Maynard Paton | Page 29 | Quality UK Investment Blog

BP Marsh: 11% Average NAV Growth For 25 Years

17 June 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at BP Marsh (BPM).

Here are the initial attractions that prompted this research:

Lowly valuation: The shares trade at a 28% discount to the group’s net asset value
Appealing history: Book value has reportedly grown at an 11% annual average since 1990
Owner management: The present boss established the firm and boasts a 63% shareholding

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.

Record: The Dividend’s Up 10% And I Have Bought More

16 June 2015
By Maynard Paton

Quick update on Record (REC).

Event: Final results published 16 June

Summary: Satisfactory results, with a positive outlook and a 10% dividend lift supporting my belief that REC’s recovery is gathering pace. However, news of a 10% company-wide salary hike for staff was not so pleasing, and my earnings guess for 2016 has been trimmed accordingly. Nevertheless, the accounts remain impressive and the valuation looks lowly, and I have bought more shares today.

World Careers Network: How I’ve Become Stuck With A 37% Loss

04 June 2015
By Maynard Paton

Today I’m owning up to the second of two new investments I’ve made during the last few months.

I say ‘owning up’ because this second share has so far been a complete disaster. Indeed, what I thought could have been a ‘perfect stock’ has instead rewarded me with a 37% paper loss :-(

The company in question is World Careers Network (WOR), an obscure AIM-quoted business that develops and sells recruitment software for major employers.

I purchased the shares during February and March 2015 at an average price of 320p including all costs. The bid price now is 200p and the holding currently represents about 3% of my portfolio.

When I bought, I was convinced this £24m firm offered all the hallmarks of a successful investment. Alongside claims of supplying “world-class technology”, other attractions included a blue-chip client list, generous margins, a cash-flush balance sheet, respectable sales growth and a long-time founder/entrepreneur at the helm. Furthermore, a possible P/E of just 7 suggested the shares were a bargain.

However, events have since not gone my way as I will explain in a moment. And I dare say some investors would have never touched WOR in the first place due to its humungous bid-offer spread and dominant 80%-plus family ownership.

Electronic Data Processing: I’ll Just Have To Make Do With The Uncovered 7.2% Income

26 May 2015
By Maynard Paton

Quick update on Electronic Data Processing (EDP).

Event: Interim results published 26 May.

Summary: Another rather dull update from this rather dull software microcap. These results were a little disappointing on the revenue and profit fronts, but at least there was some useful progress on the balance sheet. One day I trust EDP’s business can advance significantly and provide some long-awaited excitement. Until then I’ll just have to make do with the uncovered 7.2% dividend yield. I continue to hold.

Mincon: Have Q1 Profits Just Slumped 24%?

26 May 2015
By Maynard Paton

Quick update on Mincon (MCON).

Event: Trading statement published 26 May.

Summary: A lacklustre Q1 update. Although underlying revenue managed to remain flat, margins have slumped as MCON’s drills and bits continue to face pricing pressure. I reckon the group’s Q1 profits may have fallen by 24%, while the net cash position is somewhat lower, too. I just hope the inherent strengths of this business can show through during the rest of 2015. I continue to hold.

Tristel: I’m Still Projecting 15%-Plus Annual Returns

22 May 2015
By Maynard Paton

Quick update on Tristel (TSTL).

Event: Trading update published 21 May.

Summary: At last — one of my shares has issued an ‘ahead of expectations’ trading statement! TSTL’s medical wipes appear to be selling very well and second-half profits now seem set to grow by 35%. There could be further upside, too, if TSTL’s past ‘sandbagging’ form is anything to go by. My valuation sums still suggest annual returns of 15%-plus could be earned. I continue to hold.

Cenkos: The P/E Is 6 And The Yield is 9%

19 May 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Cenkos (CNKS).

Here are the initial attractions that prompted this research:

Lowly valuation: The P/E is 6 and the yield is 9%
Appealing accounts: Recent results showed high margins and net cash
Owner management: The directors control 23% of the business

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.

Numis: The Downsides To A Dividend Up 17-Fold

13 May 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Numis (NUM).

Here are the initial attractions that prompted this research:

Appealing accounts: Recent results showed high margins and net cash
Dividend history: The payout has advanced 17-fold since 1999
Owner management: The directors control 21% of the business

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.

Andrews Sykes: Dividend Yield Now 7.9%

06 May 2015
By Maynard Paton

Quick update on Andrews Sykes (ASY).

Event: Final results published 06 May

Summary: Results better than I had expected. A dismal first half was followed by a less dismal second half and the outlook for 2015 appears relatively promising. Accounts still showcase solid financials and I’m pleased ASY’s 90% owner continues to share the wealth through sizeable dividends. The yield is 7.9% at 300p. I continue to hold.

