According to initial indications, Brookfield had valued IWG at £2.5bn, but was initially rebuffed. Discussions continued, but no formal deal was agreed as it seems the two parties could not agree on a price.

Despite this setback, I believe it’s only a matter of time before IWG, which was formerly known as Regus, sells itself to a more substantial peer.

Increasing competition 

Despite being one of the world’s largest serviced office providers, IWG is struggling due to the rapid expansion of WeWork that uses a similar model. Indeed, WeWork has only been in existence for a few years but is already valued at more than $20bn, compared to IWG’s market cap of £2.2bn.

Mark Dixon, IWG’s founder, CEO and currently the largest shareholder, believes the company has what it takes to fend off this young competition. Unfortunately, the figures don’t seem to support this conclusion.

According to a trading update issued by the firm today, revenue across the enterprise at all business centres increased by 9% in the first three months of 2018. Group revenue rose 6.7%, including the impact of new premises. Excluding new office space, mature income declined 3.6% at “actual rates“. During the quarter, 46 new locations were added and it plans to spend an additional £200m on new office space over the remainder of 2018, growing overall space by 11%.

IWG might not be growing as fast as it once was, but the company is still as profitable as ever. Returns on investment on a 12-month rolling basis, for those locations open on or before 31 December 2013, were 17.8%, a desirable ratio for the business.

These returns, coupled with its attractive cash generation, lead me to conclude that it will only be a matter of time before IWG becomes a bid target again and, in the meantime, investors can benefit from the group’s lucrative dividend policy.

 At the time of writing, shares in IWG support a dividend yield of 2.5%, which might not seem like much, but the distribution is covered 2.5 times by earnings per share. Oh, and the company has a history of increasing the payout at a double-digit rate every year.

Time for a takeover? 

Another FTSE 250 dividend stock that I believe is set for a takeover is Spire Healthcare (LSE: SPI).

 I should say that this is not a dividend champion in the traditional sense. Shares in Spire only currently yield 1.6%. However, the payout is covered four times by earnings per share, leaving plenty of room for growth in the years ahead — and flexibility if revenues come under pressure.

With earnings projected to expand by 49% this year and 14% for 2019, it’s entirely possible that management could increase the payout in the years ahead as well, as Spire builds on its capital investments made over the past few years.

There’s also a chance that the company could fall prey to a larger competitor. Last year, the private hospital provider was linked with South Africa’s Mediclinic. Mediclinic, as well as its FTSE 100 peer NMC Health, could return to make an offer for the firm as they continue to expand their private healthcare empires around the world.

The post 2 FTSE 250 dividend stocks with takeover potential that I’d buy with £2,000 today appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

So it looks as if the recovery is nearing completion and management now seems to be preparing for the next stage, growth. 

Significant partnership 

Today, the group announced that it had entered into a strategic alliance with Expedia, Inc., one of the world’s leading travel companies. Under the agreement, Expedia will become the preferred provider of hotels for Thomas Cook’s complementary city and domestic holiday business. Overall, this deal will provide Thomas Cook customers with over 60,000 more hotels than the company currently offers. And as well as increasing its offering to customers, the agreement will also allow the company to “reduce the cost and complexity of its city breaks and hotel-only business.” 

I believe that this is an enormous, game-changing opportunity for the group. Higher margins and a larger product range with little to no upfront investment, what’s not to like? 

Dividend growth on the cards

As of yet, City analysts have not adjusted their earnings forecasts to reflect this deal, but they’ve already pencilled in earnings per share growth of 16% for the fiscal year ending 30 Septemeber 2017. Management is also expected to announce a 60% uplift in the dividend payout to 0.8p per share. Next year, the payout is projected to rise 125% to 1.8p, and I think this will be just the start of a series of payout hikes.

At present, the dividend is covered 17 times by earnings per share. If management reduces cover to around three times, more in line with the market average, the payout will rise to 3.3p, giving a dividend yield of 2.7% at current prices. This payout is below the market average, but with payout cover of three times, it would be one of the most secure dividends out there.  

Cash is king 

IWG (LSE: IWG), the flexible workspace provider formerly known as Regus, has seen demand for its services explode over the past two years, and analysts are expecting this trend to continue. The City believes the company can earn 21.3p per share for 2018, up 90% from the figure of 11.2p reported for 2015.

