20 dirt-cheap British ºß¸Ë¡¿³ôs ÀìÌç²Ès say could make you a fortune

  • Mix of ʬÀϲÈs and ´ð¶â ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Ís believe UK ³ô¼°»Ô¾ì is not a pariah
  • ÀìÌç²Ès ¶¯Ä´¤¹¤ë¡¿¥¹¥È¥ì¥¹ companies are not Åê»ñ tips, but have ²ÄǽÀ­¤Î¤¢¤ë?
  • They ¿äÄꤹ¤ë¡¿Í½ÁÛ¤¹¤ë the ³ô to rise, but nothing is Êݾڡʿ͡Ëd?

As a nation, we're Èá´ÑÏÀ¼Ôs ? À¯¼£²Ès apart from our friends across the pond, who are born ³Ú´ÑŪ¤Ê. A large dollop of this ½¸ÃĤΡ¿¶¦Æ±¤Î Èá´ÑÏÀ¼çµÁ ¸½ºß¡¿°ìÈÌ¤Ë hangs over the country's ³ô¼°»Ô¾ì like the ºÇ¶á¤Î rain clouds.

Many Åê»ñ²Ès have given up on British ºß¸Ë¡¿³ôs and pulled their money out. A few days ago, Åê»ñ bank Goldman Sachs said more than ¡ò5billion had been ¸ÉΩ¤·¤¿ from UK Åê»ñ¤¹¤ëd ¸øÀµ¡¤ÉáÄ̳ô¼ç¸¢ ´ð¶âs since the start of the year. It's not hard to see why. The market ´Êñ¤Ë isn't ÇÛ㤹¤ëing.

While the UK ³ô¼°»Ô¾ì has been treading water over the past five years, the US ¸øÀµ¡¤ÉáÄ̳ô¼ç¸¢ market has µÞ¤Ë¾å¤¬¤ëd like an eagle. The raw numbers tell the story.

The FTSE100 º÷°ú, a À²±«·× of the ³ô¼°»Ô¾ì ¶ÈÀÓ¡¿À®²Ì of the country's largest ̾Êí¡Ê¤ËºÜ¤»¤ë¡Ë¡¿É½¡Ê¤Ë¤¢¤²¤ë¡Ëd companies, has risen by around 7 per cent over the past five years, but its ƱÅù¡Ê¤Î¡Ë in the ÉôÂâd ÌÀ¸À¤¹¤ë¡¿¸øɽ¤¹¤ës (the S&P500) has Á°¿Ê¤¹¤ëd by 78 per cent.

With the rise of the US tech ºß¸Ë¡¿³ôs ? the likes of Meta, Microsoft, and Nvidia ? it's hard to see how this ¶ÈÀÓ¡¿À®²Ì gap can be ¤Î¶á¤¯¤Ëd. After all, ¿Í¹©Åª¤Ê ÃÎǽ (AI), the Åê»ñ ¼çÂê ±¿Æ°ing these tech ºß¸Ë¡¿³ôs ever higher, is the ̤Íè. The UK market is ÂçÉôʬ¤Ï devoid of AI, skewed ¤Ë¸þ¤«¤Ã¤Æ banks and oil µðÂç¡Ê¤Ê¡Ës ('ÅÁÅýŪ¤Ê' ºß¸Ë¡¿³ôs).

Bright outlook:?Now may be the time to shrug off market gloom, say many advisers

ͭ˾¤Ê ¸«Ä̤·:?Now may be the time to shrug off market gloom, say many ½õ¸À¼Ôs

Disinterest in UK ¸øÀµ¡¤ÉáÄ̳ô¼ç¸¢s is such that even some of the market's ËɸæÊÉ¡¿»Ù»ý¼Ôs ? FTSE100-̾Êí¡Ê¤ËºÜ¤»¤ë¡Ë¡¿É½¡Ê¤Ë¤¢¤²¤ë¡Ëd Çú·â¤¹¤ë, for example ? are wondering if the UK ³ô¼°»Ô¾ì is the ¸¢Íø place to showcase their wares.

Çú·â¤¹¤ë's boss, Wael Sawan, has hinted the company might move its ³ô ̾Êí¡Ê¤ËºÜ¤»¤ë¡Ë¡¿É½¡Ê¤Ë¤¢¤²¤ë¡Ëing from the UK to the US to Çɼê¤ËÀëÅÁ¤¹¤ë up more Íø±×¡¿¶½Ì£. Yet, for all the Èá´ÑÏÀ¼çµÁ and the talk of AI, there are some bravehearts ? a mix of ʬÀϲÈs and ´ð¶â ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Ís ? who believe the UK ³ô¼°»Ô¾ì should not be °·¤¦¡¿¼£ÎŤ¹¤ëd like a pariah.

To parody the ¹­Âç¤Ê¡¿Â¿¿ô¤Î¡¿½ÅÍ×¤Ê Åê»ñ²È ²áÌ©¤Ê½»µï Buffett, they believe Åê»ñ²Ès who go against the ¹òʪ and are greedy when others are fearful could make Ëܵ¤¤Ç good Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës by »Ù±ç some of the UK's out-of-favour ²ñ¼Ò¡¿·ø¤¤s. ¤ÎÃæ¤Ç them is Jason Hollands, a director of wealth ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Í Evelyn Partners. He says: 'For all the negativity about the UK economy and the À¯ÉÜ, many Åê»ñ²Ès forget there are world-class companies on the UK ³ô¼°»Ô¾ì.

