So, if you’ve entered a competition, paid for car parking, or donated to a good cause using your mobile phone (to name just a few examples), it’s possible that Fonix allowed you to.

In an increasingly-cashless and mobile-dependent society, this ‘nearly’ penny stock looks in good shape to thrive. The number of customers on its books grew 13% year-on-year during the 12 months to June 2021.

Fonix is also looking to take its expertise onto mainland Europe too to help give profits growth an extra boost. Its first foray onto foreign shores will see it launch in Austria in the near future.

I’d buy Fonix even though its dependence on a handful of key customers creates a risk to future profits.

In its 2020 financial year, the UK share generated 83% of gross profits from its top 10 clients. The loss of one or more of these businesses to a competitor could clearly have significant ramifications for profits. Fonix shares go for 167p a pop right now.

Another ‘nearly’ penny stock I’d buy

Everyman Media Group (LSE: EMAN) is another cheap UK share that’s attracting my attention right now. Unlike Cineworld, which is buried in debt and faces colossal competition from the likes of Netflix (more on this later), I think this cinema operator has a chance to thrive as Covid-19 restrictions are rolled back.

Box office takings are soaring in Britain right now. Vue was the latest large chain to release promising ticket sales data in late July. Then it said that UK admissions recently stood at 70% of the average recorded in the three years prior to Covid-19. This was despite capacity restrictions and social distancing when theatres reopened.

There are, of course, significant threats to cinema operators like Everyman. The Covid-19 crisis is far from over and any significant surge in infection rates could close the industry down again.

And, as I mentioned earlier, the US streaming giants like Netflix, Amazon and Disney provide significant competition for the cinema industry. Black Widow star Scarlett Johansson’s move to sue Disney as simultaneous streaming of the film decimated box office takings provides perfect evidence of this.

However, I think Everyman is in good shape to fight off the streamers. Its cinemas don’t just offer the chance to grab the latest mainstream movie. Its boutique venues offer a unique experience where visitors can also watch an independent or classic movie with a glass of red and some gourmet food.

Priced at 141p per share, this ‘almost’ penny stock is another great low-cost UK share I’d buy right now.

Fonix Mobile

Mobile payments and messaging firm Fonix Mobile (LSE:FNX) enables businesses from the media, charity, digital services and gaming sectors to charge users’ mobile bills. An example would when people donate to the BBC’s Children in Need campaign.

Right now, trading is good. Revenue and gross profit rose by 25% and 22% respectively over the second half of 2020. A pipeline of clients means more growth is expected in 2021.

In addition to being in a rapidly expanding area, Fonix also boasts staggeringly high returns on capital employed (ROCE). Companies that can do this consistently tend to create huge value for shareholders. No wonder star fund managers like Terry Smith and Nick Train pay so much attention to this metric. 

Naturally, investors need to be cautious. Fonix only arrived on the market last October so it’s still early days. I also question just how much of an ‘economic moat’ it really possesses. Still, the performance of the share price over the last year (+82%) does suggest investors are willing to give management the benefit of the doubt, for now.

tinyBuild

US-based video games company tinyBuild (LSE: TBLD) is another new AIM stock that could do well for investors over time. Its mission is to create long-term partnerships with developers and monetise popular titles across different forms of media. The puzzle game Hello Neighbour is one example of this.

Gaming remains a hot sector that should continue growing rapidly for the foreseeable future. Like all stocks however, there can be no guarantees tinyBuild will perform. Its shares also trade at 49 times forecast earnings. That kind of valuation will only seem reasonable to the most optimistic market participants.

A relatively small ‘free float’ (the number of shares available for investors to buy in the market) also implies the price may be volatile going forward.

On a positive note, tinyBuild’s founders still have big holdings, which should mean their interests are aligned with those of their investors.  The firm also boasts a strong balance sheet — one of the things I look for when buying small-cap shares.

Ilika

Ilika (LSE: IKA) is a final AIM stock I think has big potential. It’s focused on developing solid state batteries for applications such as the Internet of Things and electric vehicles. These have a number of benefits over traditional lithium-ion batteries, such as faster charging, longer life and non-flammability. As such, mass adoption seems to be a case of ‘when’ rather than ‘if’.

