Maynard Paton | Page 26 | Quality UK Investment Blog

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.

Bioventix: I Could Not Resist Paying Up For Growth

10 October 2016
By Maynard Paton

Today I’m reviewing another of my recent investments.

The company in question is Bioventix (BVXP), which you may recall I revealed as a fresh holding within this third-quarter portfolio update.

I purchased my BVXP shares at an average price of 1,133p (including all costs) during August 2016. The bid price is presently 1,250p and the position currently represents approximately 5% of my portfolio.

I have to admit, BVXP is somewhat racy in comparison to many of my existing holdings. In particular, I may have paid ‘a high price for a cheery consensus’ following the company’s impressive progress.

There are also drawbacks involving a limited customer base and certain product revenue about to cease. The business is not that straightforward either — it develops sheep monoclonal antibodies for use in blood tests.

Nonetheless, supporting the notion that BVXP has above-average investment potential is what seems to be a very respectable competitive position, the benefit of long-term royalty income, some impeccable financials and leadership through the group’s founder.

Q3 2016: 1 Buy, 1 Sell, 1 Top-Up, 1 Top-Slice… Plus A 77% Success Rate

30 September 2016
By Maynard Paton

Happy Friday! I hope you continue to find my Blog useful… and that your portfolio has recovered following the Brexit turmoil!

I wrote in my last portfolio update that 2016 was fast becoming a somewhat grim year for me. I was down 5% at the end of March and then 10% down at the end of June…

…but the ‘Brexit bounce’ has since brought me back to break-even. That’s hardly a fantastic performance given what the wider market has achieved, but it’s a much better position than just three months ago.

Anyway, during the third quarter I bought a new share, topped-up an existing holding, top-sliced another existing position, and sold out completely of a further existing position.

Furthermore, I’ve spent some time evaluating my longer-term record of stock-picking… just to make sure that I have actually done reasonably well at this investing lark!

Andrews Sykes: The Question Now About This 6.9% Yielder

29 September 2016
By Maynard Paton

Quick update on Andrews Sykes (ASY).

Event: Interim results for the six months to 30 June 2016 published 29 September 2016

Summary: A very satisfactory set of figures, with the likelihood now that ASY is on course to report its best year since 2008. The group, which supplies air conditioners, heaters and pumps for hire, said all of its divisions made progress and that recent trading had been “positive”. The question now is whether ASY can deliver sustained earnings growth alongside its chunky dividend payments and 6.9% yield. I continue to hold.

FW Thorpe: Record Results Once Again As Dutch Division Shoots The Lights Out

23 September 2016
By Maynard Paton

Quick update on FW Thorpe (TFW).

Event: Preliminary results for the year to 30 June 2016 published 22 September 2016

Summary: A very satisfactory set of record figures from this lighting specialist, underpinned by last year’s Dutch acquisition that appears to have delivered 75% annualised profit growth. TFW’s other two divisions reported positive progress, too, while the balance sheet remains awash with surplus cash and investments. Although the near-term valuation appears rich, the group’s decent financials, illustrious dividend and veteran board remain very captivating. 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.

BrainJuicer: Return To Double-Digit Growth And Yet Another 12p Per Share Special Dividend

16 September 2016
By Maynard Paton

Quick update on BrainJuicer (BJU).

Event: Interim results for the six months to 30 June 2016 published 16 September 2016

Summary: A very respectable set of figures that confirmed this market-research agency has now returned to double-digit growth. However, the group’s best-selling system has started to face “pricing pressure” and the wider competitive advantage may not be as strong as it once was. The statement’s highlight was news of a 12p per share special dividend — the third in four years. The accounts remain in good shape and I continue to hold.

M Winkworth: Cash Rich, High Margin And A P/E Of 7

14 September 2016
By Maynard Paton

Quick update on M Winkworth (WINK).

Event: Interim results for the six months to 30 June 2016 published 13 September 2016

Summary: A quite satisfactory statement that suggested this London-dependent estate agency should be able to cope with the capital’s slower property market. Indeed, the business appears keen to expand and the pace of its new franchisee openings may in fact accelerate. Margins remain high, the balance sheet remains strong and a P/E of 7 seems to price in a lot of bad news. I bought more shares in August and continue to hold.