'These ¾¦Çä¡¿»Å»ös have been caught in the crossfire as Åê»ñ²Ès have Ãí¤°d out of UK ¸øÀµ¡¤ÉáÄ̳ô¼ç¸¢s, ͶÏǤ¹¤ëd into the US. People forget that buying ³ô in °æ¸Í¡¿ÊÛ¸î»ÎÀÊ-managed, profitable UK companies with good prospects is a ¹­Âç¤Ê¡¿Â¿¿ô¤Î¡¿½ÅÍ×¤Ê start for long-¾Î¤¹¤ë¡¤¸Æ¤Ö¡¿´ü´Ö¡¿ÍѸì Åê»ñ¤¹¤ëing.'

It's a ¸«²ò¡Ê¤ò¤È¤ë¡Ë ³ôd by Imran Sattar, ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Í of ¡ò1billion ³ô¼°»Ô¾ì-̾Êí¡Ê¤ËºÜ¤»¤ë¡Ë¡¿É½¡Ê¤Ë¤¢¤²¤ë¡Ëd Edinburgh Åê»ñ ¿®ÍÑ, which makes money for ³ô¼çs from meticulously ÁȤßΩ¤Æ¤ë¡¿½¸·ë¤¹¤ëing a Âç¿Ã¤ÎÃÏ°Ì of UK ¸øÀµ¡¤ÉáÄ̳ô¼ç¸¢s.

'There are many world-class ¾¦Çä¡¿»Å»ös Ëǰסʤ¹¤ë¡Ëing on attractive valuations in the UK,' he says. 'The ŬÀڤʻþ´ü »Ï¤á¤ë¡¤·è¤á¤ë in t he UK is plentiful, the economy is looking better, and we remain ³Î¿®¤·¤Æ that the valuation gap between the UK and other ³ô¼°»Ô¾ìs should ¤Î¶á¤¯¤Ë.'

Many UK companies are »Ï¤á¤ë¡¤·è¤á¤ë for a ³ô price »¦Åþ¤¹¤ë that could À¸À®¤¹¤ë handsome returns for those ÍÑ°Õ¤¬½ÐÍè¤Æ¤¤¤ë to buy when other Åê»ñ²Ès are shunning them. We asked a ¥Ñ¥Í¥ëÈ× of Åê»ñ ÀìÌç²Ès to identify UK-̾Êí¡Ê¤ËºÜ¤»¤ë¡Ë¡¿É½¡Ê¤Ë¤¢¤²¤ë¡Ëd ºß¸Ë¡¿³ôs they think have the ²ÄǽÀ­¤Î¤¢¤ë to ÇÛ㤹¤ë bounce-»Ù±ç¤¹¤ë returns. That is, their ³ô look cheap and are ͽÄê an ¾å¸þ¤­ rerating, Ͷȯ¤¹¤ë¡¿°ú¤­µ¯¤³¤¹d by an Íø±×¡¿¶½Ì£ Ψ ºï¸º¡Ê¤¹¤ë¡Ë or ²þÁ±¤¹¤ëing economy.

The ÀìÌç²Ès ¶¯Ä´¤¹¤ë¡¿¥¹¥È¥ì¥¹ the companies they have identified are not Åê»ñ tips, but are ¤Þ¤ºÂè°ì¤Ë¡¿ËÜÍè cheap as ȾƳÂÎÁÇ»Òs and so have ²ÄǽÀ­¤Î¤¢¤ë. They ¿äÄꤹ¤ë¡¿Í½ÁÛ¤¹¤ë the ³ô to rise, but nothing is Êݾڡʿ͡Ëd.

Their ÁªÂòs are from across the marketplace, embracing big FTSE100 ºß¸Ë¡¿³ôs through to smaller companies. In many instances (not all), the ºß¸Ë¡¿³ôs ¶¡µë¤¹¤ë ³ô¼çs with an exciting income (¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö) that, in »º¤¹¤ë¡¿À¸¤¸¤ë ¾ò·ï, looks attractive, in part because of depressed ³ô prices. All 20 companies can be held inside a ÀǶâ-friendly Individual Ãù¶â Account where ̤Íè ¿­¤Ó¡Ê¤ë¡Ës (income and »ñËÜ¡¿¼óÅÔ) are ÀǶâ-²òÊü¤¹¤ë¡¿¼«Í³¤Ê. ÀǶâ ÈòÆñ½ês such as Isas could ¾ÚÌÀ¤¹¤ë ²ÁÃͤΤ¢¤ë in ̤Íè with a change of À¯ÉÜ.

A possible ϫƯ ¹ÔÀ¯ may shave the ̤Íè attractions of Isas (for example, cutting the ǯ¼¡¤Î ¡ò20,000 allowance), but it is ¤¢¤ê¤½¤¦¤â¤Ê¤¤ that they would meddle with what Åê»ñ²Ès have already ÃßÀѤ¹¤ëd.

