Accrol Holdings

Buying shares in companies that make supermarket own-brand goods could be a good idea today. Toilet and kitchen roll manufacturer Accrol Holdings (LSE:ACRL) is one such business on my investing shortlist.

People are increasingly switching down from more expensive brands as the cost-of-living crisis endures. Kantar Worldpanel notes that “sales of these lines are up by 13.2% this month, well ahead of branded products at 4.6%”. It added that this is “a trend that shows little sign of stopping”.

Accrol’s revenues soared 64% in the six months to October as shoppers tightened their purse strings. And I believe the small-cap share is more than just a good stock to buy in the current climate. Value retail is tipped for further strong long-term growth as consumers become savvier with their cash.

Rising costs pose a danger to the firm’s bottom line. But the prospect of booming volumes still makes this an attractive investment, in my book.

City Pub Group

The pub industry suffered a tough 2022 as Covid-19 turbulence remained and consumers cut back on spending. Revenues at businesses such as City Pub Group (LSE:CPC) could remain under pressure as the cost-of-living crisis endures too.

Yet recent strong trading suggests the business could continue to defy the broader slowdown. Sales at the business — which operates 44 premium pubs in South England and Wales — rose 25% in the first four weeks of 2023, beating expectations.

City Pub has two big weapons in its arsenal. Its estate is largely located across more affluent parts of the country. It is also focused on selling food and drink at the higher end of the market. The kind of customers it attracts are therefore less likely to cut back on nights out during economic downturns.

As an investor, I’m also attracted by it strong balance sheet. This should give it the firepower to execute more growth-boosting acquisitions.

Van Elle Holdings

The UK will have to rev up housebuilding activity in the coming decades. The government has set a target of 300,000 new homes a year to meet the needs of a growing domestic population.

This is why I think Van Elle Holdings (LSE:VANL) could be a great stock for long-term investors like me to own. The business is a ground engineering contractor that carries out piling work and installs foundations at residential sites.

I also like this penny stock because of its expertise in critical infrastructure including roads, rail, utilities and flood prevention. Spending in these areas remain stable during economic upturns and downturns, giving the penny stock excellent earnings visibility.

Van Elle has terrific momentum today and reported record first-half revenue in the period to October. Sure, a failure of its systems is a constant risk that could damage future business wins. But, on balance, I think it could prove an outstanding buy.

The post 3 top penny stocks I’m considering buying in March! appeared first on The Motley Fool UK.

Last time out, I analysed a few top-quality penny stocks I think could prove terrific investments for me. I think the following small- and micro-cap shares might also help me to make a mountain of cash.

Coats Group

The clothing needs of a rapidly growing global population create plenty of opportunity for Coats Group (LSE: COA). As a major manufacturer of trims, zips and threads, this penny stock plays a vital role in garment production. And it is taking steps to build its market share by improving its sustainability credentials. It’s a tactic that seems to be paying off too.

Revenues from Coats’ EcoVerde line of recycled sewing threats increased fivefold in the first six months of 2021. The company recently launched its EcoRegen range of biodegradable threads in the hope if replicating this success too.

At current prices, Coats trades on a forward price-to-earnings growth (PEG) ratio of 0.8. A reminder that any reading below 1 suggests a stock could be undervalued. I’d buy the business even though demand for its products could sink during economic downturns.

Agronomics Limited

The number of people either eliminating or reducing the meat in their diets is ballooning. Rising concerns over animal welfare and the environmental impact of livestock farming means that numbers are expected to keep rising sharply too.

But there are still plenty of people who like the taste and texture of meat-based products. This is where Agronomics Limited (LSE: ANIC) bridges the gap. This penny stock invests in companies at the cutting edge of the synthetic meat industry. These include lab-grown beef producer Mosa Meat, cultivated crustacean manufacturer Shiok Meats, and even animal-free pet food maker Bond Pet Foods.

