The six undiscovered UK firms you could make serious money from

To households across the country, Britain seems to be in a mess. Our Government is farcical, our finances are dismal and the cost of living remains stubbornly high. Delve a little deeper, though, and the picture looks rather different.

Despite being savaged by Chancellor Rachel Reeves and mayhem in the Middle East, many businesses are flourishing. On the stock market, dozens of British companies have been beating City expectations and hope to continue doing so.

Their resilience has not gone unnoticed. US and European investors are pouring money into UK shares with greater gusto than they have done in years because they believe our stock market offers richer pickings than their own. Some of the best rewards can be found among smaller or lesser-known companies that are listed in London but have spread their wings worldwide.

Here are six of the best – including two which would have made you serious cash if you had invested when Midas first tipped them. Fortunately, they all have plenty of potential for growth.

MS International

MS International has three businesses, including one that maintains petrol station forecourts

MS International was recommended by Midas in March last year at £10.54 and the shares have since risen to £16.28, a return of more than 50 per cent. They should carry on in the same vein, as this company is delivering on all fronts and has ambitious, well- developed plans for the future.

Run by Michael Bell and Michael O’Connell, MSI operates three distinct businesses. It makes arms for forklift trucks, builds and maintains petrol station forecourts and, most importantly, has a long-standing defence business, whose customers range from the US and British armed forces to governments in Vietnam, the Middle East and Ukraine.

Each division has particular skills and expertise.

The forklift arm business originated in South Yorkshire but it moved into the US and today is the only firm in the sector with an American manufacturing facility.

Other operators sold out to the Chinese but MSI retained its business in South Carolina – a decision that is reaping rewards under Donald Trump.

The petrol forecourt subsidiary is the largest in the UK and has amassed a unique collection of technical drawings, covering virtually every station in the country. That facilitates upgrades and maintenance, further cementing MSI’s leadership position.

In defence, MSI offers unrivalled products and services. Initially the group sold stabilised platforms for the Royal Navy.

Back in the 1980s, shortly after Bell joined the board, a friend from his local tennis club suggested he should adapt MSI’s platforms so they could hold weapons to take down enemy aircraft.

Bell took the advice to heart and won a competition to supply the Royal Navy with new firing systems after the Falklands war.

Having updated and enhanced its systems many times since, the group expanded internationally, winning contracts from armed forces across the world.

The US Navy is a keen customer, recently awarding MSI a chunky contract, which it won against some fierce competition.

Bell and managing director O’Connell have now decided to focus on defence.

The forecourt and forklift arm businesses are likely to be sold within the next 12 months, raising the prospect of a special dividend, although most of the proceeds will be reinvested.

MSI’s financial year ended on Thursday and results should be out in a couple of months, showing steady progress, a robust balance sheet and a well-developed strategy for growth.

As plans come to fruition, sales and profits should increase substantially, along with MSI’s share price. Buy and hold.

Traded on: AimTicker: MSI Contact: msiplc.com

SRT Marine Systems

The West Country firm helps nations protect their coastlines through its highly technical kit

Based just outside the town of Midsomer Norton in Somerset, SRT Marine Systems’ work belies its picturesque location.

This small West Country business is involved in solving some of the grittiest problems that the world faces today, helping nations to protect their coastlines, their borders and their citizens.

SRT, led by chief executive Simon Tucker, specialises in marine surveillance, making highly technical kit that allows governments to monitor their waters and fend off criminals from smugglers to terrorists.

Gulf states are keen supporters of SRT’s kit, as are South Asian states such as Indonesia and the Philippines. They are in regions where tensions run high and terrorism is an almost constant threat. SRT helps them to feel safer, with unparalleled surveillance systems that can spot potential danger hundreds of miles out to sea and act on that information.

SRT kit recently spotted a missile launcher disguised as a fishing boat, which could have wreaked widespread destruction. Drugs and weapon smugglers are routinely intercepted and governments are now asking Tucker to help monitor threats on land too .

When Midas recommended SRT in 2022, the shares were 37p. They have more than doubled to 83p and brokers believe they will exceed £1.20 in the near future. Tucker is determined to build a £1billion business – a five-fold increase from today. In our uncertain world, the shares are a buy.

Traded on: AimTicker: SRT Contact: srt-marine.com

Fevara

Fevara is focused on feeding people, with innovative products designed to make cows healthy

While MS International and SRT Marine Systems strive to keep people from harm, Fevara is focused on feeding them, with innovative products to make cattle and other farm animals healthier and more productive.

Cows eat huge quantities of grass, hay and other foliage. When they are grazing on open land, farmers will typically top up this plant-based feast by throwing a sack of feed into a trough and leaving the animals to it.

But this can blow away if it is windy or spoil if it rains, and there are few ways to monitor how much individual cows eat – greedy ones can overdo it, timid ones can lose out and the farmer pays the price.

So Fevara developed a different product entirely – a concentrated, molasses-based feed that looks like a giant boiled sweet. Made by boiling down molasses and adding in vitamins, minerals and other nutrients, the mix becomes rock-hard as it is cooled so it can be taken out to the field in tubs and left for cattle to lick.

The approach has several advantages. The feed can be left out in all weathers without spoiling. Farmers do not need to invest in troughs or other infrastructure.

And, most importantly, animals are forced to eat in a measured fashion, which supports their digestion, their health and their wellbeing.

Based in Cumbria, Fevara has established operations in the US, across Europe and New Zealand. Cattle farmers are its principal customers but the group supplies feed for sheep, goats and deer too, as well as breeding stallions, lactating mares and high-performance horses.

