Small Cap Value Report (Thu 8 Dec 2022) - SUS, NUM, RCN, OTB, TUNE, VTU, ITS, PURP, MER

Good morning from Paul amp; Graham! Today's report is now finished.

I typed up last week's podcast summary, here it is.

Agenda

Paul's Section:

On Beach group (LON:OTB) - I take a favourable view of this share, as a well-financed, recovering travel business, with good flexibility from a low fixed cost base. Shares seem good value. Very vague outlook comments, and who knows how it's likely to be affected by the consumer slowdown? Overall though, for patient investors, I think this deserves a thumbs up.

Focusrite (LON:TUNE) - results for FY 8/2022 look pretty good  - it's held on to most of the pandemic boom growth. Balance sheet is sound, outlook comments seem reasonable. There are a couple of points to note - heavy capitalisation of developments costs, and profit includes a one-off forex boost which should really be adjusted out. Overall, I see this as a quality business, with good pricing power. Shares look priced about right. Thumbs up overall.

Vertu Motors (LON:VTU) [quick comment] - a very large acquisition (Helston Garages) is announced, at a cost of £117m (VTU’s mkt cap is £169m), so shareholders need to scrutinise this deal carefully, as it’s so material. Interestingly,...