Over the past five years alone, the company’s share price has risen from under 100p per share to its current price of 424p. Of course, the pertinent question to ask is whether the group can deliver this sort of return in the future.

I have my doubts, but given management’s proven ability to consistently beat already lofty investor expectations, I’m not ruling it out. There is certainly good top-line growth potential as the company extends its relationship with key customers to manufacture even more of their products ranging from high performance aluminium foil for industrial applications to advanced wound care products for global behemoths like Convatec.

In healthcare, growth is being driven by general market expansion, deepening already long-standing relationships with customers as well as small bolt-on acquisitions. At the industrial end, top-line growth will be more dependent on good global economic growth, but there is certainly potential for substantially increased profits as the group closes less profitable factories and shifts into higher-margin businesses.

Last year, the group’s revenue growth was a sedate 3.1% in constant currency terms, but a strong focus on margin improvements saw adjusted earnings per share lift 23% to 18.2p. While the top-line figure wasn’t all that impressive, management has shown in the past it can kick start growth when need be. And with net debt of only £3.8m at year-end, there is substantial firepower to make further acquisitions.

While the company’s stock isn’t cheap at 22 times forward earnings, I think it’s well worth looking at for growth-hungry investors thanks to it proven ability to boost revenue and an increased focus on increasing already decent margins.

Nuts and bolts 

Another small-cap that’s flown under the radar but kept shareholders very, very happy is Trifast (LSE: TRI), which has seen its share price rise over 265% in the past half-decade. This terrific share price performance is unsurprising when looking at Trifast’s financial reports with the company seeing an increase in revenue over the five-year period from £129m to £197m and underlying per-tax profits jumping from £9.2m to £22.2m.

This is down to a couple of factors. One is good general economic growth, which means more demand for the high-end fasteners Trifast makes. Then there is management’s decision to wisely move up the value-added ladder by investing more in R&D and working closely with customers.

While further global economic growth is uncertain given rising trade tensions, Trifast is well-placed to survive any downturn and actually expand at the expense of rivals due to very low-cost production facilities and net debt of just £7.4m at year-end. And with revenue right now fairly evenly split between the UK, Europe and Asia, the business is well diversified and has considerable growth prospects ahead of it in the massive US market that accounted for only 3% of turnover last year.

At 16 times forward earnings, Trifast isn’t cheap for a fairly cyclical firm, but with a strong record of organic and acquisition-led growth, as well as rapidly improving margins, I think its one to consider for growth-hungry investors.

The post Two small-caps with millionaire-making potential appeared first on The Motley Fool UK.

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Ian Pierce has no position in any of the 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.

I’m confident that, in the end, pre-committed customers will receive their supplies of the firm’s poly4 multi-nutrient fertilizer product and revenue will begin rolling in for Sirius Minerals. However, in situations like this where the firm has yet to generate revenues, cash inflow and profits, I reckon it’s even more important than ever for me to separate my opinion about the stock from my opinion about the underlying business.

Beware of speculation

The danger comes from the situation that we have little financial information to work with to form a judgement about valuation. We know the current share price close to 34p puts the market capitalisation at £1.6bn or so, and we know the firm needs to spend millions to complete its build project. We know the estimated polyhalite resource in the ground is around 2.6bn tonnes, and we know the firm has signed incremental supply agreements with customers upwards of 4.4m tonnes per annum.

We won’t know for sure what the final costs and financing requirements will be until the construction project is complete, and we can’t be certain about how profitable trading operations will be until they are under way. In the meantime, the market is estimating and guessing, which at times could lead to speculation driving the share price too high.

My Foolish colleague Roland Head made a good case for buying the dips of the share price and avoiding the peaks. That’s a reasonable approach, but my own preference is to avoid the stock altogether for the time being with a view to revisiting it when the mine-building and infrastructure project is further towards completion. So I’m shunning Sirius Minerals and looking at alternatives, such as industrial fastenings manufacturer Trifast (LSE: TRI).

An essential cog in the wheel of manufacturing

I’ve labelled Trifast a superstock because you could have bought shares in the firm during early 2009 at around 10p each. Today’s 265p means that if you had, you’d be sitting on a sum around 26 times your original investment due to capital gains, with dividend income on top. Trifast is also a superstock because the annual total dividend has risen more than 600% over the past six years.

