The summer holidays are approaching here in the UK and some traders will already be making their plans for the beach. Before you all go, we thought we'd update our Armchair Trader Plus+ subscribers on five of the best UK small-cap plays we will be keeping tabs on from the seaside.
We're including two of them here for free for all our readers. Thanks also to our data partners Stockopedia for letting us use their excellent data tools for this article.
#1. Christie [LON:CTG]
Shares in hospitality and professional services group Christie were seeing some bidding in May and June. We saw the price go up as high as 160p in June, although it has since dropped to around 115p. That said there has been a marked uptick in shareholder activity and revenues are up.
The company said on 12 June that full year trading expectations remained unchanged. Christie & Co, its agency and advisory business, recently advised on the successful sale of the Vienna Marriott Hotel on behalf of CPI Europe, one of the most significant hotel sales in recent years.
#2. Distribution Finance [LON:DFCH]
Still looking cheap (PE ratio of 5.9x) is Distribution Finance Capital Holdings, which has delivered a 37% return to shareholders over the last 12 months, although there was a bit of a dip earlier this year. The company specialises in inventory finance (short-term loans for an average of 145 days).
It tends to lend for the purchase of motorhomes, boats, top tier motorbikes and suchlike. The company continues to see solid topline growth powered by an increase in its loan book. This is still a small cap stock however, which makes it vulnerable to a big default (e.g. a caravan park it lent against).
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