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Why Kier Group plc, Ted Baker plc & Spire Healthcare Group PLC Are Stunning Growth Picks

Today I am making the case for three FTSE-listed growth giants.

Build a fortune

Construction play Kier Group (LSE: KIE) cheered the market with a bubbly set of results in Thursday business. The company advised that revenues galloped 32% between July and December, to £2.1bn, a result that drove pre-tax profit 19% higher to £44.2m. And a chunky £9bn order book across its Property and Residential divisions bolsters Kier’s chances of achieving its ‘Vision 2020’ programme, under which it plans to double profits by the close of the decade.

The City expects Kier to enjoy an 8% earnings bump in the year to June 2016, resulting in a P/E multiple of just 12.5 times. And this figure topples to an exceptional 10.7 times for 2017 thanks to predictions of a 16% bottom-lime bounce.

I fully expect the strength of Britain’s construction sector, not to mention Kier’s aggressive expansion strategy and knack of grinding out contract wins, to keep driving earnings skywards in the years ahead.

A perfect fit

Fashion play Ted Baker (LSE: TED) also gave investors cause for celebration during today’s session. The clothing giant advised that profit before tax leapt 20% in the 12 months to January 2016, to £58.7m, underpinned by a stunning 18% sales increase, to £456.2m.

Ted Baker’s breakneck expansion strategy is clearly paying off handsomely — the company now boasts 448 outlets across Europe, North America and Asia. And plans to open new stores in France, the US, Canada and China in the current year, as well as a host of concessions across the globe, are likely to underpin further exceptional sales growth.

The number crunchers expect Ted Baker to ratchet up an 8% earnings rise in the current fiscal year, creating an elevated P/E multiple of 25.9 times. But this readout drops to 22.3 times for 2018 due to forecasts of an extra 15% earnings rise.

And I expect this figure to keep on toppling, as surging demand for Ted Baker’s terrific togs drives the top line higher.

In rude health

Hospital builder Spire Healthcare (LSE: SPI) also made the financial pages on Thursday with a robust trading update. The company punched pre-tax profit of £73.6m in 2015, it advised, swinging from a loss of £7m in the prior year.

Spire saw revenues edge 3.4% last year, to £884.8m, the company reporting a 3.7% increase in ‘in-patient’ and ‘daycase’ admissions during the period, to 270,000 cases. And I believe Spire’s facility construction programme should facilitate further sales growth in the coming years amid expanding healthcare demand.

Spire is not expected to produce electrifying earnings growth in the near future, however. A 3% decline is currently pencilled in for 2016, although the business is expected to get rolling again from next year — a 6% bottom-line advance is currently forecast.

These figures create earnings multiples of 19.2 times and 18.1 times correspondingly. While these figures may not immediately bowl over value hunters, I believe Spire’s strong position in a growing market makes the company a terrific long-term earnings selection, even at current prices.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.