Industrial fastenings

As a quick introduction, Trifast is an engineering, manufacturing, and distribution business that specialises in industrial fastenings and components to many industries. It has a worldwide presence and operations in the UK, Europe, US, and Asia. Some of the sectors it serves include electronics, automotive, and domestic appliances.

It is worth remembering that a penny stock is one that trades for less than £1. As I write, Trifast shares are trading for 90p. At this time last year, the stock was trading above these levels at 140p, which equates to a 35% drop over a 12-month period.

A penny stock with risks

I believe Trifast shares have dropped in recent times due to macroeconomic headwinds. These headwinds include soaring inflation, the rising cost of raw materials, and the global supply chain crisis. All the issues noted could have a detrimental impact on Trifast’s operations, sales, and performance.

Rising costs of materials could impact Trifast’s profit margins. If costs are creeping up, sales prices and overall sales could be affected. This could then affect performance and returns too.

The global supply chain could see Trifast’s worldwide operations affected, especially from a manufacturing and then sales perspective. Again, this could affect performance and investor returns too.

The bull case and what I’m doing now

So to the positives then. I like Trifast’s business model in that it creates and sells vital components across a multitude of industrial sectors. Furthermore, it has a worldwide presence, which could help boost performance and investor returns. There is still room for it to grow as its primary source of revenue is Europe currently.

Next, Trifast has a consistent record of performance. I do understand that past performance is not a guarantee of the future, however. Prior to the pandemic, performance was robust but has dropped off slightly since. Full-year results for 2022 are due imminently and I will be reviewing them with a keen interest.

Trifast shares would boost my passive income stream through dividend payments. The stock’s current dividend yield stands at just over 2.5%. This is higher than the FTSE 250 average, which is just under 2%. It is worth remembering that dividends are not guaranteed and can be cancelled at the discretion of the business at any time.

Finally, Trifast shares look decent value for money at current levels on a price-to-earnings ratio of 15. There is every chance the recent share price drop has made the shares more attractive and they could bounce back to former highs after the current economic uncertainty subsides.

Overall I like the look of Trifast shares. This is primarily due to the company’s business model, presence, and profile, as well as the dividend payments on offer. I would add the shares to my holdings. I do expect some headwinds due to macroeconomic issues out of its control, however.

Buying on the dip

I’m considering investing in Serabi Gold (LSE: SRB) following severe gold price weakness that’s pulled its share price lower.

Serabi — which produces the metal from multiple mines in Brazil — plunged to its cheapest since June 2019 in recent sessions. This was prompted by gold values sinking back below $1,900 per ounce.

This shows the risks associated with buying commodities stocks like this. If the price of the underlying raw material falls in value then listed producers can also drop.

It’s quite possible that Serabi’s price could keep falling in respect of this too. Gold has fallen in value because of a strong US dollar and bond yields. A flurry of severe interest rate rises by the Federal Reserve could keep these trends running.

A cheap penny stock

I still think buying Serabi Gold could be a good idea though. At current values of 42.5p per share, the penny stock trades on a forward price-to-earnings (P/E) ratio of just 4.2 times.

I think this is particularly great value, given the range of factors that could send gold values soaring again. The war in Ukraine is creating huge macroeconomic and geopolitical waves that could turbocharge demand for the safe-haven asset again.

There’s also the fact that inflation continues to soar (and often beyond market expectations) despite rate rises by central banks across the globe. Finally, the resurgence of Covid-19 cases in China could push gold through the roof again.

I think there could be plenty of upside for Serabi’s share price right now.

Another cheap UK share on my radar!

Screw, bolt and fasteners manufacturer Trifast (LSE: TRI) faces severe uncertainty as consumer spending sinks. Demand for the products it makes for sectors like consumer electronics could come under significant pressure as a result.

It’s also important to note the difficulties it could face if auto production rates continue to slump. Latest data for the UK, for example, shows manufacturing slump by 100,000 vehicles year-on-year in the first quarter.

A great long-term buy

Still, it’s my opinion that these dangers could be baked into Trifast’s rock-bottom valuation. At 105p per share, this ‘nearly’ penny stock trades on an ultra-low price-to-earnings growth (PEG) ratio of 0.4 times.

As a long-term investor there’s a lot to like about Trifast. I think profits could soar as technologies like electric cars, renewable energy, 5G and electronics rise over the next decade. The business operates all across Europe, the US and Asia too, giving it excellent opportunities to win contracts with major global OEMs.

I think Trifast’s highly cyclical operations leave it well-placed to capitalise on the post-coronavirus economic recovery.

