Making an impression

4imprint Group’s (LSE: FOUR) a great way to ride the continued rebound in marketing spending in my opinion. The business generates almost all of its profits by making and selling promotional products in the US. You know the sort: mugs, pens, USB dongles, bags and the like. This is a steadily-growing industry in which 4Imprint has been relentlessly grabbing market share.

City analysts believe earnings will rise 46% year-on-year in 2022. This leaves it trading on a PEG ratio of 0.7, a decent distance below that benchmark of 1 that suggests a stock could be undervalued. Orders at the business are bouncing back strongly and the total tally for 2021 recovered to an impressive 90% of pre-pandemic levels. Pre-tax profits came in towards the upper end of expectations for the full year, too, a good omen for the new year.

4Imprint could encounter problems if the US economy begins to stutter, however. A surprise drop in non-farm jobs in January — the first drop since the end of 2020 — certainly caught my eye this week. But as things stand I think there’s more to be encouraged about than worried by at 4Imprint.

A mega-cheap leisure stock

Now that Covid-19 lockdowns have ended, Britain’s ten-pin bowling craze of recent years has exploded again. Ten Entertainment Group (LSE: TEG), which operates almost 50 bowling centres across the UK, is a cheap stock that’s obviously well placed to play this boom.

Ten Entertainment’s sales soared an astonishing 32.4% between 1 May and Boxing Day from pre-pandemic levels. The leisure stock’s January trading update also showed the business had record profits each month since June 2021. Given this evidence it’s perhaps no surprise that City analysts think profits here will soar 260%+ in 2022.

Encouragingly Ten Entertainment is adding venues to maximise its revenues opportunities too. It plans to open four new bowling centres this year alone. The ongoing public health emergency poses an obvious risk as further social restrictions could transpire at short notice. But I think the company’s cheapness reflects this possibility. Ten Entertainment carries a forward PEG of just 0.1.

In the fast lane

I also think Wincanton (LSE: WIN) has a bright future as e-commerce steadily grows. The transport titan offers a range of end-to-end fulfilment services that enable retailers and manufacturers to reach their customers. And it continues to do a roaring trade despite the end of coronavirus lockdowns on physical retail; revenues in its Digital and eFulfilment operation surged 51% year-on-year in the three months to December.

My chief concern for Wincanton is a chronic shortage of van and lorry drivers. This has the potential to cause operational disruptions and push up costs. Still, City forecasters don’t think this will derail near-term earnings growth (an 18% profits rise is predicted for this fiscal year to March 2022. A 9% increase is anticipated for financial 2023 too). I think Wincanton’s forward PEG ratio of 0.6 could make it too cheap for me to miss.

Of course, investors need to be extremely careful before buying these stocks. The global pandemic remains far from beaten, and many UK shares carry huge debt piles following earlier lockdowns. Still, I think there are great opportunities for those who do their research before buying reopening stocks.

A ‘picture perfect’ reopening stock

I’ve explained in detail why I’d be reluctant to buy Cineworld shares today. The company’s gargantuan debt pile, allied with the growing threat posed by streaming services like Netflix, make this particular UK reopening stock a risk to far for me.

That said, I’m considering buying Everyman Media Group (LSE: EMAN) before the upcoming ISA deadline. This is because this operator’s cinemas offer a more luxurious viewer experience than the bog-standard theatres the likes of Cineworld can. It’s therefore much better placed to tempt people off their sofas following Covid-19 lockdowns to catch a movie.

As analyst Susannah Streeter of Hargreaves Lansdown comments: “The footprint of the large cinema chains is set to contract further and there is likely to be a refocus on smaller more luxury venues, providing a high-end cinema experience people are unable to get at home.”

Of course, Everyman isn’t immune to the dangers posed by the streamers. What’s more, this reopening stock’s near-term recovery might take an awful whack if a fresh wave of coronavirus infections prompts further lockdowns and previously-eager movie lovers choose to stay away.

Encouragingly though, the business has just boosted its debt facilities to help it ride over any near-term speedbumps. And I think the company’s dedication to provide a premier viewing experience allows it to bounce back strongly when the pandemic passes.