Here are the ÀìÌç²Ès' 'favourite' cheap ºß¸Ë¡¿³ôs. All ³ô prices and ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö »º¤¹¤ë¡¿À¸¤¸¤ës are ÄûÀµ¤¹¤ë at the time of Îá¾õing.

1) ANGLO AMERICAN (FTSE100)

Russ Mould, Åê»ñ director at ÃçÇã¿Í AJ Bell, ½Ò¤Ù¤ës ºÎ·¡ µðÂç¡Ê¤Ê¡Ë Anglo American 'as one of the cheapest ºß¸Ë¡¿³ôs in the UK ³ô¼°»Ô¾ì.'

Its ³ô price has been ÍðÂǤ¹¤ëd in the past two years, É餫¤¹¡¿·âÄƤ¹¤ë 49 per cent, as Åê»ñ²Ès ¶²¤ì¤ë the ¶¼¤· to its ¾¦Çä¡¿»Å»ö from ¸¦µæ¼¼¡¿¼Â¸³¼¼-grown diamonds and the rise of electric cars (¸º¤º¤ëing ¼ûÍס¦Í׵᤹¤ë for platinum-based metals in dz¾Æ engine cars).

'If Åê»ñ²Ès feel that Anglo American's ¼ýÆþs ÎÏ¡¿¶¯ÎϤˤ¹¤ë is ±Êµ×Ū¤Ë impaired, fair enough,' says Mould. 'But Anglo is still a major and profitable À¸»º¼Ô of ½äºº, ¥¢¥¤¥í¥ó¤ò¤«¤±¤ë ¹ÛÀÐ and steel-making coal. ¼ûÍס¦Í׵᤹¤ë for these could Áª¤Ö up as the world economy moves out of ¸åÂࡤÉÔ¶·.' A ±¿Æ° to ºï¸º¡Ê¤¹¤ë¡Ë operating costs and »ñËÜ¡¿¼óÅÔ »Ù½Ð over three years should ¾ÚÌÀ¤¹¤ë Í­±×¤Ê to its ³ô price (¡ò21.55). The ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅös are ƱÅù¡Ê¤Î¡Ë to an ǯ¼¡¤Î »º¤¹¤ë¡¿À¸¤¸¤ë of 3.5 per cent.

2) & 3) BP AND SHELL (FTSE100)

Ian Lance, co-·Ð±Ä¼Ô¡¿»ÙÇÛ¿Í of Åê»ñ ¿®ÍÑ »û ˸¤²¤ë¡¿Ë¡ÄÊÛ¸î»Î¶È, ½Ò¤Ù¤ës these energy µðÂç¡Ê¤Ê¡Ës as the 'new total return kings.'

He says their ³ô prices have been 'punished' for ¸ºß 'old economy' ºß¸Ë¡¿³ôs ? while the valuation of any tech company with a ¡Ê¿ÍÌ¿¤Ê¤É¤ò¡ËÃ¥¤¦¡¤¼çÄ¥¤¹¤ë to be ȼ¤¦¡¿´Ø¤ï¤ëd in ¿Í¹©Åª¤Ê ÃÎǽ has been built up.

He Äɲ乤ës: 'It's eerily reminiscent of 2000 when tech ºß¸Ë¡¿³ôs lost a big chunk of value while the prices of the ÅÁÅýŪ¤Ê ºß¸Ë¡¿³ôs µÞ¤Ë¾å¤¬¤ëd.

'BP and Çú·â¤¹¤ë are in a strong position to reward ³ô¼çs with rising ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅös. Also, any ³ô buybacks will support their ³ô prices. As a result, they are likely ¶¥ÁèÁê¼ês to be the new total return kings.'

The ³Æ¡¹¤Î ³ô prices of BP and Çú·â¤¹¤ë are ¡ò5.26 and ¡ò28.85 ? and their ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö »º¤¹¤ë¡¿À¸¤¸¤ës are 4.3 per cent and 3.6 per cent.

Ben Needham, a ´ð¶â ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Í with Åê»ñ house Ninety One, says the energy µðÂç¡Ê¤Ê¡Ës also Âåɽ¤¹¤ë a '¹­Âç¤Ê¡¿Â¿¿ô¤Î¡¿½ÅÍ×¤Ê hedge' against rising geopolitical ´í¸±s.

4) B URBERRY (FTSE100)

Checking in:?Burberry remains a great business

Checking in:?Burberry remains a ¹­Âç¤Ê¡¿Â¿¿ô¤Î¡¿½ÅÍ×¤Ê ¾¦Çä¡¿»Å»ö

Although its ³ô have taken a ÍðÂǤ¹¤ëing, É餫¤¹¡¿·âÄƤ¹¤ë 52 per cent over the past year, Burberry remains a ¹­Âç¤Ê¡¿Â¿¿ô¤Î¡¿½ÅÍ×¤Ê ¾¦Çä¡¿»Å»ö.

While Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës for the ºâÀ¯¾å¤Î year just ended are likely to be É餫¤¹¡¿·âÄƤ¹¤ë on the previous year, its array of jaw-dropping ¤¶¤ó¹è coats, Êá¤é¤¨¤ë¡¢³ÍÆÀ¤¹¤ës and shoes continue to ¹µÁÊ¡¤¾å¹ð to ¾ÃÈñ¼Ôs in search of high-end ¹âµé¤Ê items.

Richard Hunter, Ĺ¡¤Î¨¤¤¤ë of markets at Interactive Åê»ñ²È, says Burberry's innovative marketing ¡ÊÁªµó¤Ê¤É¤Î¡Ë±¿Æ°¤ò¤¹¤ës and social ¥Þ¥¹¥³¥ß presence 'keeps the brand Á°Àþ of mind.'

The ³ô are Äê²Á¤Ä¤­¤Î at ¡ò12, and the ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö »º¤¹¤ë¡¿À¸¤¸¤ë is attractive at 5.1 per cent.?

5) CRODA INTERNATIONAL (FTSE100)

While Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës were É餫¤¹¡¿·âÄƤ¹¤ë ¤Ï¤Ã¤­¤ê¤È in 2023, speciality ²½³ØÀ½ÉÊs company Croda International is in good ºâÀ¯¾å¤Î ·ÁÂÖ¡¿Ä´À°. Sam North, market ʬÀÏ²È at Ëǰסʤ¹¤ë¡Ëing ÃÅ¡¦¹ËÎΡ¦¸øÌó eToro, is ¤ÎÃæ¤Ç its fans.

He says the company should enjoy growth in ºÐÆþs across many of its ¾¦Çä¡¿»Å»ö areas: '´¢¤ë Êݸî, seed enhancement and beauty and care.' He also believes the 2020 acquisit ¥¤¥ª¥ó of US À½Ìô¤Îs ¾¦Çä¡¿»Å»ö Avanti Polar Lipids could lead to strong ¶ÈÀÓ¡¿À®²Ì in its ¥ï¥¯¥Á¥ós ¾¦Çä¡¿»Å»ö.

The ³ô, at ¡ò47.59, are 27 per cent lower than a year ago. Last year's ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö was ¡ò1.09 a ³ô.

6) ENTAIN (FTSE100)

A ¶¯²½¤¹¤ëing of the µ¬Â§s ¼£¤á¤ë¡¿Åý¼£¤¹¤ëing the ÅÒ»öing »º¶È has ½Å¤µ¤ò·×¤ëd ¤Ò¤É¤¯ on the ³ô price of sports betting and gaming company Entain. The ³ô have fallen 37 and 48 per cent over the past one and two years, ¤½¤ì¤¾¤ì ? not helped by ±ä´ü¤¹¤ës over the Ǥ̿ of a ±Êµ×¤Î Ĺ¡¤»ØƳ¼Ô (n)Ìò°÷¡¿(a)¼¹¹ÔÎϤΤ¢¤ë since Jette Nygaard-Andersen ½Ðȯ¡¿»àd in December.

The company embraces a host of brands, such as »¹¸ê, Foxy Bingo and Ladbrokes. Yet, ¤Ë¤è¤ì¤Ð Matt Britzman, ¸øÀµ¡¤ÉáÄ̳ô¼ç¸¢ ʬÀÏ²È at wealth ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Í Hargreaves Lansdown, the doom is overdone.?

'Entain's market valuation fails to ǧ¤á¤ë its ŬÀڤʻþ´üs,' he says. 'From a low base and with growth areas to Åê»ñ¤¹¤ë in, it won't take much to reignite its ³ô price.' Its ³ô stand at ¡ò8.23.

7) LLOYDS BANKING GROUP (FTSE100)

Ninety One's Ben Needham says Lloyds should ¿½¤·¹þ¤à¡¿¿½¤·½Ð Åê»ñ²Ès 'an excellent cash return story' in the coming years.

This will come in the form of a ÀâÆÀÎϤΤ¢¤ë ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö (2.76p a ³ô in the 2023 ºâÀ¯¾å¤Î year) and a strong ³ô price return, driven in part by the company buying »Ù±ç¤¹¤ë its ³ô (¸º¤º¤ëing the number in ÌäÂ꡿ȯ¹Ô¤¹¤ë), so Áý²Ã¤¹¤ëing the chance of the ³ô going up in price.

'At the ¸½ºß¤Î ³ô price,' says Needham, 'Lloyds ³ô should À¸À®¤¹¤ë Ãæ±û¤Î-teen ǯ¼¡¤Î returns for Åê»ñ²Ès.'

Another Lloyds fan is Interactive Åê»ñ²È's Richard Hunter. He says the bank's move to a more ¿ô»úɽ¼¨¼°¤Î ¾¦Çä¡¿»Å»ö (¤Î¶á¤¯¤Ëing offices and »ÙŹs) wil l 'ÆÀ¤ë rewards' in the form of ²þÁ±¤¹¤ëd Íø¤¶¤äs (bigger Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës).