A bolt from the blue

2022 has so far been a year to forget for Trifast’s (LSE: TRI) share price. The business — a giant in the manufacture of screws, bolts, and other types of fastenings — has plunged to within a whisker of penny stock territory. At 111p per share, it’s down 31% since January trading began.

I think this recent collapse makes Trifast’s share price hard to ignore. City analysts think the firm will follow a 78% earnings rise in this financial year (to March 2022) with a 27% year-on-year increase. This leaves Trifast trading on a forward price-to-earnings growth (PEG) ratio of 0.4 for the upcoming period. Any reading below one suggests that a UK share could be undervalued.

Trifast makes its products for a wide range of applications like consumer electronics, white goods, and automotive. It could therefore see sales slump if the cost of living crisis continues to worsen. However, as a long-term investor I find the business highly attractive. And I believe its share price today makes it something of a steal.

I like the fact that its end markets should grow strongly over the long haul on account of soaring emerging market wealth. I also like Trifast’s commitment to global expansion through acquisitions (in August it acquired US distributor Falcon Fastening Solutions for £6m to boost its North American footprint). And I think demand for the company’s fastenings could surge on the back of the electric car revolution too.

Another nearly penny stock I’d buy

I’d also use Greencore Group’s (LSE: GNC) plunge towards the 99p penny stock limit as an opportunity to buy. A forward price-to-earnings (P/E) ratio of 13.8 times doesn’t look shockingly cheap on paper. But recent market volatility has driven the food producers’ dividend yield through the roof. For 2022, the readout sits at a healthy 4.8%.

Any fresh pickup in the pandemic could threaten the recent recovery at Greencore. The food to go specialist saw revenues tank during Covid-19 lockdowns as people stayed at home. But as things stand, the outlook is pretty rosy for the business (City analysts think earnings here will rise 11% in 2022).

I’d buy Greencore because changing consumer habits mean the ‘food on the move’ marketplace is tipped to resume its strong growth of the last decade. Analysts at Mordor Intelligence think the ready-to-eat segment will expand at a compound annual growth rate of almost 5% between 2022 and 2027. And pleasingly Greencore is investing heavily to help it capitalise on this opportunity (it’s spending £30m to increase capacity at three of its manufacturing sites following recent contract wins). I think its plunge to 116p could make the company too cheap for me to miss.

A top electric vehicle stock

The electric vehicle (EV) revolution offers UK share investors like me many money-making possibilities. The International Agency predicts there will be 145m electric cars on the world’s roads by 2030. That’s up significantly from the 11m in 2020. It says the number could even reach 230m, if governments get serious on meeting their emissions targets.

I myself have invested in car parts manufacturer TI Fluid Systems and I’m considering buying Trifast (LSE: TRI) too. This particular company makes screws, bolts and other fastenings that can be found in consumer electronics, solar panels, white goods and a broad host of other products. But Trifast’s single-biggest money spinner is in the manufacture of parts for light and heavy vehicles. Collectively these account for 35% of group revenues.

Trifast makes bespoke products for autos and so it’s built strong relationships with carmakers all over the globe. This is especially critical as OEMs select trusted suppliers to help them overcome the challenges that these new technologies create. I think Trifast’s in great shape to exploit the EV boom too because low-emission vehicles require more fastenings than conventional petrol-powered vehicles.

My main concern from an investment standpoint is that this UK share doesn’t come cheap. At current prices it trades on a forward P/E ratio of 26.8 times. This is the sort of high valuation that could prompt a sharp share price reversal if trading conditions worsen. For example, if broader supply chain problems in the auto industry hit demand for its fastenings and revenues subsequently fall.

Another fast-growing frontier

Still, from a long-term perspective I think Trifast has a lot to offer. It’s a view I take with regards to gaming software designer Frontier Developments (LSE: FDEV) as well. I expect earnings here to rise strongly as video games sales soar. Analysts at GlobalData think the global games industry will be worth $452bn by 2030. That’s double what the market was estimated to be worth last year.

Frontier Developments has a plethora of popular titles in its stable. Games within the Jurassic World  Evolution franchise and Planet Coaster and Planet Zoo canon sell in huge numbers and it has some massive titles coming down the pipe soon. These include games under the hugely-popular Warhammer wargaming banner and a new F1 motor racing motor management game.

It’s worth bearing in mind that the video games market is highly competitive and strong sales are never guaranteed. Indeed, a crowded release window at the end of 2021 prompted weaker-than-expected sales of Jurassic World Evolution 2 and a subsequent scaling down of full-year revenues forecasts. That said, I still think the company’s long track record of success makes it an attractive buy for the video games boom. It’s one of a selection of white-hot UK growth shares I have my eye on.

