Here’s a quick rundown of three great growth shares I’d buy right now.

Begbies Traynor Group

Insolvency specialist Begbies Traynor Group (LSE: BEG) has a great history of earnings growth. A steady stream of acquisitions mean annual profits growth has averaged more than 20% during the past five years.

City analysts think earnings here will rise by a more muted 5% in the current financial year to April 2023. However, given the worsening economic landscape I think these forecasts could be significantly upgraded in the weeks and months ahead.

The number of corporate insolvencies in England and Wales jumped 40% year-on-year in June, according to latest Insolvency Service figures. There’s a good chance the figure will keep climbing too as the cost-of-living crisis smacks British business.

This week the government announced fresh financial support for small businesses. Further action like this could hamper trading at Begbies Traynor. But, all things considered, I think it’s a top buy.

Bloomsbury Publishing

Book publisher Bloomsbury Publishing (LSE: BMY) is another top stock with a strong growth pedigree. And while forecasts suggest a rare earnings decline this year (to February 2023) I’d still buy the business today. Current forecasts suggest profits will fall 6% year-on-year.

You see, Bloomsbury is the home of Harry Potter. The Hogwarts wizard is a cash cow and as popular as he’s ever been (the series ranked among the company’s best-selling titles in the four months to June, financials this week showed).

The guaranteed revenues that Master Potter produces is a big boost to Bloomsbury’s bottom line. But it’s not the only reason I’d invest in the company today. I also like its successful drive into the world of academic publishing. Sales at Bloomsbury’s Academic and Professional division soared 49% year-on-year between March and June.

Bloomsbury is performing strongly today. But a growth investor needs to remember that a range of other media (video games, streaming and the like) still pose a long-term threat to the business.

Springfield Properties

Rising interest rates are a problem for homebuilders like Springfield Properties (LSE: SPR). However, this is a danger I think is reflected in the low valuations of these sorts of firms.

This particular growth stock trades on a forward price-to-earnings (P/E) ratio of 6 times. That’s based on predictions annual earnings will rise 30% in the current financial year (to May 2023).

Home prices continue to soar despite the current backdrop of rising rates and high economic uncertainty. Rightmove data this week showed average asking prices rose 9.3% in June. And this encouraged the property listings business to increase its full-year growth forecast to 5-7%.

Demand for Springfield Properties’ new properties continues to soar due to the UK’s chronic housing shortage. And it’s a situation I expect to deliver strong earnings growth here long into the future.

Spire Healthcare

Private hospital operator Spire Healthcare (LSE: SPI) is a UK share I’ve already bought for my Stocks and Shares ISA. I’m considering upping my holdings too as waiting lists for free treatment keep growing.

The British Heart Foundation said on Thursday that wait times for cardiac care grew for a 22nd straight month in April to an all-time high of 319,366 people. Lists are climbing across the NHS and this is driving patient numbers at the likes of Spire through the roof. Private patient revenues at this particular provider rose at a record pace in 2021.

I think stocks like this could be better placed than many others to weather the economic downturn as well. This is because spending on healthcare tends to remain broadly unchanged, even during bad times. Good health is something we can’t afford to take for granted.

I’m considering buying more of Spire despite the threat that rising staff costs pose to profits.

The Gym Group

Investing in companies that offer cheaper goods and services could work for me as consumer spending power falls. One way I’m thinking of doing this is by buying The Gym Group (LSE: GYM) shares.

People don’t stop working out when times get tough. They might however choose to do it at lower cost by joining a gym with cheap membership costs like The Gym Group. In fact, this operator’s low-cost model has helped turbocharge member levels since re-opening last April. It had 718,000 on its books at the end of 2021, up from 547,000 10 months earlier.

I could be tempted to buy the share today and hold onto it for the long haul too. I like its plans to significantly expand its gym network from 206 sites to above 300 by 2025.

The fitness industry is competitive, and The Gym Group will have to paddle hard to keep growing membership numbers. Still, I find the rate at which it has added members over the past year highly encouraging.

Bloomsbury Publishing

Reading is a relatively cheap pastime. So it makes companies involved in the book trade like Bloomsbury Publishing (LSE: BMY) attractive investments for me during this cost of living crisis.

