The Motley Fool

I think these UK growth shares could potentially double your money

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Champagne poured into a row of flutes
Image source: Getty Images.

Growth shares can make you a lot of cash. Pick the right stocks, and you could double your money. Over the years, I’ve personally doubled my money on a number of UK growth shares including ASOS, GB Group and dotDigital.

Today, I’m going to highlight two UK growth shares that I believe have the potential to double investors’ money (over the medium-to-long term, of course). In my view, both of these companies look set for strong gains over time.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

An innovator in digital monetisation

The first UK growth share I want to highlight is Cerillion (LSE: CER).

It’s a leading provider of billing, charging, and customer management systems. The company has delivered 90 customer installations worldwide and has a proven track record of delivering cost-effective, cloud-based (SaaS) solutions. Its vision is to be the enabler of seamless digital experiences for the world’s communications and subscription businesses.

Cerillion’s half-year results, issued in May, showed that the company has significant momentum right now. Revenue was up 46% to £10.2m reflecting implementation work on five major new contract wins. Adjusted EBITDA was up 673% to £2.7m. Meanwhile, new orders were up 28% year-on-year to £9.5m. It’s also worth mentioning that the company increased its dividend by 9%, which suggests that management is confident about the future.

Cerillion currently sports a forward-looking P/E ratio of what I think is a reasonable 27 and has a market cap of just £96.5m. If the company can continue growing at a healthy rate, I think we could see the company’s market cap double in time. Of course, the stock is not going to double up overnight. But in my view, this growth share has all the right ingredients to double your money.

A disruptive growth share 

Another UK growth share I think could potentially do that is Keystone Law (LSE: KEYS). It’s an innovative ‘platform-based’ UK law firm that is disrupting the legal industry by enabling lawyers to work from home or their own offices. It has over 350 lawyers on its platform (it believes its addressable market is 47,000 lawyers) and serves clients across a range of industries.

Keystone Law shares have underperformed due to Covid-19. This is not a surprise, as the demand for some legal services (such as those associated with transactions) will have declined.

I see this share price weakness as a great buying opportunity. The group is in a strong financial position, and its model is designed to service clients remotely. So it’s well placed to deal with any near-term challenges.

In August, Keystone announced that it had appointed 15 new partners from several of the UK’s top law firms. These hires highlight the attraction of the group’s virtual business model. “Now that many lawyers have been working remotely during lockdown, the appetite for an alternative to the traditional law firm model is stronger than ever,” commented CEO James Knight. The group also announced that it has finalised arrangements to launch offices in the Middle East. It clearly has momentum right now.

Keystone Law currently trades on a forward-looking P/E ratio of about 31 using next year’s EPS forecast and sports a market cap of about £137m. If it can continue growing at a healthy pace, I think it could easily double its market cap over time. I’d buy this UK growth share today.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Edward Sheldon owns shares in Keystone Law, ASOS, GB Group, and dotDigital. The Motley Fool UK has recommended ASOS and dotDigital Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.