Bioventix: 67% Margins From Monoclonal Antibodies

06 May 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Bioventix (BVXP).

Here are the initial attractions that prompted this research:

Super profitability: Operating margins were a stratospheric 67% in 2014
Asset rich: The balance sheet carries net cash and freehold property
Owner management: The chief exec owns 12% of the business

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.

French Connection: Profit Warning Means Radical Action Is Now Required

24 April 2015
By Maynard Paton

Quick update on French Connection (FCCN).

Event: Trading update published 24 April

Summary: Profit warning — poor H1 Retail sales will mean greater-than-expected group losses this year. However, the profitable Wholesale and Licensing divisions continue to perform as expected. Turnaround possibilities remain, but the protracted wait has become just that bit longer once again. What’s needed now is some radical management action. I continue to hold.

Dewhurst: A P/E Of 8 But I’m Not 100% Convinced

23 April 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Dewhurst (DWHA).

Here are the initial attractions that prompted this research:

Loyal management: Dewhurst has been a family-run business since its formation in 1919
Rising dividend: The payout has advanced every year since at least 1999
Interesting valuation: The shares could offer a possible P/E of less than 8

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.

Mincon: So Here’s The Drill On A Recent Buy

15 April 2015
By Maynard Paton

Today I’m revealing one of the two new investments I’ve made during recent months.

The company in question is Mincon (MCON), a specialist engineer that designs, manufactures and sells drilling equipment for miners. I bought the shares during February and March 2015 at an average of 44.6p including all costs. The mid-price is now 54p.

All told, I feel this £114m Irish business is an excellent fit for my portfolio. Important attractions include a respectable competitive position, high margins, a cash-flush balance sheet and very favourable family management. A languishing share price and a possible P/E of just 10 also clinched it for me.

However, MCON is by no means perfect. In particular, the group is dependent on the vagaries of the mining sector, has an ambitious acquisition plan and does not boast the greatest of free cash flow.

A wide bid-offer spread and 71% boardroom ownership may put some people off, too.

M Winkworth: A ‘Franchise’ Business On A P/E Of 10

14 April 2015
By Maynard Paton

Quick update on M Winkworth (WINK).

Event: Final results published 14 April

Summary: A quite satisfactory set of full-year results, albeit the second half produced flat profits. WINK has become slightly more dependent on the booming London property market, but its estate-agency franchising operation continues to produce super margins and high returns on equity. There are not many shares with such finacials that I have found that presently trade on a P/E of about 10. I continue to hold.

Zytronic: The Dividend’s Up 5-Fold Yet I’m Still Not Sure

02 April 2015
By Maynard Paton

Today I’m continuing my hunt for Watch List shares with a look at Zytronic (ZYT).

Here are the initial attractions that prompted this research:

Appealing financials: Accounts showcase 15%-plus margins and an asset-rich balance sheet
Rising dividend: Payout has advanced 5-fold between 2005 and 2014
Interesting valuation: The shares could offer a possible P/E of 11

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.

Patrick Leach: “Hi Patrick, Just replying to your comment as I have held SYS1 for a number of years and exchanged views…” 12 Jul 2024

Andrew Rolfe: “Maynard, I hold through HL, Interactive Investors and a couple of other platforms. I think that CLIG should engage via…” 10 Jul 2024

Maynard Paton: “Thanks Andrew. I hope to be there at the AGM as well. Something I did not mention in the blog…” 10 Jul 2024

Andrew Rolfe: “Excellent review, as ever, Maynard. As you know, I do not think that the disclosures to date that CLIG has…” 10 Jul 2024

Maynard Paton: “Thanks David, glad you found it useful Maynard” 04 Jul 2024

Maynard Paton: “Thanks Patrick. I don’t recommend anybody follow what I do, but happy things have worked out so far! Maynard” 04 Jul 2024

David: “Great analysis, very much appreciated.” 04 Jul 2024

Patrick: “Sparkling results and a very bullish outlook. I followed you in on this one Maynard with a position that in…” 03 Jul 2024

BP Marsh: 11% Average NAV Growth For 25 Years

Record: The Dividend’s Up 10% And I Have Bought More

World Careers Network: How I’ve Become Stuck With A 37% Loss

Electronic Data Processing: I’ll Just Have To Make Do With The Uncovered 7.2% Income

Mincon: Have Q1 Profits Just Slumped 24%?

Tristel: I’m Still Projecting 15%-Plus Annual Returns

Cenkos: The P/E Is 6 And The Yield is 9%

Numis: The Downsides To A Dividend Up 17-Fold

Andrews Sykes: Dividend Yield Now 7.9%

Bioventix: 67% Margins From Monoclonal Antibodies

French Connection: Profit Warning Means Radical Action Is Now Required

Dewhurst: A P/E Of 8 But I’m Not 100% Convinced

Mincon: So Here’s The Drill On A Recent Buy

M Winkworth: A ‘Franchise’ Business On A P/E Of 10

Zytronic: The Dividend’s Up 5-Fold Yet I’m Still Not Sure

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