| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 69.07 | 13 |
| Intrinsic value (DCF) | 35.21 | -42 |
| Graham-Dodd Method | 0.19 | -100 |
| Graham Formula | 0.17 | -100 |
Touchstar plc (LSE: TST) is a UK-based technology company specializing in rugged mobile computing devices and software solutions for transport, logistics, and access control industries. Operating under the Touchstar brand, the company provides hardware and software tailored for mobile applications, including supply chain data capture, GPS tracking, and electronic proof of delivery (EPOD) solutions like PODStar for SMEs. Founded in 1904 and headquartered in Manchester, Touchstar serves clients across the UK, Europe, and internationally. The company, formerly known as Belgravium Technologies, rebranded in 2016 to reflect its focus on mobile computing innovation. With a market cap of £7.18 million, Touchstar plays a niche role in the computer hardware sector, offering durable, industry-specific solutions that enhance operational efficiency in logistics and security applications.
Touchstar plc presents a niche investment opportunity in the rugged mobile computing and logistics software market. With a modest market cap of £7.18 million, the company has demonstrated profitability (net income of £366k in the latest period) and strong operating cash flow (£1.1 million). Its low beta (0.806) suggests relative stability compared to broader tech stocks. However, the company operates in a highly competitive and capital-intensive segment, with limited scale compared to global players. The dividend yield (3p per share) may appeal to income-focused investors, but growth prospects depend on expanding its customer base in logistics and telematics. Risks include reliance on the UK and European markets, exposure to cyclical industries like oil & gas logistics, and potential margin pressures from larger competitors.
Touchstar competes in the specialized rugged computing and mobile data capture market, differentiating itself through industry-specific solutions like PODStar for SMEs. Its competitive advantage lies in deep domain expertise in transport and logistics applications, offering integrated hardware-software bundles tailored for harsh environments. However, the company lacks the R&D scale of multinational tech firms, limiting its ability to lead in innovation. Its UK focus provides regional strength but constrains global reach. Touchstar's financial stability (net cash position of £2.75 million) allows for steady operations, but capex constraints (£773k) may hinder rapid technological upgrades. The company's niche positioning shields it from direct competition with consumer device makers, but it faces pressure from both enterprise-focused hardware vendors and software-centric telematics providers moving into its core markets. Success depends on maintaining its reputation for reliability in key verticals while expanding partnerships in the evolving IoT and fleet management ecosystems.