The great thing about IWG’s business is that it’s highly cash generative. Last year the company generated £433m in cash from operations, spent £319m on expansion and returned £79m to investors, approximately 8.3p per share. With net debt of only £201m at the end of 2016, there’s plenty of room for the business to ramp up cash returns to investors if management decides to dial back growth. 

At the time of writing, shares in IWG support a dividend yield of 1.9%, which isn’t that exciting. Nonetheless, with its cash-rich business model, I believe patient investors will be well rewarded with higher distributions in future as the company switches from growth to consolidation.  

The post 2 hidden dividend-growth stocks I’d buy today appeared first on The Twelfth Magpie.

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Rupert Hargreaves does not own shares in any company mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The workspace provider, which was known as Regus up until fairly recently, announced that revenues at constant currencies slipped 0.4% during January-June, at £1.17bn. As a result the business saw pre-tax profit rattle 4% lower year-on-year, to £80.8m.

Despite this patchy first-half result however, the company remains optimistic with sales moving higher again more recently. Chief executive Mark Dixon commented that “as expected the improving trend in sales activity at the beginning of the year has led to a gradual improvement in revenue growth throughout the first half, with IWG returning to growth in Q2._

He added: “Current sales activity remains robust and we are therefore confident that our mature business will see growth over the second half of 2017.” 

Dixon also noted that with revenues back on the rise and costs coming down (overheads fell 14% during January-June, to 124.3m), the company expects strong cash generation during the second half.

And as a result, IWG elected to raise the interim dividend 13% to 1.75p per share.

Great value

The City expects IWG to generate earnings growth of 21% and 20% in 2017 and 2018 respectively. And in my opinion these forecasts make the business sterling value for money.

Sure, a forward P/E ratio of 17.5 times may sit above the widely-considered value watermark of 15 times. But a sub-1 PEG rating of 0.8 times suggests the company is actually attractively valued relative to its growth prospects.

Today’s update could prompt a slight trimming of these forecasts. But I remain convinced IWG’s position as market leader in the fast-growing workspace-as-a-service segment (the company operates in almost 3,000 locations across the globe) should lead to resplendent earnings growth in the years ahead.

Auto star

AB Dynamics (LSE: ABDP) is another London-quoted stock I am backing to deliver sterling bottom-line expansion.

The number crunchers expect growth to be relatively modest in the more immediate term, and have chalked in growth of 3% in the year to 2017. But profits are expected to really stomp higher from next year, and a 22% advance is expected for fiscal 2018.

A P/E multiple of 21.5 times for the upcoming year may look pretty uninspiring at first glance, and quite rightly. But a forward PEG rating of 1 suggests AB Dynamics should be drawing admiring glances from value chasers on the hunt for hot growth stars.

The company, which creates testing and measuring instrumentation for the auto industry, is benefitting from the vast sums the world’s carbuilders are ploughing into R&D. This trend helped power revenues at AB Dynamics 9% higher in the six months to February, to £11m, and pre-tax profits also 9% higher to £2.5m.

And following its recent £6m equity fundraising, the tech titan has plenty of money to develop the next wave of products and to support its growing customer base. I believe the company has what it takes to keep delivering knockout earnings growth.

The post These hot growth stocks are trading far too cheaply! appeared first on The Twelfth Magpie.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

On the road to recovery?

In its last trading update the Aberdeen-based firm reported a small dip in revenues, but says it expects to make strong progress for the full year despite a challenging and uncertain trading environment in many of its key markets. Like-for-like passenger revenues were down by 1.4% in its UK First Bus business as a result of lower high street retail footfall and congestion in the UK, with muted passenger demand in the US contributing to a small 0.5% dip in revenue in its US Greyhound coach business. By contrast, the group’s First Student, First Transit and First Rail businesses all boasted higher revenues over the same period.

Despite the slightly disappointing numbers, FirstGroup expects full-year results to be significantly weighted to the second half of its financial year. This is due to the timing of school holidays in North America where it remains the largest provider of student transportation. And it should additionally benefit from weaker sterling as more than two-thirds of operating profit is generated in the US and Canada. Broker consensus estimates suggest an 18% rise in earnings for the year to the end of March 2017, followed by another healthy 12% improvement for FY2018. With the shares trading near multi-year lows, I think FirstGroup remains a steal at just nine times forward earnings.

