Not sexy

Common phrases like ‘playing the stock market’ certainly don’t help the cause, nor does it help when seasoned investors tell their friends they’re about to purchase a stock simply because they have ‘a good feeling about it’. Truth is, they’ve probably spent days and weeks researching the company, and finally decided to buy the stock after patiently waiting for a favourable entry point based on a number of valuation metrics.

Granted, the latter doesn’t sound half as sexy as the former, nor will it give their ego the same boost. But the truth is, becoming a successful investor requires a great deal of research, analysis, and hard work. That might sound boring, but a more gung-ho and cavalier approach more often than not leads to financial ruin.

Fear & greed

Another reason why the unenlightened often compare investing to gambling is that both invoke similar emotions, namely fear and greed. I would certainly agree with that. We may pretend to be rational, logic-driven professionals, but we’re human beings after all, and what could be more emotion-inducing than the thought of making or losing money at the click of a mouse?

Let me give you an example to illustrate why investing (the way we Fools practice it) is so very different from gambling. Let’s say you were interested in buying a sandwich shop, and you’d whittled the candidates down to two healthy-looking businesses available at the exact same asking price in equally unfamiliar neighbourhoods on the other side of town.

Bertha’s Baps

If you chose ‘Shirley’s Sandwiches’ over ‘Bertha’s Baps’ simply because ‘Shirley’ was your grandmother’s name, without examining the profit & loss accounts, then I’d say you were gambling. If however you favoured Shirley’s business because it was consistently making higher profits, then I’d say you were making a rational decision.

But here’s the kicker. If you’d done your research properly and learned that the factory nearby whose workers had been contributing 90% to Shirley’s sales was closing down, then perhaps you’d be more inclined to further examine Bertha’s Baps. Doing the extra homework in this instance would have enabled you to make a better-informed decision when choosing which business (or company) to invest in.

Lottery ticket

Buying any business is risky, but that doesn’t necessarily mean it’s gambling. We take risks in our everyday lives, whether it’s choosing a job, a partner, or even buying the right house or car, but it’s not the same as gambling. Purchasing shares in a publicly-listed company isn’t the same as buying a lottery ticket or backing a Grand National winner, you’re simply buying a small slice of a large business, albeit with an element of risk.

Despite what others might have you believe, the stock exchange isn’t a casino, and investing (when done properly) isn’t the same as gambling. As the great investors of our times have proven, investing with patience and perseverance is the key to building long-term wealth.

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The tortoise and the hare

That’s why it’s sometimes better to look for slightly slower, more reliable growth – the story of the tortoise and the hare comes to mind here. These types of stocks do tend to be a little dull, but when it comes to investing it’s often said that boring can be beautiful. For those who are risk-averse, companies delivering steady sustainable growth can be much more appealing than explosive growth stocks that come with sky-high expectations.

Accountants have always been viewed as boring but well paid. Similarly, accounting software specialist Sage (LSE: SGE) certainly isn’t the most glamorous company to have graced the FTSE 100, but it certainly knows how to generate copious amounts of cash.

Significant transformation

Sage may not be a household name, but the Newcastle-based software giant happens to be the market leader for integrated accounting, payroll, and payment systems, supporting millions of small and medium-sized businesses right across the globe.

2017 marked the completion of a significant transformation for the group, and with the focus shifting to subscription-based services, recurring revenue now accounts for 78% of total revenue with software subscriptions representing 37% of total revenue, up from 22% in FY2014. For me, this level of predictability makes the company very attractive from an earnings visibility perspective.

Sage’s shares have pulled back a little from January’s multi-year highs of 821p, and now trade on a price-to-earnings ratio of 21 for the year to September.

Credit check

Perhaps a little more familiar to those outside the investment community is Sage’s FTSE 100 peer Experian (LSE: EXPN), the world’s leading global information services company.

The Dublin-based group which specialises in financial and personal credit data, is the best known name in this area as far as most consumers are concerned and continues to hold a dominant position in its market. But it’s also seeing further steady expansion into emerging markets and new products in areas such as fraud, health and analytics.

