I don’t think now is the time for UK share investors to run for the hills, though. Sad though the situation is, there are plenty of British stocks I think could experience a demand spike in 2022, even when the crisis eases. Here are three top stocks I’m thinking of buying right now.

A top e-commerce stock

The worsening public health emergency could boost demand for the services of UK shares like DX Group (LSE: DX) considerably. Data from fellow courier ParcelHero has shown that late online gift deliveries for Christmas jumped 17% this week as shoppers deserted physical retail. I expect this trend to continue, whether or not the Government announces formal lockdowns.

E-commerce was on course to continue growing solidly even without this fresh Covid-19 surge. Indeed, I’ve previously backed DX Group to thrive as retailers invest heavily in their online operations to attract customers and consumer technology improves. DX’s latest financials showed revenues up 16% year-on-year in the financial year to June 2021. I’d buy this penny stock even though profits could suffer if the economic slowdown hits broader consumer confidence.

Thinking outside the box

I think Parsley Box Group (LSE: MEAL) has a few tricks up its sleeve that could help it thrive during the ongoing pandemic. Its role as a food retailer should serve it well as people will need to eat whatever happens. Its deliver-to-your-door model should boost sales as people avoid physical retail too. This could be particularly valuable given its focus on making meals for elderly people. This is the demographic for which shielding is particularly important during the pandemic.

My main concern for Parsley Box is the huge competition posed by established online grocery giants Tesco and Sainsbury. I’m still convinced though that it could deliver decent shareholder returns as Britain’s rapidly-ageing population offers ample opportunities for growth.

Playing the video games boom

A long and bumpy road out of Covid-19 could also give video games demand a shot in the arm. Sales of recreational software ballooned during recent lockdowns and many developers saw revenues soar. This is why I think Team17 Group (LSE: TM17) could be an intelligent stock for me to buy right now. The studio saw record first-half sales and profits earlier in 2021.

But like Parsley Box, Team17 also operates in a congested industry. A quick look on Amazon will show there’s no shortage of video games all vying for players’ attention. However, the success of titles like Overcooked! and Worms Rumble show that this UK share has the formula to compete with some of the world’s biggest studios. And the outlook for the games industry looks pretty rosy beyond the short-to-medium term too. Analysts at Mordor Intelligence think the global games industry will grow to be worth $314.4bn by 2026. That compares with the $173.7bn it was valued at last year.

Box clever

Food retailer Parsley Box Group (LSE: MEAL) hasn’t had an easy ride since its IPO back in April. In fact it’s halved in value from its launch price as investor confidence has eroded. It was last trading just above penny stock territory at 101p per share.

Parsley Box’s share price reached a new low following interims released last week. Though the retailer saw revenues leap 26% higher in the six months to June, to £1.4m, soaring costs caused pre-tax losses to rocket 432% year-on-year to £5.4m. There’s a danger that costs could remain elevated, too, if Covid-19 cases continue to harm the supply chain and Brexit-related trade disruptions persist.

That said, I think Parsley Box could be an attractive buy for long-term investors. This is because its products and services are aimed at the over-60s, a demographic that’s growing fast and which is one of the more affluent age categories. There are said to be more than 12m people aged 65 and over today,  according to the Office for National Statistics. This is a figure that’s set to keep surging and which will top 20m within the next 50 years.

And so far this cheap UK share seems to be making a splash here, the number of active customers rising 77% in the first half. With a healthy balance sheet Parsley Box has the means to keep growing its customer base through fresh marketing campaigns and further product innovation, too.

A cheap UK share in good health

Snapping up Alliance Pharma (LSE: APH) shares is another good idea, in my opinion. In fact, trading at this cheap UK share has been particularly strong of late and turnover bounced 24% in the six months to June. I’d buy it before its half-year results announcement is released on Tuesday, 21 September.

Alliance Pharma’s consumer healthcare portfolio is packed with market-leading global brands like its Kelo-Cote scar treatment, Nizoral anti-dandruff shampoo, and Amberen menopause product. The tremendous brand power of these must-have healthcare products allows the company to grow profits during both strong and weak economic periods.

That said, Alliance Pharma endured a rare profits decline in 2020 as Covid-19 closed retail outlets, making it harder for customers to get its products. Delays to routine treatments caused further problems as demand for the healthcare play’s prescription products also dropped. It’s important to remember, then, that further bottom-line trouble could be around the corner as coronavirus cases rise.

All that being said, I still think this cheap UK share’s a top buy for me as a long-term investor. In particular I’m excited by Alliance Pharma’s ambitious acquisition-led growth strategy, one that’s given annual earnings growth a significant boost in years gone by, and which the company has the balance sheet strength to continue pursuing. 

FTSE AIM newcomer

Parsley Box is a firm specialising in delivering ready-made meals to individuals ages 60 and above. The average age of the population in the UK is increasing. This increase presents a good opportunity for Parsley to capitalise on the growing demographic. It has been investing heavily in marketing its products, including a £1.2m television advertisement.

Parsley was founded in 2017 and only joined the FTSE AIM in March. At that time, shares began trading for 200p per share. As I write, shares are currently trading for 103p per share, which is close to a 100% drop in share price. As a savvy investor, I understand newer, smaller firms can experience volatility on the stock market, especially those that are labelled FTSE growth stocks.

Mixed performance and risks

On Tuesday, Parsley released its interim results for the six months ending 30 June 2020. They were a mixed bag in my opinion, and that is a red flag for me as a potential investor. The headline that stuck out to me were pre-tax losses of £5.4m, up from £1m a year ago. This included costs of £1.1m associated with its initial public offering (IPO).

