BIOVENTIX: H1 2022 Reveals Dividend Up 21% And ‘Exciting’ Tau Biomarker Although Cash At 6-Year Low Now Reduces Special-Payout Prospects

26 August 2022
By Maynard Paton

Results summary for Bioventix (BVXP):

  • An unspectacular H1 performance, albeit accompanied by a 21% dividend lift, after further pandemic disruption left revenue down 8% and adjusted profit down 9%.
  • Muted progress from vitamin D and other established antibodies continues to leave near-term growth dependent on the fast-selling troponin product. 
  • The “exciting” potential of a Tau biomarker alongside the BVXP website selling pyrene test kits suggest positive developments within the research pipeline.
  • Net cash at £5m is the lowest for six years, and combined with standstill earnings seems likely to reduce the size of any FY 2022 special payout.
  • Troponin’s finite income and a resultant sum-of-the-parts valuation do not indicate an obviously compelling £33 share price. I continue to hold.

Read more

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

***SharePad 25% OFF Special Offer***
Use promo code mp25 to claim your 6-month discount. Click here for details. #ad

25 August 2022
By Maynard Paton

Another month and another round of ‘back to basics’ filtering.

Introduced earlier this year to identify James Halstead, this screen shortlists companies that offer cash-flush balance sheets, robust margins and dependable dividends. SharePad returned 19 matches:

(Source: SharePad)

I selected Cerillion because the shares were among the few on the shortlist to have moved higher this year. I passed on EMIS and Cardiff Property because the former was subject to a bid and the latter was too small.

Cerillion’s shares have actually five-bagged since the pandemic lows of March 2020 and remain very close to their £11 all-time high:

(Source: SharePad)

Let’s take a closer look.

Read my full Cerillion article for SharePad.

Maynard Paton

ANDREWS SYKES: FY 2021 Discloses UK Hire Revenue Rebounding 17% To Deliver 34% Margin While Dividend Yield Remains Near 5% Despite Potential FY 2022 Heatwave Bonanza

18 August 2022
By Maynard Paton

Results summary for Andrews Sykes (ASY):

  • An encouraging performance, with profit recovering 35% following the pandemic to almost match the record set during FY 2018.
  • Additional reporting disclosures revealed ASY’s main UK Hire division enjoyed sales rebounding 17% and a wonderful 34% margin.
  • European operations expanded to 27% of group revenue following very strong progress, although Middle Eastern woes included an extra £1m provision. 
  • The books remain in good shape, with useful cash generation lifting net funds to £29m and perhaps increasing the possibility of another special dividend. 
  • An estimated 13-14x P/E and near-5% yield hardly seem expensive given the appealing financials, potential for an FY 2022 heatwave bonanza and scope for further European expansion. I continue to hold.

Read more

TASTY: £8m Market Cap Could Still Be Remarkably Cheap After FY 2021 Reiterated 5-6 New Restaurants Despite ‘Prevailing Economic Uncertainties’

04 August 2022
By Maynard Paton

Results summary for Tasty (TAST):

  • The absence of pandemic restrictions ensured a bumper H2 performance that TAST acknowledged may not be repeatable during the current year.
  • Higher wages, rising utility costs, “prevailing economic uncertainties” plus a June update that did not refer to H1 trading could be other signs of FY 2022 not being that profitable.
  • Rent reductions of 27% now appear to be temporary, and explain why total lease obligations remain in excess of £50m.
  • Repaying an emergency loan, appointing a new executive alongside plans to open 5-6 new restaurants confirm management’s mindset has moved from ‘survival’ to ‘recovery’.
  • Although the £8m market cap could be remarkably cheap if TAST ever sustains a modest margin on decent sales, other shares could offer more dependable returns. I continue to hold.

Read more

FW THORPE: Record H1 Results Reveal Thorlux Orders Up 25% And Another Special Dividend As Companies Scramble For Energy-Efficient Lighting

01 August 2022
By Maynard Paton

Results summary for FW Thorpe (TFW):

  • A record H1 performance bolstered by the acquisition of Spanish firm Zemper and complemented by another special dividend.
  • Progress at Thorlux continues to be modest, but a new MD, an order book up 25% alongside growing demand for energy-efficient lighting support future optimism.
  • Dutch profit was assisted by the absence of earn-out provisions, with new manufacturing facilities at Famostar underpinning “continued rapid sales growth“. 
  • Net cash remained significant at £37m after extra stock investment suggested component shortages were no longer as severe as they once were.
  • A P/E of 27 seems generous, but could reflect significant ‘ESG’ attractions as TFW showcases its environmental credentials to quoted companies scrambling for LED lighting. I continue to hold.

