Portfolio update 07 May 2020

Just thought I would publish a quick update on my portfolio for anyone interested. Comments welcome.

Last review on my blog was for Q1.

From 01 April to 07 May:

Share trades: None.
Portfolio YTD: -1%
FTSE 100 YTD: -20%

Weightings:

  • Cash :24%
  • Tristel: 18%
  • Bioventix: 14%
  • Mountview Estates: 9%
  • FW Thorpe: 8%
  • S&U: 6%
  • M Winkworth: 6%
  • City of London Inv.: 5%
  • Andrews Sykes: 4%
  • Mincon: 3%
  • System1: 2%
  • Tasty: 1%

Updates since 31 March:

S&U:
2020 results included a final dividend and revealed no staff had been furloughed. So better than I had been expecting. Management therefore seemed confident. But whether borrowers will pay back all their loans to S&U remains to be seen.

M Winkworth:
The 2019 results were pretty academic. Much to my surprise, the firm subsequently declared a Q1 dividend of 1.68p per share — which was 12% down on the Q1 2019 payment but 1.68p per share more than I had expected.

WINK said: “The board remains committed to paying a quarterly dividend. While the intention is to resume a progressive payment once trading conditions permit, the reduction in the first quarter dividend reflects the element of caution required as a result of the Covid-19 crisis. As it is the board’s objective to ensure that dividend pay-outs are covered by post-tax profits, the total distribution for 2020 is expected to be lower than 2019.”

Clearly the London housing market may still be active throughout the pandemic.

City of London Inv.:
April funds under management climbed 10%. The 28p per share dividend currently looks safe on my sums, assuming the level of FUM is sustained. Yield is 9% at 310p.

Mincon:
Q1 update said the group’s factories generally remain open and pandemic issues relate mostly to logistics. Not too bad in the circumstances.

System1:
Oh dear. The CFO has resigned and talk of furloughed staff suggests times are tough. ITV has since reported advertising revenues falling 42% during April — which sounds awful for SYS1’s advert-testing business.

Others:
Nothing from Tristel, Bioventix, Mountview Estates, FW Thorpe, Andrews Sykes and Tasty.

Summary

Not a bad YTD performance so far. I have been lucky because I started 2020 with:

  • 14% cash
  • 8% in Daejan, which received a takeover bid:
  • 13% in Tristel, which is a Covid-19 beneficiary
  • 11% in Bioventix, which appears to be reasonably ‘pandemic proof

At the moment 56% of my portfolio is a mix of cash and two rather highly rated ‘healthcare’ shares (TSTL and BVXP). For now I plan to ride my luck further until I can see an obvious reason to reinvest elsewhere.

Maynard