In January I published a list of five UK shares I’d pick to double my money in 2021.
Since that article, shares in one of the picks have already doubled in value. They are up 101%. Coincidentally they have increased 100% over the past year. Those are the shares of Card Factory.
What about the other four UK shares I picked in that article? I own them all in my portfolio. What do I plan to do right now?
Strong growth in Lloyds share price
I picked Lloyds in the list. Its shares have put on 16% since then. They moved 38% higher over the past year.
I bought Lloyds shares this year as I appreciate its UK banking focus. I see likely benefit from a recovering economy. I previously wrote that a driver for upside price movement could be dividend restoration. The banking giant announced in February that it would restore its dividend. With payouts still constrained by its regulator, I am looking for larger dividends in future, although dividends are never guaranteed.
However, these UK shares remains susceptible to any economic downturn. That could increase bad loan provision and reduce profits.
S4 Capital share price movement
Another pick was digital agency S4 Capital.
Since the January article, the shares are up 5%. Over the past year they have put on a stellar 220%. 2021 started well, with a series of acquisitions announced. The shares then lost some momentum, falling back to 424p last month. They have put on over 30% since then.
I think strong results have cheered investors. Last month’s preliminary results showed 59% growth in revenue and 72% increase in gross profit. The company has issued new shares to fund some of that growth, but I still see it as excellent performance. I’ve bought more since my January list. I remain bullish on the company’s strategy and leadership. It is growing at scale, fast.
However, digital media is a competitive space and that risks damaging profit margins. Expansion can also be fraught with risks, for example if the acquired companies underperform.
Recovery in these UK shares
Another of my picks was defence contractor Babcock. I’ve topped up my position since my January list.
Babcock shares have been volatile this year. They shed almost a quarter of their value in the week following my article. Currently they are up 13% since my list, but down 26% over the past year.
A big writedown highlights risks of balance sheet changes making the company’s asset base less valuable than thought. But the lack of a rights issue has cheered investor sentiment, at one point sending the shares up 40% within one session before falling back somewhat.
I continue to see recovery potential in the Babcock share price.
Positive movement on the Centrica share price
British Gas parent Centrica is up about 12% since my January list. Over 12 months, these UK shares returned 75%.
I remain concerned by risks to the Centrica share price. For example, a poor customer service perception could further damage revenues. An industrial dispute also risks hurting profits.
But given its strong brands, installed user base, and leaner operation, I continue to see potential upside in the Centrica share price.