Bowled over

I believe that Ten Entertainment Group (LSE: TEG) is another attractive reopening stock to buy before April’s ISA deadline. I’ve tipped this particular UK share before because the popularity of ten-pin bowling has ballooned in recent years. And by the looks of things, this renaissance remains in very rude health despite the pandemic. Ten Entertainment said this week it experienced “strong demand in the summer when the business reopened after [the] first lockdown.”

Like Everyman, this UK share has a very robust balance sheet to help it sail through any further pandemic-related problems. It had £18m of liquidity headroom as of last week.

It’s quite possible that the current bowling craze could run out of steam once more. But I think this popular form of entertainment has more life left in it. Besides, Ten Entertainment has invested huge amounts in its network to keep the punters rolling in.

Bowled over

The mass closure of its bowling alleys during lockdown hit Ten Entertainment Group (LSE: TEG) hard. Its revenues almost halved in the six months to June compared to the same period in 2019. The introduction of fresh lockdowns in the UK mean more year-on-year sales disappointment for the second half of 2020, too.

But could now be the time to buy this UK share in an ISA? I think so. The 10-pin bowling market remains a lucrative one for investors to play, a sector that’s growing by 4% a year. And Ten Entertainment introduced share placings, cost cutting, and accepted government support to ride out the current crisis. It still had around £15m of available liquidity in its locker near the end of September.

There still remains a huge amount of uncertainty over Covid-19 vaccines. It’s quite possible that more lockdowns could be in store in 2021 should infection rates keep rising. Still, I’m giving Ten Entertainment serious attention as a way to play the bull market. And especially so at current prices. This UK share trades on a forward price-to-earnings (P/E) ratio of 12 times and carries a chunky 4.5% dividend yield as well.

Leisure stocks are some of the earliest to rise when broader economic conditions improve. Provided the fight against Covid-19 turns a corner, this UK share should soar much more impressively than the broader market. And it will surely provide titanic returns in the longer term too as the bowling craze returns.

Another cheap UK share I’d buy in an ISA

I’d also consider buying Britvic (LSE: BVIC) shares for the next bull market. Like Ten Entertainment, its operations have been hit by the Covid-19 crisis. In this case lockdowns in the UK and abroad damaged sales in the ‘out of home’ drinks segment.

Thankfully, though, sales of this UK share’s soft drinks for in-home consumption have soared, easing the sting. Clearly Britvic could suffer again in the near term but this shouldn’t worry long-term investors like me.

The FTSE 250 company has the financial might to ride out the current crisis. And it has the exceptional brand power to keep outperforming the broader drinks market too and deliver long-term earnings growth. Indeed, labels like Robinsons juices, R Whites lemonade, and Pepsi Max cola have allowed it to build market share. And these five-star products — allied with Britvic’s commitment to innovation — should allow it to ride the economic recovery as wider consumer spending activity improves.

City analysts reckon Britvic’s annual profits will soar around 25% in this fiscal period. This leaves the UK share trading on a forward price-to-earnings (PEG) ratio of just 0.6. With the drinks giant carrying a chubby 3.3% dividend yield, too, I reckon it’s a terrific buy for the new bull market.

Generally, such beasts have a great ‘story’ but nothing much to show in terms of revenue and profits now. Classic ‘jam tomorrow’ propositions, if you will. But I think there’s a better way to aim for riches from shares – ‘jam today’ companies with revenue, earnings and cash flow growth now, such as the company below.

Value and growth

When I look at the numbers for Ten Entertainment (LSE: TEG) the value jumps off the screen at me. With the share price close to 314p, the forward-looking dividend yield for the ten-pin bowling operator is around 4.3% for 2020, with the anticipated earnings multiple at 13.5.

Shareholders have already seen the stock shoot up by around 30% since last autumn, but City analysts’ estimates are robust. They expect both earnings and the dividend to increase by percentages in the mid-to-high teens next year.

Meanwhile, the balance sheet looks strong with modest borrowings, and the shares have been breaking out from a long period of consolidation that started at the beginning of 2018. I think that kind of price action suggests favourable sentiment in the investing community.