Could this threat be baked into Trifast’s current valuation, however? I think it could. At current prices of 140p, the bolt-builder trades on a forward price-to-earnings growth (PEG) ratio of 0.2. This leaves a wide margin of error for earnings projections to miss, in my opinion (City analysts currently expect profits here to rocket 81% in the fiscal year to March 2022).

As a long-term investor I like Trifast a lot. Revenues might suffer in the near term if car manufacturing issues continue. But I think its sales outlook for this decade is pretty bright as demand for zero emissions vehicles booms. I also like the company’s exposure to other fast-growing end markets like energy, medical, and infrastructure.

A high-risk penny stock I’m looking at

Bingo hall operator Rank Group (LSE: RNK), which also trades at 140p, is a share that’s not the faint of heart. The gambling giant suffered a shocker in 2020 and early 2021 as the Covid-19 crisis forced the closure of its estate. The invasion of the omicron variant on these shores raises the spectre of fresh lockdowns in the weeks and months ahead, too.

It’s high risk, therefore, but I also think this almost penny stock could ultimately prove high reward. So it’s my opinion that the recent share price weakness could provide an attractive dip buying opportunity for my portfolio. The popularity of bingo in Britain has boomed in recent times and is expected to continue growing. This bodes well for Rank, which operates Mecca bingo halls along with the brand’s online portal.

I also like Rank’s exposure to the fast-growing online casino market under its Grosvenor masthead. Net gaming revenues here ballooned 12% during the three months to September.

Market day

Property listings specialist OnTheMarket (LSE: OTMP) trades barely above the penny stock limit, at 102p per share. It has ducked back towards its former territory as concerns over omicron have risen. Signs that home sales are falling sharply hasn’t exactly helped confidence in the company, either. Home sales dropped by more than half between September and October, according to HMRC.

The possibility that housing demand will continue to sink in 2022 due to economic uncertainty and the reinstatement of full-fat stamp duty is possible. It’s my opinion, however, that homebuyer interest — and consequently traffic at OnTheMarket — will remain strong as low interest rates and intense competition among lenders will remain in play. Significant government help for first-time buyers should also keep business ticking along nicely.

OnTheMarket is looking to capitalise on this opportunity by improving its website and its brand over the next 12 months, too. Like Trifast and Rank, I think this cheap UK share could help me make a lot of money.

Rupert Hargreaves: Trifast

Trifast (LSE: TRI) specialises in the design and manufacture of high-quality industrial fastenings. After a slowdown in demand last year, sales have rebounded this year. Revenues in the first half increased 30% compared to 2020 and are now ahead of 2019 levels.

As the global economy continues to rebuild after the pandemic, I think this trend could continue. Management is also looking to complement organic growth with acquisitions.

At the beginning of September, Trifast acquired Falcon in the USA, and management has said that the search for additional acquisitions continues “apace.”

Considering the growth potential, I would buy the stock for my portfolio. Some challenges it could face that may hold back growth include cost and wage inflation pressures.

Rupert Hargreaves does not own shares in Trifast.

Christopher Ruane: Card Factory

As people buy Christmas cards, small-cap stock Card Factory (LSE: CARD) is on my radar. It’s 56% higher than a year ago, but well below its Spring highs.

The company sharply cut its loss in the first half. The Christmas season should be busy. Increasing moves online could help grow sales. The company is cash generative and cut net debt by a third in the first half. But Card Factory remains risky. Its shops can see sales plummet if there are lockdowns, and supply chain inflation could hurt profits.

Christopher Ruane does not own shares in Card Factory.

Roland Head: Spectra Systems

I think that security technology specialist Spectra Systems (LSE: SPSY) could be a quality company at a reasonable price.

Spectra specialises in providing authentication technology for documents, consumer goods and currency. For example, Spectra provides the security features for many countries’ banknotes and the equipment needed to test them.

Banknotes are Spectra’s biggest market, and this is probably the main risk for investors. Use of paper money is falling and the business could struggle to grow.

However, Spectra is diversifying and continues to win new contracts. The group also upgraded its profit guidance for 2021 in October. I think the shares look reasonably priced at current levels. There’s also a tempting 4.7% dividend yield. This is a stock I’d buy today.

Roland Head does not own shares in Spectra Systems.

Andy Ross: finnCap  

Financial company finnCap (LSE: FCAP) is a great small-cap stock in my opinion. Apart from its small market capitalisation, which gives it plenty of headroom to grow into a much larger company, I really like finnCap’s financials. They indicate to me a stock that has serious growth potential. 