Identity protection

Results for the third quarter showed good progress with organic revenue growth of 5% and total growth of 8%. Performance across business-to-business activities (which consists of Credit Services, Decision Analytics and Marketing Services) strengthened, with Consumer Services making good progress in identity protection and credit comparison services.

City analysts expect the group to post revenues of almost £3.4bn for the current financial year which ends this month, with profits forecast to rise by 8% to £629m, putting the shares on a forward earnings multiple of 23. Certainly not cheap, but it’s a price investors should be prepared to pay for REAL quality.

The post 2 ‘boring’ FTSE 100 stocks that could make you incredibly rich appeared first on The Motley Fool UK.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has recommended Experian and Sage 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.

Record highs

Those of you that followed my advice back in October 2016 will by now be very familiar with Crest Nicholson (LSE: CRST). Not only did the upmarket residential housebuilder go on to achieve its sales target of £1bn for the financial year, but the company also saw its share price soar 56% to record highs of 636.5p just seven months after my recommendation.

But that was then, and this is now, although the success story goes on as full-year results for FY2017 revealed yet another year of growth for the Surrey-based developer, with increases in both sales and the total number of homes built. The FTSE 250-listed group delivered 2,935 new homes in 2017, an increase of 2.3%, at an average selling price of £388,000.

Buying opportunity

During the 12 month period to October 2017, the group delivered a record £1,066m of sales, and remains on course to achieve its £1.4bn target by 2019. Pre-tax profits came in 6% higher than the previous year at £207m with the business benefitting from additional profits generated from joint ventures.

In light of the improved performance, management proposed a final dividend of 21.8p per share, taking the total payout for the year to 33p, representing a substantial 19.6% improvement on the previous year. With the shares now trading at less than seven times forward earnings, and supported by a 7.3% yield, I sense another buying opportunity for income seekers on the hunt for a bargain.

Small-cap special

For those who aren’t afraid to venture into small-cap territory then I believe overlooked VP plc (LSE: VP) could be just the ticket. The £340m group is a specialist rental business providing products and services to a diverse range of markets including infrastructure, construction, housebuilding, and oil and gas, both in the UK and overseas.

Based in the spa town of Harrogate, North Yorkshire, this rapidly-growing business has seen a threefold increase in its share price since 2013, but I believe there’s still plenty more to come, with results for the first six months of the year showing further significant growth for the group.

Oozing value

Late last year VP made its largest acquisition to date with the purchase of Brandon Hire for £41.6m. With its extensive branch network, the national tool and equipment hire business looks to be an excellent geographic fit with VP’s current specialist tool hire operations, and management expects the acquisition to be earnings enhancing within the first 12 months of ownership.

With analysts expecting earnings to rise by a further 44% by FY2020, VP looks to be oozing value trading on an undemanding price/earnings ratio of 11.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Foreign control

Unless you’ve shunned even the most basic of privileges that modern life has to offer, then you’ll no doubt be accustomed to the reliable flow of running water from your kitchen and bathroom taps, and not be too worried about where it goes once you’ve finished with it. Chances are you’re just one of tens of millions of customers of one of the UK’s regional water companies.

These giant utility firms are effectively run as regional monopolies, making them very attractive investments indeed. In fact, of the 10 original water authorities in England & Wales that were privatised back in 1989, only three remain listed on the London Stock Exchange. The rest have been completely taken over and are no longer publicly listed, with some even under foreign control.

Predictable inflation-proof income

So what is it about our boring water businesses that proves to be so irresistible to overseas investment funds and foreign consortia? The answer is a steady stream of predictable inflation-linked income.

Industry regulator Ofwat determines how much water companies can charge customers in exchange for services and further investment, with five-year regulatory settlements providing investors with a heads-up on future earnings. In an age of uncertainty that’s very reassuring indeed.