Originally known as Carr’s Group, Fevara changed its name last autumn, reflecting a change of management and focus.

Chief executive Joshua Hoopes, an experienced agriculture man, took the top job last July and set about focusing the business on specialist areas where profits are higher and competition is scarce.

He has also moved Fevara into Brazil – the biggest beef producer in the world, with more than a fifth of the world’s cattle.

The old Carr’s became known for repeated problems and profit warnings. Hoopes is determined to do better, targeting profits of £15million within the next three to five years, more than double current levels.

At £1.39, Fevara shares offer plenty of upside. Buy.

Traded on: Main marketTicker: FVA Contact: fevara.com

Abingdon Health

Abingdon develops complex tests for blood cancer, brain disease and heart conditions

Between 2020 and 2023, more than 1.5billion lateral flow tests were distributed in the UK alone, when the pandemic turned these quick diagnostic tools into an essential household item.

The simple devices, used to detect the presence of a specific substance, had been around for years but many in the medical community regarded them as second class citizens compared to laboratory-based diagnosis.

The need to swiftly diagnose Covid-19 infections turned that perception on its head.

Today, lateral flow tests are increasingly seen as a faster, more efficient way to detect conditions ranging from stomach ulcers to cancer.

Abingdon Health is at the forefront of this industry, developing and making tests from its headquarters in York and from new facilities in Madison, Wisconsin, a biotech hub in the American Midwest. The company listed on the stock market in 2020 at 96p a share but sank to less than 5p as the pandemic retreated and investors feared for its future.

Founder Dr Chris Hand has proved the sceptics wrong, expanding the business and winning contracts with customers from major drug giants to emerging start-ups.

Abingdon makes complex tests for blood cancer, brain disease and heart conditions, as well as home tests for sexually transmitted diseases and saliva-based pregnancy tests.

It even makes a test that can be dipped into a drink to see if it has been spiked.

And the group has now developed a mobile phone app which scans test results and offers more detailed information. Trialled on vitamin D levels and ovulation, it should prove useful for a range of conditions and diseases.

Abingdon’s sales have risen by 40 per cent annually since 2022 with revenues of £12million expected for the year to this June, rising to more than £15 million next year. Cash has been ploughed back into the business in recent years, but Abingdon is now expected to move into profit and the long-term outlook is extremely encouraging.

Before, contracts were £100,000 to £200,000. Now they are routinely more than £1 million, with a £4.8million deal awarded in the US just six weeks ago.

Abingdon shares have risen from earlier lows to 8.65p but brokers expect them to more than double. Buy now and watch them rise.

Traded on: AimTicker: ABDX Contact: abingdonhealth.com

Sanderson Design Group

Wallpaper and fabric specialist Sanderson Design Group shows British creativity at its best

Wallpaper and fabric specialist Sanderson Design Group exemplifies British creativity at its best.

With a Royal Warrant stretching back more than a century, the company has decorated Royal residences across the UK – so when King Charles wanted to launch a design collection, Sanderson was the obvious choice.

Last May, Highgrove by Sanderson Fabrics hit the market and has been the group’s bestselling collection in its first year.

UK buyers have snapped it up but so have Americans – and its appeal may grow following His Majesty’s visit to the US this week.

The Highgrove range has already given Sanderson a boost. It unveiled a 22 per cent increase in annual profit to £5.3million last week, with chief executive Lisa Montague sounding a confident note.

After a stormy couple of years the company is now firing on all cylinders, fuelled by enthusiasm from American interior designers.

Plush fabrics and wallpapers are shipped from Sanderson’s factories in Loughborough and Lancaster.

Demand is growing and should increase, with a new collection launched in collaboration with America’s number one interior man, Michael Smith, who helped to decorate President Barack Obama’s White House.

Sanderson shares have been buffeted by economic woes but they have rebounded from their lows and should continue to gain ground. Brokers forecast strong increases in sales and profits and a rising share price. At 62p, the stock offers good value.

Traded on: Aim Ticker: SDG Contact: sandersondesign.group

Light Science Technologies

Billionaire James Dyson, one of the UK’s largest landowners, is a customer of the British firm

This is a small company striving to solve big problems, from boosting food security to making buildings truly fireproof.

Light Science Technologies’ shares are just 1.5p but brokers at Shore Capital believe they could almost triple in value to 4.6p as the firm rolls out its goods to customers at home and abroad.

Founded by entrepreneur Simon Deacon, Light Science helps farmers to grow crops more efficiently in glasshouses and on the field.

Indoors, its technology is used to control lighting, heating, ventilation, humidity and nutrients.

Outdoors, sensors show where best to use fertiliser and how crops are responding.

Billionaire James Dyson, one of the UK’s largest landowners, is a customer and the technology is being exported around the world as countries strive to grow more at home and reduce reliance on imported goods.

Light Science has a second division too, focused on fire protection, which is expected to expand at pace following the acquisition last month of Injectaclad. This injects fire-proof material into high-rise buildings with minimum fuss and maximum effect.

Properties remain intact, residents can stay put and the process is both cheaper and faster than alternatives.

Demand has been growing after the Grenfell Tower tragedy prompted a step-change in regulation, and there are clear opportunities abroad – particularly in northern Europe.

Light Science shares have had a rough ride in recent years but at 1.5p they are worth a punt. 

Traded on: Aim Ticker: LST Contact: lightsciencetech.com