Analysts at McKinsey & Company think the synthetic meat industry could be worth $20bn by 2030. That’s under its medium-growth forecasts which suggests a market value of $1bn by 2025. The market opportunity for Agronomics is clearly huge.

There are many specialised companies in the animal-free food category which Agronomics has to compete with. It also faces colossal challenges from major food manufacturers such as Tyson Foods who have the clout to make life very difficult. Still, I think the quality of the companies that Agronomics invests in could still make it an industry winner.

Science in Sport

The steady change in people’s diets, and in particular rising demand for protein products, is something that Science in Sport (LSE: SIS) also looks set to exploit to the max. This penny stock manufactures protein powders (and other sports supplements) under its ultra-popular brands PhD and Science in Sport.

The importance of living a healthy lifestyle has really gained traction in recent years. Sports participation has leapt and so has demand for Science in Sport’s products — sales at the company rocketed 25% in 2021.

Industry analysis suggests that the company’s market will keep growing at breakneck pace too. Analysts at Grand View Research think the global sports nutrition market will expand at a compound annual growth rate of 8.5% between 2022 and 2030.

I like Science in Sport because of the quality of its products. I also like the company’s strategy of building brand strength by building relationships with elite athletes and sports teams across the globe. The sports nutrition market is highly competitive, but I think this penny stock has the goods to make a splash.

DP Poland

Online food delivery is another industry set for explosive growth over the next decade. One UK share I’m considering buying to capitalise on this is DP Poland (LSE: DPP). I’m tipping takeaway market growth to be particularly explosive in this Eastern European emerging market as people’s incomes sharply rise.

This penny stock is the master franchisee of the Domino’s Pizza label in Poland. This is a big deal because the 62-year-old US chain has one of the strongest brands in the business. I believe it’s one of the reasons why DP Poland’s sales are soaring right now. Like-for-like sales in the final quarter of 2021 jumped 15.6% year-on-year. They were also up 11% from the corresponding 2019 period.

My main concern for DP Poland is the possibility of lasting cost pressures. Indeed, the business says that rising labour and food costs would cause it to miss profits forecasts for 2021 despite those soaring sales. Still, in my opinion, I think the potential rewards of owning this British stock offset the risks. Researcher Statista thinks the Polish online food delivery market will more than double in size between 2021 and 2025.

Van Elle Holdings

I think the stars are aligned for ground contractor Van Elle Holdings (LSE: VANL) to experience strong revenues growth this decade. As with Brickability (which I tipped as a top stock to own in the first part of this article), I think demand for its services will soar as housebuilding in the UK revs up. I also think sales at Van Elle will boom as infrastructure spending on these shores steadily increases.

Activity at the penny stock took a beating in 2020 due to Covid-19-related stoppages. The threat for more disruption remains too as the public health emergency drags on. But, in my view, the possible rewards of holding Van Elle in the years to come outweigh the dangers. The company is a market-leader in the field of infrastructure creation and it’s tipping conditions across its core sectors to remain strong moving into next year at least.

I’m also thinking of buying Van Elle because of its bright dividend outlook. City analysts are expecting dividends to return in this fiscal year (to April 2022) following recent cancellations. And they’re expecting them to rise sharply over the next few years too, thanks to Van Elle’s strong trading outlook and robust balance sheet.

This means the company’s 0.9% dividend yield for this year leaps to 3% and then to 4.5% in financial 2023 and 2024 respectively.

The post The 8 best penny stocks to buy now! Part 2 appeared first on The Motley Fool UK.

Gas giant

The hydrogen fuel cell market could be set for spectacular growth as demand for low-carbon energy rises. I’m thinking of buying shares in Proton Motor Power Systems (LSE: PPS), the manufacturer of stationary power units as well as fuel cells for cars, boats and trains, to realise these opportunities.