City Of London Investment: The Staff Don’t Deserve This Extra Bonus And I Hope It Is Voted Down

13 September 2016
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Final results for the year ending 30 June 2016 published 12 September 2016

Summary: I’m starting to go off City businesses. First it was Record and now it is CLIG that wants to pay its employees a lot more… despite profits at both having gone nowhere for years. Sadly, CLIG’s revised bonus plan has offset some promising news of greater funds under management and the real prospect (finally!) of a dividend lift. I can only hope the fund manager can soon deliver the much-needed performance to justify the extra bonus cost. I continue to hold.

BrainJuicer: I Watched A Beer Advert And Decided To Buy

07 September 2016
By Maynard Paton

Today I’m reviewing one of my recent investments.

The company in question is BrainJuicer (BJU), which you may recall I revealed as a fresh holding within this second-quarter portfolio update.

I purchased my BJU shares at an average price of 325p (including all costs) during March and April 2016. The bid price is now 425p and the position currently represents about 2% of my portfolio.

I have to admit, BJU is somewhat quirky in comparison to many of my existing holdings. The group is a market-research agency and has pioneered techniques to judge the potential success of adverts using ‘behavioural science’.

If you’re wondering what on earth behavioural science is, don’t worry. For years BJU’s business never made much sense to me — until I read this year’s annual report, watched a beer advert… and finally got to grips what this £58m small-cap actually does.

Anyway, supporting the notion that BJU had above-average investment potential was a respectable record of progress, decent financials, an executive team led by the firm’s founder/major shareholder… as well as the opportunity to further ‘disrupt’ the wider market-research industry.

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.

Mincon: Interim Results Show Best Quarter Since Flotation

22 August 2016
By Maynard Paton

Quick update on Mincon (MCON).

Event: Interim results for the six months to 30 June 2016 published 19 August 2016

Summary: A satisfactory set of results, which I reckon included the drill specialist’s best quarter as a quoted company. Revenue and profit continue to head the right way, although working capital and other investments absorbed considerable cash flow. Notable positives from the statement included comments on new product development alongside vague talk of recovering demand from mining customers. I continue to hold.

City Of London Investment: Brexit Should Bolster Earnings And Support A P/E Of 10

27 July 2016
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Trading update for the year ending 30 June 2016 published 18 July 2016

Summary: Regular monthly updates had already ensured this statement would not be too surprising. However, CLIG trimmed back its projections for 2017 and despite stagnant funds under management, extra costs are filtering into the business. Fortunately the group should benefit significantly from the weaker pound, and its dollar-based income may currently support a P/E of 10 and 7%-plus yield. I continue to hold.

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.

CLS Holdings: A 23% Discount To NAV And A Boss With A £294m Shareholding

15 July 2016
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at CLS Holdings (CLI).

Here are the initial attractions that prompted this research:

* Illustrious financial progress: The accounts exhibit a 20-year history of rising net asset value alongside a remarkable record of substantial share buybacks.

* Owner-orientated boardroom: The company’s founder retains a £294m/51% stake and continues to serve as an executive director.

* Interesting valuation: The shares have fallen 30% from their high and currently trade at a 23% discount to the group’s 2015 net asset value.

As usual, I’m applying a question-and-answer template to help me pinpoint companies that match the criteria set out in How I Invest. I’m looking for as many Yes answers as possible.

Maynard Paton: “Hi GSBMBA99, Many thanks for the link. I do follow QTRX on YouTube, but that video did not appear in…” 10 Mar 2025

GSBMBA99: “Thanks for a very thorough report. https://www.youtube.com/watch?v=g0o55MIvRuY&ab_channel=Quanterix 15:55 – there are new assays coming in 1H25 for p-Tau 205 and…” 10 Mar 2025

Maynard Paton: “S & U (SUS) Publication of 2024 annual report Here are the points of interest beyond those noted in the…” 06 Mar 2025

Maynard Paton: “Hi Max Thanks for the comment. All very fair points, and sadly reflected by the market cap trading below the…” 17 Feb 2025

max Lewis: “Maynard I have held Mountview for eight years and sold it this morning at a 25% loss. I just ran…” 17 Feb 2025

Maynard Paton: “Hi Steve Thanks for the comment. “One alternative way to assess if selling is beneficial is to look at the…” 15 Feb 2025

Steve: “Hey Maynard, Thanks for your latest update. Running winners is often good idea but risk mgt (I.e. shit can happen,…” 13 Feb 2025

Simon Brenncke: ““But I do wonder whether trust investors generally would prefer a Saba-style “quick buck” to a CLIM-style ‘slow buck’.” So…” 30 Jan 2025