditor resigning after becoming “concerned about the robustness of the Company’s control and governance frameworks“;
  • The peculiar disclosure of trade payables and receivables, and the level of receivables versus revenue, and;
  • Bookkeeping curiosities such as overdue tax, R&D tax credits and regular revaluations of distribution centres.
(Source: SharePad)

Let’s take a closer look.

Read my full Cake Box article for SharePad.

Maynard Paton

PS: I have provided more Cake Box observations on the Quidisq forum.

M WINKWORTH: Exceptional H1 Sets New £2m Profit High As Record Quarterly Dividend Plus Third Special Payout Underpin ‘Busy’ FY 2022

13 January 2022
By Maynard Paton

Results summary for M Winkworth (WINK):

  • An “extraordinarily active” sales market led to an exceptional six-month performance, with the H1 £2m profit exceeding WINK’s peak annual profit from FY 2014.
  • Subsequent trading updates then lifted FY 2021 expectations and announced a record quarterly dividend alongside the third special payout of the year.
  • Market-share gains versus London rival Foxtons plus very encouraging progress at the company-owned Tooting office underpin the prospect of a “busy” FY 2022. 
  • The accounts remain in good order, with this H1 showing a super 38% margin and net cash and investments supporting close to 20% of the share price.
  • Near-term earnings may well subside if housing activity cools, but WINK’s reliable dividends may limit the downside with a possible 5% income. I continue to hold.

Read more

Q4 2021: Up 24.5% For 2021

01 January 2022
By Maynard Paton

Happy 2022! I hope you profited from last year’s strong market and you continue to find my blog useful.

A summary of my portfolio’s 2021:

  • Total return of +24.5% (Q4: +4.6%)*;
  • 8 holdings recorded a gain while 3 holdings recorded a loss;
  • Returns ranged from up 104%, for System1, to down 20%, for Bioventix;
  • Two shares were topped-up: System1 and M Winkworth, and;
  • No new shares were purchased and no shares were sold.

(*Performance calculated using quoted bid prices and includes all dealing costs, withholding taxes, broker-account fees and paid dividends)

I publish a portfolio review after every quarter (Q1, Q2 and Q3), and this post recaps my October/November/December activity and my 2021 performance.

Read more

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

[SharePad] Screening For My Next Long-Term Winner: ASHMORE

***ShareScope New Subscriber Special Offer***
Readers of my blog can enjoy a 20% first-year discount! Click here for details >>

15 December 2021
By Maynard Paton

Shares offering ‘Quality At a Reasonable Price’ have been hard to find during the last few years. But recent market conditions might be presenting a few fresh opportunities.

Specialist fund manager Ashmore could meet some QARP-type criteria. At present this £2 billion mid-cap offers:

  • Impressive financials, including a majestic 66% margin and ‘surplus’ capital of more than £600 million;
  • A reliable dividend history, with the payout never being cut during the banking crash and pandemic, and;
  • A reasonable P/E of 12-13 alongside a dividend yield of 5%-plus.
(Source: SharePad)

Let’s take a closer look.

Read my full Ashmore article for SharePad.

Maynard Paton

FW THORPE: £27m Acquisition Spend Underlines New Expansion Ambitions After Special Dividend Complements 19th Consecutive Annual Payout Increase

14 December 2021
By Maynard Paton

Results summary for FW Thorpe (TFW):

  • A remarkable recovery following a factory fire ensured a satisfactory FY 2021, which included a record H2 and a special payout to complement the 19th consecutive annual dividend lift.
  • Customers seeking “tried and tested” manufactures alongside ongoing demand for SmartScan counterbalanced component shortages, the pandemic and Brexit.
  • £27m spent on new acquisitions has underlined TFW’s expansion ambitions and signals a firm desire to earn greater returns on the group’s £76m cash hoard. 
  • The accounts remains in good shape, although the record 47% gross margin may be short lived if supply difficulties and rising costs continue. 
  • A P/E of 30 feels generous, but might reflect operational reliability, a positive ‘buy and build’ strategy, significant ‘ESG’ attractions and/or potential growth beyond lighting systems. I continue to hold.