Mouth-watering income

United Utilities remains the largest of the three remaining London-listed water companies, valued at £4.5bn, and you can read my most recent appraisal of the business here. Next in terms of size is Severn Trent (LSE: SVT), the only other water and sewerage company listed in the FTSE 100 index.

The Coventry-based utility giant provides water and wastewater services to residents and businesses across the heart of the UK, as far north as Scunthorpe, and as far south as Gloucester, and even includes parts of Wales.

Last year, the group upgraded its dividend policy to deliver growth of at least the Retail Price Index (RPI) plus 4%, taking the forecast FY2018 payout to 86.64p per share. After the recent dip in the share price, that equates to a mouth-watering yield of 4.9%.

Energy from waste

For those looking for an even higher return on their investment then FTSE 250-listed Pennon Group (LSE: PNN) could be the answer to your prayers. The Exeter-based group is the owner South West Water, which provides water and wastewater services to Devon, Cornwall and parts of Dorset and Somerset.

Like its larger peers Pennon operates as a virtual monopoly within its own defined geographical area, but it also has the added attraction of being a leader in delivering energy from waste through its Viridor subsidiary.

Management hhasve pledged to grow the group dividend by 4% above inflation each year at least until 2020. With analysts having pencilled-in a full-year payout of 38.56p per share for FY2018 this equates to a nice fat low-risk return of 6%.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has recommended Pennon 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.

It’s been just over 10 years since global paper and packaging group Mondi (LSE: MNDI) was first spun-off from diversified mining giant Anglo American, and in the decade that has followed, it has well and truly proven itself to be a successful and flourishing business in its own right.

The FTSE 100 group based in Addlestone, Surrey, is now fully integrated across the packaging and paper value chain – from managing forests and producing pulp, paper and compound plastics, to developing effective and innovative industrial and consumer packaging solutions.

Industry giant

The company’s products can be found in a variety of applications including hygiene components, stand-up pouches, superstrong cement bags, clever retail boxes and office paper, serving customers across a wide variety of industries across all geographical regions.

Since its demerger from Anglo American in 2007, the business has grown into an industry goliath, with annual revenues well in excess of €6bn. The company has continued to deliver high levels of growth, despite its size, with pre-tax profits more than doubling from €368m to €843m in the last five years alone.

Quality blue chip

Investors have no doubt been impressed with the group’s performance over the years, sending the share price rocketing from lows of 121p in the aftermath of the last recession to all-time highs of 2,130p in the latter part of 2017.

However, I believe the recent share price weakness could signal a buying opportunity for long-term growth-focused investors to buy this quality blue-chip that’s currently trading on a relatively modest earnings multiple of 12.

Hurricane activity

Another blue-chip that has thrived since the financial crisis is international building materials group CRH (LSE: CRH). The Dublin-based firm has enjoyed a pretty good year so far despite the current economic uncertainties, with cumulative sales of €20.7m in the first nine months, representing a 2% increase on the previous year on a like-for-like basis.

The group has benefitted from continued underlying growth in the Americas, despite the adverse impact of severe weather and in particular hurricane activity in the region during 2017. But while momentum remains positive in Europe, market conditions in Asia continue to be highly competitive.

The only way is up

Still, CRH remains well-positioned to benefit from President Trump’s push for increased spending on the US’s creaking infrastructure, and this should continue to be a big driver of growth in the coming years. With full-year results due in a just a few weeks, management expects full-year earnings (before interest, tax, depreciation and amortisation) to be in excess of €3.2bn for 2017, a €70m improvement on the previous year.

The shares have struggled to find direction over the past 12 months or so, and yet to me they look significantly undervalued trading on a forward earnings multiple of 13.8 for the current year to December. I reckon that if those annual results live up to expectations, from hereon in, the recently battered share price should start to rise.