Parsley reported revenues rose by 26% to £14m. This was driven primarily by a 76% increase in active customers. Orders from returning customers grew by 38% but new customer additions had slowed down as pandemic restrictions were eased. Returning customers is positive as it shows a loyal following.

The losses Parsley is experiencing are not uncommon for a new FTSE growth stock. I understand costs linked to an IPO and lots of marketing are necessary to succeed in the long term. My concern is the lack of new customer sign ups. This risk tells me that perhaps the firm did well due to restrictions during the pandemic and now that reopening is underway, progress may tail off. I believe that new business is just as important as repeat customers.

In addition to this risk, competition is intense and could be detrimental to Parsley’s progress. Established retailers such as Tesco, and growing discount supermarkets such as Aldi and Lidl, are direct competition for Parsley and its offering. This will affect Parsley’s future prospects in my opinion.

My verdict

As I stated earlier, I would not buy shares in Parsley Box right now. There are positives about the firm and its direction and it could be a successful FTSE growth stock story in the very long term. Right now, there are too many risks that do not sit well with me.

Real estate investment trust (or REIT) rules state that the firm must distribute 90% of profits as dividends. So this UK share could light a fire under my income flows in the years ahead. But remember that Warehouse REIT’s methods of finding top assets to acquire could misfire in the future. This could have a significant impact on shareholder returns if, for example, it purchases an asset in an unpopular location or if it has to absorb huge unexpected costs. Warehouse REIT has a good track record on this front but past form is not always a reliable indicator of future performance. The low-cost share trades at 166p per share.

A tasty selection

I think Parsley Box Group (LSE: MEAL) could be one of the best former penny stocks to buy for September. Half-year results are scheduled for Tuesday, 7 September, and I think the company — which specialises in providing ready meals to people aged 60 and above — will confirm that demand for its edible items has remained strong. Revenues at Parsley Box soared 26% year-on-year in the first six months of 2021.

The average age of Britain’s population is increasing. And this cheap UK share’s operations sit right in the sweet spot of this rapidly-growing demographic, giving it an excellent opportunity which it is exploiting through heavy investment in marketing and its products. Just last month Parsley Box launched a range of ready meals in the highly-popular premium segment. Be aware though that the company faces huge competition from retail heavyweights like Tesco and the rapidly-expanding discounters like Aldi and Lidl. Parsley Box trades at 131p per share.

A cheap pharma UK share Id buy

I believe Amryt Pharma (LSE: AMYT) could be another top cheap UK shares for me to buy today. This UK healthcare share has collapsed from March’s seven-year peaks above 200p. And I think this could prove a shrewd dip-buying opportunity (today Amryt shares trade at 165p). As a long-term investor I like the company’s focus on treating rare and orphan diseases, one of the fastest-growing areas of the pharma market. And right now the business has the wind in its sails and it raised its full-year guidance last week.

Amryt Pharma has been busy on the M&A front too and in early August snapped up Chiasma and its Mycapssa product that’s used to treat a rare hormone disorder. The business of drugs development is ripe with challenges that can cause costs to spike and sales to disappoint. But I still think this penny stock is worthy of serious attention today.

A top UK share I already own

I already own shares in waste management giant Biffa (LSE: BIFF). And I think its share price (which is up 65% over the past year) could rise again when fresh financials come out on Monday July 19.

Biffa’s waste collections and recycling businesses have suffered terribly as Covid-19 forced businesses to close. But the company enjoyed a “solid recovery” during the second half of the last fiscal year (ending March 2021). As a consequence collections improved to 82% of pre-pandemic levels over the course of the full 12 months. I’m expecting Biffa to have kept this momentum up.

It faces some near-term uncertainty as Covid-19 cases rise again. However, I’m happy to own Biffa because its profits outlook for the years ahead is quite robust in my opinion. It has made acquisitions a key part of its growth strategy, the latest of which in May saw it strike a deal to snap up Viridior in a boost to both its collections and recycling operations.

What’s more, Biffa is in the box seat to enjoy rising demand for recycling services as environmental concerns steadily grow. Indeed, the company is investing heavily in its plastics recycling sites like Washington and Seaham to make the most of this huge opportunity.

City analysts think  earnings at Biffa will rocket 130% in financial 2022. This leaves the UK share trading on a forward price-to-earnings growth (PEG) ratio of 0.1. Any reading below 1 suggests that a share could be undervalued, leaving plenty of scope for fresh price gains in the days ahead.

A new kid on the block

There’s a good chance you may not have heard of Parsley Box Group (LSE: MEAL). This small cap has a modest market capitalisation just north of £70m. And it made its UK share market debut not long ago in March.

Parsley Box hasn’t exactly got off to a flyer and, at 173p per share, trades a little distance below its IPO price of 200p. But I think this share — which provides ready meals to those over the age of 60 — could head northwards when half-year financials are also released on 19 July.

Revenues at Parsley Box rocketed at a compound annual growth rate of around 250% in the two years to financial 2020. And it’s possible that the top line will continue to soar thanks to the retailer’s emphasis on the fast-growing elderly citizen demographic and its focus on the e-commerce channel.

But remember that competition in its marketplace is fierce and the likes of Tesco and Amazon have the clout and the experience to make life very difficult for new entrants like this. It’s an exciting share but the going could be tough from now on.