Rapid expansion

Flexible workspace solutions provider Regus (LSE: RGU) has established an excellent record of growth over the years as it maintains its policy of expansion and continues to open new business centres throughout the world. The mid-cap support services company now operates in 106 countries, with over 3,000 business centres, making it the world’s largest provider of flexible workspace. In its last update, the Luxembourg-based firm announced a strong set of interim results with revenues rising by 10.3% and underlying operating profits 30% higher compared to the first half of 2015.

City analysts don’t expect a let-up in growth anytime soon, with a 32% rise in underlying profits forecast for the current year, followed by a further 21% improvement in 2017. Companies with such strong growth forecasts would normally command a premium valuation, but Regus currently trades on an undemanding earnings multiple of just 15 for 2017, leaving me with no doubt that this is an unmissable opportunity to buy into the long-term growth story at a very reasonable price.

The post Are these the best growth shares in the FTSE 250? appeared first on The Twelfth Magpie.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

The Luxembourg-based business advised that revenues soared 15% between January and June, to £1.08bn, a result that propelled pre-tax profit 7% higher to £84.3m.

Worsening economic conditions have dented revenues at Regus more recently. Indeed, chief executive Mark Dixon commented that “global macroeconomic uncertainty has clearly increased during 2016 and we have seen softening in revenue growth in some markets on the back of that.”

Still, the company remains confident that it can deal with this, advising that “we have planned prudently for 2016 and taken specific action early in the year to improve efficiencies across the business.”

On top of this, I believe Regus’s broad reach across the globe — the firm operates in 107 countries — should insulate it from the worst that Brexit has to offer. Just 20% of sales are sourced from the UK.

I reckon Regus remains a strong long-term selection worthy of a ‘conventionally’ expensive forward P/E multiple of 21 times.

Crude calamity

Engineering play Amec Foster Wheeler (LSE: AMFW) has seen its share price explode on Tuesday, the stock last 9% higher after its own financials were released.

Amec Foster Wheeler advised that revenues climbed 7% during the first half of 2016, to £2.84bn. But this couldn’t prevent the firm swinging to a pre-tax loss of £446m from a profit of £73m during the corresponding period last year.

The business continues to be hampered by the state of the oil market, and Amec Foster Wheeler swallowed a further £440m worth of writeoffs during January-June.

And chief executive Jonathan Lewis was hardly emphatic over the segment looking ahead, commenting that “our industry continues to face very challenging conditions, with capital projects across natural resources markets being delayed and cancelled in many parts of the world.”

Amec Foster Wheeler’s P/E rating of 9.4 times no doubt makes the firm an attractive selection for many bargain hunters. But I view today’s share price strength as nothing more than a fresh selling opportunity, and expect the engineer’s bottom line to continue toiling.

Paying off

Payment processing goliath Worldpay Group (LSE: WPG) was last dealing 5% higher from Monday’s close after investors greeted the firm’s latest financials with much fanfare.

Worldpay advised that revenues jumped 10% between January and June, to £2.14bn, with the number of transactions rising 15% to 7.2bn. As a result, underlying earnings surged 19% in the period to £217.9m.

And chief executive Philip Jansen believes Worldpay has plenty left in the tank — the firm’s head advised that “while the UK’s vote to leave the EU has resulted in increased uncertainty, we do not expect it to have a material effect on Worldpay’s trading performance.”

Indeed, Worldpay retains a bullish outlook as its geographic footprint continues to expand, and the huge product investment of recent times bolsters customer numbers.

Worldpay is clearly a firm on the up, and fully deserving of its premium P/E rating of 28.7 times, in my opinion.

The post Are these stocks ‘brilliant buys’ or ‘shocking sells’ after today’s news? appeared first on The Twelfth Magpie.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

In fact, Regus is forecast to increase its bottom line by 28% this year and by a further 23% next year. And with its shares trading on a price-to-earnings-growth (PEG) ratio of just 0.7, they seem to offer good value for money. Clearly, Regus remains a relatively cyclical business and its outlook could deteriorate if the outlook for the global economy worsens. But with such a wide margin of safety, Regus looks set to beat the FTSE 100 after having done so by 33% in the last year.

