The Vitec Group (LSE: VTC) share price is currently one of the best performers in Thursday business. Up 13% on the day, the UK specialist engineering business is currently trading at £13.95 per share. It’s now doubled in value over the past 12 months.
Vitec — which makes cameras, camera equipment and broadcasting products — has leapt after announcing that trading momentum remains strong. It noted the business has “achieved a stronger than anticipated recovery” as markets have reopened.
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This means it finished May with a record order book 50% higher than at the start of the year. As a consequence, the small-cap expects to report adjusted pre-tax profit of at least £19m for the first half of 2021. This compares with the £7m loss recorded during the Covid-19-hit six months to June 2020.
Vitec added that it expects adjusted profit before tax for the full year to be “materially above current market expectations.” City analysts think the UK share will generate profits of £35.6m in 2021.
Why I’d buy this UK share
I like Vitec Group a lot. An acquisition spree in recent years has significantly improved its range of technologies and its addressable markets. Consequently, it’s well-placed to exploit a raft of changes in the broadcasting and media markets. This includes the rise of independent content creators using the likes of YouTube, the increase in production spending by streaming giants Netflix and Amazon and the growth of wireless video transmission.
But Vitec may suffer some turbulence in trying to exploit these markets. As the company noted today, it faces “uncertainty around the impact of electronic component and raw material shortages.”
However, I still think the camera giant is a great buy today. And particularly at current prices. Despite today’s gains, the Vitec share price still commands a rock-bottom forward price-to-earnings growth (PEG) ratio of 0.1.
Another top British stock to buy
The Next Fifteen Communications (LSE: NFC) share price has also leapt following a positive reaction to latest trading numbers. The UK media share said revenues were up 21% in the first quarter, with organic revenues rising 17% year-on-year.
What’s more, Next Fifteen has seen growth accelerate during the following three months to July. This has pushed results above management’s expectations, it said, with the business enjoying robust trading in all segments and geographies.
However, Next Fifteen also said it expects organic growth to moderate in the second half “given the relatively strong performance we experienced in that period last year.” Still, the company expects results for the full fiscal year to January 2021 to come in above expectations. It’s forecast organic growth by low-double-digit percentages.
Next Fifteen’s share price has risen 7% Thursday to 954p per share. This takes 12-month gains to 140%. I’d buy this UK share as I think its technology-driven marketing approach could deliver solid long-term gains. But remember that any worsening of the Covid-19 crisis could blow its earnings recovery well off course.