The Opportunity

MS International plc (MSI) is a holding company for various subsidiaries namely:

• MSI Defence Systems Ltd / US LLC – A manufacturer and supplier of small calibre gun weapon systems/mounts.
• MSI Forks Ltd / LLC – A manufacturer and supplier of fork-arms for fork lifts.
• Global-MSI – A designer, manufacturer and installer of petrol station superstructures now also merged with MSI Sign Group / Petrol Sign Ltd – A designer, manufacturer, installer and service provider of corporate branding.

We first became aware of MS International in early 2021 following their full year results which noted the potential for the US Navy to procure MSI’s naval gun mounts. There was also substantial director buying.

Why we invested

The business had significant asset backing in the form of cash and freehold properties and the US Navy opportunity provided asymmetrical upside.

Our Investment Approach

Our first purchases of shares were at 162-169p during the period from April to June 2021 and we subsequently attended the 2021 AGM. We continued to buy the shares and have bought all the way up to 980p.

What Happened

In September 2022 following Russia’s invasion of Ukraine, MSI launched a land-based Counter-UAS (C-UAS) gun weapon system (“Terrahawk Paladin”) with contracts subsequently secured for delivery to Ukraine and later to the Jordanian Armed Forces.

This was followed in 2023 by the US Navy confirming the first contracts to purchase MSI’s “Mk38 Mod4” gun weapon system (GWS).

Outcome & Return

Our total return (TR) to-date (Feb 2026) including dividends is 251%, a CAGR of 29.9%.

We still hold MSI as our second largest holding.