Good morning from Paul & Graham.

Agenda - 

Paul's Section:

accesso Technology (LON:ACSO) interim results seem to be in line with expectations, and this is confirmed for the full year too (with the key summer season now in the bag). Growth has almost entirely come from European markets bouncing back from the pandemic, with little underlying growth in evidence. The balance sheet looks great, with pots of cash. However, management seem to think spending $10m on shares for employees is more important than giving anything to shareholders, so the priorities don't look good. Cash generation is questionable too. Overall then, it's not for me.

Graham's Section:

Property Franchise (LON:TPFG) (£91m) - these interim results are in line with expectations, and the outlook is too. I’m a big fan of this company although I sold my small stake in it some time ago. Lettings revenues and other revenue streams have helped to cushion the blow caused by a sharp drop in UK sales transactions. The company was also very active on the acquisition front last year, and this caused some dilution, but at least the added businesses helped to produce growing revenues and PBT. Adjusted earnings per share for H1 are down by 8%, as a result of the dilution caused. I suspect that TPFG is well-positioned to make further progress, as soon as the economic backdrop allows for it.

Trustpilot (LON:TRST) (£319m) - this business review service reiterates its revenue guidance for 2022. But thanks to its “flexible operating model”, it expects “significantly more operating leverage in the second half of the year than previously anticipated”. The company remains unprofitable and has been expected to remain unprofitable for the foreseeable future, only reaching adjusted EBITDA breakeven two years from now. Perhaps it can speed up its progress towards positive net income but in the meanwhile I think there are signs of good operational progress. The potentially very strong network effects could help to create a very valuable company, in my view, although the risk of competition can’t be ruled out completely.


Explanatory notes -

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