Oct 16, 2026 · 32 min
Paul Scott weighs software ideas in UK small caps
Paul’s Podcast - Fri 16 Oct 2026
The episode offers a compact introduction to Paul Hill’s software-focused small-cap discussion and the investing questions it raises.
- 1Paul Scott explains the missing morning episode before opening his final podcast of the week.
- 2Paul Hill’s Friday Vox Markets show provides the episode’s main frame for examining software companies.
- 3The discussion points listeners toward specific software names, including ActiveOps and Alpha Financial Markets Consult.
Don't miss
Paul Scott pivots from explaining the missing morning episode to previewing Paul Hill’s software-focused small-cap discussion.
The brief
Paul Scott opens the week’s final podcast by explaining why there was no morning episode, then turns to Paul Hill’s Friday small-cap show on Vox Markets.
The central thread is Hill’s view of software companies and how investors might assess them within the UK small-cap market.
ActiveOps and Alpha Financial Markets Consult are among the software-related companies brought into the discussion, giving the preview a concrete investment focus.
The episode’s standout moment is the shift from scheduling explanation to a focused preview of Paul Hill’s software commentary.
Taken together, the episode functions as a short guide to the themes and companies shaping the week’s small-cap software discussion.
What was said on this episode
23 statements · 17 positive · 6 negative
AI is unlikely to replicate Eagle Eye’s specialist capabilities.
“I think that one is so specialist that I'd be surprised if AI could get anywhere near to what Eagle Eye actually does.”
Listen at 1:16
AI is highly capable and well suited to coding.
“there's no doubt from everything we're hearing from lots of companies that AI is particularly well suited to and is highly capable at doing coding.”
Listen at 2:06
Carrero Network Security has reached an inflection point with contract wins and profitability.
“I've bought into Carrero Network Security, CNS. That seems to be at an inflection point where it's moved. Really very, very impressive Q3 update. Big contract wins, moved into profit.”
Listen at 7:29
Accelerating growth combined with high margins is attractive.
“where I see accelerating growth and very high margins that is a beautiful combination”
Listen at 7:59
Norcross is a quality business with decent margins and resolved legacy problems.
“I think it's a good quality business, actually. Decent profit margins, legacy problems have pretty much all been dealt with now.”
Listen at 8:18
Norcross trades at approximately seven to seven-and-a-half times.
“The market doesn't care, only prices it on about seven, seven and a half times.”
Listen at 8:26
Card Factory’s trading is acceptable and does not justify selling.
“Why on earth would I sell it? Trading's OK.”
Listen at 9:11
Focusrite’s recent news flow has been satisfactory.
“The news flow has been perfectly fine on Focusrite”
Listen at 11:40
Many small and mid-cap shares are mispriced opportunities.
“I see masses of opportunities out there for things that are just clearly the wrong price.”
Listen at 15:35
Most companies in Paul’s UK-share universe report in line or ahead.
“the vast majority are reporting in line or ahead.”
Listen at 17:10
The UK economy and companies are surprisingly resilient.
“in terms of the actual economy and companies, surprisingly resilient is my overall scorecard on it.”
Listen at 17:41
Norcross trades at seven times earnings, performs consistently, and reduces debt.
“a bathroom fittings company on a PE of seven that's performing well consistently reports in line. is paying down its debts, that's Norcross, by the way, might be an interesting little sideline.”
Listen at 18:28
FCA trading updates should use a standardized format.
“there needs to be a standardized format.”
Listen at 19:15
Wise shares fell eight percent to £8.33.
“Wise shares dropped 8 percent today to £8.33.”
Listen at 21:49
Man Group’s assets under management increased seven percent.
“Assets under management up 7%. That's pretty good.”
Listen at 23:04
Man Group trades below ten times forward earnings with a 4.3% yield.
“forward P just below 10 and a yield of 4.3%. So that looks all right.”
Listen at 24:19
Paul remains positive on Brave Bison.
“I'm resolutely sticking at green on this.”
Listen at 24:28
Brave Bison’s System1 bid is likely to fail.
“it looks almost certain to fail now.”
Listen at 25:34
Tortilla Mexican Grill has a weak, overly debt-dependent balance sheet.
“the balance sheet is still poor. It's far too heavily reliant on bank debt.”
Listen at 26:55
Tortilla Mexican Grill will likely need another placing.
“I don't think this will be the last placing.”
Listen at 28:23
Mobico is uninvestable because of its weak balance sheet.
“For me, it's uninvestable because the balance sheet is so bad.”
Listen at 29:04
Mobico faces a considerable risk of a large dilutive fundraise.
“You are running a very considerable risk of a dilutive and possibly very large fundraise there”
Listen at 29:10
Zotefoams is a good company with strong long-term prospects.
“We like soap firms. We've been a multi-year bulls on it. It's a good company.”
Listen at 30:01
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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