Read more

[SharePad] Screening For My Next Long-Term Winner: LIONTRUST ASSET MANAGEMENT

28 July 2022
By Maynard Paton

***SharePad 25% OFF Special Offer***
Use promo code mp25 to claim your 6-month discount. Click here for details. #ad

Difficult market conditions have prompted yet another bout of ‘back to basics’ filtering.

Introduced the other month to identify James Halstead, this screen short-lists companies that offer cash-flush balance sheets, robust margins and dependable dividends. SharePad returned 19 matches:

(Source: SharePad)

I selected Liontrust Asset Management because the shares were highlighted by ace fund manager Keith Ashworth-Lord within his latest Buffettology fund factsheet. Mr Ashworth-Lord wrote:

“Liontrust Asset Management (-15.5%) announced final results which showed substantial growth in average AUM (+43%), revenue (+41%), dividends per share (+53%) and free cash flow (+122%).

The reaction of Liontrust’s share price — which will be seen by the teenage scribblers in the City as high beta — is symptomatic of current market sentiment. As a result, the shares trade on a trailing free cash flow yield of 15% and a trailing dividend yield of 8%. Talk about ‘value’.”

Let’s take a closer look.

Read my full Liontrust Asset Management article for SharePad.

Maynard Paton

M WINKWORTH: Outstanding FY 2021 Heralds Promising FY 2022 Following 23% Q1 Dividend Lift And Prospect Of Sales Again Exceeding Lettings

08 July 2022
By Maynard Paton

Results summary for M Winkworth (WINK):

  • “Extraordinary levels of activity” due to pandemic stamp-duty reductions ensured an outstanding FY 2021 with underlying profit up 167%.
  • Talk of sales income again exceeding lettings income plus lifting the Q1 2022 dividend by 23% underpinned a promising FY 2022.  
  • Earnings at the company-owned Tooting office may have slumped during the year, although the effective return on the branch’s valuation remains impressive.  
  • A super 34% margin, net cash at more than 20% of the share price and trade receivables at just 7% of revenue leave the accounts in good order.
  • A possible 9-12x P/E and 6% yield match WINK’s past rating as investors presumably worry about potential problems within the housing market. I continue to hold.

Read more

Q2 2022: 8 Years Of Special Dividends

30 June 2022
By Maynard Paton

Happy Thursday! I trust your shares continue to perform better than mine during 2022.

A summary of my portfolio’s progress:

  • Q2 return: -2.9%*.
  • Q2 trades: None.
  • YTD return: -15.7%* (FTSE 100: -1.0%)
  • YTD winners/losers: 2 winners vs 9 losers.

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

My portfolio’s 2.9% Q2 drop leaves my shares 15.7% lower this year and nursing their worst half-year decline since I commenced this blog at the start of 2015. I think I have to go right back to the second half of 2011 to find a similarly underwhelming six-month performance.

At least Q2 did not reveal any major RNS disappointments. Andrews Sykes, Mountview Estates and M Winkworth in fact lifted their ordinary dividends while S & U and Tasty disclosed promising progress despite the uncertain economy.

But the market’s disillusionment towards smaller companies is leaving many of my shares marooned at best.

Read more

S & U: Record Dividend Delivers 6% Yield After FY 2022 Results Signal Higher Expected Write-Offs And Risk Of ‘Adverse Economic Environment’

28 June 2022
By Maynard Paton

Results summary for S & U (SUS):

  • A “lower than normal” bad-debt provision underpinned a record full-year profit, which in turn supported fresh highs for net asset value (NAV) and the dividend.
  • Very mixed signals are emerging from the main motor-loan division, with encouraging collection rates offset by “a more heightened risk of an adverse economic environment” and higher expected write-offs among new loans.
  • Further surplus cash from the motor-loan division was redirected into the property-loan subsidiary, which reported a bumper performance and prompted optimistic near-term management predictions.
  • ROCE levels remain modest and suggest SUS’s inherent value is biased towards the asset value of its loan book rather than annual earnings.
  • Despite current-year profit running “above budget“, the £21 shares trade at 1.24 times NAV and offer a 6% yield. I continue to hold.

