Distribution Finance: +7%

Distribution Finance is a recent addition to my portfolio(less than 1yr). While I generally tend to avoid investing in Financial companies of any sort(don’t like the business model, cyclicality etc..) this one is quite a specialist and doesn’t have a lot of the legacy baggage. In addition it is trading at discount to book value which I like. Results back in April were good(net income up 20%). It also has an ongoing buyback for 5% of share capital which should boost the comparisons YOY. Share price hasn’t moved much despite a recent performance YTD.

GetBusy: -13%

Again, a recent holding(less than 1yr). Ok results in March, they turned profitable for the first time. I’d like to see a bit more top line growth before I commit a bit more to the stock. Over 95% of revenue is recurring which is great, however until they start capitalizing on this by cutting back on salesforce it will be only breaking even. Yet to be fully convinced.

Hilton Food Group: -1%

One of my longtime core holdings. Had results back in April which I thought were quite good (PBT was up 17% on constant currency basis). I have added to the position recently as I don’t think the market appreciates the excellent business model, fundamentals and scale of this company. Obviously not a company that is a multibagger but it would deliver consistently.

Journeo: 35%

The share price appreciation speaks for itself. The company had an excellent trading update in March (profit up 33%) and since then has announced a few more major contract wins which has boosted the share price. While it has a fairly dominant position in the UK, recent wins in the US and Europe bode well for expanding internationally. I would definitely be buying on weakness as there is great potential here.

Keller Group: +3%

After a significant step change in profitability back in 2024, Keller has drifted a little bit over the past year. The latest trading update was reasonable and in line with expectations. It is a solid company in a niche market with great fundamentals and balance sheet. I would likely be adding to it if the opportunity arises. Good long term hold.

Kinovo: +35%

Well this didn’t last long. I’ve only acquired this towards the end of last year and it is already being taken over. It had great fundamentals and after the restructuring of its business(disposal of the troublesome construction business) it was positioned in the right market. Unfortunately it got taken out by a private equity company at price which was less than ideal(was hoping for at least £1). On to the next one.

Mitie Group: +30%

Over the period Mitie had solid results and also made an offer for Marlow which the market seem to dislike(share price came down 20% from the hights). Personally I think it is a solid company and the acquisition was at a good price(combination of cash and shares where Mitie was at all time highs while Marlow’s share price was depressed). I am excited about the future prospects of the new entity and I think once the dust settles the share price will continue to rally. 30%YTD performance despite the drop is not too shabby.

MS International: +36%

Not much news flow or announcements for MS International in general. It’s share price has rallied on the back of its defence business which is doing great. It had results recently where it announced that its strategic review didn’t find any suitable buyers for its remaining 3 businesses so they continue BAU. I am very bullish on this company as they have a solid management team with a lot of incentives for long term value creation. It has decided to focus on the defensive sector which I think it’s the right move given its production facilities in the UK and the strategic nature of these contracts. In addition its offering of remote weapons stations which defend against drones seems to be in vogue. The defence contracts are unfortunately quite lumpy and unpredictable so there could be volatility along the way to great returns. Have added more as of late.

Touchstar: -5%

Towards the end of last year the company went into a strategic review process(i.e putting itself for sale effectively). The process dragged on longer than expected and unfortunately there were no buyers at a price which was deemed desirable.  Since then the company decided to do it alone, change the CEO and focused on international expansion as well as boosting the share price via increased dividend and buy backs of up to £1m. It has cash on the balance sheet which is 30% of the market cap and a good business model but it is moving a bit too slow. Hoping one of the potential buyers will come back in the next 12-18months.

Transense Technologies: -7%

The company announced a few strategic collaborations which give it a foothold in the US market as well as the integration of software and hardware for its Translogik business. It has also brought in house its production of the SAW sensors which ultimately will be the main determinant of the future value of this company. While the Bridgestone licencing agreement is in place(till 2030), the company will have sufficient resources to invest into SAW and Translogik. If things come off on the SAW projects it could be a multibagger. Good management who are actively driving things forward.

Volex: 36%

Excellent trading update a few weeks ago. The share price has almost doubled from the April lows. Great results with revenue up 19%, PBT up 13% etc….I’ve held this for the last couple of years and the more I listen to the company and what they do the more I buy into it. I think it has great long term potential, but I wouldn’t be surprised if the share price gave up some of its gains before resuming its upwards trajectory.