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System1: Boss Blames Buffett-Backed Bid For Client Cutbacks And 72% Profit Crash

08 June 2018
By Maynard Paton
 
Update on System1 (SYS1).
 
Event: Annual results for the twelve months to 31 March 2018 published 01 June 2018
 
Summary: A series of poor updates had already heralded what SYS1’s founder described as a “miserable” performance. However, shareholders did receive a candid explanation of what went wrong — with a Warren Buffett-backed bid to buy Unilever taking some of the blame. However, a greater concern is whether SYS1’s pioneering market-research techniques remain that pioneering — the competition is apparently catching up. A lot now rests on whether SYS1’s founder has the ability to lead another recovery. I continue to hold.
 
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Andrews Sykes: 2017 Results Showcase 11% Profit Growth, A 24% Margin And £20m Net Cash

18 May 2018
By Maynard Paton
 
Update on Andrews Sykes (ASY).
 
Event: Preliminary results for the twelve months to 31 December 2017 published 18 May 2018
 
Summary: These results were quite satisfactory, although sadly the record figures I had hoped for did not entirely come through. Indeed, after a bumper first half, I note the second half could only match last year’s H2. Nevertheless, I was pleased the specialist hire group did not have to rely on “significant extremes in climatic conditions” to stimulate extra demand for its air conditioners, heaters and pumps. Meanwhile, margins remain high at 24%, net cash has grown to a hefty £20m and a 14x cash-adjusted P/E does not seem that excessive. I continue to hold.
 
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Initial Reviews: AIREA, Octagonal And Richoux

25 May 2018
By Maynard Paton
 
Today I am experimenting with a new Blog-post format that covers short-ish reviews of three different companies.
 
The shares involved this time are all small-caps:
 
* AIREA (AIEA): This flooring group recently received bid interest from quality operator James Halstead. Although the share price seems cheap and offers asset backing, there is no evidence yet of any long-term business qualities.
 
* Octagonal (OCT): High margins, attractive growth and net cash are among the attractions at this niche financial-services firm. However, management’s ‘connections’ are not those you would associate with tip-top executives.
 
* Richoux (RIC): A bombed-out share price and Kaye family involvement bring me to this somewhat muddled restaurant group. Can the new boss lead a turnaround... and repeat the multi-bagger success he enjoyed at Prezzo?
 
Let's see if any of this trio are worthy of further investigation.
 
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