The post 2 top blue-chip stocks to buy now appeared first on The Motley Fool UK.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

There are, of course, other emotions in play besides fear and greed, and one in particular I’d like to touch on today, regret. Looking back at missed opportunities and thinking ‘if only I had invested a few years back’ is a scenario that is played out over and over again. With that in mind, today I’ve picked out an unglamorous UK-listed company that I believe could turn out to be a very lucrative investment over the longer term.

All-time high

Plastic packaging specialist RPC Group (LSE: RPC) has performed reasonably well since I first recommended it at 747p back in 2016. Since then, the share price has soared 35% to all-time highs of 1,007p, before falling back to today’s levels around 800p. I view the recent share price weakness as a great buying opportunity to pick up shares in a company that has delivered shareholder returns in excess of 1,000% in less than 10 years.

The Rushden-based group is a leader in plastic products design and engineering for both packaging and non-packaging markets, boasting 32 innovation centres and 194 operations in 34 countries. The company develops and manufactures a diverse range of products for a wide variety of customers, including many household names, and enjoys strong market positions in many of the end markets and geographical areas in which it operates.

Innovative packaging

The £3bn business is now one of the largest plastic converters in Europe, combining the development of innovative packaging and technical solutions for its customers, while using a wide range of polymer conversion technologies in both rigid and flexible plastics manufacture.

During the first six months of the current financial year the FTSE 250-listed business delivered a remarkable 53% increase in revenues to £1,876m, with strong growth in both packaging and non-packaging products. This was driven by the contribution from acquisitions announced or completed in the previous financial year, along with underlying organic growth, polymer price tailwinds and favourable foreign exchange movements.

Priced to buy

Margins and profitability levels have improved significantly due to the contribution of acquisitions, the realisation of synergies, organic growth, lower exceptional costs, and foreign exchange benefits from a weaker sterling. As a result, adjusted earnings (before interest, tax, depreciation and amortisation) grew 49% to £296.1m, with adjusted operating profits climbing 58% to £214.7m.

With no let-up in growth on the horizon, and trading on a very modest forward earnings multiple of 11 for FY2018, RPC is a quality growth stock that looks priced to buy.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has recommended RPC 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.

Brexit winner?

Landscaping products supplier Marshalls (LSE: MSLH) is a great example of this, with the FTSE 250-listed company delivering exceptional levels of growth in recent years, which in turn has left its shareholders enjoying spectacular returns.

In fact, Marshalls has defied the Brexit doomsayers and gone on to deliver a whopping 90% increase in its share price following the EU referendum in June 2016, and a more modest 40% gain since my own recommendation in August the same year.

UK’s leading manufacturer

The group is based in Elland, West Yorkshire, and is now the UK’s leading manufacturer of superior natural stone and innovative concrete hard landscaping products, supplying the construction, home improvement and landscape markets.

Marshalls operates its own quarries and manufacturing sites throughout the UK, including a national network of manufacturing and distribution sites, and has operations in Belgium with worldwide sales representation so it has control of its supply chain and a strong foothold in the EU.

Wider economic uncertainty

In its most recent trading update the group reported an 8% jump In revenues to £430m for the year to the end of December, including a £9m contribution from CPM group which has been trading strongly since it was acquired by Marshalls last October.

Most encouraging of all is that despite the Construction Products Association (CPA) reducing its 2018 forecasts to reflect the wider economic uncertainty, Marshalls has continued to outperform the CPA’s growth figures. At a slightly expensive 16 times forecast earnings, the shares are still a buy.

Brexit sell-off

Another construction materials firm that has enjoyed tremendous success in recent years is AIM-listed Breedon Group (LSE: BREE). Perhaps not surprisingly the share price of the group formerly known as Breedon Aggregates has followed a very similar trajectory to that of its FTSE 250 counterpart, having suffered a similar panic-induced sell-off following the 2016 referendum.

But as weaker investors were left nursing their losses, those that kept the faith have been rewarded handsomely. Not only did the company’s shares fully recover from the Brexit sell-off, but a year later went on to reach new all-time highs of 92.5p, a gain of 30% on my original buy call in October 2016.