The company’s exceptional trading news this week has boosted my appetite. Sales and profits rocketed 24% and 40% respectively to new highs in the last fiscal year (to February) as the upswing in book demand seen during the pandemic carried on.

I like Bloomsbury for other reasons too. It’s the home of Harry Potter, a cash cow whose sales continue to grow decades after launching. I also like the company’s successful foray into the realm of academic literature.

I’d buy the business even as soaring paper prices put profit margins under strain.

Battling the cyber threat

As sad as it is, Western nations spend colossal amounts every year on systems that protect their citizens. It’s a constant that stretches all the way back to the dawn of man. The battlefields are slowly changing however, and this provides opportunities for some defence companies to thrive. I think Ultra Electronics (LSE: ULE) is one of these.

This UK share is a specialist in the field of cyber security. Safeguarding ourselves in the digital age is becoming imperative as electronic attacks from other states, from terrorists and from lone hackers rise sharply. Just this week the British Foreign Office announced it was a subject to “a serious cyber security incident”.

Profits have been growing steadily at Ultra Electronics despite the pandemic. And City analysts think the bottom line will swell by an extra 4% in 2022 too. The threat that its systems could fail is a constant one. And it could have disastrous consequences that could smack future orders. But as of today, I think this leader in its field could be a very shrewd buy for me.

Making magic

Bloomsbury Group (LSE: BMY) is another solid earnings generator I’m considering investing in. This is despite the publishing industry facing unprecedented cost challenges as paper shortages emerge. The head of Hachette UK recently said that supply problems are the “most extreme” in at least a quarter of a century.

This has the potential to hit Bloomsbury’s profits hard. Costs could soar and the company could struggle to fill stores with its books. Still, from a long-term perspective, this is a UK share I think remains highly attractive. Reading as a hobby has really taken off since Covid-19 lockdowns. I expect Bloomsbury’s products to remain in high demand, even if the number of active readers begins to decline.

Bloomsbury is perhaps best known as the publisher of the Harry Potter series of books. The franchise’s success is astonishing given that the first book was released all the way back in 1997.

JK Rowling’s timeless series remains insanely popular with children and adults alike, helping earnings at Bloomsbury to grow and grow. A new generation of readers pick up the books for the first time each year, while revamped editions keep sales ticking over from existing fans too.

Bloomsbury though is about more than just wizards. The company’s digital academic publishing division just hit the ambitious sales and profits targets it set back in 2016. And Bloomsbury continues to grow this part of the business to meet strong student demand. It just paid £17.3m to acquire US-based academic publisher ABC-CLIO.

City analysts think Bloomsbury’s yearly earnings will rise 6% and 9% in the financial years to February 2022 and 2023 respectively. I think this is one of the best growth stocks to buy for the long haul.

Harry Potter publisher

Bloomsbury is a leading independent publishing house, established in 1986. It is perhaps best known for publishing the famous Harry Potter series of books and still owns the rights and benefits from sales to this day. Many of its authors have won the Nobel, Pulitzer, and Booker prizes for writing. It has offices in London, New York, New Delhi, Sydney, and Oxford.

As I write, Bloomsbury shares are trading for 389p. At this time last year, the shares were trading for 293p, which is a 32% return over a 12-month period.

For and against investing

FOR: One of the most important factors I look at in all my potential best shares to buy now is performance and track record. I do understand past performance is not a guarantee of the future, however. Looking back, Bloomsbury has increased revenue and gross profit year on year for the past four years. Coming up to date, a trading update released last month, providing a snapshot of upcoming full-year results, mentioned revenue and profit will be “comfortably ahead” of guidance for the year ending 28 February.

AGAINST: Competition in the publishing business is fierce and everyone is looking for the next big book or franchise that could be turned into the next Harry Potter. If a new smash hit is written by a competing publisher, this could affect demand for Bloomsbury’s products. This will affect performance and any returns I’d hope to make.

FOR: Nigel Newton founded the company in 1986 and is still involved now as CEO and a significant shareholder. I like when founder-owners have a vested interest in the company and possess a track record of navigating a company to success. This fills me with confidence and tells me his interests are aligned with that of shareholders, as he has his own money invested as a shareholder too.