The group has a three-year compound annual growth rate (CAGR) for sales of 29%. This is important because, as an investor, I want to know that demand for a company’s products/services is continuously increasing. The operating margin is improving, so all in all it seems like potentially a great time to buy the shares.  

Andy Ross does not own shares in finnCap.

Royston Wild: Science in Sport 

I’d use recent price weakness at Science in Sport (LSE: SIS) as a dip-buying opportunity. The sports nutrition giant has fallen 10% in value over the past month. Demand for the products it makes is rocketing as peoples’ desire to live healthier lifestyles grows and fitness activities become more popular. Science in Sport’s revenues jumped 24% during the six months to June. 

This small cap’s more than doubled in value during the last year. If industry analysts are to be believed there should be plenty of opportunity for Science in Sport’s share price to continue soaring too. Experts at Statista for example think the global sports nutrition market will be worth $35.4bn by 2026. That’s up significantly from the $16.5bn it was valued at last year. Through its popular products I think the business should make big profits in this favourable landscape.  

Royston Wild does not own shares in Science in Sport.

Zaven Boyrazian: iomart

iomart (LSE:lOM) is a cloud-computing business trying to take on industry giants like Amazon, Alphabet, and Microsoft. That’s quite a tough bunch of competitors, so it’s not surprising to see revenue growth struggle. However, management has since begun pursuing a niche in the hybrid-cloud market through bolt-on acquisitions.

It will take some time before this new strategy starts yielding results. However, iomart continues to be supported by fairly impressive cashflows courtesy of its high customer retention and 93% recurring revenue.

There is obviously no guarantee of success. And using an acquisitive approach has led to an increased debt position that adds more risk. But given the potentially explosive returns of becoming a new leader in cloud computing, I think the risk is worth the reward.

Zaven Boyrazian does not own shares in iomart, Amazon, Alphabet or Microsoft.

Paul Summers: Bioventix

Although still far from being cheap, I think shares in biotech firm Bioventix (LSE: BVXP) are starting to look attractive. Stock in the small-cap antibodies supplier has fallen 20% in value in 2021 so far. 

At least some of this selling pressure has been due to hospitals continuing to prioritise dealing with the pandemic over diagnosing people for other things. To make matters worse, understandably cautious patients aren’t even reporting symptoms to healthcare professionals. As a result, Bioventix’s main business has been suffering.

I reckon this might be a great contrarian opportunity. BVXP’s returns on capital and margins are some of the best on the market. The balance sheet also looks sound. Any indication that Covid-19 is being beaten back and the shares could rally. 

Paul Summers has no position in Bioventix

UK shares to buy

The first company on my list is Moneysupermarket.com (LSE: MONY). As UK shares go, I think this enterprise offers something for everyone. It has growth potential and supports an attractive dividend yield. 

Unfortunately, it’s currently going through a period of significant turbulence. During the pandemic, there’s been a drop in the number of consumers shopping around for better financial, energy and travel deals. As a result, for the six months to the end of June, group revenues declined 11% and profit after tax fell 31%. 

The good news is that management believes “normal trading conditions” will return in 2022. This is the main reason why I think this is one of the best UK shares to buy today. I think the market’s overlooking its recovery potential and focusing too much on current issues. 

Moneysupermarket has a strong balance sheet with just under £9m of cash to finance its turnaround. And the stock supports a dividend yield of 5.2%, at the time of writing. 

While management’s confident the group can return to growth next year, this is far from guaranteed. Headwinds, such as competition and rising wages, may eat away at the company’s profit margins. These are two risks I’ll be keeping an eye on as we advance. 

Economic recovery

I think one of the best UK shares to buy to invest in the global economic recovery is the small-cap Trifast (LSE: TRI). The international producer of high-quality industrial fastenings reported a modest 6% decline in revenues last year.

However, thanks to the global economic recovery, sales jumped 50% during the first half of its current financial year. The growth was supported by orders from “existing customers, new contract wins, and further supported by a very healthy pipeline.”

To help support its growth, the company also recently announced the acquisition of North American specialist fastenings distributor, Falcon.

Costing £6m, the purchase will boost Trifast’s presence in the North American market. I think further acquisitions in the region are likely as the group expands its footprint in one of the largest markets in the world for industrial manufacturing. 

The dual tailwinds of economic growth and acquisitions lead me to conclude that this is one of the best UK shares to buy now for my portfolio. 

That said, the company might not be suitable for all investors. It’s a relatively small business with a market capitalisation of under £200m. Therefore, it may be a riskier proposition as it could lack the checks and balances usually in place at larger companies.

Despite this risk, I’m happy to add the stock to my portfolio. 