UK’s largest

Forecasters are expecting new infrastructure and housing work to show healthy growth over the next two years, and with these market segments accounting for approximately two-thirds of Breedon’s end-use markets I believe now is not the time to be taking profits. Breedon is already the UK’s largest independent construction business, but I think there is still plenty of scope for it to grow even bigger.

Trading on a price/earnings ratio of 17, I see Breedon as another worthy construction play.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Multi-millionaires

You’ll be surprised how many investors have retired as multi-millionaires despite starting out with very limited funds. There are so many examples of London-listed companies whose share prices have multiplied by hundreds and sometimes even thousands of percentage points over the last few years, making the idea of achieving financial independence via the stock market more realistic than you might think.

Granted, many of these highly successful growth stocks started out as more speculative small-caps, and those types of investments are perhaps understandably not everyone’s cup of tea. Many of you may be new to investing or simply risk-averse, in which case it’s probably best to put your first £1,000 of investing capital to work in rock-solid blue-chips that have a track record of delivering stable returns with comparatively low levels of risk.

Life-changing returns

That’s not to say that our FTSE 100-listed companies can’t deliver life-changing returns for their investors, indeed far from it. Packaging giant DS Smith (LSE: SMDS) for example has provided a return of no less than 1,300% for its shareholders since 2009, and that’s without even including dividends.

The £5bn business is now a leading provider of corrugated packaging in Europe, and a specialist in plastic packaging worldwide. In order to support its corrugated packaging operations, the group also includes a recycling business that collects used paper and corrugated cardboard, from which its paper manufacturing facilities make the recycled paper used in corrugated packaging. And recycling is a business that’s likely to grow in the future.

Explosion in online shopping

The London-based group boasts an excellent track record of sales and earnings growth, and with the explosion in online shopping helping to further increase demand for cardboard packaging, I think the only way is up for this boring-yet-reliable international business.

DS Smith trades on a forecast price/earnings ratio of 14 for the year to April, and offers a progressive dividend, which at today’s prices yields a very respectable 3.5%.

Digitally-focused

Another spectacularly boring FTSE 100 business that’s delivered significant shareholder returns in recent years is Relx (LSE: REL). The Anglo-Dutch group formerly known as Reed Elsevier is a global provider of information and analytics for professional and business customers across a wide range of industries.

After undergoing a huge restructuring programme the group has largely moved away from its legacy of trade journals to becoming a more digitally-focused provider of professional information services. This is likely to bode well for the future with the increasing demand for data and analytical tools helping to offset the global decline in print media.

Relx’s share price has pulled back sharply from the record highs of 1,782p achieved in November last year, and this should provide new investors with a reasonable entry point at a not-too-demanding forward earnings multiple of 17.

The post 2 FTSE 100 stocks I’d buy with £1,000 today appeared first on The Motley Fool UK.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has recommended DS Smith. 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.

Adventurous small-caps

Much depends on your personality. If you’re willing to stomach the potentially devastating losses that can be incurred when investing in small-caps, then good for you, but small-cap investing isn’t for everyone. Personally I’ve always championed the idea of building a well-diversified portfolio comprising a nice balance of defensive blue-chips and more exciting and adventurous smaller firms. But as always, if you want to retire early, you have to pick the right stocks.

Many of London’s smaller listed companies have yet to prove themselves by actually turning a profit, let alone showing signs of long-term growth potential. And that’s particularly true of the junior AIM market, where many oil & gas exploration, mining and pharmaceutical minnows are nothing more than highly speculative bets. But if you’re willing to dig deep enough, there are plenty of quality businesses just waiting to be discovered.

Ninefold increase

Take Renew Holdings (LSE: RNWH) for example. The AIM-listed engineering services group has not only proven it can turn a healthy profit, but has grown its market capitalisation more than ninefold since September 2005 without recourse to new equity.

