Mon 23 June 2025 - Paul Scott's Small/Mid Cap Value Report

Placeholder for reader comments from 7am. Alun's snapshot up at 07:44. v1 summary table up at 07:54. Starters: CARR, SXS, AGR, AVON, ITM, NXR, CBOX, MUL, MWE, MTC, AFRN Main: OHGR

Good morning from Paul & Alun!

Just realised I forgot to set up the weekend chat thread, blast! Can someone remind me with a substack message or email if I forget in future? Obviously a weekly reminder on my calendar system wasn’t enough. Apologies.

I hope you enjoyed the heatwave, although it did get a bit much on Saturday afternoon, didn’t it!

Lots to take in re global events too, with Israel and the USA apparently destroying Iran’s nuclear capacity. How Iran retaliates is now the big question, with it apparently considering trying to close the Straits of Hormuz, a key choke point in the supply of oil & gas.

How will markets react in the short-term? Maybe negatively, although I suspect that the decisive & quick accomplishment of a key aim (to stop another rogue stake developing nuclear weapons) could be seen positively by markets, providing the fall out isn’t too great. With any luck the evil, repressive regime in Iran topples over as quickly as possible, and 90m people gain their freedom. We have to be optimistic!

In the meantime, expect some turbulence, but we knew that anyway - this issue has been well flagged, and already started some time ago, with Israel & Iran already at war.

As usual, personally I won’t be making any changes to my portfolio.

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Carr’s (CARR)

A snippet of useful information. Cavendish has published updated forecasts to reflect the £70m tender offer, and reduced number of shares -

“…our EPS calculation – in FY26E, this increases from 4.2p to 7.7p. At the current price, this improves the P/E from 34x to 18.8x. The group will retain sufficient cash, forecast at c£10m in FY25E, to pursue its existing growth strategy for the Agriculture operations.”

Paul’s quick view - historically the good buying points for this share have been c.100p, and when it’s on a PER of c.10x. Good selling points have been whenever it’s 150p+.

So the current 142p price and PER of 18.8x does not appeal to me.

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End of free section.

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