Analysts at Researchandmarkets.com have estimated that the global hydrogen fuel cell market could be worth $16.5bn by 2025. That’s up considerably from the $3.9bn it’s currently valued at. Promisingly, Proton continues to rack up contract wins and last month announced that a subsidiary of German rail operator Deutsche Bahn had ordered one of its modular fuel cell systems.

I think Proton could be a top buy for 2022 and beyond. Though I am mindful that the business still faces colossal competition from manufacturers of familiar power technologies like internal combustion engines and wind turbines.

Brogue trader

Soaring inflation means that value for money will become increasingly important to shoppers in 2022. This is why I’m thinking of buying Shoe Zone (LSE: SHOE) for my investment portfolio. This retailer sells a wide range of footwear at cheaper prices than much of the high street (an average of £10 a pair).

Shoe Zone already has a head of steam heading into the new year as inflation pressures consumer confidence. Last month it hiked its profits forecasts for the financial year to September 2022. I don’t just think the low-cost retailer is simply a good buy for the near term however. Studies show that the importance of value to shoppers has grown strongly even before recent economic downturns.

My main concern for Shoe Zone is the prospect of Covid-19 lockdowns that could shutter its 400-odd stores. The retailer sources just a quarter of group revenues from its website. Shoe Zone trades just outside penny stock territory at around 105p per share.

Ground control

I think Van Elle Holdings (LSE: VANL) is set to ride the construction boom in Britain. As a provider of ground engineering services for housebuilders, it’s in pole position to benefit from the residential building boom. The UK needs to build 345,000 new homes a year, according to estimates, and Britain’s housebuilders are ramping up production to ease the shortfall.

Furthermore, Van Elle offers geotechnical expertise in rail, utilities, roads, airports and power generation projects (including renewable energy assets), as well as other types of essential infrastructure. Its knowledge in critical projects like these provides a layer of security to investors. It can expect demand for its services to remain stable, regardless of broader economic conditions.

A high-profile service failure is a constant operational risk facing Van Elle. It could have serious implications for profits and cause severe damage to the company’s business. Having said that, it’s my opinion that this penny stock remains highly attractive from a risk/reward perspective.

The post 3 cheap UK shares (including 2 penny stocks) I’d buy for 2022! appeared first on The Motley Fool UK.

Grounds for optimism

As Britain’s biggest geotechnical engineering specialist, I think Van Elle Holdings (LSE: VANL) could make terrific returns for its shareholders over the next decade. The business offers a wide range of ground services across multiple sectors that look primed for healthy growth in the long term.

For example, its dealings in the residential housing sector will allow it to exploit the housebuilding boom that’s tipped for the next few years, at least. Its expertise in infrastructure should also generate solid profits as spending on roads, rail and other big government projects takes off.

It’s true that Van Elle could suffer in the short-to-medium term if the UK economy stalls and material shortages damage the construction sector. September’s Purchasing Managers’ Index (PMI) gauge fell to its lowest since the start of the year. But as someone who invests with a long-term view, I think this penny stock is still a top buy.

The property powerhouse

I believe Empiric Student Property (LSE: ESP) could be one of the best property stocks out there to buy. UK universities have been extremely popular destinations with overseas students for centuries. And today, their pull is as strong as it’s ever been. According to government statistics, there were 538,600 foreign nationals studying at British institutions in 2019/2020. That represented a whopping 22% of the UK’s total student population.

A higher proportion of students from abroad generally means higher demand from accommodation providers like Empiric. The supply of student living spaces is growing, but it’s failing to match the rate it’s needed, meaning that rents continue steadily rising.

While I believe this all bodes well for Empiric Student Property, it’s important to remember that the ongoing pandemic still poses extreme near-term risks. Revenues here slumped 24% year-on-year between January and June as occupancy levels dropped to a mere 65%.

A high-risk, high-reward penny stock?