Index beater?

Similarly, information and analytics specialist Relx (LSE: REL) has also handsomely outperformed the FTSE 100 over the last year. Its shares have risen by 9% while the FTSE 100 has fallen by 11%. Looking ahead, Relx is due to increase its bottom line by 12% this year and by a further 7% next year. This puts it on a PEG ratio of 1.5, which indicates that its shares offer a relatively appealing risk/reward ratio and have a good chance of beating the wider index.

Although Relx may not have the fastest growing bottom line in the FTSE 100, it has been very reliable in recent years. In fact, it has recorded positive earnings growth in each of the last five years and at a time when the outlook for the global economy is rather uncertain, it could become increasingly popular among investors. And with a dividend which is covered 2.2 times by profit, Relx’s yield of 2.6% may hold significant appeal in the long run.

Future prospects priced-in

Meanwhile, Sirius Minerals (LSE: SXX) has also outperformed the FTSE 100 in the last year. Its shares have risen by a whopping 48% during the period as approval was granted for Sirius Minerals’ potash mine in Yorkshire and crop studies yielded positive results for the company’s polyhalite fertiliser.

While Sirius Minerals could deliver exceptional share price growth in the long run due to high demand for its fertiliser, in the shorter term its shares could fail to record such strong performance. That’s because much of the company’s future prospects seem to be priced-in, while challenges regarding fundraising in what is a tough period for the mining sector may not be fully included in the company’s valuation.

As such, and while Sirius Minerals may be of interest to less risk-averse investors, the chances of it beating the market as handsomely as it has done in the last year appear to be slim.

The post Will Sirius Minerals plc, Regus plc and Relx plc beat the FTSE 100 all over again? appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Rather expensive

In fact, Rotork appears to be confident about its long term outlook, encouraged by the progress of its accelerated cost management programme and the actions it is taking to mitigate the effect of market weakness. It sees opportunities to increase its market share and as evidence of its confidence in future profitability, Rotork has increased dividends by 0.8%. This puts the company’s shares on a yield of 2.9% and with dividends being covered 1.8 times by profit, there is scope for faster rises in future.

Clearly, Rotork faces continued challenges from a low oil price and slower growth in China. And with its shares trading on a price to earnings (P/E) ratio of 19.7, they appear to be rather expensive. Therefore, it may be prudent for investors to wait for a keener price before considering a purchase.

Highly impressive

Also reporting today was workspace provider Regus (LSE: RGU). Its full-year results showed a rise in revenue at constant currency of 15.9%, while reported earnings per share rose by 66% versus the prior year. As a result, the dividend was increased by 13% and with Regus on-track to meet current year expectations, it appears to be in the midst of a period of highly impressive financial performance.

Looking ahead, Regus is due to increase its bottom line by 31% in 2016 and by a further 21% in 2017. This puts it on a price to earnings growth (PEG) ratio of just 0.8, which indicates that its shares could continue their 24% rise of the last year.

Certainly, Regus may still be a rather lowly yielder, at just 1.7%. But with its dividend covered 2.9 times by profit, there is tremendous scope for a rapid rise in shareholder payouts over the medium to long term. Add to this upbeat growth prospects and it appears to be a strong buy.

Core focus

Meanwhile, shares in education services provider Tribal Group (LSE: TRB) have soared by over 30% today after it announced the disposal of its Synergy children’s services management information system business to Servelec for £20.25m in cash. The net proceeds from the transaction will be used to reduce Tribal’s net debt and will strengthen its focus on core operations. They will also allow Tribal’s rights issue to be smaller than previously planned, with it now due to amount to £21m versus the previously announced £35m.

Looking ahead, Tribal appears to now have the capital with which to deliver on its planned turnaround. While this may not be a smooth process, the company is due to be profitable this year and it could therefore be of interest to less risk averse investors who can live with a relatively high degree of volatility.

The post Are Rotork plc, Tribal Group plc And Regus PLC Buys Or Sells After Today’s Updates? appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended Rotork. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Glencore

Mining giant Glencore (LSE: GLEN) is starting to put last year’s nightmare behind it. Having begun 2016 at 88.50p, it has since surged to around 134p, a rise of more than 70%. Brokers remain confident of further excitement, with Citigroup and UBS both still calling Glencore a ‘buy’ with target prices of 140p and 160p, respectively.