He is also encouraged by the bank returning to its previous ɾȽ as a 'provider of large ³ô¼ç returns.' A '¿ÊÊâ¡¿³×¿·Åª¤Ê' ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö À¯ºö, Äɲ乤ës Hunter, has resulted in an ǯ¼¡¤Î ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö ƱÅù¡Ê¤Î¡Ë to 5.4 per cent ? 'tempting for income Áܤ·½Ð¤¹ing Åê»ñ²Ès.'

The ³ô Ëǰסʤ¹¤ë¡Ë at around 51p.

8) PRUDENTIAL (FTSE100)

Jonathan Unwin, UK Ĺ¡¤Î¨¤¤¤ë of Âç¿Ã¤ÎÃÏ°Ì ´ÉÍý¡¿·Ð±Ä at Mirabaud Wealth ´ÉÍý¡¿·Ð±Ä, says Prudential Âåɽ¤¹¤ës a 'ÀâÆÀÎϤΤ¢¤ë ŬÀڤʻþ´ü' for Åê»ñ²Ès.

The ³ô have µñÀ䤹¤ë¡¿Äã²¼¤¹¤ëd in value by 37 per cent over the past year ? a result of ¸ºß ̾Êí¡Ê¤ËºÜ¤»¤ë¡Ë¡¿É½¡Ê¤Ë¤¢¤²¤ë¡Ëd on the out-of-favour UK market and ·ÐºÑŪ¤Ê clouds in its Ū markets: Asia (Ãæ¹ñ ÆäË) and Africa.

Yet Unwin is ǼÆÀ¤µ¤»¤ëd that Prudential's strong franchise in Hong Kong (ή½Ð¡¿¤³¤Ü¤¹ing into wider Ãæ¹ñ) will ²þÁ±¤¹¤ë. He says: 'Its ÆóÎÝÂÇ-digit growth in ºÐÆþs is not Äê²Á¤Ä¤­¤Î into its ³ô. Its ³ô price is cheaper than the wider European Êݸ± ÉôÌç.'

Åê»ñ²È Interactive's Richard Hunter says the ŬÀڤʻþ´ü for the company to Îá¾õ Éղà Êݸ± ¾ÞÍ¿¶âs with ¾ÃÈñ¼Ôs in these two continents is '½ÅÍפÊ.' The ³ô are Äê²Á¤Ä¤­¤Î at ¡ò7.16, and the ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö »º¤¹¤ë¡¿À¸¤¸¤ë is modest at 2.3 per cent.

9) RENTOKIL INITIAL (FTSE100)

Rentokil is the world's ¼çÍ×¤Ê pest »ÙÇۡʤ¹¤ë¡Ë¡¿ÅýÀ©¤¹¤ë ¾¦Çä¡¿»Å»ö. It ¸Ç¤¯·ë¤ÓÉÕ¤±¤ëd its position as an »º¶È leader by acquiring US peer Terminix in late 2022. Although the Åý¹ç¡¤º¹ÊÌűÇÑ of this ¾¦Çä¡¿»Å»ö is still a work in ¿ÊÊâ, the Íø±×s ¡¼¤Ë´Ø¤·¤Æ¡¿¡¼¤ÎÅÀ¤Çs of ¼ýÆþs growth and market »ÙÇÛ are ¡Êµ¿¤¤¤ò¡ËÀ²¤é¤¹.

'Pest »ÙÇۡʤ¹¤ë¡Ë¡¿ÅýÀ©¤¹¤ë is one of the most price inelastic »º¶Ès in the world,' says Ninety One's Needh am ? meaning ºÐÆþ is ¤¤¤Ã¤½¤¦¾¯¤Ê¤¯ likely to Íî¤Á¤ë if prices rise. 'Also ¸ÜµÒ retention is high as a result of the contractual services ¾¦Çä¡¿»Å»ös are Í׵᤹¤ëd to Ä´°õ¤¹¤ë up to.'

He Äɲ乤ës: 'Rentokil Íø±×s from a virtuous cycle ? a high market ³ô, ¼çÍ×¤Ê to big Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës and price competitiveness.'

Although Rentokil's ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö is in growth Êý¼° ? 8.68p a ³ô in the last ºâÀ¯¾å¤Î year ? it is modest in »º¤¹¤ë¡¿À¸¤¸¤ë ¾ò·ï (1.9 per cent). The ³ô Ëǰסʤ¹¤ë¡Ë at ¡ò4.53.

10) TESCO (FTSE100)

Tesco's ºâÀ¯¾å¤Î results for the ºâÀ¯¾å¤Î year to February 24, just published, made for impressive reading. Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës nearly £³Çܤˤʤëd to ¡ò2.3billion, with the ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö for the year Áý²Ã¤¹¤ëing 11 per cent to 12.1p a ³ô.?

Sam North, market ʬÀÏ²È at Ëǰסʤ¹¤ë¡Ëing ÃÅ¡¦¹ËÎΡ¦¸øÌó eToro, says the country's ¼çÍ×¤Ê supermarket (by market ³ô) is Îò»ËŪ¤Ë undervalued by the ³ô¼°»Ô¾ì.

