While investing in income stocks can be worthwhile, I also find growth shares extremely exciting. With £200 a month to invest, I’m looking to drip-feed cash into high-quality companies with genuine growth prospects. Let’s take a closer look.
Increasing production
Jubilee Metals (LSE:JLP) is the first business that catches my eye. At the time of writing, the shares are trading at 13.3p.
For the six months to 30 June, the AIM 100 metals recovery firm reported that it had invested £58m into expanding its operations in the recovery of platinum group metals (PGMs), copper, and cobalt.
These metals are in long-term high demand, given their importance to decarbonisation projects, like electric vehicles (EVs).
There are also new operations in South Africa that could increase annual output by 44,000 PGM ounces per year. This is an exciting development for the rapidly growing company.
Over the first half of the year, Jubilee Metals saw a 5% increase in PGM production, despite a number of interruptions and stoppages. There was also a 14% increase in copper production for the firm.
However, there’s a risk that military action could threaten the firm’s operations. It’s based in several countries in Africa that have volatile political systems.
On the flip side, it has a cash balance of £18.69m and total debt of £11.17m. To that end, I feel that the company could survive any near-term threats to its operations.
An airline recovery?
Next, Jet2 (LSE:JET2) grabs my attention with its share price currently at 903p.
The short-haul airline was battered during the pandemic because international flying ground to a halt.
For the years ended March, in 2021 and 2022, the business reported widening pre-tax losses of £370m and £388m.
At the current time, the climate of fewer international restrictions and a slightly lower oil price are both helping the company recover from the battering of the past couple of years.
But there remains the threat of further pandemic variants. These could cause more disruption to international travel, even if it’s not as extreme as it was during lockdowns.
Despite this, summer on-sale seat capacity was 14% higher in 2022 compared to pre-pandemic levels.
In addition, the AIM 100 constituent has operating cash flow of £653m. This means that it’s should be able to withstand any further disruption to its operations.
Also, its total cash balance of £1.94bn far exceeds its total debt of £1.37bn. This strong balance sheet is another reason why I’m attracted to this growth stock.
Overall, these two companies may provide good scope to grow my initial investments. Given their higher-risk nature, however, I think a good approach for me is to buy the shares gradually. As such, I’ll put £200 aside every month for investment in these two businesses and will add them soon.