AGAINST: Some of my best shares to buy now regularly acquire businesses in the same market. This can be to beat them as they are competing directly, or the other businesses can enhance its own offering. Bloomsbury has acquired three businesses in 2021. Sometimes, acquisitions don’t work out, however, so I must be wary of this. They may not integrate into the main business or firms like Bloomsbury may end up overpaying and paying the price financially.

One of my best shares to buy now

Overall, I like Bloomsbury shares for my holdings and would buy the shares at current levels. I think the current share price represents value with a price-to-earnings ratio of 15. In addition to this, I could make a passive income too through its dividend payments. I am aware that dividends can be cancelled, however. I do believe Bloomsbury is one of the best shares I could buy now and I’m keen on seeing full-year results in the coming months too.

Growing digital sales

Shoe Zone (LSE: SHOE) is a UK-based footwear retailer. The company sells via an estate of some 410 stores nationwide and its website, shoezone.com.

In January, with its full-year results report, the company posted a healthy profit after recording a loss in 2020. And a big growth area has been the 58% increase in digital trading during the period. Online sales generated revenue of £30.5m in the 12 months to 2 October 2021 — just under 26% of total revenue.

The company reckons its decision to invest in infrastructure and people before the pandemic enabled it to capture digital sales when customers buying habits changed. And I see the growth of e-sales as a positive for this business.

However, although revenue and cash flow both have a positive trajectory, earnings have been patchy. And the company isn’t paying shareholder dividends at the moment.

Nevertheless, I’m keen on the stock for its growth potential. And with the share price near 150p, the forward-looking earnings multiple is just below 14 for the trading year to October 2023. I’d describe that valuation as fair and I would aim to buy a few shares on dips and down-days to hold for the long term.

Diversified and growing sales

Harry Potter publisher Bloomsbury Publishing (LSE: BMY) produces academic, educational, fiction and non-fiction publishing for consumers, children, students, teachers, researchers and professionals.

In January’s trading update, the company said it expected revenue for the year ending 28 February to be “comfortably ahead” of the market expectations. And the news on profits was even better with the directors expecting them to be “materially ahead”.

City analysts expect earnings to grow by about 8% in the trading year to February 2023. But estimates are not guaranteed and it’s possible for Bloomsbury to miss its forecasts. However, with the share price near 372p, the forward-looking earnings multiple is just under 17 when set against analysts’ expectations. And the anticipated dividend yield is about 2.6%.

The valuation looks quite full to me. But I like the firm’s quality indicators and its strong balance sheet. For me, Bloomsbury makes an attractive candidate as a long-term hold.

Well-placed to benefit from infrastructure spending

Construction company Galliford Try (LSE: GFRD) operates a cyclical business. And that kind of set-up comes with risks for investors. But I think the firm is well-placed to benefit from infrastructure spending and could see a boom in its business in the coming years.

In January, the company issued an “in-line” trading update and a bullish outlook. The directors reckon Galliford Try is “well-placed to benefit from increasing Government investment in economic and social infrastructure”. And the firm’s pipeline of work with high-quality private sector clients is also “robust”.

City analysts expect earnings to increase by about 18% in the trading year to June 2023. And with the share price near 180p, the forward-looking earnings multiple is just under 11 when set against that forecast. And the anticipated dividend yield is around 3.9%.

I think that valuation looks fair. And I’m also encouraged by the company’s strong balance sheet with its robust net cash position. In conclusion, I’d be happy to make this stock a core holding in my portfolio with a five-year-plus investment horizon in mind.

According to the Bloomberg Billionaires Index, Elon Musk, Jeff Bezos, Larry Page, Sergey Brin, and Mark Zuckerberg have collectively lost over $120bn in January. Out of the nine richest individuals in the world, only Buffett’s net worth has increased so far in 2022, and by $2.4bn.

The most popular investor in the world has remained a stock market success for over six decades. And along the way, he has left us with nuggets of investing wisdom that I try and use to build my portfolio. Here are two UK shares on my watchlist that I think Warren Buffett would approve of.