His ¸«²ò¡Ê¤ò¤È¤ë¡Ë is that the ³ô, ¸½ºß¡¿°ìÈÌ¤Ë Äê²Á¤Ä¤­¤Î at ¡ò2.82, could ¹¶·â¤¹¤ë¡¤¾×Æͤ¹¤ë ¡ò3.50 in the 'medium ¾Î¤¹¤ë¡¤¸Æ¤Ö¡¿´ü´Ö¡¿ÍѸì.' If so, it would be the first time the ³ô have Ëǰסʤ¹¤ë¡Ëd at such a level since July 2014. The ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö »º¤¹¤ë¡¿À¸¤¸¤ë is 4.3 per cent.

11) AJ BELL (FTSE250)

This Åê»ñ ÃÅ¡¦¹ËÎΡ¦¸øÌó is different to others in that it serves both »äŪ¤Ê Åê»ñ²Ès and ºâÀ¯¾å¤Î ½õ¸À¼Ôs. It is also ¾ÇÅÀ¡Ê¤ò¹ç¤ï¤»¤ë¡Ëd on ¶¡µë¤¹¤ëing ¸ÜµÒs with value for money.

Since ̾Êí¡Ê¤ËºÜ¤»¤ë¡Ë¡¿É½¡Ê¤Ë¤¢¤²¤ë¡Ëing on the UK ³ô¼°»Ô¾ì five and a half years ago, it has grown its ¼ýÆþs per ³ô by 20 per cent per ǯ, yet its ³ô (¤Ë¤è¤ì¤Ð Ninety One's Needham) are modestly Äê²Á¤Ä¤­¤Î.

Needham Äɲ乤ës: 'AJ Bell is a simple, clean and »ñËÜ¡¿¼óÅÔ-light company that is Íø±×ing from Áý²Ã¤¹¤ëing economies of µ¬ÌÏ.'

The ³ô are Äê²Á¤Ä¤­¤Î at ¡ò2.94, and in the last ºâÀ¯¾å¤Î year, it paid a ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö of 10.75p a ³ô. The ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö »º¤¹¤ë¡¿À¸¤¸¤ë is 3.7 per cent.?

12) & 13) DUNELM AND GREGGS (FTSE250)

Value for money ¼ÒºÄs these two retailers ? Dunelm in the furniture ÉôÌç and Greggs in the µÞ®¤Ê¡¿ÊüÆ¢¤Ê food market.

Over the past year, the ³ô prices of both companies have Ω¤Á±ýÀ¸¤µ¤»¤ëd, but some ¼çÍ×¤Ê ´ð¶â ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Ís believe they are ½Ï¤·¤¿ for an ¾å¸þ¤­ rerating. Edinburgh Åê»ñ ¿®ÍÑ »ý¤Ä¡¿¹´Î±¤¹¤ës the ³ô of both companies in its Âç¿Ã¤ÎÃÏ°Ì ? Dunelm ¸ºß a ºÇ¹â¤Î¡¤¤ò±Û¤¹ ten position. Imran Sattar, the ¿®ÍÑ's ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Í, says: 'Both are °æ¸Í¡¿ÊÛ¸î»ÎÀÊ-run ¾¦Çä¡¿»Å»ös and ¿­¤Ó¡Ê¤ë¡Ëing market ³ô. They have a strong ¾ÇÅÀ¡Ê¤ò¹ç¤ï¤»¤ë¡Ë on value for money for ¾ÃÈñ¼Ôs.'

The ³ô are Äê²Á¤Ä¤­¤Î at ¡ò10.96 (Dunelm) and ¡ò27.78 (Gregg s). Their ³Æ¡¹¤Î ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅös are 3.8 per cent and 2.2 per cent.

14) JD WETHERSPOON (FTSE250)

Value for money also lies at the heart of pubs ¾¦Çä¡¿»Å»ö JD Wetherspoon. From morning to night, its ½Ð¸ýs usually see its ¸ÜµÒs enjoying cheap food and drinks.

Yet ¤Ë¤â¤«¤«¤ï¤é¤º ¸½¤ì¤ëing from the pandemic in a stronger position than many of its ¶¥ÁèÁê¼ês, its ³ô price is still some 50 per cent lower than it was pre-lockdown.

Ben Needham, of Ninety One, believes the ¾¦Çä¡¿»Å»ö, led by chairman Tim ¥Ä¥Ð¥á, has 'some of the most ̤³«È¯¤Î pricing ÎÏ¡¿¶¯ÎϤˤ¹¤ë' ¤ÎÃæ¤Ç UK ¹ñÆâ¤Î ¾¦Çä¡¿»Å»ös and will Íø±× as more competitors ¿È¤ò°ú¤¯ from the ÉôÌç. Greater value sales will result in bigger Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës.

'¥Ä¥Ð¥á has just put his own ºÕ¤¯ to work, buying ¡ò7million of ³ô at ¡ò7 a ³ô,' says Needham. 'ÁÏΩ¼Ô owners buying their own ºß¸Ë¡¿³ôs is often no bad signal to Åê»ñ²Ès looking for an Åê»ñ home.' The ³ô are ¸½ºß¡¿°ìÈÌ¤Ë Äê²Á¤Ä¤­¤Î at ¡ò7.42. It does not »Ùʧ¤¦¡¿Ä¶â a ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö and will not do so until Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës return to pre-pandemic levels.