Read more

CITY OF LONDON INVESTMENT: Net Client Withdrawals Of $752m Continue To Limit Re-Rating Potential Despite FY 2021 Showcasing Record $11.4b FuM, 49% Margin And £26m Net Cash

25 November 2021
By Maynard Paton

Results summary for City of London Investment (CLIG):

  • The Karpus merger ensured a record financial performance and a 10% dividend lift, although funds under management (FuM) during H2 (+4%) did not enjoy the buoyant market gains experienced during H1 (+31%).
  • Further client ‘rebalancing’ led to FuM withdrawals of $752m — almost entirely negating the net client inflows of $758m received during the previous five years. 
  • The absence of fresh client money and investment gains lagging the MSCI World index — as well as staff using paper payslips and fax machines — could be evidence of a business rather stuck in its ways.
  • A startling 49% operating margin, net cash at a hefty £26m plus small demands on cash flow confirm the accounts remain in good shape.
  • Although the possible P/E is 10-11 and the yield tops 6%, the shares have been rated modestly for years as major new clients remain very elusive. I continue to hold.

Read more

[SharePad] Small-Cap Spotlight Report: AQUIS EXCHANGE

***ShareScope New Subscriber Special Offer***
Readers of my blog can enjoy a 20% first-year discount! Click here for details >>

21 November 2021
By Maynard Paton

Investors love ‘disruptors’. Find a pioneering upstart that is stealing market share from industry dinosaurs, and your portfolio may enjoy a huge stock-market winner. Amazon of course is the textbook example.

One company that could be a genuine disruptor is Aquis Exchange, a £180 million small-cap trying to revolutionise share trading and taking on the likes of the London Stock Exchange and Euronext.

(Source: SharePad)

Let’s take a closer look.

Read my full Aquis Exchange article for SharePad.

Maynard Paton

BIOVENTIX: FY 2021 Results Unveil Record H2 Profit (+14%) While Finite Troponin Income Shifts Longer-Term Perspective Towards Pyrene Project And Alzheimer’s Research

05 November 2021
By Maynard Paton

Results summary for Bioventix (BVXP):

  • Acceptable annual figures that included a record H2 profit (+14%) despite the pandemic continuing to disrupt demand for routine blood tests.
  • Mixed progress from vitamin D and other established antibodies leaves near-term growth dependent mostly on the fast-selling troponin product. 
  • Additional research efforts suggest pyrene biomonitoring and detecting Alzheimer’s disease may be the more likely long-term pipeline winners.
  • A 19% dividend lift, another special payout, 70%-plus margins and low retained-profit requirements underlined the wonderful economics of collecting antibody royalties. 
  • Troponin’s finite income and a resultant sum-of-the-parts valuation do not indicate an obviously tantalising £36 share price. I continue to hold.

Read more

TRISTEL: Pandemic-Disrupted FY 2021 Admits H2 Profit Down 36% But Also Re-Introduces FDA Timetable As Sector Rival Implies $180m US Market Opportunity

29 October 2021
By Maynard Paton

Results summary for Tristel (TSTL):

  • A disappointing pandemic-disrupted performance, with H2 revenue and profit down 15% and 36% respectively on the preceding H1.
  • Progress was curtailed as NHS outpatient clinics closed and orders “dried up“, which left certain UK product sales running at a six-year low.
  • Overseas revenue up 3%, a resilient 16% H2 margin, net cash of £10m and a 2% final-dividend lift suggest the business is not broken just yet. 
  • A re-introduced timetable for product launches in the United States provides hope of the seven-year FDA process concluding during 2023.
  • The £236m market cap remains elevated, and is supported by a sector rival implying the US market for ultrasound-probe disinfection is worth up to $180m. I continue to hold.