With today’s full-year results report, the good news on trading continues. At constant exchange rates, revenue moved up 4% compared to the year before and underlying diluted earnings per share increased by 4.4%. The directors expressed their confidence in the outlook by pushing up the total dividend for the year by 10%.

Around 65% of sales during the year were to multinational Original Equipment Manufacturer’s (OEMs). Trifast provides an essential cog in those firms’ manufacturing processes leading to repeat business and steady cash inflow. As long as the wider manufacturing sector thrives, this firm is likely to thrive too, and right now the directors are investing for further growth. I think the business is well worth your research time right now. 

The post Why I’d shun the Sirius Minerals share price and buy this superstock instead appeared first on The Motley Fool UK.

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Kevin Godbold has no position in any of the 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.

For those with time on their hands and a desire for better returns however, it pays to look further down the market spectrum for those companies that have shown an ability to outperform the market’s top tier. Here are just two examples, one of which reported to investors this morning.

Encouraging end to the year

Shares in small-cap industrial fastenings manufacturer Trifast (LSE: TRI) have performed well over the past 12 months, rising 23% and thus vastly outperforming the index housing the UK’s biggest companies. Although no actual numbers were given, today’s trading update for the full year to the end of March suggests this momentum should continue.

With the exception of the US, all of Trifast’s main geographies delivered profit growth over the financial year. Indeed, underlying pre-tax profit is now expected to be “slightly ahead” of previous expectations thanks to what the company labels as an “encouraging” end to the financial year. Organic revenue growth was seen in all of the regions in which the company operates.

Looking ahead, Trifast’s future earnings are likely to be enhanced by this month’s acquisition of Precision Technology Supplies — a UK supplier and distributor of stainless steel fastenings. This purchase was made in response to what the company perceives as “growing demand” from a number of its customers looking for “fully recyclable, high strength and corrosion-resistant” fastening solutions. Despite also increasing investment in its facilities over the last year (with more due in 2018/19), Trifast’s balance sheet remains strong.

Although management wished to emphasise that some macroeconomic factors (such as foreign currency movements and the impact of Brexit) could not be fully mitigated, I’m inclined to think that a price-to-earnings (P/E) ratio of 20 feels just about reasonable given Trifast’s solid growth credentials.

Big gainer

Another small-cap that’s been performing well recently has been cafe and casual dining group Patisserie Holdings (LSE: CAKE). Indeed, the stock is up almost 40% since I last looked at it back in November following an encouraging set of full-year results.

To recap, revenue and pre-tax profit rose 9.7% (to £114.2m) and 17.1% (to £20.2m) respectively in the 12 months to the end of September last year. 

A total of 20 new stores were opened, all of which were funded with operating cash flows. According to Executive Chairman Luke Johnson, many of these were already performing “ahead of expectations” at results time. The signing of a supply-only agreement with supermarket giant Sainsbury’s was another interesting development, helping to further raise the company’s profile among shoppers.

Results for the full year are due mid-May. While some may use this as an opportunity to take profits, I’d be inclined to stick with the shares a while longer. While the impact of reduced consumer confidence can’t be ignored, Patisserie’s strong management, excellent financial position (£21.5m net cash back in November) and growth prospects suggests its best days still lie ahead.

The post These small-cap growth stocks are crushing the FTSE 100 appeared first on The Motley Fool UK.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Patisserie Holdings. 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.

Spirent Communications (LSE: SPT) has seen its share value go gangbusters on Thursday following the release of brilliant full-year financial details.

The stock was last up 10% on the day and dealing at levels not seen since last July. I reckon there is plenty left in the tank too, for further share price advances.

Spirent — which supplies testing and performance analysis services to the communications sector — announced that, although revenues fell marginally in 2017 to $454.8m from $457.9m a year earlier, adjusted pre-tax profit leapt 34% over the period to $59.2m.

The small-cap noted that the profits jump of last year was delivered “by materially reducing costs and focusing on our core areas of differentiation,” and the rosy result, helped by strong cash generation (free cash flow more than doubled to $56.4m) encouraged it to shell out a maiden special dividend of 5 cents on top of an ordinary dividend of 4.08 cents.

