Plus, the tax relief benefits can make a huge difference to compounding gains over several decades. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The UK State Pension is only £241.30 a week in the 2026/27 tax year, which works out at £12,547.60 annually. So most retirees will probably need extra income alongside it.

That’s why a SIPP matters. It can help you build a second income stream for retirement, and it can also give you flexibility that the State Pension simply cannot match.

Still, the risks are real: markets can go up and down, and investment returns are never guaranteed. So how can these risks be reduced?

Avoid these mistakes…

To get a better chance of making the most from a SIPP, careful planning’s important.

Common mistakes include:

• Opening a SIPP without a clear goal.
• Buying random shares. 
• Chasing the hottest stock of the moment. 
• Ignoring risk management.
• Not accounting for ongoing charges.

All these mistakes can result in losses and quietly whittle away at your long-term returns.

The best way to avoid these mistakes is to start with a simple plan. Decide how much risk you can handle, how long you will invest for, and how much income you might need later.

For many retirees and near-retirees, regular investing and a sensible mix of assets can be more useful than trying to time the market.

Smart stock-picking

Naturally, picking the right stocks is critical if you want a SIPP to keep growing. But don’t let the pressure scare you off: you don’t have to pick winners every time. 

Nobody can predict the market 100%, but you can plan for different scenarios. Investors typically do this by spreading money across diverse sectors and regions, thereby avoiding concentrated losses in one area.

Many SIPPs hold well-known FTSE 100 names such as Lloyds, BP and Legal & General. As established, income-paying businesses they add stability, but it may also limit growth if you stop there.

Smaller, up-and-coming growth stocks can make a real difference. One that I’ve found very interesting lately is OXB (LSE: OXB), previously Oxford BioMedica.

Why OXB?

OXB doesn’t immediately scream long-term growth stock. Like many tech-orientated businesses, it suffered heavy losses during the dotcom bubble, the 2008 financial crisis and the 2022 market downturn.

But its ability to bounce back after each hit speaks volumes to its resilience. Now, it’s beginning to look like a mature business on the verge of becoming more stable and established.

The company’s LentiVector platform is seeing increased demand, and the wider gene-therapy field has broad medical applications that could keep expanding. The company also reaffirmed 2026 revenue guidance of £220m-£240m, with 60% already secured through contracted client orders.

The risks are just as important though. OXB still relies on a small number of major clients, remains unprofitable, and carries meaningful debt. So this is a high-risk/high-reward stock and should only make up a small part of any portfolio.

For investors willing to accept that risk, it’s worth considering firms like OXB. Their potential for outsized gains can help keep the momentum going in a SIPP.

The post How a SIPP can save your retirement from an insufficient UK State Pension appeared first on The Twelfth Magpie.

But the memory is also vivid for another reason: I mistook luck for skill, and proceeded to make some terrible, misguided decisions that sent me back to square one.

What happened?

In early 2014, I made my first investment in an emerging biotech group called Oxford Biomedica, now known as OXB (LSE:OXB). Why? Because I read a news article that the firm was developing a novel gene and cell-therapy platform for drug development.

Looking back, this ‘due diligence’ was hardly up to par. And I had no clue about the dangers of investing in young biotech businesses – this will be relevant again in a moment.

Fortunately, my investment proved to be near-perfect timing. A few months later, OXB’s LentiVector platform proved to be a massive success, enabling management to secure a landmark commercial deal with Novartis. The result? OXB shares surged from around 100p per share to over 600p on a split-adjusted basis.

So what did I do with all my winnings (beyond buying a red second-hand Renault Clio)? I, of course, piled everything into another young early-stage biotech business called ValiRx.

After 12 months, I lost almost 90%, at which point I sold my shares in dismay and decided maybe I wasn’t Warren Buffett after all. And by the way, ValiRx shares are still down 99.9% today.

Lessons learned

The most obvious lesson isn’t to invest in a risky biotech group with no revenue, no products, and massive capital expenditures ahead. But the more valuable teaching is to recognise and understand why OXB succeeded where ValiRx failed.