Read more

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

***ShareScope New Subscriber Special Offer***
Readers of my blog can claim one month of free data. Click here for details.

19 June 2022
By Maynard Paton

Difficult market conditions for highly-rated ‘quality’ shares have prompted further back-to-basics filtering.

Hence a new screen to identify companies offering robust financials, respectable growth, useful director ownership… and a reasonable valuation.

The exact filter criteria I employed for this search were:

  • Net borrowings less total leases of no more than zero (i.e. a net cash position excluding IFRS 16 lease obligations);
  • An operating margin of 20% or more;
  • A five-year uplift to operating profit of at least 50%;
  • Management owning at least 10% of the company, and;
  • A forecast P/E of 20 or less.

I applied the screen the other day and SharePad returned 17 matches:

(Source: SharePad)

I selected IntegraFin because:

  • The £1 billion market cap was among the largest on the list;
  • The operating margin was a remarkable 78%, and;
  • The shares had dropped 49% from their five-year high.

Let’s take a closer look.

Read my full IntegraFin article for SharePad.

Maynard Paton

CITY OF LONDON INVESTMENT: FuM Drops 13% To Below $10b After H1 2022 Discloses 49% Margin, Welcome Special Dividend And (Finally!) Some New Client Money

19 June 2022
By Maynard Paton

Results summary for City of London Investment (CLIG):

  • The Karpus merger ensured impressive headline progress, but this H1 performance was almost identical to the preceding H2 as funds under management (FuM) remained at $11b.
  • Wishful thinking perhaps, but two consecutive quarters of net FuM inflows following consistent FuM outflows may signal clients re-appraising CLIG’s ‘value’ approach.
  • Rough market conditions during the subsequent H2 will test CLIG’s investments, with FuM dropping 13% to below $10b not indicating obvious outperformance.
  • A wonderful 49% margin and net cash of £25m funding a welcome £7m special dividend suggest the accounts can survive any further market weakness.
  • Although the possible P/E is 11 and the yield tops 7%, the shares have been rated modestly for years as major new clients remain extremely elusive. I continue to hold.

Read more

MINCON: FY 2021 Reveals H2 Mining Sales Up 30% And ‘Outstanding’ Greenhammer Tests Yet Obvious ‘Moat’-Like Financials Remain Highly Elusive 

02 June 2022
By Maynard Paton

Results summary for Mincon (MCON):

  • A better-than-expected performance, bolstered by a record H2 and perhaps a cracking Q4 following less pandemic disruption.
  • Positive progress was recorded at all three product divisions, with higher commodity prices pushing H2 mining sales up 30%.
  • Encouraging development news included the long-awaited Greenhammer system delivering “outstanding” test results and potentially becoming available to purchase this year. 
  • Despite the long-term commitment to first-class product manufacturing, MCON’s financials sadly still lack signs of an obvious ‘moat’.
  • The shares do not appear outrageously expensive, assuming H2 extrapolations and upbeat FY 2022 trading do indeed support a 15x P/E. I continue to hold.

Read more

[Podcast] Small Caps, Stock Picking And Index Trackers With Maynard Paton 

19 May 2022
By Maynard Paton

I recently spoke with Lee Cleasby on his Fund Your Retirement podcast. I talked about.

  • My investing journey and experience.
  • RAMP investing: respectability at a modest price (more details here).
  • When to sell or not to sell?
  • Small-caps trailing the FTSE 100.
  • Focusing on UK shares.
  • How beginners should start investing.
  • A real-life example of pound-cost averaging.
  • Starting a pension for my two-year-old son.
  • Coping with media negativity and volatile markets.
  • Thoughts on cryptocurrencies and NFTs.
  • A book recommendation.
  • My website and newsletter.

I think I am better at blogging than talking. Have a listen and decide for yourself:


Happy listening!

Maynard Paton

PS: The recording took place on 5 May 2022. Not quite sure about the weird American voice at the start!

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