Growth star

Now a quick disclaimer: while Spirent is likely to see earnings growth cool considerably in the near term — City consensus suggests only a fractional year-on-year improvement is set for 2018 as legacy headwinds continue — I am convinced that the communications colossus is in great shape to deliver brilliant bottom line progress over the long term.

Indeed, the number crunchers are predicting that earnings expansion will pick up the pace again with a 14% advance next year, helped by an anticipated rebound in demand for high-speed ethernet from the current period.

Demand for Spirent’s services is only likely to grow as communications providers look to deliver data connectivity that is quicker, has greater capacity and is more secure. And the company’s renewed focus on what it sees as key growth areas bodes well for future revenues, too. Revenues from Lifecycle Service Assurance and Application Security rose 10% and 20% respectively last year.

The tech star may change hands on an elevated P/E ratio of 22 times, but in my opinion Spirent’s strong position in a rapidly-growing marketplace makes it worthy of such a premium.

Fasten in. Listen up

Trifast (LSE: TRI) is another little-known stock with the capacity to deliver exceptional shareholder returns.

City analysts are expecting the fastenings manufacturer to deliver a 23% earnings rise in the year to March 2018, although profits growth is expected to slow thereafter with a 3% advance forecast for fiscal 2019.

Neither this predicted slowdown — nor a slightly-heady P/E multiple of 19.1 times for the upcoming year — would be enough to discourage me from investing, however.

Trifast’s progress is relentless and a slew of positive trading releases, including the strong third-quarter update unveiled last month, has seen brokers upgrading their profits forecasts with no little regularity.

The chances of yet more upward revisions are strong given the progress it is making across all its territories (sales in the emerging nations of Asia boomed 10.7% during April-September, for example) as well as the strength of key markets like the automotive industry. And what’s more, Trifast’s drive to build  its manufacturing and warehousing capacity across the globe bodes well for its ability to continue meeting the needs of the world’s biggest OEMs.

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Royston Wild has no position in any of the 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.

Fast work

Trifast, which engineers, manufactures and distributes industrial fastenings to major global assembly industries, remains on course to meet expectations for the year ending 31 March 2018. Management said its global visibility and order pipeline is still “very encouraging”, while the group’s balance sheet remains strong and provides capacity to fund growth plans.

The £305m company’s US operation was hit by Hurricane Harvey but revenue and margins across all its business teams in the UK, Europe and Asia remain positive, putting the company on course to build long-term shareholder value, the board says.

Nice TRI

Management highlighted the potential impact of Brexit, a threat it cannot fully mitigate, but otherwise this is a brief and confident statement from a company my Foolish colleague Royston Wild has previously called an attractive home for your hard-earned investment cash. City forecasters foresee 23% earnings per share (EPS) growth in 2018, although this will slow to 3% and 5% over the next two years. This marks a slowdown from the double-digit growth seen in four of the last five years (interrupted by a rogue 3% drop in 2016).

The forward valuation is 17.7 times earnings, while a low yield of 1.6% is covered 3.5 times, giving scope for progression. It may struggle to hit recent highs but you still might want to give it a Tri.

Purple people

Online estate agent Purplebricks (LSE: PURP) has been a firm investor favourite over the last two years during which time its share price has risen 266%. It is up 86% over the last year alone, but recent performance has been patchy, causing some investors to wonder whether the glory days are over, especially after the stock tumbled 15% in just two days at the start of this month.

The drop was down to a controversial note from broker Jefferies which marked the stock down to ‘underperform’ and questioned figures around how many homes it sells. Purplebricks’ decision to publicly dispute the note has played badly with investors. Publish and be damned is still a good motto.

New York City boys

This has trimmed Purplebricks’ market cap to £1.14bn but it remains toppy for a company that has yet to move into profit. It remains a high-risk, high-reward proposition, and let’s add to that a high valuation, currently 600.2 times forecast earnings, according to Digital Look. However, City analysts are pencilling in whopping EPS growth of 443% in the year to 30 April 2020, so it may justify today’s investor expectations.

Much now depends on the success of its ambitious plans to move into the US. If it can shake up that market, Purplebricks could really can be the game-changer and wealth-builder it aspires be. Trifast isn’t setting its sights so high, but should jangle fewer nerves as a result.

The post 1 stunning growth stock I’d buy alongside Purplebricks Group plc appeared first on The Motley Fool UK.

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Harvey Jones has no position in any of the 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.

