2 cheap UK shares I’d buy for my Stocks & Shares ISA today!

Buying value stocks can turbocharge an investor’s long-term returns. Here are two dirt-cheap British shares on my radar right now.

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I think these cheap UK shares could be great selections for Stocks and Shares ISA investors. Here’s why I’ll buy them if I have spare cash to invest.

City Pub Group

High operating costs are a significant problem across the UK leisure sector. Wagamama owner The Restaurant Group’s decision earlier this month to close dozens of sites illustrates the huge pressure of elevated labour and energy costs on companies’ bottom lines.

Yet I still believe The City Pub Group (LSE:CPC) is an attractive share to buy. The pub industry is steadily recovering following the earthquake of Covid-19 and is tipped for sustained growth.

Auditors Gerald Edelman expect revenues across the pubs and bars industry to rise at a compound annual growth rate of 2.2% between 2023 and 2028. However, I think City Pub could grow sales faster than this.

This is thanks to its focus on the faster-growing premium end of the sector. Gerald Edelman also notes that there has been “a shift in consumer preferences towards premium products such as craft beers and premium lagers” in Britain.

The firm’s hybrid model of drinks and food could also help it to enjoy robust revenues growth. Market research firm IBISWorld says that food accounts for 29% of total industry revenues, just behind first-placed beer at 29.1%.

Investing in leisure shares could be risky in the near term as consumers tighten their belts. Yet I believe City Pub could be well protected from the cost-of-living crisis.

This is because of its focus on market towns and cathedral cities in Southern England. Spending levels in these more affluent areas tend to be less affected by broader economic conditions.

Today this AIM share trades on a price-to-earnings growth (PEG) ratio of just 0.3. Any reading below one indicates that a stock is undervalued. This makes it one of the best cheap leisure shares out there in my opinion.

FRP Advisory Group

As the UK economy toils, the number of businesses experiencing financial difficulties is unfortunately booming.

Latest data from the Insolvency Service showed corporate insolvency cases soar 17% year on year in February. The Federation of Small Businesses predicts that 370,000 small companies could close or be forced to downsize or restructure when help for energy bills is reduced in April, too.

Firms of all shapes and sizes are struggling in the current climate. One way that investors can protect themselves today is to buy FRP Advisory Group (LSE:FRP) shares. The business provides a range of financial services in fields including restructuring and administrations.

Revenues here rose during the six months to October. And the AIM firm said last month that “the medium-term outlook for all of our markets remains positive“, illustrating the momentum it is currently enjoying.

Today FRP shares trade on a forward PEG ratio of 0.9. It also carries a meaty 4% dividend yield, cementing its place as an attractive value stock to buy.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended FRP Advisory 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.

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