The British stock market is often dismissed as an “old economy” index, full of mining firms, banks and oil stocks that are past their prime. It is also far cheaper than the American market, relative to profits, suggesting that investors are not as excited about its constituents.
But a closer look reveals many fast-growing and innovative companies, from video game developers to chocolate shops. Peel Hunt, a stock broker, has identified companies worth buying for investors in search of growth.
Last year its list of top “growth” shares delivered an average return of 12pc. The top performer, IT consultancy Kin + Carta, made 105pc while the bottom performer, no-frills estate agent Purplebricks, lost 77pc.
These are some of the broker’s top picks to add into an Isa this year.
Flavour and fragrance supplier to the food industry Treatt had a stellar year in 2021, increasing sales by 18pc and profits by 41pc. Its tea division was the star performer, with sales more than doubling.
Peel Hunt reckons the best is yet to come for this Suffolk–based company. It said: “We expect to see strong growth in its healthy living categories as well as its alcoholic drink flavourings. It is benefitting from some megatrends, including sugar reduction, natural flavours and cocktails.”
It put a share price target of 1,400p for the next 12 months, suggesting a 16pc gain for investors.