At face value, the latest update from McColl’s could be viewed as pretty impressive. The convenience store colossus saw total annual revenues burst through the £1bn milestone for the first time, it advised today (these jumped 19.1% during the 12 months to November 2017).

The revenues surge was thanks in no small part to the 298 outlets McColl’s snapped up from The Co-Operative Group in the summer.

Chief executive Jonathan Miller said that the results demonstrate “that this is now a business of real scale.” He added: “McColl’s is well positioned to continue to take advantage of the growing convenience market, with clear opportunities to enhance organic growth across our estate, as well as continued expansion through our acquisition programme.”

The Brentwood-based firm said that it is taking steps to address any near-term supply issues following the collapse of Palmer and Harvey late last month as the wholesaler supplies 700 of McColl’s’ 1,611 stores. It has inked a short-term deal with Nisa to help those affected stores.

Shop around

However, investors have been scared into selling up today following signs of intensifying pressure on the supermarket star’s top line.

On a like-for-like basis, McColl’s saw revenues rising just 0.1% during fiscal 2017 as sales at its convenience stores rose 0.1% but turnover in its newsagents dropped 0.2%. And things really took a turn for the worse during the last quarter when like-for-like sales dropped 1.1% due to “declining traditional categories and unfavourable weather.”

While convenience, along with home delivery, may remain the brightest growth spots in the UK grocery market, operators like McColl’s are clearly not immune to broader pressures.

City analysts are currently forecasting a 29% earnings increase in the current fiscal year. However, the last quarter’s worrying performance suggests that this heady growth forecast could be in line for downgrades in the weeks and months ahead, making the supermarket operator’s cheap forward P/E ratio of 12.1 times somewhat redundant.

With the strain on shoppers’ wallets likely to continue, prompting them to look for cheaper alternatives to put in their baskets, and the company also battling a rising cost base, there is too much risk here for my liking.

Revenues bolting higher

I would be much happier to plough my hard-earned investment cash into Trifast (LSE: TRI) today.

In the year to March 2018 the industrial fastenings manufacturer is predicted to report a ripping 23% earnings advance. And it is expected to follow this with a 3% advance in fiscal 2019.

A forward P/E ratio of 18 times may not be anything to write home about. However, a corresponding PEG multiple of 0.8 suggests that Trifast is actually exceptionally priced when you consider its anticipated earnings trajectory.

Indeed, I reckon the huge investment it is making should continue to underpin exceptional sales growth across all of its territories (organic revenues boomed 4.8% during the six months to September). And the company’s robust balance sheet should facilitate further earnings-boosting M&A action now and later.

The post One dirt-cheap growth stock I’d buy today and one I’d avoid appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the 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.

The renewable fuel specialist advised that revenues more than halved during the six months to June, to £234,000 from £509,000 in the same 2016 period. And pre-tax losses ballooned to £10.6m versus £7.7m previously.

Velocys was whacked in large part by the impact of sterling’s slide over the past year, and it advised that it “incurs much of its expense in US dollars and has exposure to the US dollar exchange rate.” As a result the firm suffered an exchange-rate-related hit to the tune of £900,000.

Release fuels investor fears

As well as being prepared for further currency-related woes down the road, investors are also worried about funding issues over at the Oxford business.

It tapped shareholders for £10m in May “to fund the pre-FEED (FEL-2) engineering study for the first biorefinery, to undertake a joint technology demonstration with our partner TRI, and to extend Velocys’ loan arrangement with ENVIA to support the plant in achieving steady state operations.” However, Velocys has advised that it will require additional funding to get its bio-refinery in the US up and running.

The City had already been expecting Velocys to chalk up losses before tax of £14.4m in 2017, but this forecast is likely to receive a hefty downgrade in the wake of today’s release.

And the very real possibility that the pound could continue to struggle, and more operational issues transpire that could whack revenue growth, may also cause the estimated loss of £6.8m pencilled in for 2018 miss to the downside.

In my opinion there is still far too much uncertainty circulating around Velocys right now, and as a result I for one won’t be investing.

Strap in and make a mint

Instead, I would much rather throw my hard-earned cash at industrial bolt and fastenings specialist Trifast (LSE: TRI).