That’s quite a turnaround for a company whose credit rating was cut to one notch above junk by S&P in early February. Management has been rewarded for its ambitious plans to slash the company’s $30bn debt pile, by cutting costs, offloading assets, raising equity and halting its dividend. Signs of a rally in metals and oil prices have also helped boost sentiment and encourage contrarians.

You can buy Glencore at around 8.5 times earnings despite the recent rally but I’m not convinced that commodity stocks are out of the woods yet. I’ll be looking for signs that debt is under control and management is confident it can withstand several years of low prices before adding my voice to the growing list of ‘buy’ recommendations.

Regus

Office outsourcer Regus (LSE: RGU) has had a storming five years, rising 167% in that time, against negligible growth for the FTSE 100 as a whole. Its third-quarter results showed group revenues rising almost 16% from £413.6m  to £478.8m, while healthy profitability and cash flow has allowed management to reinvest in the business with the aim of building incremental long-term shareholder value.

Regus is easy to overlook but Credit Suisse has taken notice, rating it an “outperform” with a target price of 400p, which would suggest nearly 40% upside from today’s 288p. It isn’t immune to wider economic concerns, the share price is down 14% over the past three troubled months, and its ambitious long-term acquisition growth strategy could sacrifice earnings in the short term. I’ll be looking for evidence that management can justify today’s supersonic valuation of 39 times earnings.

Fresnillo

While the big metals giants were in a hole last year, gold and silver miner Fresnillo (LSE: FRES) was a glittering success. This year has brought joy for investors, with the share price leaping 44% from 703p to 1,018, as precious metals have lived up to their reputation of a safe haven in times of trouble. The gold price is up 9% over the last month at $1,233 an ounce while silver is up just 3.2%, but Fresnillo has outshone them both.

Last month it announced healthy increases in both gold and silver output, beating previous guidance, and management was also optimistic about future production. Investors will be hoping for more bullishness tomorrow. With even former Bank of England governor Mervyn King now warning of an economic crash, gold (and silver) bugs could still have their day, and so could Fresnillo.

The post What To Expect From Glencore PLC, Regus PLC And Fresnillo Plc’s Results This Week appeared first on The Twelfth Magpie.

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City analysts believe that ITV’s earnings per share will expand a further 17.4% to 15.7p this year. Based on the fact that the company is currently trading at a forward P/E of 15.7, this indicates that ITV’s shares trade at a PEG ratio of 0.9 — a PEG ratio below one indicates growth at a reasonable price. 

What’s more, analysts believe that ITV will announce a 57% hike in its dividend payout this year as earnings charge higher. Based on these expectations the company is set to support a dividend yield of 3.1% for full-year 2015. 

Explosive growth 

Office outsourcer Regus (LSE: RGU) has been on a growth tangent since the end of the financial crisis. For full-year 2015 analysts expect the company to report earnings per share of 10.7p, compared to the figure of 1.9p reported for full-year 2010, a gain of over 400%. 

Regus’ growth is set to continue for the next two years. Analysts expect the company’s earnings per share to expand 44% this year and a further 36% during 2016.

Unfortunately, for this kind of growth you have to pay a premium and Regus currently trades at a premium forward P/E of 23.5. However, based on the fact that the company’s earnings are set to expand 44% this year, the company’s shares are trading at a PEG ratio of 0.5. 

Regus currently supports a dividend yield of 1.7%. 

Earnings upgrade

City analysts have become increasingly upbeat about Lavendon’s (LSE: LVD) outlook during the past 12 months. 

Specifically, analysts have raised their growth forecasts for the company four times since August last year. Now, analysts expect the company’s earnings to expand 12% this year. As the company is currently trading at a forward P/E of 10.4, and PEG ratio of 0.9, Lavendon looks to offer growth at a reasonable price. 

Lavendon supports a dividend yield of 2.8%, and the payout is covered three-and-a-half times by earnings per share. 

Growth and income 

Telecom plus (LSE: TEP) offers the rare combination of both an attractive growth outlook and solid dividend yield. 

Telecom’s earnings are forecast to expand 31% this year, which when compared to the group’s forward P/E of 16.5 gives a PEG ratio of 0.5. Also, at present levels the company supports a dividend yield of 4.9%. 

