Here are three of the best small cap stocks around in the UK at the time of writing. Before going off to do your own research on these interesting investment opportunities, remember that small cap stocks are not for everyone, and that if you are averse to short term risk, fear volatility and like dividends, then not even the very best small cap stocks might be for you!
We start off with a company that managed to send its share price rocketing by over 60% over a short period without anyone seeming to notice, even though such a performance should definitely put it in the short list to be considered as one of the UK’s best small cap stocks. The financial technology providing company Equintii provides software that deals with many of the companies that are themselves the nitty-gritty of business; not only payrolls, administration and share registration, but also legal compliance and regulation. In this way, they have access to a huge potential client-base and were, by September 2017, very reasonably priced. Although the overall growth seen in 2017 had, up until September of that year, seemed to be somewhat disappointingly slow, this was explained by many to be a by-product of the general slowing down in the pensions market. Certainly, Equintii performance and prospects seemed bright; indeed, they boasted that they had, over the previous year kept exactly 100% of their clients; a company that engenders such customer loyalty deserves to be considered one of the best small cap stocks on offer.
Any company that manages to grow its earnings by more than ten percent for five years running is certainly doing well enough for it to be considered one of the best small cap stocks on the market. This is the case for the specialist rental company VP. This booming business has benefitted from strong growth in markets at home and abroad and has also made what look to be some very shrewd investments in Australia and New Zealand. Overall VP shows high cash flow, low debt and a sensible valuation; all of these factors make it a very attractive proposition. The last of our best small cap stocks takes us into the world of London-listed recruitment firms. The big names, such as Page Group and Hays will be well-known to anyone with an interest in this field, but we recommend you take a close look at Robert Walters, a company which has increased its sales every year for two decades. It may be small when compared with the giants we mentioned earlier, but we are looking at small cap stocks. Again, all the appropriate metrics look good. This small cap stock is definitely one that deserves at least a second glance.
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