Warren Buffett’s hunt for value stocks

“Price is what you pay; value is what you get”. I think This Warren Buffett quote from 2008 is a lesson every new investor should take on. This rings true in the age of crypto where every new coin attracts a horde of what I like to call crypto zombies. Ignoring the fundamentals and future potential of a company and simply jumping on a bandwagon usually ends badly.

Let me explain this with an example. The electric vehicle (EV) boom since the COP26 summit is common knowledge. And Elon Musk’s Tesla (NASDAQ: TSLA) is the big driver behind this market. In late 2021, I thought an investment in Tesla stock was a no-brainer. The company always had a huge order book and has managed to constantly wow customers and remain in the public eye.

But when I peeked under the Tesla curtain, I noticed several issues preventing expansion, including procuring raw materials and regulations. And then there’s the incredibly inflated valuation of the Tesla stock in December, when it was trading at a price-to-earnings (P/E) ratio of over 200 times.

Had I purchased Tesla stock in December, my investment would be down nearly 20% today. Although it is plausible that Tesla stock will grow well over the next decade or so, I think the downside outweighed the value that the company offered in December.

However, I see many value investments for my portfolio right now and Bloomsbury Publishing (LSE: BMY) stands out. Its latest trading update showed that group pre-tax revenue is on track to exceed previous guidelines. Figures show that the publisher is on track to finish 24% above the previous profit estimations. This also puts the company on track to raise yield to over 2.5% in the next two years.

There are risks to consider as well,  like rising competition from other publishers and the changing landscape of storytelling. The visual medium is far more popular than the written word and it is bound to eat into the market slowly but surely. But I think Warren Buffett would approve of the value it offers as an investment and I am definitely considering it over several trending stocks right now.

Using cash in hand

Warren Buffett is a lot more than just a value investor. His company, Berkshire Hathaway, also looks at prudent factors like how a company reuses the revenue it generates. And it is not all about dividends or share buybacks either.

Buffett believes that acquisitions are a great way for a company to grow its ‘moat.’ And Buffett describes a business moat as assets that a company can fall back on in testing times. This includes patents, intellectual property, trademarks, and brand recognition. By acquiring smaller businesses, companies can eliminate competition, gain access to restricted resources, and grow faster.

An example of such a buy from Warren Buffett is the US$1bn investment in Amazon (NASDAQ:AMZN) in 2019. At the time, the e-commerce giant was trading at a P/E ratio of 60, which points to an overvalued stock. A big no-no for the Oracle from Omaha. But what impressed Buffett was Amazon’s aggressive expansion through acquisition strategy. The company managed to turn revenue from the razor-thin margins of the e-commerce business into a media empire by purchasing distribution rights to major productions. 

Buffett bought Amazon stock at $1,850. It is currently trading at $3,158, up 70% since 2019. Although I wouldn’t invest in Amazon stock today, there are some UK companies that reinvest cleverly. One company that stands out is Diageo (LSE:DGE). With a huge cash reserve of over £1.6bn, the interim report shows how the company has grown its sales and revenue figures steadily by amassing a large number of popular alcohol brands. The company also recently acquired Casa UM, a premium artisanal mezcal brand, to grow regional alcohol offerings as well.

And despite growing regulations with overseas alcohol trade and increasingly health-conscious youth, I think Diageo has a strong hold on the alcohol market for the foreseeable future. The large portfolio of brands, international presence, and robust financials means this is a must-have value stock for my portfolio today.

Invest in what you know, but do not overdo it

This old Buffett adage is well-known investing advice. But I don’t see a lot of my young investor friends really following this. As a tech reporter and gaming enthusiast, I follow the sector a lot. And this puts me in an optimal space to invest in UK’s booming gaming market today. But this does not mean I invest in every promising UK gaming venture. In fact, Warren Buffett is big on holding onto excess savings and picking the right stock at the right time. 

The gaming market is huge and just broke the $300bn barrier. The metaverse expansion and the sudden expansion in the potential of the industry is very uplifting. But the sector is still recovering from unchecked progress during the pandemic. Inflated valuations have left most UK gaming stocks bloodshot in the last six months. And despite my bullish stance on the industry and the growing involvement of UK gaming studios in global projects, I think the wise thing for me to do here is to watch UK gaming companies closely over the next few months and invest when the whispers of recovery grow louder.

