Mark Walker of Tollymore Investment Partners presented his in-depth investment thesis on ITE Group (UK: ITE) at Best Ideas 2019.

Thesis summary:

ITE Group is a UK-listed global exhibitions organizer. The investment merits can be summarized as “a very good, very cheap business”. ITE is a capital-light, founder-led business providing high-utility and enduring B2B services. A long track record of delivering ~30% returns on capital has been facilitated by a network effects-based defensible moat. The business model is characterized by double-digit revenue growth, high top-line visibility, strong cash conversion of earnings, and an appropriate capital structure. Non-fundamental selling pressures have contributed to a de-rating of the stock to a 19% FCF yield, leaving the business trading at a fraction if its private business value.

Listen to this session:

slide presentation audio recording

About the instructor:

Mark Walker serves as managing partner of Tollymore Investment Partners, a private investment partnership for long term investors. Previously, he was a global equity investor at Seven Pillars Capital Management, a long term value-oriented investment firm based in London. Mark has fifteen years of investment research and financial analysis experience. He joined Seven Pillars from RWC Partners, where he was part of a two-person team managing a long term global equity fund. Prior to that Mark worked as an investment research analyst on the sell-side for Goldman Sachs and Redburn Partners.