I’m searching for the best growth stocks to buy on the London Stock Exchange. Here are some AIM shares I think could deliver explosive shareholder returns over the next decade.
Totally
An ongoing government push to divert patients away from hospitals bodes well for Totally (LSE:TLY). The business operates the NHS 111 telephone consultation service. It also runs urgent care centres and out-of-hours GP surgeries, services that are easing the strain on packed casualty wards.
Record hospital waiting lists are also driving revenues at the small-cap. This is because hospitals are subcontracting out medical work to slash patient treatment waiting times.
CIty analysts think Totally’s earnings will soar 430%-plus in the financial year to March. A 36% increase is expected in the following year too.
Potential changes to NHS policy could disrupt earnings growth at the firm. But any amendments could still be offset by booming demand for healthcare services as Britain’s population rapidly ages.
H&T Group
I think H&T Group could be a perfect stock to own as the UK faces a prolonged recession. City analysts think earnings at the pawnbroker will rise 60% in 2023 and 20% next year.
I believe the AIM share might be a great buy for the longer term too. This is not just because Britain faces low economic growth for much of the decade, due to Brexit and a Covid-19 hangover. The company plans to rapidly expand its store estate following a £17m share placing last September.
Changes to financial regulations could hamper profits growth. But as things stand, I’d still buy H&T shares with spare cash to invest.
Animalcare Group
Medicines developer Animalcare Group (LSE:ANCR) creates products for pets and livestock. And it is expected to grow annual earnings by double-digit percentages through to 2024 at least.
People are spending increasing sums of money on their companion animals. At the same time, rising meat consumption is driving drug sales for livestock. This is why analysts at Grand View Research think the global veterinary medicine market will grow to be worth a whopping $83.39bn by 2030, up from $47.91bn today.
Animalcare sells its products in Europe and is growing its distribution partners in other global markets too. It could therefore be a great way to capitalise on this growing market. I’d buy the business even though drugs development problems can take a big bite from profits.
Midwich Group
Tough economic conditions pose a near-term threat to audiovisual equipment supplier Midwich Group. However, City analysts still expect the business to grow earnings strongly through to next year.
Bottom line rises of 11% and 5% are forecast for 2023 and 2024 respectively. The company sells to trade customers across Europe, North America and Asia. And these bright growth forecasts reflect the predicted impact of the firm’s ambitious global expansion programme.
Midwich raised its revolving credit facility in December too, in order to fund future acquisitions. This rose to £175m from £80m and could help lay the foundations for excellent long-term growth.
