The stock market has had a torrid few weeks. The price of many stocks has fallen since January and the collapse of a technology-focused bank in California has had repercussions for the financial sector.
Leading companies have chosen to list in America rather than here, with others hinting they could follow suit. Amidst it all, there are suggestions that the UK is past its prime, stuck in a rut, color splintering. Not so fast. As Chancellor Jeremy Hunt said in last Wednesday’s budget: “The decliners are wrong and the optimists are right.
Even as the economy faces challenges, determined UK companies are showing courage and offering rewards to investors.
4print
Every year, thousands of companies decide they need to stamp their identity on everyday accessories – pens, mugs, t-shirts, umbrellas, bags, golf balls, etc. And 4imprint helps these businesses buy what they need when they need it at an affordable price.
The group started with a 12-page catalog in 1987. Today it is the largest promotional products group in the world, selling millions of items online in the UK, Ireland and North America .
Stocks soared. At just £2.17 when Midas recommended them in 2011, they’ve since grown more than 20 times to £46.70. Many followers believe the stock still has a ways to go.
Just last week chief executive Kevin Lyons-Tarr unveiled stellar figures for 2022. Profits more than tripled to $104m (£86m), dividend rose from 33, 8 pence to £1.32 and a special payout has been declared – of £1.65 per share.
The company reports mostly in dollars, as more than 90% of sales are generated in America, where companies are particularly fond of using embossed logo products to attract customers and reward employees.
But 4imprint is headquartered in London, there is a thriving hub in Manchester and the board retains a strong commitment to the UK market.
The company has been well regarded for years, offering better service, more choice and cheaper prices than its competitors. But growth has shifted to another category in recent years, partly because Lyons-Tarr has remained confident in its employees through tough times and continued to invest in its business.
City watchers believe this concentration will continue to deliver results, with Liberum brokers suggesting shares could hit £50 in around a year.
Midas verdict: 4imprint has been a fabulous investment over the past 12 years and some investors may choose to take profits at £46.70. But this stock should continue to deliver. The company still holds less than 5% of its market, Lyons-Tarr is ambitious and the deal is a winner.
Traded on: main market Teleprinter: FOUR Contact: 4imprint.com or 0161 850 3490
Greencoat UK Wind
When Greencoat UK Wind went public it was a novelty – the first listed company dedicated to the renewable energy sector.
That was in 2013. Since then many companies have joined the wind and solar party, but Greencoat is still the biggest of its kind – and among the best.
Led by industry thoroughbreds Stephen Lilley and Laurence Fumagalli, Greencoat owns and operates onshore and offshore wind farms.
Among the best: many companies have joined the wind and solar party, but Greencoat remains the biggest of its kind
Ten years ago, there were six in the portfolio, generating 127 MW of electricity. Today there are 45 farms and more than 1,000 turbines, creating 1,610 MW of electricity, enough for 1.8 million homes.
The company was then valued at £260 million. Today he is worth more than £3.5 billion.
Along the way, the stock rose from £1 to £1.58 and provided ten consecutive years of inflation-linked dividend increases, totaling over 65p per share.
By any measure the company is a success, working with utilities and government ministers to boost the UK’s local electricity supply and environmental credentials. Looking ahead, Lilley and Fumagalli want to go further, adding new sites, increasing capacity and contributing to the government’s net zero ambitions.
Shareholders should continue to benefit from this strategy. Greencoat has the stated objective of increasing dividends in line with inflation and preserving capital in real terms.++++++++
The entire company is built around this policy, which has served investors well thus far and should continue to do so.
The group focuses on buying farms from developers once they are operational, construction risk has been eliminated and long-term energy contracts are in place.
As market veterans, Lilley and Fumagalli have contacts across the industry, seeing deals at an early stage so they can choose the most promising – and they do this, ensuring the business continues to grow. and prosper.
Midas verdict: Midas recommended Greencoat during its IPO. This month the group celebrates ten years as a listed company, marked by steady dividend growth and an almost 60% rise in the share price to £1.58. As the government increasingly focuses on local renewables, Greencoat is expected to continue to deliver. In an uncertain world, this is an attractive prospect for existing and new investors.
Traded on: main market Teleprinter: United Kingdom Contact: greencoat-ukwind.com or 020 7832 9400
Bloomsbury
Publishing is one of those industries that the UK is particularly good at and Bloomsbury is an example.
Founded in 1986 by book lover Nigel Newton, the company has picked bestsellers for years, from JK Rowling’s Harry Potter series to American author Sarah J Maas’ romantic fantasy novels, to the Paul Hollywood’s latest cookbook, BAKE.
Last week Newton said last year’s results would beat expectations, with profits up around 14% to over £30m.
Success: Bloomsbury was founded in 1986 by book lover Nigel Newton and the company has been picking bestsellers for years
This is the fifth upgrade released by the company since January 2021, with growth fueled not only by captivating chairside reads, but also by an expanding online academic arm, particularly in America and a phenomenon known as BookTok, where users of the social media phenomenon TikTok post exciting videos about the books they’ve read – including several published by Bloomsbury.
Midas verdict: Doomsayers have been predicting the demise of publishing for years, but people keep reading and the industry keeps growing. At £4.50 Bloomsbury shares are up more than 60% since Midas recommended them in December 2020, but Newton is one of the most experienced players in the business and the stock is set to continue to rise.
Traded on: AIM Teleprinter: BMY Contact: bloomsbury-ir.co.uk or 0371 664 0300
Keyword Studios
The video game market has soared 50% to £250bn during the pandemic.
Many observers expected interest to wane once lockdown restrictions were lifted. But growth continues and the industry is expected to top £400bn over the next five years.
Keyword Studios is a major beneficiary of the continued enthusiasm for games – providing music and artwork for games, translating them into multiple languages, and testing new titles before release.
Aim: Keyword Studios is a major beneficiary of continued enthusiasm for games
Originally based in Ireland, the company has spread its wings around the world and counts among its customers Microsoft, Sony, Apple and Google.
The results for 2022 showed how well Keyword is doing, with a 30% increase in profits to €112m (£99m), a 10% increase in the dividend to 2.37p and the promise of further growth to come.
Midas verdict: Midas recommended Keyword at £1.53 in 2015. The shares have since risen more than 17 times to £26.42, but there is still momentum in this sector. Keep the faith.
Traded on: AIM Teleprinter: KWS Contact: 00 353 1 902 2730 or keywordsstudios.com
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