Notwithstanding this, Ilika is still loss-making. This probably makes it only suitable for risk-tolerant investors. Investors must also reflect on how well the shares have performed over the last year (+500%!) and whether a lot of hope is priced in.

Should markets shift into reverse gear as a result of ongoing concerns over inflation, blue sky stocks like Ilika could be hit harder than most. Then again, this might be the perfect time to begin building a position if buyers are content to be patient for the spoils that could lie ahead.

Rupert Hargreaves: Frasers

As the country slowly moves out of lockdown, I think Frasers (LSE: FRAS) could be one of the big winners. Formerly known as Sports Direct, the company is one of the UK’s most successful retailers. As the UK reopens, I expect sales and profits to rebound.

Led by the outspoken CEO Mike Ashley, Frasers has also been snapping up distressed retail assets throughout the crisis. I think these deals could help turbocharge the group’s recovery in 2021.

That said, the main challenge facing the business right now is the potential for another wave of coronavirus. This could set back the group’s growth plans.

Rupert Hargreaves does not own shares in Frasers.

Nadia Yaqub: Saga

I reckon things look promising for Saga (LSE: SAGA). The company’s customer base is the over-50s, which are typically loyal and have more money to spend. The UK vaccine roll-out for this demographic has so far been successful.

Saga recent results were dismal. But I think the fact that it has seen a 20% increase in cruise bookings indicates there is pent-up travel demand. I’m not really worried about the company’s debt pile. I reckon once travel restrictions are eased, Saga’s revenue and profitability could bounce back soon.

Nadia Yaqub does not own shares in Saga.

Jamie Adams: Auto Trader

After delivering a stellar 35% return over the last year, the Auto Trader (LSE: AUTO) share price has plateaued in 2021.

Fears of declining advertising spend and semiconductor shortages are playing on investors’ minds.

However, following a recent report from the Interactive Advertising Bureau in the US, ad spend has never been higher worldwide. Auto Trader’s dominant position in the auto industry’s advertising market will benefit from increased spend from sellers as well as a potential car sales boom as people spend their lockdown savings.I see this growth stock’s recent dip as a buying opportunity in April.

Jamie Adams owns shares in Auto Trader.

Royston Wild: Trifast 

I think that fastenings manufacturer Trifast (LSE: TRI) is an excellent UK growth share to buy today. City analysts are expecting the business to report annual earnings growth of 26% in the financial year to March 2022. 

I think Trifast is a particularly-good buy today as it’s due to release a pre-close update for fiscal 2021 on Thursday, April 22. Last time the UK share updated the market in February it said that “trading levels continue to strengthen” and that it consequently expected revenues for the full year to be “slightly ahead of current market expectations.” Be warned, though, that a sudden worsening in the Covid-19 battle could cause severe supply disruptions that might derail this recovery. 

Royston Wild does not own shares in Trifast.

Harshil Patel: boohoo group 

Boohoo group (LSE:BOO) is determined to expand its business over the coming years with its powerful online-only platform in the fast-fashion sector.  

Over several years, it has consistently produced double-digit earnings growth. Both organically and through acquisitions. Recently, the group acquired several brands including Warehouse, Debenhams, and Dorothy Perkins. 

There are further signs of expansion from recent purchases of a new large warehouse in Daventry and a new freehold office building in Soho for its London-based brands. 

Overall, it offers a return on capital of 27% and net cash on its balance sheet. All at an undemanding price-to-earnings ratio of 33.  

Harshil Patel owns shares in boohoo group.

Zaven Boyrazian: Alpha FX

Alpha FX (LSE:AFX) is a currency hedging and international payments solution business that serves over 600 clients, including ASOS and Holland & Barrett.

Its services have proven to be incredibly popular, especially its relatively new global enterprise payment network. Revenue generated by this segment in 2020 grew by 417%!

Currency risk management is currently the larger contributor to overall revenue. And performing such services requires an incredibly high level of skill since the slightest mistake could lead to substantial losses.

But given its successful track record and enormous growth opportunity in international payments, Alpha FX is a stock I want to buy more of for my portfolio.

Zaven Boyrazian owns shares in Alpha FX.

Christopher Ruane: B&M

Discount shop chain B&M (LSE: BME) had a stellar 2020. But so far in 2021 shares have only added 5%.