I believe Horizonte Minerals (LSE: HZM) could also enjoy excellent profits growth through the next decade, at least. This penny stock is developing two nickel projects in Brazil, operations which it hopes will help it to ride the electric vehicle boom. A recent Roskill report estimated that nickel demand from these low-emissions vehicles will surge to 2.6m tonnes by 2040. That compares starkly with the 90,000 tonnes recorded last year.

Horizonte Minerals is clearly packed with potential, stemming from the green revolution. What’s more, its Vermelho and Araguaia are high-grade, low-cost assets with long mine lives. But while I’m closely monitoring the penny stock, I haven’t yet taken the step of actually investing.

Development problems and soaring costs could significantly set back the company’s road to profit. It could also force the business to tap shareholders for cash, of course. I might wait a little longer before buying Horizonte for my shares portfolio.

The post 3 penny stocks I’m thinking of buying in November appeared first on The Motley Fool UK.

This company — whose stock recently fell to its cheapest price in around a month — makes coronavirus testing equipment. Therefore demand for its product will actually benefit from a long battle against Covid-19.

Abingdon launched its antibody BioSURE Covid-19 IgG Antibody Self Test in late August to help in the battle against the virus. And, earlier this month, it rolled out a score-card accessory to its AbC-19 test which helps scientists study antibody response and immunity.

A word of caution however. Abingdon operates in a massively competitive arena and is a relative tiddler compared to many other Covid-19 test makers. And, of course, sales of its product will fall hard if a breakthrough in the final fight against coronavirus happens.

A lower-risk penny stock

I still think Abingdon’s a top penny stock for me to buy, though Assura (LSE: AGR) might be more attractive due to its lower risk profile. This UK share doesn’t operate in the highly-competitive medical product arena. Nor does it have to endure the threat of failed drugs development, a constant problem for medicine manufacturers.

No, this low-cost stock builds, acquires and operates primary healthcare properties across the country. This gives it excellent defensive qualities as medical centres are essential at all points of the economic cycle. In fact, I expect demand for the properties Assura specialises in to steadily increase as Britain’s elderly population balloons.

I reckon this is a great penny stock to buy and hold for years, despite the risks created by its acquisition-driven growth strategy. Assura’s healthy appetite for asset purchases puts it peril of overpaying for an asset that ultimately underdelivers and creates large unexpected costs.

Engineer terrific returns

Van Elle Holdings (LSE: VANL) is another cheap UK share I think could deliver titanic long-term returns. As a provider in ground engineering services, it’s well-placed to ride the British construction boom of the next 10 years.

This penny stock provides a spectrum of technical services for the highways, rail, power, and utility sectors. It can therefore expect demand for its expertise to rise as infrastructure spending in Britain picks up. Van Elle also provides an array of ground services for housebuilders, meaning it should benefit a ramping up in home creation too. The government has plans to create 300,000 new homes per year by 2025.

It’s true that Van Elle could suffer if the UK economic recovery shudders to a halt. In this scenario, custom from the commercial and industrial sectors could sink. But as someone who looks to buy shares with a long-term view, I still think this penny stock has plenty to offer.

The post 3 of the best penny stocks to buy in October appeared first on The Motley Fool UK.

Freight giant is booming

A steady improvement in the global economy bodes well for Xpediator (LSE: XPD). Why? Well this penny stock provides freight management services which get goods moving across the breadth of Europe, whether by air, sea or road.

It also offers warehouse and logistics services to customers and has operations in the fast-growing e-commerce services segment too.

Xpediator shares go for 69p a pop, below the penny stock limit of £1. And the strength of trading following the Covid-19 crisis has even taken the company itself aback.

The freight giant once again lifted its profits forecasts for the full year back in June. It’s worth remembering that its strong performances could hit the buffers if the Delta mutation continues to send coronavirus infection rates higher.

But, over the long term, I think this penny stock could still prove a wise UK share to buy, helped by its exposure to Eastern European emerging markets.

Follow the Van

Van Elle Holdings (LSE: VANL) — which trades at 45p per share — is the largest ground engineering contractor on these shores. In my opinion this puts it in a terrific position to ride the strong rebound in the British construction sector.

