115. UK small caps: making money from toilet rolls, spectacles and Hollywood films

Paul Marriage, co-manager of TM Tellworth UK Smaller Companies, talks to us about how the UK’s small business sector dealt with the pandemic, tells us how it was well-prepared for Brexit and how it could now benefit from overseas investors returning to UK waters. He also gives us examples of UK companies buying out competitors and tells us about one firm that has made the most of social-distancing in the film industry.
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Launched in November 2018, TM Tellworth UK Smaller Companies is a pure smaller companies fund run by two very experienced and highly regarded managers, Paul Marriage and John Warren. It focuses on small caps, avoiding micro-caps and mid cap stocks and meeting company management is integral to the investment process.

Read more about TM Tellworth UK Smaller Companies

What’s covered in this podcast:

  • How UK companies reacted to the pandemic and how quickly earnings recovered [0:34]
  • Inspecs – the Bath-based spectacle frame manufacturer – acquisition of a German rival [2:45]
  • How Accrol – the Accrington-based toilet paper producer – used an acquisition to strengthen its position during COVID [3:50]
  • How Vitec used its image capturing technology to accelerate its next generation products for use in a socially-distancing film industry [4:43]
  • Why the manager still owns Gym Group and Hollywood Bowl [5:38]
  • Whether investors are too optimistic vs the reality of doing business at the moment [8:36]
  • If there is a bubble in the AIM market [9:48]
  • If the Brexit deal will bring overseas investors back to the UK [11:46]
  • If that money will make it through to smaller companies as well as larger ones [13:28]
  • The impact the Brexit deal has had on the UK’s smaller companies [15:57]
  • How the manager marked the third anniversary of the fund, and what it’s been like running his own business in the past three years [18:00]
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