15) COSTAIN (FTSE ALL-SHARE)

ÁÈ¿¥¡¿´ðÈס¿²¼Éô¹½Â¤ company Costain made losses from 2019 to 2021, but it is now in better ¾¦Çä¡¿»Å»ö ·ÁÂÖ¡¿Ä´À°, ¥Ö¥¤¡¤Éâɸd by a strong order Ä´½ñ¤ò¤È¤ë¡¿Í½Ì󤹤ë.

AJ Bell's Russ Mould says the ¾¦Çä¡¿»Å»ö is Ëܵ¤¤Ç undervalued, with a market capitalisation little above the ÎÌ of cash it had on its balance sheet at the end of last year. This, he says, ¶¡µë¤¹¤ës Åê»ñ²Ès with Êݸî should anything go wrong in the ̤Íè ? and plenty of upside if it can ²þÁ±¤¹¤ë the returns it makes on sales.

With a new ´ÉÍý¡¿·Ð±Ä team in place and the ŬÀڤʻþ´ü to be part of big ÁÈ¿¥¡¿´ðÈס¿²¼Éô¹½Â¤ »ö¶È¡¿·×²è¡Ê¤¹¤ë¡Ës such as the Sizewell C ³Ë¤Î ÎÏ¡¿¶¯ÎϤˤ¹¤ë ¹©¾ì¡¿¿¢Êª in Suffolk and ÌÖ¾õÁÈ¿¥ Rail's ¡ ò40billion spending ·×²è¡Ê¤¹¤ë¡Ës between now and 2029, the company has the ²ÄǽÀ­¤Î¤¢¤ë to grow its Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës (¡ò30.9million last year).

Its ³ô Ëǰסʤ¹¤ë¡Ë at around 77p, and encouragingly it returned to »Ùʧ¤¦¡¿Ä¶âing ³ô¼çs a small ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö last year of 1.2p a ³ô.?

Bets are on: Will you bank on rises in Rentokil, High Street banks, Foxy Bingo owner Entain or hope for an investment roll with Greggs this year?

Bets are on: Will you bank on rises in Rentokil, High Street banks, Foxy Bingo owner Entain or hope for an Åê»ñ roll with Greggs this year?

16) PAYPOINT (FTSE ALL-SHARE)

Although PayPoint ¶¡µë¤¹¤ës ¾ÃÈñ¼Ôs and small ¾¦Çä¡¿»Å»ös with an Ê¿°×¤Ê way to »Ùʧ¤¦¡¿Ä¶â Ë¡°Æs or °Üž money ·Ðͳ¤Ç a ÌÖ¾õÁÈ¿¥ of 28,000 Ãߤ¨¤ë¡¿Å¹s, it has more strings to its ¶þÉþ¤¹¤ë.

It has a ±É¤¨¤ëing ¾®Êñs service ? operated ·Ðͳ¤Ç newsagents, Ãϸµ¤Î Ãߤ¨¤ë¡¿Å¹s, supermarkets and ÀÐÌý ±Ø¡¿ÇÛÃÖ¤¹¤ës ? that µö¤¹s people to ¸º¾¯¡Ê¤¹¤ë¡Ë off or collect items. It also ¶¡µë¤¹¤ës a Christmas Ãù¶â club.

Dan Coatsworth, Åê»ñ ʬÀÏ²È at AJ Bell, says: 'PayPoint is one of those ¾¦Çä¡¿»Å»ös that people are quick to ²òǤ¤¹¤ë as irrelevant in the modern world, yet Åê»ñ²Ès would be ¹ÔÊýÉÔÌÀ¤Î out on a ºß¸Ë¡¿³ô that is cheaply valued and »Ùʧ¤¦¡¿Ä¶âing a big ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö.'

In the last ½½Ê¬¤Ê ºâÀ¯¾å¤Î year, it paid ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅös totalling 37p a ³ô, and in the ¸½ºß¤Î year, its first two ǯ£´²ó¤Î »Ùʧ¤¤¡Ê³Û¡Ës are encouragingly higher than 12 months °ÊÁ°.?

The ³ô Ëǰסʤ¹¤ë¡Ë at ¡ò4.90 and the ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö »º¤¹¤ë¡¿À¸¤¸¤ë is 7.6 per cent ? '¹µÁÊ¡¤¾å¹ðing,' says Coatsworth, 'to ¼è°ú hunters.'

17) SMITHS NEWS (FTSE ALL-SHARE)

Although the ³Ë¿´ ¾¦Çä¡¿»Å»ö of Smith News, ʬÇÛ¤¹¤ëing newspapers to retailers, is in Ë¡³°¤Ê µñÀ䤹¤ë¡¿Äã²¼¤¹¤ë, it continues to make Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës while looking to diversify ºÐÆþs.

'It's a resilient company,' says AJ Bell's Dan Coatsworth, 'and market ͽ¬¡Ê¤¹¤ë¡Ës ¼¨¤¹ it will make °ÂÄꤷ¤¿ Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës over the next few years.' For Åê»ñ²Ès, the biggest attraction is a '¼è°ú Ãϳ¬ ³ô price' (Coatsworth's words) and a ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö ƱÅù¡Ê¤Î¡Ë to 8.5 per cent a year. The ³ô stand at 48p.