Indeed, latest financials this month showed its order book rose to £34.7m as of 9 August. This was up from £26.4m at the same point in 2020.

The company’s core markets were operating near capacity towards the end of the last financial year (to April). And, pleasingly, the bidding pipeline for its Rail division has improved in recent months.

Though, like any UK share, this penny stock isn’t without risk. A shortage of building materials and labour in the construction market could potentially choke off Van Elle’s recent recovery.

A penny stock for the pharma arena

I also think Sareum Holdings (LSE: SAR) could be a top penny stock to buy today and to hold for years. This UK healthcare firm specialises in producing drugs for the treatment of cancer and autoimmune disorders. And the company is making huge strides in these therapy areas, as recent testing updates show.

Of course there’s no guarantee Sareum (which trades at 6.8p per share) can keep its recent strong momentum at the lab bench going.

Drugs development is a notoriously challenging endeavour, and costs can soar and revenues can suffer if a product is delayed (or, in extreme cases, even binned).

However, I’m encouraged by the recent news flow coming out of Sareum on the R&D front.

And following recent fundraising it has a decent cash pile with which to continue its research, something which may alleviate the need to tap shareholders for cash again too soon.

The post 3 penny stocks I’d buy in my Stocks and Shares ISA right now appeared first on The Motley Fool UK.

But interim results released Wednesday make for encouraging reading, with the firm reporting a rise in revenue to €28.3m (against €25.1m in the same period last year).

Demand is apparently growing worldwide, and the company’s Accoya plant is running at full capacity to meet a 13% rise in sales volumes.

There are big questions over when we’ll be seeing first profits and whether Accsys has the liquidity to reach that target, but I’d say the balance is very much on the positive side now. Though debt did rise significantly from €5.7m to €23.1m, cash also grew during the period to €46.9m from €7.9m a year previously, thanks to funds raised for the expansion of the firm’s manufacturing plants.

Capacity expansion

And to that end, the company expects capacity at its Arnhem Accoya plant to grow by 50% early next year, and the construction of a new Tricoya plant is under way in Hull — sales of Tricoya panels are up by 24%.

Chief executive Paul Clegg said: “We continue to see good global demand for both Accoya and Tricoya in an important year for Accsys. We are making transformational changes to our manufacturing capacity to meet this demand, having secured significant support from shareholders and our industrial and financial partners.“

That suggests Accsys really could be close to the point of profitability, and I’m warming to it despite my earlier bearishness.

Engineering startup

Van Elle Holdings (LSE: VANL) is something we don’t see in the UK every day — a startup engineering business. 

The company, which floated just over a year ago in October 2016, describes itself as a “geotechnical engineering contractor offering a wide range of ground engineering techniques and services to customers in a variety of UK construction end markets,” and produced a mixed set of results for the year to July 2017.

Though revenue and underlying EBITDA rose by 11.8% and 12.9% respectively, underlying earnings per share (EPS) came in flat with reported EPS down 19%. Operating cash conversion rose impressively from 79.6% to 91.9%, but return on capital employed dropped from 38% to 30.6%.

Yet Wednesday’s trading update gave cause for optimism, telling us that “trading in the first half of the financial year has been positive and the Board expects to report turnover of approximately £53m” — and that’s significantly better than the £43.1m recorded in the first half of 2016. Underlying pre-tax profit is expected to grow by 15%.

Low valuation

Van Elle hasn’t exactly pleased investors with its share price performance so far, but this latest update did give the shares a 9% boost on the day to 86p, and forecasts make the shares look like a bargain to me.

Theres no EPS growth predicted for this year (though I can see that changing now), and the shares are on a lowly P/E of seven — with a 13% boost to EPS on the cards for next year, that would drop to just over six. With dividend yields of 4.1% and 4.7% added to the mix, I’m seeing a long-term buy here.

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