Over the next two years, analysts have pencilled in dividend growth of 15% per annum. The payout is covered 1.2 times by earnings per share. 

Dirt cheap

Gulf Marine Services (LSE: GMS) is without a doubt one of the cheapest stocks around. The company currently trades at a dismal forward P/E of 6 and analysts believe earnings per share will expand 22% this year. These numbers give a PEG ratio of 0.3.

At present, Gulf Marine only yields 1.6% although the payout is covered ten times by earnings per share which leaves plenty of room for growth. Group debt is low, so there’s no need to retain profit for reinvesting later. Shareholders could be in line for a special payout in the near future. 

The post 5 Defensive Growth Play For A Rocky Market: ITV plc, Regus PLC, Lavendon Group plc, Telecom plus PLC & Gulf Marine Services PLC appeared first on The Twelfth Magpie.

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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Diageo

With cyclical headwinds in critical emerging regions having forced earnings lower at Diageo (LSE: DGE) last year, and a further bottom line anticipated for the current year — a 6% dip is currently anticipated by the City — picking the drinks giant as a growth superstar would appear a tad barmy at first glance. But with consumer spending in these places showing signs of improvement, and the London firm expanding aggressively in such lucrative markets, I reckon the bottom line should explode higher in the coming years.

Indeed, the number crunchers expect this renaissance to kick off imminently, and have pencilled in an 8% rise for the year concluding June 2016. While it is true that Diageo can hardly be considered cheap, with a P/E multiple of 18.1 times for the coming year peeking above the benchmark of 15 times that indicates decent value, I reckon the firm’s tremendous global footprint, combined with its extensive suite of market-leading products — from Guinness stout through to Johnnie Walker whiskey — to blast revenues skywards once more.

Babcock International Group

I am a big fan of engineer Babcock International (LSE: BAB) owing to its expertise across a variety of industries. While the prospect of depressed spending across the oil sector is likely to remain an issue for some time to come, the company continues to witness surging demand from elsewhere and revenues climbed 27% in the year ending March 2015, to £4.5bn. In particular Babcock reported “compelling” growth at its Marine and Technology and Support Services arms.

And with the order book standing at a record £20bn as of March, the City expects the business to register earnings growth of 12% and 11% in the periods concluding 2016 and 2017 respectively. And such readings make Babcock brilliant value for money, in my opinion, with the company carrying earnings ratios of 14.9 times for this year and 13.4 times for 2017.

Regus

With the UK economic recovery continuing to ratchet through the gears, I expect demand at office provider Regus (LSE: RGU) to keep ticking higher. But it is not just in Britain where the firm plies its trade, and just today announced it would be expanding into Iraq — representing the 105th country the workspace provider now operates in — and the company is planning to open up shop in Brunei in the near future, too.

Indeed, the Luxembourg-based firm is committed to a course of rapid expansion and opened another 81 locations in January-March, taking the total number of sites to 2,342. With revenues poised to charge higher Regus anticipated to punch earnings growth of 44% in 2015 and 34% next year, driving the P/E multiple from 22.8 times for this year to 17.2 times in 2016. And the firm’s brilliant value is illustrated by a PEG number below the threshold of 1 through to the close of next year, at just 0.5.

Domino’s Pizza Group

With Britain’s takeaway obsession showing no signs of letting up, I expect fast food emporium Domino’s Pizza (LSE: DOM) to continue enjoying delicious sales growth. The company’s continued store rollout helped it cook up an astonishing 75 million pizzas last year, while a renewed focus on e-commerce is also helping to boost orders from hungry customers.

Domino’s has a long, proud history of generating double-digit earnings growth, and this trend is not expected to end any time soon — indeed, the City expects the pizzamaker to enjoy expansion in the region of 15% and 13% in 2015 and 2016 correspondingly. These numbers push a P/E multiple of 26 times for this year to 22.8 times for 2016, and although this may appear expensive based on conventional metrics, I believe Domino’s dominant position in an expanding market fully merits this premium.

The post 4 Growth Giants For Your Stocks Portfolio: Diageo plc, Babcock International Group PLC, Regus PLC And Domino’s Pizza Group PLC appeared first on The Twelfth Magpie.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Domino's Pizza. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.