The investment case

Bloomsbury was the original publisher of the hugely successful Harry Potter books, and it still benefits from strong sales of the series. Indeed, in the half-year results to 31 August, Harry Potter and the Philosopher’s Stone was the UK’s fourth bestselling children’s book of the year-to-date. Remarkably, this was 24 years after it was first published. New stories are still being released, too. It provides Bloomsbury an excellent base for earnings and cash flow generation.

There’s also diversification in the business because Bloomsbury has a non-consumer publishing division. It covers Academic & Professional, Educational, and Special Interest publishing, which the company says generates more predictable revenue at higher margin. I’ve also been impressed by the launch of Bloomsbury Digital Resources (BDR). It’s an online research portal for the education sector and has been growing well of late. In fact, Bloomsbury recently said BDR reached its six-year target of £15m of sales and £5m of profit by the year ending 28 February 2022 (FY22).

Bloomsbury also released a positive trading update for FY22 this month, saying “revenue is expected to be comfortably ahead and profit materially ahead of market expectations.” It prompted City analysts to upgrade their own forecasts for the company. Revenue is now expected to rise by 12% in FY22, and profit before tax by 24%.

The valuation is reasonable to my mind. Based on a forward price-to-earnings ratio, the shares trade on a multiple of 18. This should fall to 17 in FY23 on forecasted earnings growth of 9%. However, I think Bloomsbury will beat these forecasts next year given the positive trading momentum right now. Also, the forward dividend yield is 2.5%, which is a good level of income for my portfolio.

Risks to consider even with my best stocks to buy

The first risk I see to Bloomsbury is competition for the consumer publishing division. Any new popular book, or a new trend within the wider entertainment sector, may reduce demand for Bloomsbury’s products.

The company has also been acquisitive of late. Bloomsbury acquired three businesses in 2021 to strengthen its consumer division, and Bloomsbury Digital Resources. There’s never a guarantee that another business will integrate well with the acquiring company. Different cultures might not blend well together, and there’s always a risk of overpaying for the business itself.

However, one final strength of Bloomsbury comes from the CEO, Nigel Newton. He founded the company back in 1986 and has grown the business to where it is today. Newton also retains a significant shareholding in Bloomsbury. This gives me confidence that his interests are fully aligned with shareholders.

Taking everything into account, I view Bloomsbury as one of my best stocks to buy today. I’d add to my position in my portfolio.

UK shares for growth 

4imprint (LSE: FOUR) is a direct marketer of promotional products. These are the promotional products companies give to their clients, such as branded pens, water bottles and T-shirts. 

This market might not seem all that exciting, but it is big business. 4imprint has multiplied over the past five years, capitalising on its position in the market and re-investing for growth. Sales nearly doubled between 2016 and 2020, although they fell 50% when the pandemic hit. 

Going forward, sales could remain under pressure if events and marketing activity does not return to pre-pandemic levels. This is probably the most considerable risk to the group’s growth right now. 

Despite this potential headwind, City analysts think the company’s earnings could rebound to pre-pandemic levels by 2023. From there, the group will be able to build on its position to expand its footprint further, suggesting its outlook will only improve over the next few years. 

Near collapse

If 4imprint struggled during the pandemic, On The Beach (LSE: OTB) had a near-death experience. The company has been haemorrhaging money for the past two years, relying on investors to keep the lights on. 

With the international travel market beginning to reopen, it looks as if the outlook for the business is starting to improve. City analysts believe the business will return to profit in its current financial year and build on this growth in fiscal 2023. 

Of course, there is no guarantee this growth will materialise. Challenges the corporation will face include additional coronavirus-induced restrictions and the rising cost of living. Higher prices could also lead to a delay in spending. 

Still, even considering these headwinds, I think the company’s outlook will improve significantly over the next two years. That is why I would add it to my portfolio of UK shares with growth potential. 

Charging ahead

As the two firms above struggling with the pandemic, Bloomsbury Publishing (LSE: BMY) knocked it out of the park. Profits have increased by around 50% since 2020 as the demand for books has surged. 

The company is planning to build on this growth in the years ahead. It is using its pandemic windfall to fund new growth initiatives, such as its online learning platform. It is also continually hunting for new authors to add to its catalogue of books. 