I think many investors are wary that the chain, which saw a big sales boost in lockdown, could suffer from reopening. There is a risk that new shoppers won’t be loyal to the chain, in a highly competitive retail environment.

However, the company’s retail prowess and compelling customer proposition already led to it performing well before lockdown. I expect to see strong numbers from the chain again this year.

Christopher Ruane does not own shares in B&M.

Kevin Godbold: Fonix Mobile

Mobile payments and messaging services provider Fonix Mobile (LSE: FNX) arrived on the FTSE AIM market in October 2020. However, the growth stock was first established in 2006. And prior to its admission to AIM the business delivered fast-paced, profitable growth.

Looking ahead, City analysts expect low, double-digit percentage earnings growth in the current trading year to June 2021 and for the year after that. And with the share price near 182p, the forward-looking earnings multiple is just below 24. However, the stock has been rising since listing. And at £182m, the market capitalisation has already doubled. Nevertheless, I reckon the growth proposition looks resilient here.

Kevin Godbold owns Fonix Mobile shares.

G A Chester: Gamma Communications 

A suite of products across instant messaging, video conferencing and other media, combined with ‘always-on’ and ‘work-from-anywhere’ connectivity, make Gamma Communications (LSE: GAMA) a leader in the fast-growing unified communications as a service (UCaaS) market. 

Furthermore, the company has recently established footholds in mainland Europe with several strategic acquisitions. The UCaaS market in Europe is behind the UK but heading the same way. While there’s no guarantee Gamma will be able to replicate its UK success on the Continent, the growth opportunity is huge. As such, I think a rating of 35 times last year’s earnings could prove cheap. 

G A Chester has no position in Gamma Communications.

Edward Sheldon: ASOS

My top British growth stock for April is online fashion retailer ASOS (LSE: ASC).

ASOS posted a fantastic set of half-year results earlier this month. For the six months to 28 February, group revenue was up 25% at constant currency to £1,976m, while diluted earnings per share (EPS) were up 198% to 81.9p. As a result of this performance, the company increased its guidance for the full year.

Since the company posted these results, its share price has fallen. I view this share price weakness as a buying opportunity. There are risks to the investment case, of course, however, with the forward-looking P/E ratio in the mid-30s, I think it’s a good time to be buying the stock.

Edward Sheldon owns shares in ASOS.

Jonathan Smith: The Hut Group

The Hut Group (LSE:THG) is a British e-commerce business. It owns brands such as MyProtein and LookFantastic that have large online revenues. It also helps other businesses improve marketing capabilities due to real-time customer data, with past clients including Honda and Nestle.

THG went public last year and is trading well above the IPO level. In a recent trading update, 2020 revenue was shown to be 41.4% above 2019 levels. In guidance given, management expect 2021 revenue to be 30-35% above 2020 levels! This positive momentum that the business has makes me want to get in on the action.

Jonathan Smith has no position in The Hut Group.

Roland Head: Auto Trader Group

The pandemic has accelerated the development of online car retailing. I don’t see this trend reversing, at least not completely.

I’d tap into this growth by investing in classified listing business Auto Trader Group (LSE: AUTO). I expect this business to perform well as the UK returns to normal (hopefully) in 2021.

Auto Trader’s dominant market share means it’s an essential service for most used car dealers. The business generates very high profit margins — 65% last year, even with the impact of the pandemic.

Auto Trader shares never look cheap, but I think the stock’s forecast P/E of 26 is fair. I’d buy these shares in a Stocks and Shares ISA for long-term gains.

Roland Head has no position in any share mentioned.

Paul Summers: boohoo Group

boohoo (LSE:BOO) has been in the headlines for all the wrong reasons recently. Nevertheless, I’m confident the steps taken to rectify issues with suppliers will see the fast-fashion growth stock emerge as a bigger and better company in time. 

Shares remain below the highs hit in mid-2020. With people looking for new clothes to wear out to fully ‘unlocked’ bars, however, this gap will likely close before long. Factor in a raft of recent acquisitions (e.g. Debenhams) and a bulletproof balance sheet, and a normally-frothy forecast P/E of 33 actually looks great value for the growth on offer.

Paul Summers owns shares in boohoo Group.

