Great British Stock Ideas! #18

1. Active Ops (£AOM) – The Oak Bloke

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Thesis: “Its niche is banking and insurance as well as the business process outsourcers (BPOs) who support these sectors… If I use the SaaS revenue growth rate from FY25 which was 19.3% not 14.4% then the P/E collapses far faster in FY2026. If we can assume the same 19.3% growth for FY2027 then you get to 13X. At that level this is worth at LEAST double today’s £1.22 share price. If AOM can grow at the same speed for the next 2 years with reasonable cost control then AOM will be Going For IT! That’s what the numbers say.”

2. Anexo Group PLC (£ANX) – Iggy On Investing Newsletter

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Thesis: “The UK-based credit hire legal firm now facing a takeover attempt from its founders and a major shareholder.” The author argues (1) Anexo has a much stronger business model than most other law firms and should command a premium valuation; (2) The company’s accounting is conservative; (3) Anexo is highly undervalued, offering significant upside; and (4) the buying consortium made a major mistake.

3. Diales (£DIAL) – Overlooked and Undervalued

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Thesis: “Diales is a global consultancy with a long history... As is often the case, I’m following a painful turnaround… Diales specialises in dispute resolution for large infrastructure projects… I like to own cheap and durable business. Especially those with improving results and shareholder friendly management teams. At the current price, I think there’s no disputing that this turnaround should be worth more. Potentially, a whole lot more!”

4. Frasers plc (£FRAS) – OGBigJoe of Value Investors Club

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Thesis: “Frasers PLC's current share price offers a strong UK retail business trading at depressed valuations to historic levels as well as peers. The current price ignores a conservatively valued balance sheet (property, inventory), listed equity portfolio and discounts a management team that have historically been good capital allocators.”

5. Genel plc (£GENL) – Arya’s Substack

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Thesis: “Genel Energy is priced for political extinction, the assumption is that Kurdistan’s oil locked away forever, contracts shredded, and zero faith in a restart. That’s the consensus, and I believe this is completely wrong… I believe you’re buying optionality for pennies, getting paid to wait, and the “permanent shutdown” narrative is horse sh**t. In Kurdistan, you expect the unexpected.”

6. Goldplat plc (£GDP) – The Oak Bloke

🏆⚒️♻️💰🌊

Thesis: [It] “is a precious metal recovery specialist operating for over 20 years which mines nothing but works with miners to recover metals from their waste streams… Listening to the noises as the flow of gold swirls beneath him and pressure grows. On balance the risk/reward here appears compelling. Really compelling actually.”

7. Gulf Marine Services (£GMS) – The Oak Bloke

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Thesis: GMS is a provider of self-propelled support vessels for rental to the offshore energy industry. “Back at 5p I’d be all over… But at 19.76p it’s fairly priced with limited upside.”

8. Hostelworld (£HSW) – Gallovidia Investments

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Thesis: “If hostels are where most backpackers stay, hostelworld.com is the app… Hostelworld's focus gives meaningful differentiation but its competitive moat remains narrow. In the face of macroeconomic risks, its valuation appears attractive relative to its improving financial performance and cash generation. Prospective dividends and buybacks suggest attractive annual returns are possible - without a significant re-rating.”

9. International Workplace Group (£IWG) – Undervalued and Undiscovered

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Thesis: It is “the global leader in flexible office and co-working space… International Workplace Group appears deeply undervalued today, offering significant upside as growth and multiple expansion unfold. If the total addressable market eventually approaches $2 trillion, the potential upside could far exceed our 2028 forecasts.”

10. Judges Scientific plc (£JDG) – Diary of an Investor

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Thesis: “Judges Scientific has a pretty straightforward business model: the firm identifies, acquires, and improves companies in the scientific instruments industry… The competitive dynamics of the business, coupled with outstanding management, make this a strong candidate for every long-term investor. While today’s price (£81 per share) might not provide enough cushion to invest, I hope that this article painted a clear picture of what I believe is a great business, one that every value investor should have on the watchlist.”

11. Kainos Group plc (£KNOS) - Northwest Frontier Capital's Research

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Thesis: “Kainos Group operates as an IT services company…a variety of valuation approach highlight that even a challenged environment Kainos appears fundamentally mispriced by the market. Regardless of one's precise short-term growth expectations, the current valuation fails to adequately reflect the intrinsic quality of its constituent parts, its established market positions, its robust financial health, and its clear pathways to future value creation, particularly within the high-potential Workday Products segment.”

12. MaxCyte (£MXCT) – Doheenz’s Substack

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Thesis: “MaxCyte develops, manufactures, and sells its platform of electroporation devices (called ExPERT) to biopharma partners. Electroporation is the process of transfecting molecules into a cell through a series of electrical pulses… I’ve been watching MaxCyte from the sidelines for quite some time, however, I only very recently began seriously considering a sizeable investment given what I believe is a very opportunistic entry point.”

13. Renishaw (£RSW) – Coffee1029 of Value Investors Club

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Thesis: “Renishaw is a world leader in precision metrology (the science of measurement) and process control… I think there are two ways that a LONG Renishaw could work. [1] Current inexpensive valuation. If current macro uncertainty blows over, the stock should do well from here. However there is clearly downside risk. [And 2] A change of control, requiring a premium to the prevailing market price.”

14. Rightmove (£RMV) – Cayucos Capital

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Thesis: “If you live in the UK you will most certainly know this company because it is practically impossible to buy or sell, or rent, a house without interacting with Rightmove…. I think you could conservatively pay 25x FCF for a business of this quality with roughly 10% growth. That’s worth a little north of £10 a share or 33% upside to the current share price plus a few dividends. For US investors, the ADR equivalent price is $27.40.”

15. Schroders (£SDR) – FJ Research

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Thesis: SDR is an asset manager that “manages roughly 1 trillion dollars in assets, and trades at a valuation that suggests permanent irrelevance…. … The equity is priced like a confused bloated firm with no future. But the pieces, if separated or restructured, could unlock significant value… I’m not building a position in Schroders today, but it has moved to the front of my watchlist…. A high-quality, European compounder bought at the price of a cigar butt.”

16. Staffline (£STAF) – Central Tendency

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Thesis: It “is the largest provider of blue-collar temporary workers in the UK with ~10% market share, deploying an average of ~40k individuals daily across 400 on-site locations (largely warehouse and driving personnel).” “So what's it all worth? I estimate that the Company trades at <3x EBITDA (adjusted for the recent Culina Group contract win) and a ~11.5% normalized FCF / EV Yield, assuming no further market share gains.”

17. Wise plc (£WISE) – Fermatcap of DaleCap

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Thesis: “Founded… to combat excessive cross-border and international exchange fees… We forecast Wise to grow its revenue and underlying PBT by ~70% (22% CAGR) and ~60% (19% CAGR), respectively, by FY’28 as continued reinvestment spurs customer growth at the expense of margins.”

18. Wise plc (£WISE) – Capital Compounding

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Thesis: “Wise is an extremely attractive business to invest in. It has all the characteristics we look for in a business. It has a small market cap, so not investable for larger / well known investors. As it is listed on the FTSE 100, it is a bit under the radar. As a small investor we can benefit from this. Adyen is for example about 5x the market cap of Wise. As the total addressable market is large and Wise is able to grow fast and take market share from competitors, I see a bright future for the company.”