Maynard Paton | Page 28 | Quality UK Investment Blog

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.

Record: 5%-Plus Yield Available As The Long Wait For Elusive New Clients Drags On

24 November 2015
By Maynard Paton

Quick update on Record (REC).

Event: Interim results published 24 November

Summary: A lacklustre set of results in which the board remained optimistic of further progress — but where new clients were still nowhere to be seen. This statement was particularly irritating due to higher-than-expected staff costs and commentary about an ‘increased’ dividend. However, at least my earnings guess has not changed. One day I trust REC’s currency strategies will have their day in the sun, but until then I must content myself with a useful 5%-plus yield and dreams of what could be. I continue to hold.

Castings: Revenue Up, Profit Up, Cash Up, Dividend Up

13 November 2015
By Maynard Paton

Quick update on Castings (CGS).

Event: Interim results published 13 November

Summary: Just what I like — a concise set of results that reports steady progress and robust financials. In fact, I could not find anything to complain about, with revenue up, profit up, cash up, the dividend up, plus the prospect of further growth during the second half. What’s more, the share price does not look that expensive. I continue to hold.

Mincon: Encouraging Q3 As Margins Hit 18%

10 November 2015
By Maynard Paton

Quick update on Mincon (MCON).

Event: Q3 trading update published 10 November

Summary: A very pleasant statement from this drill manufacturer, which confirmed earlier trading improvements had been sustained. Indeed, revenue, profit and — very importantly — cash flow, all advanced to seemingly defy the mining-sector downturn. I just wonder if the recent appointment of Joe Purcell, son of the group’s founder, as chief exec has had an immediate impact. Profit extrapolations are now showing an interesting valuation and I continue to hold.

World Careers Network: Cash Now Represents Half The Market Cap

04 November 2015
By Maynard Paton

Quick update on World Careers Network (WOR).

Event: Preliminary results published 03 November

Summary: Oh dear — my portfolio suffers yet another profit warning! WOR had already owned up to lower earnings this year, but now it has admitted to further cost increases for 2016. Nonetheless, these annual results revealed an improved second half while net cash currently equates to half of the present market cap. Bear in mind, too, that the last time this software developer invested at the expense of near-term earnings, profit eventually quadrupled. I continue to hold.

Getech: I’m Not Tempted To Top Up Just Yet

03 November 2015
By Maynard Paton

Quick update on Getech (GTC).

Event: Final results published 03 November

Summary: Oh dear — a profit warning for 2016. So much for management’s optimism from just a few months ago! The oil-sector downturn has also created extra guesswork with GTC’s valuation, while I remain concerned about the firm’s hefty development expenditure. Nevertheless, I believe GTC’s range of specialist data and services, alongside an asset-rich balance sheet, should see the firm through the difficulties. I continue to hold.

Castings: I’ve Forged Ahead With This New Buy

23 October 2015
By Maynard Paton

Today I’m revealing my latest share investment.

The company in question is Castings (CGS), a long-established iron castings and machining group that’s based in the Midlands.

You may recall that, back in September, I added Castings to my watch list.

Well, after mulling over that write-up, I then bought in at an average price of 426p including all costs. The bid price is now 440p and the holding currently represents about 8% of my portfolio.

When I invested, I felt this £188m firm offered many traits of a respectable investment.

Important attractions for me included a durable dividend, an asset-flush balance sheet, improving productivity, good-value management and an upbeat immediate outlook. What’s more, a possible P/E of 11 suggested the shares were priced quite modestly.

However, I recognised CGS was by no means a one-way bet. Obvious risks include serving a small number of large customers and a recent profit history that has seen its ups and downs.

Tristel: The Shares Have Rallied And I Am Holding On

13 October 2015
By Maynard Paton

Quick update on Tristel (TSTL).

Event: Final results and annual report published 12 October

Summary: It’s always nice to see your largest holding issue good figures and watch the share price rally strongly! These results met or exceeded my expectations, with bumper H2 margins, good all-round revenue growth and upbeat management commentary. The firm’s repeat-purchase and patent-protected products continue to promise further growth — notably in the United States — and the current valuation reflects such optimism. I continue to hold.

Q3 2015: 1 New Buy, 1 Top-Up And 3 Top-Slices

30 September 2015
By Maynard Paton

Happy Wednesday! I trust you have not lost too much money in this choppy market and that you continue to find my Blog useful.

I’ve been in this full-time investment lark for nine months now — and I must admit the last few weeks have been somewhat testing.

Sure, I have invested through corrections and bear markets before — but such downturns are far easier to cope with when I could use my regular salary to average down!

Now without a salary, I’ve come to appreciate why so many private investors ‘panic sell’. They too are living off their portfolios and wish to preserve their capital… because they do not want to go back to work!

All that said, my portfolio of late has not been a total disaster and I think I am still up on the year so far. So finding paid employment is not on the cards just yet!

Recent market movements have meant that I have become a little more active with my portfolio. I have top-sliced a few positions in order to free up some cash for reinvestment, and bought a brand-new holding.

Andrews Sykes: Interim Results Sustain 7.4% Yield

30 September 2015
By Maynard Paton

Quick update on Andrews Sykes (ASY).

Event: Interim results published 30 September.

Summary: Not a bad set of results, although the performance was flattered by the poor figures of 2014. The highlight was the positive outlook statement and the prospect of further second-half progress. While ASY may find long-term growth elusive, the accounts remain solid and the company continues to pay out all of its earnings as a dividend. I continue to hold.

French Connection: Grim Figures Confirm Basket-Case Status

21 September 2015
By Maynard Paton

Quick update on French Connection (FCCN).

Event: Interim results published 21 September

Summary: A grim set of figures that had been flagged by an earlier profit warning. News of further store closures and maintained gross margins were reassuring in the circumstances, but the real saving grace was the relatively positive outlook for the second half. There’s still a chance this share could one day prove to be a bargain, but for now its basket-case status remains intact. I continue to hold.

FW Thorpe: More Dependable Results With A Super H2

17 September 2015
By Maynard Paton

Quick update on FW Thorpe (TFW).

Event: Preliminary results published 17 September

Summary: Yet another dependable set of figures, with revenue, profit and the dividend reporting further advances — and all accompanied by the usual unpretentious management commentary. That said, it is TFW’s smaller divisions that are making the greatest strides at present — and it remains to be seen whether they can sustain such progress. Elsewhere, a recent acquisition is doing well and the balance sheet remains flush with cash. I continue to hold.

Maynard Paton: “Hi Owain Yes, the property market will have influenced MTVW’s gross margin. But the board has said multiple times MTVW…” 09 Nov 2024

Owain B: “Great update as always, thank you Maynard. Isn’t the simplest explanation for the disappointing property sales gross margin compared to…” 09 Nov 2024

Maynard Paton: “Mountview Estates (MTVW) AGM attendance 14 August 2024 Below are my notes from MTVW’s 2024 AGM. All five directors were…” 08 Nov 2024

Maynard Paton: “Just a quick follow-up on purchase costs. I mentioned in the blog post above that MTVW spent £45m last year…” 03 Nov 2024

Maynard Paton: “Thanks Vic!” 03 Nov 2024

Victor Shirley: “Thank you for the detailed analysis on Mountview Estates Maynard. We’ll add to our holding.” 03 Nov 2024

Maynard Paton: “Hi Bertie Thanks for the message. On the EPC, I think Allsop has touted a £10k EPC estimate in the…” 03 Nov 2024

Bertie Ellis: “I think the upgrading of the EPC from E to C will be much more than the Rightmove estimate of…” 03 Nov 2024