Tom Rodgers: Open Orphan 

Human challenge vaccine and antiviral clinical trial operator Open Orphan (LSE: ORPH) is starting to spin out non-core assets from its main business, adding extra value for shareholders. And with the share price around 50% higher in the last month, more investors are starting to see the potential here.

If it can hold this momentum, the £295m market cap business will become one of AIM’s 100 largest companies when the index is reconfigured in May 2021. Now profitable month-on-month and with around £20m cash on its balance sheet, all eyes are on FY20 results, likely coming in June 2021.    

Tom Rodgers holds shares in Open Orphan

Andy Ross: Calnex Solutions 

Calnex Solutions (LSE: CLX) specialises in testing and measurement services for telecommunication (5G) networks. Given the UK has just had its 5G spectrum auction, investor interest in telecoms service providers ought to be high.  

With a market capitalisation of only around £100m, the company is smaller and should be able to grow quickly. Especially as results have been good. A trading update in February showed a probably bright future, as it revealed that revenue for FY21 would be ahead of market expectations.  

The main risks with this share are twofold. One is that as it reports in US dollars, a weaker dollar could hurt profitability. The other is its valuation. The P/E ratio is around 29. Overall, though, I think it’s a top British growth stock.  

Andy Ross does not own shares in Calnex Solutions.

Kirsteen Mackay: Pets at Home Group  

I think Pets at Home Group (LSE:PETS) will continue to grow throughout April. That’s because the UK is beginning to re-open, and people are getting out and about in the sunshine with their dogs. Pet purchases exploded in the pandemic and the trend does not appear to be subsiding. The BBC even reported a pet food shortage across supermarkets last month. Pets at Home has a price-to-earnings ratio of 33, earnings per share are 13p and it offers a dividend yield of 1.6. 

Kirsteen Mackay does not own shares in Pets at Home Group.

The brilliant thing about investing in a Stocks and Shares ISA is that all of my capital gains and dividends are free from tax. If I was to buy these shares outside of a Stocks and Shares ISA, I could be forced to pay tax when I come to sell. There is a tax-free allowance of £12,300 for capital gains. But if my investments are above this limit, then I’d have to pay tax.

So to my two top UK shares for April 2021.

Open Orphan

Open Orphan (LSE:ORPH) is a popular healthcare stock: not a biotech but a pharmaceutical services business. That means it doesn’t engage in the risky and costly R&D of drug development. Instead it provides all the background data management and clinical trial services for vaccine and antiviral giants worldwide. Its clients include the likes of Pfizer and Johnson & Johnson.

It is most famous for helping to run the world’s first Covid-19 human challenge trials, winning a £46m UK government contract in October 2020. It also plans to spin off at least four major assets into separate companies. These include selling its novel disease data platform Disease in Motion to wearables giants like Google and Fitbit. Because I already own ORPH, I’ll get shares in each of these new companies in my Stocks and Shares ISA when that happens.

Because it is listed on AIM, it’s a relatively riskier buy than a company on the FTSE 250 or FTSE 100. Companies on this market have less stringent financial reporting requirements than on the higher tier. 

Executive Chair Cathal Friel recently put a $1bn (£720m) valuation target on Open Orphan. That would give the business a share price of around £1.10, 266% higher than today’s 30p price.

Fonix Mobile

The next share I’d like to buy for my Stocks and Shares ISA in April is Fonix Mobile (LSE:FNX). This £160m market cap business focuses on mobile payments and mobile messaging. It has some very big blue-chip names as clients, including ITV, Channel 5, and Bauer Media.

It’s a relatively recent float on AIM, which does present risks. Companies only a few months from their IPO date can rise quickly on buzz and hype alone.

Digging back through Fonix Mobile’s financial statements before it went public, I can see that the company had already produced tens of millions in revenue. Profit before tax was up 49% in 2017 and 83% in 2018. And in its most recent full year to June 2020, revenues were up 29% to £40m with profits 53% higher at £7.1m. I can see that it produced a 260% return on equity and a 286% return on capital. So I know that Fonix Mobile is using its cash extremely well to grow. 

In its half-year report to 31 December 2020 CEO Rob Weisz noted that Fonix would also pay its first-ever dividend. It’s not huge, at 1.7p per share. But given the company’s stonking growth? I can see Fonix Mobile chucking off cash for shareholders for years to come.