As the owner of residential and commercial bridging finance lender Aspen Bridging, the FTSE firm has benefited from robust demand in the UK housing market during the pandemic.

According to Bridging Trends, £455 million of loan transactions – usually short-term lending helping people buy a new home before selling their old one – were completed in the UK in 2020. That was down 38% on 2019 as the sector was battered by the closure of housebuilding sites in the first Covid lockdown.

However, a recovery driven by people eager to take advantage of the Government’s stamp duty holiday, and high street banks taking longer to process mortgages, helped the bridging sector hit a total of £250 million in loans in the third and fourth quarters combined.

The housing market rally could be halted when the Stamp Duty holiday ends on June 31^st, and if the closure of the furlough scheme in September leads to higher unemployment.

But until then, at least, I expect demand to remain high.

I could use this opportunity to snap up FTSE-listed housebuilding stocks, but I see greater growth in the bridging market and subsequently S&U’s shares.

Why I’m bullish

S&U this week posted a profit before tax of £18.1million for the year to January 31^st 2021, down from £35.1million in 2020 as it paid the price of Covid.

However, Aspen Bridging is one of the leading companies in the bridging sector and could benefit from the rush of people looking to complete house moves before the Stamp Duty holiday ends.

High street banks could be faced with a mountain of mortgage applications and if there are delays then customers will turn to bridging finance to ensure their purchase gets over the line.

The FTSE All-Share S&U should also benefit from a tougher UK economic backdrop in the months ahead. The high street banks may become more cautious in their lending and frustrated purchasers or sellers could turn to bridging as a solution.

I also see more bridging finance demand from developers keen to turn abandoned commercial units such as pubs into residential homes and homeowners seeking short term loans to refurbish their properties by adding office space.

The FTSE All-Share stock could also see more demand for its Advantage Finance motor company as drivers hunt for cheaper used cars.

S&U also benefits from being a family-owned company, which I think gives it an advantage over its peers when cementing relationships with brokers and customers.

Risks to consider

There are a couple of issues, however, that might stop me buying S&U’s shares.

A particularly severe economic downturn could stall the housing market rally and flatten demand for bridging finance. I also fear that short-term lending still carries a negative public reputation because of high fees and interest rates.

However, overall, I expect a strong share-price climb heading into the Stamp Duty holiday for this FTSE All-Share stock and in the likely tough economic months ahead.

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David Craik has no position in any of the shares mentioned. The Motley Fool UK has recommended S & U. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Shares in the FTSE 250’s electricals retailer Dixons Carphone (LSE:DC) have charged over 15% higher to 140p over the last month at the time of writing, as locked-down consumers keep themselves entertained on their games consoles and TVs at home.

It’s been quite a recovery for the group whose shares closed at 136.65p on January 5th, 2020 before plunging to just 62.10p on April 19th just a few short months later, as the pandemic shuttered its UK high street and travel stores.

Despite further lockdowns across its 16 markets – including Denmark and Ireland – the group’s online business has kept sales rocketing. In its most recent market update it revealed a 11% growth in group electricals revenues in the 10 weeks to January 9th 2021, with UK online sales soaring 121%.

It also hailed an increase in online market share helped by innovations such as ShopLive, which allows shoppers to have a video call with staff and see product demonstrations.

Why I’m bullish

I believe that sales for the FTSE 250 firm will keep rising as the online shopping boom continues and its stores, fingers crossed, re-open in the UK on April 12th.

A public still denied the chance to sit inside a pub or cinema will continue to seek their entertainment indoors, especially with a ‘Summer of Sport’ ahead.

I see shoppers flocking to or going online to buy large Dixons Carphone TVs to watch the return of the Wimbledon tennis tournament and the delayed Euro 2020.

But the biggest driver of the share price in my view could be the UK Government clamping down on waste to meet environmental targets.

