Undiscovered Gems In The United Kingdom For August 2024

The UK market has faced recent turbulence, with the FTSE 100 and FTSE 250 indices closing lower due to weak trade data from China, highlighting global economic uncertainties. Amid these challenges, identifying robust small-cap stocks that demonstrate resilience and growth potential can be particularly rewarding for investors seeking undiscovered gems in the United Kingdom.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Andrews Sykes Group	NA	1.69%	3.16%	★★★★★★
Globaltrans Investment	15.40%	2.68%	16.51%	★★★★★★
London Security	0.31%	9.47%	7.41%	★★★★★★
Georgia Capital	NA	-27.80%	18.94%	★★★★★★
Impellam Group	31.12%	-5.43%	-6.86%	★★★★★★
M&G Credit Income Investment Trust	NA	-0.35%	1.18%	★★★★★★
Fix Price Group	43.59%	12.53%	23.49%	★★★★★☆
Ros Agro	57.18%	17.80%	18.35%	★★★★★☆
BBGI Global Infrastructure	0.02%	6.58%	9.90%	★★★★★☆
Mountview Estates	16.64%	4.50%	-0.59%	★★★★☆☆

Click here to see the full list of 80 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

James Halstead (AIM:JHD)

Simply Wall St Value Rating: ★★★★★★

Overview: James Halstead plc manufactures and supplies flooring products for commercial and domestic uses in various regions worldwide, with a market cap of £787.73 million.

Operations: The company generates revenue primarily from the manufacture and distribution of flooring products, totaling £290.38 million.

James Halstead, a flooring manufacturer, has shown solid performance with earnings growth of 15% over the past year, outpacing the Building industry’s 8.1%. The company's debt to equity ratio has improved from 0.2% to 0.1% in five years, reflecting prudent financial management. Additionally, James Halstead's free cash flow remains positive at £53 million as of December 2023. Revenue is projected to grow by 4.31% annually, indicating steady future prospects for this small-cap stock in the UK market.

• Navigate through the intricacies of James Halstead with our comprehensive health report here.

• Explore historical data to track James Halstead's performance over time in our Past section.

London Security (AIM:LSC)

Simply Wall St Value Rating: ★★★★★★

Overview: London Security plc, with a market cap of £478.14 million, is an investment holding company that manufactures, sells, and rents fire protection equipment across the United Kingdom and several European countries including Belgium, the Netherlands, Austria, France, Germany, Denmark, and Luxembourg.

Operations: London Security plc generates revenue primarily from the provision and maintenance of fire protection and security equipment, amounting to £219.71 million.

London Security has displayed solid performance, with earnings growing by 15.1% over the past year, outpacing the Machinery industry’s -10.1%. The debt to equity ratio has significantly improved from 8.6% to 0.3% in five years, indicating strong financial health. Additionally, interest payments are well covered by EBIT at a remarkable 717x coverage. Recent news includes a final dividend of £0.42 per share and the retirement of Independent Non-Executive Director Mr. Henry Shouler on August 5th, 2024.

• Dive into the specifics of London Security here with our thorough health report.

• Assess London Security's past performance with our detailed historical performance reports.

Reach (LSE:RCH)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Reach plc operates as a national and regional commercial news publisher in the United Kingdom and Ireland, with a market cap of £334.29 million.

Operations: Reach plc generates its revenue primarily from its Publishing - Newspapers segment, amounting to £554.20 million. The company has a market cap of £334.29 million.

Reach plc, a notable player in the UK media landscape, has seen its earnings grow by 32% over the past year, outpacing the industry average of 14.6%. The company reported a net income of £24.6M for H1 2024 compared to £4.6M last year and declared an interim dividend of 2.88 pence per share. Trading at nearly 22% below its estimated fair value, Reach's debt-to-equity ratio improved from 6.9% to 3.7% over five years, with interest payments well-covered by EBIT (22x).

• Get an in-depth perspective on Reach's performance by reading our health report here.

• Examine Reach's past performance report to understand how it has performed in the past.

Make It Happen

• Reveal the 80 hidden gems among our UK Undiscovered Gems With Strong Fundamentals screener with a single click here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Ready To Venture Into Other Investment Styles?

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• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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