Thanks to the hard work the Uckfield business has put into developing relationships with blue chip OEMs across the globe, and the strength of key sectors like automotive, industrials and electronics, the company continues to enjoy resplendent organic revenues growth in its territories. And Trifast is giving the top line an extra boost through its ambitious M&A strategy — it identified two targets in the first half but withdrew interest “due to their lack of strategic future-proofing” — and the vast sums it is investing in its existing operations.

In its latest trading statement the business advised last week that “our visibility and order pipeline remains very encouraging, whilst our balance sheet is strong,” and this encourages me that the firm can meet sprightly broker projections. Current estimates speak of a 20% earnings boost in the 12 months to March 2017, and an extra 3% rise for 2018.

I reckon Trifast is a great share pick right now given its robust sales momentum and successful self-help programme, not to mention its undemanding prospective earnings multiple of 16.3 times.

The post Why I’d ditch this falling knife to buy this small-cap growth stock appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the 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.

I was reminded of that when I read the latest trading update from Trifast (LSE: TRI) on Monday. The firm is in the business of mechanical fasteners, and I can’t help wondering how many millions of those are sold every day. 

The share price has soared by 370% over the past five years, to 206p, and that’s been on the back of years of double-digit earnings growth. On a forward P/E of around 15.5 now, I still think we’re seeing an attractive valuation.

Another great year

After reminding us that the year to March 2017 was a record one, Trifast told us it is on track to meet its key performance indicators of “revenue, overheads and margins across all our business teams in the UK, mainland Europe and Asia.”

Capital investments and acquisitions are continuing nicely, and currency exchange fluctuations have had a pretty benign effect overall with 70% of Trifast’s business being overseas. 

But I haven’t mentioned dividends yet.

Yields have only amounted from 1.4% to 2.2% over the past five years, and that might not thrill you if you’re an income seeker. But the storming share price gain has hidden the underlying progress there, with the actual cash paid rising from just 0.8p per share in 2013 to 3.5p for the year just ended — and further predicted uplifts to 3.65p this year and 3.8p next year would mean the dividend will have risen 4.75-fold in just six years.

The cash is covered around 3.5 times too, and I’m seeing a future long-term dividend cash cow here.

Bigger yields

If you want bigger dividend yields, Charles Taylor Consulting (LSE: CTR) might be one for you, with payouts of around 4% on the cards, which should be around 1.9 times covered by earnings.

And, crucially, the company operates a progressive dividend policy. It did have to impose a cut from 10p to 8.77p in 2013, but since then we’ve seen regular annual rises up to 10.5p in 2016, with 10.95p forecast for this year and 11.65p next.

Charles Taylor provides professional services to the insurance market, and that’s proving to be a nice long-term generator of cash. First-half results released in early September lend support to that, although the key story right now is the firm’s growth strategy involving its three key business — its management services, loss-adjusting services, and insurance support services.

Planning for growth

EPS is expected to fall back a little this year as the company focuses its capital on that growth plan, but earnings should start moving upwards again in 2018. And chief executive David Marock said the board is “very positive about the long-term prospects for Charles Taylor” and that “we are well-positioned to deliver further growth, increased profit and greater shareholder value.“

In terms of numbers, we’re looking at forward P/E ratios of around 13.5 and 13 this year and next respectively, which looks cheap for a company offering progressive 4% dividend yields.

What both these companies have in common is a strong outlook for long-term growth in earnings, and that’s essential if you’re looking for those dividends to keep on growing — no company can keep its dividends growing year after year without rising earnings.

The post Two nicely progressive dividends that could make you rich appeared first on The Motley Fool UK.

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Alan Oscroft 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.

The company reported that pre-tax profits rose to £559m in the first six months, up from £182m in the same period last year. Headline sales increased 15% to £5.2bn the period, although trading margins declined by two basis points to 8.4%. Excluding one-off factors, and according to management’s own interpretation of the figures, overall organic trading profit increased by £7m for the period with a currency benefit of £47m and an £8m charge due to acquisitions/divestments. Along with these mixed results, it also said it is paying £250m to help address the deficit in its defined benefit pension scheme which was closed in March. At the end of June, the pension deficit stood at £1.1bn.

Mixed figures 

Over the past five years, GKN has grown steadily, increasing sales by around 9% per annum on average. However, this growth has failed to make its way to the bottom line with pre-tax profit falling from £568m in 2012 to £292m in 2016. Over the same period, earnings per share have risen, but only just, growing by a total of 19%, or around 4% per annum. 