Analysts think earnings at the housebuilder will rise 164% in 2021. This creates an ultra-low forward price-to-earnings growth (PEG) multiple of 0.1. Furthermore, this FTSE 100 firm sports a market-beating 4.8% dividend yield too.

Britain’s extreme homes crunch has worsened of late as the Stamp Duty holiday supercharged buyer demand. But while the tax is creeping back, analysts still think Taylor Wimpey will continue to deliver strong profits growth.

Another 11% earnings rise is on the cards for 2022, current forecasts suggest. I’m inclined to share this bullish view today as a favourable blend of low interest rates and government support for first-time buyers look set to persist.

A word of warning however. Labour shortages are pushing costs up across the construction sector, and a recent study from recruitment website Indeed showed wages here soar 6.7% between February and July. This could become a longstanding problem at Taylor Wimpey and other UK construction shares in the post-Brexit environment.

Another cheap UK share on my radar

Trifast (LSE: TRI) is another cheap UK share City brokers expect to enjoy explosive earnings growth. This is perhaps no surprise as this small-cap stock manufactures screws, bolts and other fastenings that help keep a broad array of consumer goods and industrial products tied together. It’s therefore well-placed to ride the current economic recovery.

The number crunchers think Trifast’s earnings will soar 75% in the financial year to March 2022. This means the engineer trades on a rock-bottom forward PEG ratio of 0.3. A reminder that a reading below 1 suggests a stock could be undervalued at current prices.

It’s possible these estimates could be swept off course if supply chain problems in Trifast’s end markets persist however. For example, auto production in Britain has slumped to its lowest since 1956 because of massive parts shortages and worker absences. The UK share sources around 35% of revenues from light and heavy vehicle production.

A FTSE 100 share I’d also buy

I’m also considering buying Polymetal International (LSE: POLY) due to its exceptional value. This UK mining share trades on a forward price-to-earnings (P/E) ratio of around 9 times and carries a mighty 7% dividend yield for 2021.

In fact, as a long-term investor, recent news last week has boosted my appetite for the FTSE 100 company. While the business has hiked its capital expenditure target to $675m-$725m (from $560m previously), this higher estimate also reflects work to accelerate development of its Prognoz and Nezhda projects to capitalise on bright silver prices.

I think precious metal prices will remain strong as an environment of increasing inflation and extreme geopolitical tension will likely persist. And UK shares like Polymetal are well-placed to exploit this phenomenon.

Though, of course, there’s always a danger that gold and silver prices could also reverse. That could be due to a variety of macroeconomic and geopolitical issues (like a faster-than-expected Covid-19 economic recovery).

Investments for a Stocks and Shares ISA

The first on my list is Liontrust Asset Management (LSE: LIO). The asset management industry is currently under fire from all angles.

This is because low-cost passive funds are attracting investors in large numbers, while many investors are rebelling against high fees from financial advisors. Low- or no-cost platforms have been taking the sector by storm. 

Against this backdrop, Liontrust’s performance stands out. By focusing on sustainable investments, it’s been able to stand out in a competitive market. During the three months to the end of June, investors allocated £1bn to the group’s funds. Assets under administration at the end of the quarter were £33.6bn, an increase of 8.5%. 

Liontrust’s funds have won a string of awards over the past 12 months. What’s more, the asset manager was voted ‘Group of the Year’ at Incisive Media’s prestigious Fund Manager of the Year Awards.

With so many other options available, asset managers need something to stand out, and Liontrust’s awards help the business do just that. Which is why I’d buy it for my Stocks and Shares ISA today.

As long as it keeps doing what it’s doing, I reckon the firm can continue to attract assets. This should produce higher management fees, although it will need to stay on its toes. With so many challengers out there, I can’t take Liontrust’s growth for granted. 

Critical components 

Trifast (LSE: TRI) literally supplies the nuts and bolts for the engineering and construction industries. As such, I think the stock could be a great addition to my Stocks and Shares ISA as an economic recovery play. 

Last year, the group reported a 6% decline in revenues year-on-year, which is impressive considering the environment. 

Going forward, management has its sights firmly set on growth. It’s focusing on “value-enhancing acquisitions” as it aspires to become a “much bigger company.” Even after the challenges of the past two years, Trifast’s management believes this is the “most dynamic time for Trifast in more than a decade.“

I’m conscious that just because management has ambitions to grow, it doesn’t necessarily mean the company will be able to execute on these targets. However, I think the combination of the economic recovery and Trifast’s cash balance of £13.m will help support the firm’s ambitions. 

Some challenges that may slow growth include higher costs and competition, both of which could hurt profit margins and growth. 

Despite these risks, I think the company has multiple attractive qualities as a Stocks and Shares ISA buy. 

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.