This is a bit of a hit and miss process. The enterprise’s most successful association has been the Harry Potter franchise, but there is no guarantee it will find another blockbuster. A string of poor decisions could leave the company struggling with declining sales and profits. 

Even considering this challenge, I am excited by the group’s prospects. It has a cash-rich balance sheet with no debt and supports a dividend yield of 2.8%. Considering these qualities, I think this is one of the best UK shares to own now. 

Rupert Hargreaves: Bloomsbury Publishing

Bloomsbury Publishing (LSE: BMY) is my top British growth stock for January. A rise in the demand for reading material through the coronavirus pandemic has generated windfall profits for the company over the past two years.

Bloomsbury aims to capitalise on this newfound love of reading in the years ahead. Analysts believe this will translate into earnings growth of 11% this year and 10% in 2023.

Of course, this growth is not guaranteed. Rising inflation could cause consumers to cut back on spending on non-essential items like books. Despite this headwind, I would buy the stock for my portfolio.

Rupert Hargreaves does not own shares in Bloomsbury Publishing.

Zaven Boyrazian: Frontier Developments

Frontier Developments (LSE:FDEV) is a game development studio and publishing house. It’s responsible for a popular collection of titles, including Elite Dangerous and Jurassic World Evolution.

The stock took a significant hit in 2021 after management lowered its revenue guidance due to underperforming sales. However, its first entry of the Formula 1 franchise is coming out later this year, along with multiple other projects through its publishing arm.

Personally, I think the lineup of new releases could drastically boost sales again. And with further franchise titles coming out in 2023, including Warhammer, the stock looks like it has excellent growth potential in my mind.

Zaven Boyrazian owns shares in Frontier Developments.

Royston Wild: B&M European Value Retail 

City analysts don’t expect B&M European Value Retail (LSE: BME) to record ripping earnings growth in the near term. In fact, they’re expecting profits to reverse over the next 12 months or so as supply chain costs balloon. It’s my opinion, however, that earnings could actually surprise positively as shoppers seek out bargains in this high-inflationary environment. Indeed, B&M’s trading statement in early January showed profits exceeding analyst estimates.

This FTSE 100 share is unlikely to be a flash in the pan. Discount grocers Aldi and Lidl have grown rapidly over the past decade as consumers prioritise value. Encouragingly, B&M is expanding rapidly to make the most of this opportunity, too.

Royston Wild does not own shares in B&M European Value Retail.

G A Chester: Gym Group 

Low-cost operator Gym Group (LSE: GYM) was expanding and delivering strong revenue and cash-flow growth before the pandemic. Inevitably, government-mandated shutdowns had a negative impact on the business. 

There remains some risk from coronavirus, but I think Gym is cheaply valued on its pre-pandemic cash flows. Furthermore, it’s well funded to exploit an unprecedented growth opportunity coming out of the pandemic. 

Due to large numbers of store closures in UK towns and cities, the company has been offered dozens of high-quality sites on attractive terms. Management has never seen the property market so favourable and is taking full advantage to accelerate expansion. 

G A Chester has no position in Gym Group.

Ed Sheldon: Sage

My top British growth stock for January is Sage (LSE: SGE). It’s a leading provider of cloud-based accounting and payroll solutions with a focus on small and medium-sized businesses.

I’m bullish on Sage for a couple of reasons. Firstly, I expect the company to benefit from the ongoing global economic recovery. Better economic conditions should lead to higher demand for the company’s accounting solutions.

Secondly, the valuation seems very reasonable. Currently, Sage sports a forward-looking P/E ratio of around 32. By contrast, US rival Intuit currently trades at around 50 times this year’s forecast earnings.

One risk to consider here is competition from Intuit and other players such as Xero. I think this risk is baked into the valuation, however.

Edward Sheldon owns shares in Sage and Xero.

Roland Head: Electrocomponents

Profits at industrial and electronic parts supplier Electrocomponents (LSE: ECM) have risen by an average of 40% per year since 2016.

According to CEO Lindsley Ruth, trading was strong during the third quarter. He now expects results for the year to 31 March to be ahead of broker forecasts. My sums suggest we could see earnings growth in excess of 40% in 2021/22.

