Miton UK Microcap Trust plc (LON:MINI) Co-Fund Manager Gervais Williams caught up with DirectorsTalk to discuss their portfolio company TruFin plc.
Q1: Are there certain companies in the Miton UK Microcap Trust portfolio that are well positioned to improve shareholder value in the near to medium term?
A1: The great advantage is that many of these companies are overlooked, valuations have come down, people have been more uncertain about the UK over recent months and that’s led to valuations falling to what I consider to be extraordinary low levels.
An example of this is TruFin plc (LON:TRU) – a London-based financial technology firm – Its share price has been falling with all of the uncertainty. They bought assets from the receiver. This is a complex financial: it has four divisions, each of these divisions they bought for £1 each but then they build them up and sometimes it can be very substantial.
Satago, which is one of their larger businesses, is involved in helping banks monitor some of their lending specifically to corporates using factoring – factoring essentially enables to you get the money upfront if you have an invoice due with someone. The point about Satago is it’s not been adopted by Lloyds Bank and there will be other banks it’s talking to.
The share price is hitting new lows but the upside potential is very much there.
These are just ridiculously overlooked share prices with the potential across the fund overall to hopefully give us some very good recovery potential and long term upside potential for the trust.
Miton UK Microcap Trust intends to invest primarily in the smallest companies, measured by their market capitalisation, quoted or traded on an exchange in the United Kingdom at the time of investment.
TruFin plc, a holding company, provides financing services in the United Kingdom. The company operates through four segments: Short term finance, Payment services, Publishing, and Other. It engages in distribution of finance products and invoice discounting; publishing of video games; and investment activities.