The divergence between revenue and profit growth means that GKN’s return on capital has declined from around 13.7% in 2013 to 5.3% for 2016 and return on equity has declined from 32.9% to 12.1%. In other words, the company is becoming less productive as it prioritises sales growth over income.

Deserves a low valuation 

Based on current city estimates, the shares are trading at a forward P/E of 9.5, which might seem attractive to bargain hunters but considering the group’s stagnant profits and falling efficiency, this low multiple seems about right.

By comparison, smaller peer Trifast (LSE: TRI) has been able to grow net profit at a compound annual rate of 32.1% for the past five years as revenue has grown by 10.6% per annum. It has been able to grow earnings faster than revenue because the group has become more productive as it has acquired new businesses to help boost organic growth. Return on capital has increased from 8.8% in 2012 to 14.6% for fiscal 2017. 

Based on these figures, it’s no surprise that shares in Trifast have outperformed those of GKN, rising 411% since mid-2012 excluding dividends. GKN has only clocked up a performance of 50%. Over the next two years, city analysts have pencilled in earnings per share growth of 30% for Trifast as the company continues to grow organically and through acquisitions.

Worth paying a premium for

Compared to GKN, Trifast’s shares are expensive, trading at a forward P/E of 16.7. Nonetheless, this multiple does not seem overly expensive when you take account of Trifast’s robust historic expansion and future potential. 

If management can keep the company on its current course, this multiple could actually undervalue the firm’s long-term potential.

The post Why I’d sell GKN plc to buy this world-class small-cap competitor appeared first on The Motley Fool UK.

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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK owns shares of GKN. 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 announced that group revenues rose 11.3% during the year to March, to £457m, while on a like-for-like basis sales, advanced 10.2% to £452.4m.

However, share pickers were spooked by a huge rise in pre-tax losses, these ballooning to £57.7m from £1.6m a year earlier. This was chiefly caused by the number of one-off expenses swelling to £82.2m from £26.5m in 2016, items of which included the likes of its new bad debt model, and refunds to customers who had purchased financial services products.

But there was still plenty to cheer in Findel’s latest release. At Express Gifts the customer base swelled by an extra 229,000 during the 12-month period to total 1.6m, while like-for-like product revenues leapt 15.6%. And Findel advised that the digital transformation package across the business continues to “progress well.”

Bouncing back

The number crunchers certainly expect the hard work it has put in to be reflected in a healthy flip back to profit from this year onwards. A 19% bottom-line rise is predicted for fiscal 2018, and an extra 28% advance is chalked in for next year.

And these projections make Findel irresistible value, in my opinion. Not only does the small-cap deal on a prospective P/E ratio of 7.7 times, but a sub-1 PEG reading of 0.4 underlines the firm’s attractiveness to value chasers.

Turning higher

Bolt-and-fastenings behemoth Trifast (LSE: TRI) is another London-quoted small-cap expected to deliver robust earnings growth in the near term and beyond.

For the year to March 2018, Trifast is expected to enjoy a 19% bottom-line boost, up from 22% in the prior year. And a further 4% rise is chalked in for fiscal 2019.

The company saw revenues soar 15.6% to £186.5m in the last 12-month period, Trifast benefitting greatly from sterling’s erosion since the EU referendum. But positive currency movements are by no means the whole story, with sales at constant currencies rising by a chunky 7% year-on-year.

Consequently underlying pre-tax profit rocketed 28.1% to £20.5m.

Trifast has thrown the kitchen sink at bolstering its manufacturing and logistics capabilities around the world, and as a result its position as a critical parts provider to automotive, domestic appliances and electronics OEMs continues to grow. And the company’s robust balance sheet should facilitate further growth through both organic expansion and fresh bolt-on acquisitions.

I believe the Uckfield business offers plenty of bang for your buck at current share prices. Sure, a forward P/E ratio of 17.5 times may soar outside the widely-regarded value benchmark of 15 times or below. However, a PEG reading of 0.9 suggests the stock is actually attractively priced relative to its predicted growth performance.

I reckon Trifast is a great selection for those seeking brilliant long-term growth.

The post Could these growth stocks really make you rich? appeared first on The Motley Fool UK.

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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. 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.