The UK generates around 1.5 million tonnes of electrical waste every year, and the Government hopes that a new Right for Repair law this Summer will help tackle the problem.

For the first time, electronic manufacturers will have to make spare parts available to help consumers fix broken-down technology, potentially increasing their life span by 10 years.

Consumers will not be expected to get underneath the machinery and fix it with their own screwdrivers and multiple swear words!

They, I believe, will turn to FTSE 250 constituent Dixons Carphone whose Knowhow Repair Lab is the biggest electricals repair centre in Europe. Through its National Recycling facility and partnerships with Reuse charities helping low-income households it has a clear ‘green’ lead over rivals such as Amazon.

The law could lead to fewer electrical goods being sold but I think growing repair demand will more than offset this.

Risks to consider

There are a few issues, however, that might stop me buying Dixons Carphone shares. The re-opening of society might see shoppers abandon their in-home entertainment systems and spend more time and money outdoors.

Another risk could be rival Amazon opening electricals-only stores. It has done it with food, so why not laptops?

I also fear that another annual statutory pre-tax loss on June 30, after two successive years in the red, could see Dixons Carphone’s price reverse.

However, online growth, store re-openings and its green leadership should help the FTSE 250 company to continue prospering.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Craik has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Hopes that the UK’s vaccination programme will lead to an ending of social contact restrictions on June 21st could mean commuters, holidaymakers and shoppers once more taking to the rails and roads in significant numbers.

The FirstGroup share price has taken a lockdown battering as workers staying at home, shoppers switching to online and the closing of holiday parks has decimated passenger demand.

Its shares dropped from 136.60p at the close on September 22nd 2019 to 38.22p on March 15th 2020, ahead of the first lockdown.

On December 10, it reported a 23.8% plunge in first-half revenues to £3.1 billion, having been hit by travel restrictions.

Its yellow school bus business in the US – First Student – saw revenues fall around 50%, with its iconic US Greyhound coach travel arm also dropping by the same amount.

Passenger revenues at the perhaps less glamorous First Bus in the UK fell 59.5%. However, First Rail – including contracts to run the Great Western Railway and TransPennine Express franchises – was bolstered by summer demand to see revenues climb to £1.7 billion from £1.3 billion.

It is that performance which gives me hope that an end of the lockdown will lead to recovery.

Since the results announcement, FirstGroup’s shares have climbed from 64.75p on December 11 to hit 91.45p on March 10th.

It has largely been boosted by the Government’s road out of lockdown and plunging Covid-19 infection numbers.

People cooped up at home are yearning for the seaside, to hit the shops again and go back to school.

I believe there will be nervousness about going back on to public transport, but for many people bus and train travel remains the cheapest and most environmentally friendly option.

Indeed, FirstGroup should also benefit from the green push towards Net-Zero as it ramps up its fleet of ultra-low emission vehicles.

Don’t be surprised also to see the UK Government introduce financial schemes to encourage a return to public transport. Seat out to help out perhaps?

The Government’s declaration in the recent Budget that it is also looking to power Northern transport infrastructure should be another boon for FirstGroup.

Another positive is the evolution of UK train contracting, as the Government moves from a revenue forecast franchising system to management-contract structures. In theory, this could be a lower risk model for FirstGroup.

Analysts seem to agree on the positive direction of travel. According to the Financial Times, the nine analysts offering 12-month price targets for FirstGroup have a median target of 80p, with a high estimate of 115p.

There are a couple of issues that might stop me buying FirstGroup shares. First is its huge £3 billion debt mountain and its stated intention to sell off its US divisions to help reduce it. Will there be the demand and price post-pandemic?

There is also the risk of another Covid wave and remote working impacting daily transport needs.

But overall, the return to something closer to normality should be positive for FirstGroup. A stronger UK focus should pay-off as the Government looks to ‘level up’ regionally and the public put on their staycation jumpers rather than their Costa del Sol shorts for the foreseeable future.

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David Craik has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.