I’m encouraged by today’s full-year trading update, which leads with the headline, “Another year of significant profitable growth.” Like-for-like sales increased by 8% in 2019 compared to the prior year and sales from new centres came in 2.2% higher, giving an overall increase in sales of 10.2% — the eighth consecutive year of growth for TEG.

The company made two acquisitions in the period and recorded the first full-year effect of four acquisitions and one closure completed during 2018. Indeed, growth has been both organic and acquisitive. Now the firm claims to be the second-largest ten-pin bowling operator in the UK market with 45 sites and around 1,100 bowling lanes.

Maximising revenue

On top of that, revenue is enhanced with other entertainment offerings, such as amusement machines, table-tennis, soft play, escape rooms, laser games and pool tables, plus food and beverages. It’s an age-old strategy, I reckon, involving the squeezing of the maximum spend from every customer that crosses the threshold.

The firm has been busy with its investment programme, refurbishing four sites during the year, “including one prime location that has received additional investment as a concept site format to trial new entertainment experiences.”  And in the first half of 2020, the first new-build site should open, called Manchester Printworks.

Looking ahead, the company plans to develop its pipeline of site opportunities with new developments and acquisitions. The outlook is positive, trading is robust and the company is expanding. I wouldn’t touch the shares with a bargepole if I believed there was a general economic slump coming soon, but right now, I’m sorely tempted!

Let’s take a closer look at Ten Entertainment Group (LSE:TEG), a leading UK operator of bowling and family entertainment centres, trading under the Tenpin brand. This is a simple, easy-to-understand business I believe is of high quality and, at present, undervalued.

The group operates within the broader UK leisure market, and at present bowling has a share of 0.29% of this £126bn market. TEG’s strategy is to increase participation in bowling through providing reasonably priced, good-quality food and broaden its family entertainment offering. Sounds reasonable to me.

Capitalising on the experiential leisure trend

As mentioned, increasing bowling participation is the key driver. To support this and encourage families to visit sites, TEG is targeting areas of high footfall such as retail outlets. Attracting customers through its doors will over time become easier, with online streaming making a trip to the cinema simply less appealing and once on site, families will be more likely to play on the machines and enjoy a meal before, during or after they’ve enjoyed a game or two of tenpin bowling. Food and beverage and amusement machines contribute towards half of the groups sales, so this is a big part of the business.

Research shows that consumers are looking to spend their money on “doing things” rather than “buying things”, and this desire for experiential leisure time leaves TEG well placed to take advantage of this opportunity. TEG is also committed to reinvesting in its estate to keep sites modern and relevant. They typically operate a six to seven-year cycle and impressively manage to generate £1.50 for shareholders for every £1 spent over the course of this investment cycle.

Strong acquisition pipeline in a highly fragmented market

Ten Entertainment currently has a market share of around 20% of the tenpin bowling market, which is worth approximately £350m in total sales a year. The market leader Hollywood Bowl Group has a share of just over 40%, with the balance held by a high number of independent operators with between one and five sites. This fragmentation naturally presents an opportunity for the business to grow through acquisition and has identified a pipeline of 60 sites, which meet the group’s criteria.

Sales and profits set to soar

Ten Entertainment is trading at a discount to its larger competitor Hollywood Bowl, with a price-to-earnings (P/E) ratio of 16.7 versus 17.9. The investment case is strengthened with the knowledge TEG is expecting sales to reach £100m by 2021 and pre-tax profit is set to rise to £21m, representing over 100% growth from 2017 through to 2021. With a modest market share, a strong acquisition pipeline and an accomplished management team focused on delivering shareholder value, this is a quality business that is set to see its share price rise further.

City expectations of a 14% earnings jump in 2019 leave it trading on a dirt-cheap forward P/E ratio of 10.2 times. What’s more, predictions of strong bottom-line growth this year and next lead to suggestions that dividends will keep growing too, giving Devro monster yields of 5.5% and 5.8% for these corresponding years.