Read more

[SharePad] Small-Cap Spotlight Report: GOODWIN

***ShareScope New Subscriber Special Offer***
Readers of my blog can enjoy a 20% first-year discount! Click here for details >>

20 October 2021
By Maynard Paton

This quote from Richard Beddard caught my eye the other week:

“If something truly special is incubating, we may profit from our investment for decades.”

I am always up for profiting from an investment for decades.

Richard was writing about “pivots” — companies that are adapting to change by “incubating another better business“.

He highlighted four examples and today one of the quartet — Goodwin, a £277 million market-cap engineer — goes under my SharePad microscope.

Richard described these pivots as “decent but humdrum” businesses, but do not let that put you off. Goodwin has 30-bagged during the last 20 years and a heritage of family management could indeed lead to decades of further profit.

(Source: SharePad)

Let’s take a closer look.

Read my full Goodwin article for SharePad.

Maynard Paton

S & U: Record H1 Profit Prompts Welcome 50% Dividend Rebound And Management Talk Of Loan Volumes Increasing 25%

19 October 2021
By Maynard Paton

Results summary for S & U (SUS):

  • A record H1 profit performance supported by a “lower than normal” bad-debt provision and the dividend rebounding 50% to pre-Covid levels.
  • The main car-loan division has recovered well from the pandemic, with collection rates (94%) and on-time first payments (98%) now standing at multi-year highs.  
  • The fledgling property-loan operation enjoyed a bumper six months following the government CBILS scheme.
  • Interest charges at 3%, increased borrowing facilities and headroom of £65m indicate no obvious funding concerns.  
  • The £28 shares are close to an all-time high and may already reflect management’s webinar talk of car-loan volumes increasing 25% to 25,000 a year. I continue to hold.

Read more

Q3 2021: Linking Revenue Per Employee To Investment Success

30 September 2021
By Maynard Paton

Happy Thursday! I trust your shares are flourishing and that you still find my blog useful.

A summary of my portfolio’s third quarter:

  • Q3 change: +5:1%*
  • Q3 trades: none
  • YTD change: 19.0%*
  • YTD winners/losers: 9 winners vs 2 losers

(*Performance calculated using quoted bid prices and includes all account fees, dealing costs, withholding taxes and paid dividends)

I am pleased the portfolio gains recorded during the first half of the year were extended during Q3.

Newsflow from my shares has been generally encouraging, and I hope boardrooms will remain optimistic as the pandemic subsides.

Read more

[SharePad] Screening For My Next Long-Term Winner: CURTIS BANKS

***ShareScope New Subscriber Special Offer***
Readers of my blog can enjoy a 20% first-year discount! Click here for details >>

22 September 2021
By Maynard Paton

Shares offering ‘Quality At a Reasonable Price’ have been hard to find during the last few years.

But specialist SIPP provider Curtis Banks could meet some QARP-type criteria.

At present this small-cap offers:

  • Predictable income, with approximately 60% of revenue said to be recurring through annual fees;
  • Respectable financials, including 20%-plus margins and an ambition to reach 30%;
  • A history of growth, although future prospects have admittedly moderated, and;
  • A reasonable P/E of 14-17 depending on which projections you believe.

Let’s take a closer look.

Read my full Curtis Banks article for SharePad.

Maynard Paton

ABOUT ME

Investing in shares for 25+ years. Former share tipster. ShareScope evangelist. Blogger. Webhost nerd. FIRE | Read more | Contact

PORTFOLIO

Holdings and buy prices. Latest trades. Quarterly updates. Annual returns from 2012. Purchases from 2004 | Read more

SHARESCOPE

The most comprehensive and best value all-in-one research and data service for private investors | Special blog offer

BLOG POST ALERTS

A simple link to every new blog post. No spam!

© maynardpaton.com 2025 • Disclaimer • Privacy • Contact