Five to buy
1Spatial
The Mail on Sunday The UK is an underappreciated technology “hot spot”, with a tech economy worth £800bn. Many of the Silicon Valley tech giants run UK operations and there is a thriving sector of smaller firms with specialist know-how. This Cambridge-based “geospatial data management” business “exemplifies the breed”. It works on the data used in “digital maps” that helps companies and governments to “understand where assets such as property, pipes and plant life are located”. The shares have climbed by 65% in five years, but as it continues to win customers there should “be more to come”. 62p
e.l.f. Beauty
The Telegraph This cosmetics group is one of America’s “most sensational” recent consumer success stories. The company tailors its offering to Generation Z, who love its clean, vegan and quality products at accessible prices. It achieves that tricky task through smart operations, with a “hybrid supply chain” that lets it pivot quickly between suppliers. On 57 times forecast earnings, “the rating is in nosebleed territory”, but it remains a favourite among fund managers for its strong growth prospects and excellent returns on capital. $201
McBride
The Sunday Times This maker of supermarket own-brand cleaning products is cashing in on the cost-of-living crisis. McBride supplies “unbranded detergents” and sprays to 49 of Europe’s top 50 supermarkets, and the lines are booming as consumers trade down from pricey branded alternatives. The shares have soared of late, but still appear to offer value on 6.5 times next year’s forecast earnings, a discount of about a third to the pre-2022 five year average. 94p
Premier Foods
Interactive Investor The maker of Mr Kipling and Bisto gravy is “getting its act together”. Debt-fuelled growth in the 1990s took time to digest and there was also uncertainty over pension deficits. That has now been cleared up, freeing up cash flow for expansion and dividends. While processed food is out of fashion, many of Premier’s brands will always “be part of the national psyche”. On a forward price/earnings (p/e) ratio of just 11.5, the shares merit a fresh look. 156p
Primary Health Properties
Shares This real-estate investment trust invests in the “modern, purpose-built primary care facilities” that the NHS needs to deal with the challenge of an ageing population. Long-term leases to government-backed bodies make for a highly reliable income stream and near-100% occup