I’ve long lauded the small-cap’s Devro 100 programme designed to slash costs, improve sales processes and supercharge new product revenues in fast-growing regions like China and the US. The measures put Devro in pole position to create brilliant profits growth as sausage demand bulges across the globe — recent data from Statista suggests that annual volumes of hot dogs and sausages will hit 6.4bn kilograms by 2021, up 14% from 2014 levels.

Another 5%+ yielder

Ten Entertainment Group (LSE: TEG) is another small-cap riding a terrific structural opportunity, in this case the renaissance of ten-pin bowling in the UK.

This was apparent in half-year results unpacked last month, results which showed revenues up 10% in the six months to June and adjusted pre-tax profits leaping 14%. Ten Entertainment isn’t content to sit on its hands and is investing heavily to capitalise on this bright trading landscape.

It intends to continue adding to its network of alleys the length and breadth of the country. And by rolling new concepts like the ‘HyperBowl’ high-adrenalin format and other measures to improve the customer experience (it has signed a deal to trial the madly-popular Escape Rooms at its sites), it’s aiming to attract even more families and groups through its doors.

City analysts expect earnings here to grow by double-digit percentages over the next couple of years, leading to a rock-bottom forward P/E ratio of 13.2 times and, as at Devro, expectations of some strong dividend hikes as well. Thus yields at Ten Entertainment sit at 4.5% and 5.2% for 2019 and 2020 respectively.

Flooring it

Headlam Group (LSE: HEAD) might not be for the faint of heart, the company suffering right now from a mix of tough trading conditions in the UK and softer activity in Continental Europe too. In fact these troubles are expected to create the first annual earnings dip at the floor coverings giant for donkey’s years in 2019.

I would argue, though, that the long-term outlook for Headlam remains quite compelling. It appears as if trading has ‘bottomed out’ in both its major markets, with like-for-like sales rising by a muted-if-welcome 1.8% and 3.2% in Britain and Continental Europe respectively in the six months to June. And by implementing a variety of back-office measures to improve stock availability and boost warehouse space, and with work to open a new distribution hub in Ipswich by next spring also well under way, I’m backing it to thrive over the next decade.

Right now Headlam boasts a rock-bottom forward P/E ratio of 11.7 times and chunky dividend yields of 5.5% for 2019 and 5.7% for 2020. I reckon it’s a brilliant contrarian buy at recent prices.

Even with UK inflation rumbling at three-year lows of 1.7%, even those invested in the best-paying instant-access cash product in the market (Skipton Building Society’s latest E-saver product with a rate of 1.3%) are seeing the value of their money crumble in real terms. Clearly, those seeking to make handsome little nest egg need to find better ways to make their money work for them.

Bowled over

You’d be much better off using your money — bar capital needed for a rainy day, or some spare, everyday cash — to buy shares in Ten Entertainment Group (LSE: TEG), I believe.

This particular share offers a whopping, inflation-mashing 5.1% forward dividend yield for 2019, and a 5.9% one for next year too. The potential for abundant income flows now (and in the future) isn’t the only reason to pile into the business — with Britons flocking to ten-pin bowling alleys in their droves, Ten Entertainment is a terrific pick for growth investors as well.

Latest financials showed like-for-like sales growth improved to 7.4% in the first six months of 2019, from 3.1% a year earlier, a result which helped push group revenues and profits to record levels. No wonder the leisure giant continues to splash the cash on acquisitions (it’s bought another two sites so far this year) and to refurbish its estate.

Reflecting these numbers, City analysts are predicting mammoth earnings growth of 25% and 18% in 2019 and 2020, respectively, figures which, incidentally, leave Ten Entertainment trading on a low prospective P/E ratio of 11.6 times. Given the breakneck rate at which sales are growing, this sort of value makes it a steal.

Even bigger yields!

I reckon Residential Secure Income (LSE: RESI) is also another better destination for your surplus funds than a Cash ISA.

Sure, it might not be as cheap as Ten Entertainment — at current prices it actually carries a high forward P/E ratio of 29.5 times. However, I’d argue that the small-cap’s exceptional long-term profits outlook merits such a hefty premium. Besides, chunky dividend yields of 5.5% for the year to September, and 5.7% for fiscal 2020, take the sting out of this high reading.

