3 of the best cheap UK shares under £5 to buy

Who doesn’t like a nice piece of cake? Judging from sales figures at cheap UK share Cake Box Holdings (LSE: CBOX) it seems like Britons can’t get enough of these sweet treats.

Revenues surged 90%-plus at Cake Box franchise stores in the four months to September. It was a result that didn’t just reflect the weak comparatives of a year earlier when Covid-19 lockdowns hit trade. It also illustrated the success of new store rollouts and trials in major supermarkets. The baker’s tie-up with the likes of Uber Eats to exploit the online delivery boom is also paying off handsomely.

Pleasingly, Cake Box doesn’t seem to be slowing down with its ambitious growth drive either. The company has opened another three franchise stores since the beginning of October alone, taking the total to 177. Competition is intense from supermarkets, along with other specialist bakers like Greggs. But I still think Cake Box’s spectacular growth makes it worth serious consideration today. Right now it trades at 397p per share.

A cheap UK healthcare share

I’d use recent share price weakness at ECO Animal Health Group (LSE: EAH) as an opportunity to nab a bargain. The business — which creates and markets pharmaceuticals for livestock — recently closed at its cheapest since December 2020. At 245p per share, the business is now just 3% more expensive than it was a year ago.

ECO Animal Health has trended lower because of continued weakness in the Chinese pork market. Farmers are struggling to get a good price for their product due to oversupply, which is, in turn, hitting demand for the cheap UK share’s medicines. This is a big problem as ECO Animal Health sources the lion’s share of group revenues from the Far East.

However, as a long-term investor, I’m prepared to look past this turbulence and buy the stock today. Global meat demand is expected to soar in the years ahead, primarily due to rising wealth and population levels in emerging markets. And pleasingly, ECO Global Health has considerable exposure to these fast-growing regions.

Takeaway titan

I think Domino’s Pizza (LSE: DOM) is also a great buy for various reasons. It’s a market leader in an industry which is tipped for continued strong growth. Analysts at Statista think the UK online food delivery market will be worth a whopping $17.2bn by 2025. That’s up significantly from the $11.3bn predicted for this year.

Domino’s Pizza saw like-for-like sales jump an impressive 15.6% in the 39 weeks to 26 September. And it is investing heavily in its online operations and store network to continue its recent successes. It remains on course to open 30 new shops this year alone, and 200 more over the medium term.

I think Domino’s could deliver explosive earnings growth over the next decade in spite of intense competition from other restaurants and internet food delivery giants like Deliveroo and Just Eat. Domino’s Pizza trades at 382p per share.