The Leeds-based group operates a number of autonomous subsidiary businesses which provide essential engineering services to maintain and renew UK infrastructure networks. These independently branded businesses have expert knowledge in their individual markets and directly deliver engineering services aligned to the needs of clients, many of whom are responsible for the long-term maintenance and renewal of national infrastructure networks.

Strong results

In its last completed financial year, the group delivered another strong set of results reflecting the company’s position as a leading provider of engineering services to many of the UK’s critical infrastructure assets and in particular the nuclear, rail and water markets.

Group revenue (including £2.2m from a joint venture) increased by 6.7% to £560.8m, with adjusted pre-tax profits up 13.1% to £25.2m, compared to £22.3m reported for the year before. At the end of the 2017 financial year, the group’s order book stood at a healthy £511m, with a net cash position of £3.9m after the acquisition of Giffen Holdings for £7.2m during the year.

High barriers to entry

Renew’s share price has enjoyed spectacular growth over the past decade or so, but I think there’s plenty more to come from this £250m small-cap . The regulated markets in which the company operates have high barriers to entry and, alongside the group’s extensive expertise in delivering asset care and maintenance, provide strong opportunities for long-term growth.

I believe the recent sell-off is unjustified with management confirming it has no financial exposure to Carillion. Herein lies a good opportunity for contrarians to buy on weakness at just 10 times current year earnings. Income seekers may turn their noses up at the relatively modest dividend yield of 2.7%, but payouts are covered more than three times by forecast earnings, leaving plenty of room for hefty hikes in the future.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Fighting the urge

Patience is not only required when fighting the urge to take quick profits to the detriment of bigger long-term gains, but also in waiting for the right moment to buy a stock you’re particularly keen on. Seasoned investors who practice the strategy of buying on the dips will know exactly what I’m talking about. It always makes sense to buy shares in a quality company with great long-term prospects, but it makes even better sense when those shares are bought at a more sensible price.

It’s for this reason experienced investors use watchlists to keep an eye on their favourite stocks, ready to pounce when the opportunity presents itself. I’ve found watchlists particularly useful with high-growth small-caps commanding very high earnings multiples. In these instances it can often be prudent to stay on the sidelines and wait for the dips created by short-term sell-offs in order to gain a more favourable entry point.

Be ready to pounce

For instance, surgical and advanced wound care specialist Advanced Medical Solutions (LSE: AMS) has seen a fivefold increase in its share price in as many years, which in turn has left the shares trading on a very expensive earnings multiple of 33. Rather than dismiss the stock altogether, investors might be better advised to monitor the share price over the coming months and be ready to pounce on any signs of weakness.

The AIM-listed firm based in Winsford, Cheshire, continues to deliver strong organic growth supported by research and development (R&D) activities that provide both product innovation and intellectual property. With a rising incidence of both chronic and acute wounds, and predisposing factors such as obesity and diabetes on the increase, I believe the group is very well positioned to continue on its current growth trajectory. This is one small cap growth stock that certainly deserves a place on your watchlist.

High-growth opportunity

It’s a similar story over at fellow AIM constituent Tristel (LSE: TSTL). A number of years of strong growth propelled the company’s share price to record highs of 317p last Autumn, and despite a recent dip, the shares are still trading on a heady price-to-earnings (P/E) ratio of 32 for the current fiscal year to June.

The Cambridgeshire-based group is a manufacturer of infection prevention and contamination control products with its lead technology being a proprietary chlorine dioxide formulation that addresses the human healthcare, contamination control, and animal healthcare markets.

Tristel enjoys high levels of market penetration here in the UK, and this is reflected in last year’s sales figures which revealed that overseas sales grew faster at 43% than domestic sales at 3%, with overseas sales representing 47% of total sales compared to 39% in FY2016.

I believe further international expansion will be a key driver of growth in the coming years, which makes Tristel is another high-growth opportunity you might want to keep an eye on.

The post 2 small-cap growth stocks I’m watching closely appeared first on The Motley Fool UK.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has recommended Advanced Medical Solutions. 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.