Residential Secure Income is a major player in the realm of social housing, a sector which is attracting vast amounts of government spending. Last year, Whitehall pledged to release an extra £2bn for housing associations over the next decade. But so colossal is the homes shortage in this area that even-greater sums are likely to be needed further out.

What’s more, the company is stocking up on acquisitions like there’s no tomorrow. In the first half of this fiscal year alone it paid £83m to buy another 332 residential units, taking the total paid on M&A since its IPO in mid-2017 to a staggering £302m. And the business has plenty of financial firepower to continue on this ambitious growth strategy, thus delivering some titanic shareholder rewards in the years ahead.

The same case can be made for Tritax’s smaller rival Urban Logistics REIT (LSE: SHED) too. The AIM-quoted company enjoyed record take-up of its space in the 12 months to March, beating the prior all-time high printed just a year earlier. And rental income almost doubled in the period, reflecting that aforementioned demand surge as well as a chronic shortage of so-called big box facilities in the UK.

Annual dividends at Urban Logistics swelled 12% last year, and more meaty growth is anticipated for fiscal 2020, meaning a chunky 5.8% yield. And it’s not hard to foresee chubby payout hikes long into the future as profits likely go from strength to strength.

Prime target

Target Healthcare REIT (LSE: THRL) is another big-yielding property share I’d happily stash in my ISA today and hold there for years to come.

This business provides care homes the length and breadth of the country, and because of steady growth in the UK’s elderly population, I’m tipping earnings here to keep flourishing as well. Predictions from the Office for National Statistics suggests the number of citizens aged 85 years or over is set to balloon to 3.6m by 2019, up from 1.5m five years ago, certainly bolsters my confidence.

What’s more, Target has both the appetite and financial strength to remain active on the acquisition front to capitalise on this vast structural opportunity. In the last few months alone it’s shelled out close to £15m on a couple of care homes in Nottingham and Merseyside.

Its very bright growth outlook means City brokers predict more dividend hikes at Target in the near-term, leaving another mighty 5.8% yield for the current year (to June 2020). Buy it today for handsome income flows for years to come, I say.

Be bowled over

The renaissance of ten-pin bowling in the UK makes Ten  Entertainment Group (LSE: TEG) another dividend great to buy today.

It doesn’t matter that Britons’ spending power is coming under sustained pressure. A night out at the bowling alley is a relatively cheap, fun and unique experience, and this is why people are still flocking to their nearest venue in record numbers. This was evident in Ten Entertainment’s interims this month in which it advised of a 7.4% uplift in like-for-like sales in the period to June.

And just as we are seeing at Target, Ten Entertainment is putting its robust balance sheet at work to build future growth, the small-cap adding new centres in Southport and Falkirk to its estate portfolio in recent months.

Right now, the bowling behemoth carries a large 5% dividend yield for 2019 and a dirt-cheap corresponding P/E ratio of 11.7 times. I consider it to be a white-hot buy for ISA investors at the current share price.

Each firm offers a yield of at least 5%, so patient shareholders should be rewarded with a generous income.

The boss is back

Shares in fashion brand Superdry (LSE: SDRY) have fallen by about 75% since January 2018.

Are there problems at Superdry? Yes. Is the business going to fail? I don’t think so.

Founder Julian Dunkerton is back in the driving seat and determined to return this brand to growth.

In a trading update last week, Mr Dunkerton warned that profits would be lower than expected for the year ended 28 April. But since taking charge on 2 April, he’s already made a number of changes that are expected to boost sales and improve profits margins.

Flagship stores are being restocked with a greater choice of items. Discounts and sales are being scaled back. And the range of choices available on the website has been expanded. These changes are expected to generate more full-price sales, boosting profits and helping to rejuvenate the brand.

There’s still a lot to do. But with the shares trading on 9 times forecast profits and offering a 5.5% dividend yield, I think the shares rate as a value buy at current levels.