18) TT ELECTRONICS (FTSE ALL-SHARE)

Surrey-based TT Electronics designs and À½Â¤¡Ê¤¹¤ë¡Ës electronic ¹½À®Í×ÁÇs and sensors for a ÈÏ°Ï of »º¶Ès: ¹Ò¶õ±§Ãè³Ø, defence, and healthcare.

¸½¤ì¤ëing from a period of subdued Á´À¤³¦¤Î ¼ûÍס¦Í׵᤹¤ë, its ºÐÆþ ¸«Ä̤· now looks brighter. It has also ºÆÊÔ¤¹¤ëd its ¾¦Çä¡¿»Å»ö to ²þÁ±¤¹¤ë Íø±×¡Ê¤ò¤¢¤²¤ë¡Ës.

The company is a ½ÅÍ×¤Ê »ý¤Ä¡¿¹´Î±¤¹¤ëing in Åê»ñ ´ð¶â Tellworth UK Smaller Companies (see ´ð¶â ¾ÇÅÀ¡Ê¤ò¹ç¤ï¤»¤ë¡Ë, Page 60). James Gerlis, ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Í, says TT Electronics ¿½¤·¹þ¤à¡¿¿½¤·½Ðs 'exceptional value' supported by a ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö »º¤¹¤ë¡¿À¸¤¸¤ë of 4.5 per cent.

The ³ô are Äê²Á¤Ä¤­¤Î at ¡ò1.55.

19) XPS PENSIONS GROUP (FTSE ALL-SHARE)

ǯ¶âs specialist XPS is in ȳ¶â ºâÀ¯¾å¤Î ·ÁÂÖ¡¿Ä´À°, having just Êó¹ð¡Ê¤¹¤ë¡Ë¡¿²±Â¬d 20 per cent growth in ºÐÆþs for the ºâÀ¯¾å¤Î year to the end of last month.

¤Ë¤â¤«¤«¤ï¤é¤º this, its ³ô Ëǰסʤ¹¤ë¡Ë at a big ³ä°ú to its peers. ¤Ë¤è¤ì¤Ð Ken Wotton, ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Í of Åê»ñ ¿®ÍÑ Àïά¤Î ¸øÀµ¡¤ÉáÄ̳ô¼ç¸¢ »ñËÜ¡¿¼óÅÔ, this Âåɽ¤¹¤ës a 'ÀâÆÀÎϤΤ¢¤ë Æþ¤ë¤³¤È¡¿»²²Ã¡Ê¼Ô¡Ë point for Åê»ñ²Ès Áܤ·½Ð¤¹ing value.'

The company, says Wotton, also »Ùʧ¤¦¡¿Ä¶âs a 'generous and growing ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö.' In the ºâÀ¯¾å¤Î year to the end of March 2023, it paid 8.4p a ³ô. In June, it is likely to ³Îǧ¤¹¤ë a final ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö, ²¡¤·¿Ê¤á¤ëing the ǯ¼¡¤Î »Ùʧ¤¤¡Ê³Û¡Ë for the ºâÀ¯¾å¤Î year just ended even higher. The ³ô are Äê²Á¤Ä¤­¤Î at ¡ò2.59.

20) CVS GROUPS (FTSE AIM 100)

³ô in veterinary services provider CVS Group have taken a ÍðÂǤ¹¤ëing since the ¶¥Áè and Markets Åö¶É decided last month to ³«»Ï¤¹¤ë¡¤ÂǤÁ¾å¤²¤ë a market Ä´ºº into the veterinary ÉôÌç.

The CMA says the Áý²Ã¤¹¤ëing ½¸Ãæ of the »º¶È into the ¼êÅϤ¹s of a few powerful providers (of which CVS is one) could be ¼å¤á¤ëing ¶¥Áè and ¼çÍ×¤Ê to ¾ÃÈñ¼Ôs overpaying for Ìô¡¿°å³Øs and prescriptions.

The ³ô, Äê²Á¤Ä¤­¤Î at ¡ò9.58, are É餫¤¹¡¿·âÄƤ¹¤ë 43 per cent over the past three months. Yet Matt Britzman, ¸øÀµ¡¤ÉáÄ̳ô¼ç¸¢ ʬÀÏ²È at wealth ÃÅ¡¦¹ËÎΡ¦¸øÌó Hargreaves Lansdown, says CVS remains a 'high-¼Á ¾¦Çä¡¿»Å»ö with growth ²ÄǽÀ­¤Î¤¢¤ë.'

He Äɲ乤ës: 'The group now Ëǰסʤ¹¤ë¡Ës at a ½ÅÍ×¤Ê ³ä°ú to its longer-¾Î¤¹¤ë¡¤¸Æ¤Ö¡¿´ü´Ö¡¿ÍÑ¸ì ³ô¼°»Ô¾ì valuation, putting it in a position to bounce »Ù±ç¤¹¤ë if it can navigate past the regulator's gaze.'