The position currently sitting on the most profit within the portfolio is payments business Tyro, showing a paper gain of slightly over 100% after jumping more than 9% in the last week. Since January, shares in TYR have rallied more than 60% as they resolved a technical issue with some of their terminals.
Tyro is approaching a crossroads as it edges towards profitability. While sales growth will remain key, profitability is a key requirement for many investors with the market expecting to see TYR cashflow positive come FY23. It currently trades on a Price to FY21 sales multiple of ~8x, okay for a company that is expected to see revenue growth of nearly 40% in FY22 however it is well above US listed peer Square (SQ US) that trades on ~5x FY21 sales, though this is a more mature business with lower expected growth rates
MM are contemplating taking a very good profit in TYR above $4.00
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