Keeping it in the family

Leeds-based property firm Town Centre Securities (LSE: TOWN) owns a mix of retail, leisure and office property. It’s also the owner of the CitiPark car park business, which owns multi-storey car parks in a number of major towns and cities.

Town Centre’s shares have fallen by about 25% over the last year, and now trade at 40% discount to their net asset value of 361p per share. To some extent, I think this caution is justified.

But although some retail tenants have gone into administration, others are looking for new shops. Management has already found new tenants for six of the eight units that became vacant last year, with higher average rents than before.

The founding Ziff family still controls about 60% of Town’s shares. They’ve supported and grown the business since its foundation in 1959. Town Centre Securities survived the financial crisis without needing refinancing and I don’t see any reason why this impressive track record can’t continue. With the shares trading at a 40% discount to book value and offering a yield of 5.5%, I think now could be a good time to buy.

A growth business

A key growth area for retail landlords is leisure businesses such as 10-pin bowling operator Ten Entertainment Group (LSE: TEG). This business has impressed me since its flotation in 2017.

Adjusted pre-tax profit rose by 4% to £13.5m last year, while the dividend climbed 10% to 11p per share. Analysts expect earnings to rise by 25% to 20.9p per share this year, thanks to a mix of new openings and refurbishments.

The business carries very little debt and reported an impressive 15% operating profit margin for 2018. However, the shares pulled back during the second half of last year, perhaps due to concerns that Brexit could hit consumer spending.

I suspect this risk may be overstated. Trading on 11 times 2019 forecast earnings and offering a dividend yield of 5.4%, I think Ten Entertainment could be a good long-term growth buy for UK-focused investors.

The popularity of ten-pin bowling with Millennials has prompted a renaissance of alleys the length and breadth of the country. It’s a relatively-inexpensive night out, meaning despite the broader pressure on Britons’ spending power, sales at Ten Entertainment are swelling (like-for-like sales were up 5.1% in the first 11 weeks of 2019).

And Ten Entertainment is harnessing this momentum by investing heavily in its existing estate and opening new arenas. Just this month, it completed the purchase of a site in Southport, Merseyside, taking the number of centres on its books to 44.

It’s not a surprise to see City analysts predicting earnings growth of 26% in 2019, a figure which leaves it dealing on a forward P/E ratio of just 11.3 times, and leads to predictions of more dividend growth. Ten Entertainment thus yields 5.2% and sits as a true income star.

Swot up

Empiric Student Property (LSE: ESP) is another share in great shape to deliver terrific profits rises in the near term and beyond. The student accommodation provider’s share price has plunged in recent months, leaving it dealing on a rock-bottom, sub-1 forward PEG ratio of 0.5, as concerns over how and when the UK exits the European Union have grown.

As of right now, though, Empiric is yet to see any impact of this on its operations. The business commented last month that “while there are economic and political uncertainties, particularly regarding Brexit, we are yet to see any material adverse consequences.”

British universities remain hugely popular with students from all over the world and are likely to continue to be so. It’s why revenues at Empiric soared 25% in 2018 and occupancy rates rose four percentage points to 96%.

Pre-tax profits almost doubled at the firm last year and City brokers are forecasting more terrific progress in 2019, a bottom-line rise of 42% currently anticipated. This bubbly estimate supports forecasts of more chubby dividends, leaving Empiric with a corresponding yield of 5.3%.

On target

My last selection is Target Healthcare Reit Ltd (LSE: THRL), a company whose yield of 5.8% for the upcoming fiscal year (beginning July 2019) makes it the best payer on this list.

City analysts expect the care home operator to generate earnings growth of 17% for the new period and, due to the UK’s rapidly-ageing population, there’s plenty of reason to expect profits to keep barrelling higher, in my opinion.

Like Ten Entertainment, Target is also committed to rampant expansion. In the first quarter alone, it opened new homes in Oxfordshire and Leicestershire. It currently has 23 tenants and expects this to rise to 26 once planned acquisitions and developments are completed.

At current prices, Target can be picked up on a forward PEG reading bang on the bargain watermark of 1 times. For a business with such scintillating growth opportunities for the years ahead, I reckon this makes it a steal.