The main risk I can see is that with the stock trading on 26 times forecast earnings, any disappointment could cause the shares to slide. However, I expect further growth.

Roland Head does not own shares of Electrocomponents.

Christopher Ruane:  S4 Capital

After strong growth for most of 2021, digital ad group S4 Capital (LSE: SFOR) fell in the final quarter. It had a weak start to 2022. Like S4 boss Sir Martin Sorrell, I have increased my holding this month.

One risk is the cost of integrating acquisitions eating into profits. But the company continues to grow aggressively, acquiring another US agency this month. For 2022 it is targeting 25% growth in both gross profit and net revenue. S4 is set to benefit from growing spend on digital advertising. 

Christopher Ruane owns shares in S4 Capital.

Paul Summers: Biotech Growth Trust

Last year was pretty awful for shareholders of minnow-focused Biotech Growth Trust (LSE: BIOG). As a patient, long-term investor, however, I’ve been taking this period of selling pressure as an opportunity to load up.

Whether 2021 will see a return to form is hard to say. On an optimistic note, directors believe the valuations given to small-cap stocks in the sector are now “very compelling”. A rise in merger and acquisition activity, the passing of price legislation in the US and increased regulatory approval of drugs (held up by the pandemic) could also spark a recovery.

Paul Summers owns shares in Biotech Growth Trust

Harshil Patel: Alpha FX 

My top British growth stock for January is financial solutions company Alpha FX (LSE:AFX). It’s a founder-led British business focused on two areas: foreign exchange risk management and alternative banking. 

Trading has been strong, and the company has proven sales and profit growth over several years. I like that it has a diversified client base and client numbers are also growing.  

I’d say not only is Alpha FX a growth stock, but it’s also a good quality business with a double-digit profit margin. 

With a market capitalisation of under £1bn, I reckon it has much room to grow further.  

Harshil Patel does not own shares in Alpha FX.

But there are still plenty of great UK shares I think should thrive irrespective of the public health crisis. So let’s put Covid-19 to one side for a second and keep things cheery.

Here are three such British stocks I’m considering buying this Christmas. Each costs less than £5!

A magical UK share

Harry Potter is the gift that keeps on giving for Bloomsbury Publishing (LSE: BMY). It’s been a quarter of the century since JK Rowling’s boy wizard hit the bookshelves and yet readers remain spellbound by his capers.

This makes Bloomsbury one of the most secure media shares to buy in my book. According to Nielsen, Harry Potter and the Philosopher’s Stone was the fourth highest-selling children’s book in the six months to August.

But Bloomsbury is about much more than Harry Potter. Its foray into academic publishing is also paying off handsomely and sales here soared 32% between March and August.

I think this cheap UK share’s a top buy, even though poor reviews of a new title could have a significant impact upon group sales. Bloomsbury trades at 345p per share right now.

The gaming great

Video game sales have rocketed over the past decade as gaming as a mainstream pastime has taken off. I’ve invested in software development support company Keywords Studios to grab a slice of this action.

And I’m tempted to invest in one of London’s listed games publishers like tinyBuild (LSE: TBLD) too following Keywords’ latest update on Monday. Then it said it was hiking full-year profits forecasts thanks to what it described as a “buoyant” video games market.

Investing in publishers like tinyBuild carries a higher degree of risk than services providers like Keywords. Competition in the games market is intense and smaller publishers like these lack the resources of the mega studios like Electronic Arts and Activision Blizzard to win consumer attention.

But I’m encouraged by tinyBuild’s track record of making highly-popular games such as Hello Neighbor. This tech company trades at 187.5p per share.

A top penny stock I’d buy

As a long-term investor, there’s a lot I like about Hornby (LSE: HRN) shares. Demand its train sets, miniature cars and model kits isn’t likely to explode any time soon. But I love the decades-old appeal that its brands like Corgi, Airfix and Hornby command with hobbyists.

I feel certain they will continue to draw in revenues many years from now. Latest financials showed sales rise 3% in the six months to September.

My main concern with Hornby are supply chain problems that could hit manufacturing and push up costs. That said, I believe the benefits of owning this cheap UK share more than offset the drawbacks. Penny stock Hornby trades at 40p per share.