OXB, while still risky, had a unique product that large biotech groups’ research cell therapies desperately needed. This provided a valuable and powerful moat to the firm that has since propelled it from a tiny penny stock to a £775m enterprise today.

Having realised this, I eventually invested in OXB again in 2018. And alongside other more intelligent and informed investment decisions, I recovered from my losses and have since propelled my wealth to fantastic highs.

Is OXB still a buy in 2026?

Today, OXB focuses almost exclusively on its LentiVector platform as a gene therapy contract development and manufacturing organisation. In simple terms, it helps other biotech companies develop and manufacture their own treatments.

The move massively de-risked the business, since OXB’s success no longer depends on successful and expensive clinical trials, it gets paid either way. And since viral vector manufacturing is extraordinarily complex, the company continues to benefit from the advantage that kicked off its journey – enormous barriers to entry.

But while cell and gene therapy is a structural megatrend within the biotech sector, it’s important not to understate the risks. OXB’s still unprofitable, its revenue’s dependent on a small number of major pharmaceutical clients, and the balance sheet’s started accumulating significant debt.

So is OXB a promising FTSE growth share opportunity in 2026? Yes. Is it risky? Absolutely. That’s why I’ve only allocated 1.5% of my portfolio to the business.

The post How I invested my first £1,000 in FTSE shares… and the mistakes I made appeared first on The Twelfth Magpie.

Today, it is a focused, cash‑generating biomanufacturing specialist with long‑term contracts, rising revenues, and exceptionally strong earnings growth prospects. Yet despite this transformation, the market still values it like a speculative biotech research outfit.

Over time, share prices tend to converge to their true value; so, how great a potential opportunity is this for savvy investors?

Tremendous earnings growth potential

Sustained earnings growth drives any firm’s share price over the long run. A risk here is any operational hiccup in the ongoing scaling up of its large manufacturing capabilities. Another is increasing competition, which could squeeze its margins.

Nonetheless, analysts forecast its earnings will grow by a whopping average of 74% a year over the medium term at minimum. This looks well supported by several drivers highlighted in its recently released (26 March 2026) results. These saw a 20% year-on-year jump in contracted client orders to £224m and a 36% increase in revenue backlog to £204m.

Production soared 32% and development revenues rose 27% on more client programmes being rolled out. This includes new multi‑year commercial supply work for Bristol Myers Squibb, underpinning expectations of sustained medium‑term earnings growth.

Overall, revenue increased 31% to £168.7m, underlining the strong uplift in client activity across its gene‑therapy projects. And net cash surged 169% to £55.4m, supported by improved operating performance and upfront client payments.

Looking ahead, Oxford Biomedica expects 2026 revenue of £220m–£240m and an operating EBITDA margin of around 10%. With new manufacturing facilities coming online soon, management expects 25%–30% annual revenue growth by 2027/28. EBITDA margins by that time are projected to be well over 20% a year.

So where should the shares be trading?

Discounted cash flow analysis identifies the price at which any stock should trade. It does this by projecting future cash flows of the underlying business and discounting them back to today.

Some analysts’ DCF modelling is more bearish than mine depending on the variables used. However, based on my DCF assumptions — including a 7.7% discount rate — Oxford Biomedica shares are 57% undervalued at their current £6.32 price.

That implies a fair value of around £14.70, more than double where the stock trades today.

And because of the long-term relationship between a share’s price and fair value, this suggests a potentially superb buying opportunity to consider today if those DCF assumptions hold.

My investment view

Oxford Biomedica now looks far more like a scalable, cash‑generating biomanufacturing business than the speculative biotech the market still prices it as.

Earnings look set to accelerate sharply, and my DCF work points to a valuation more than double the current share price.

That combination of operational momentum, financial strength and deep undervaluation means I will buy the stock as soon as possible.

The post 57% under ‘fair value’ and 74% forecast earnings growth! 1 FTSE high-tech med stock I just can’t pass up appeared first on The Twelfth Magpie.

But like it or not, there’s a good reason, and it shouldn’t be ignored. No matter your financial situation, saving for retirement is a good idea — and an ISA can make a huge difference.

Why? Let’s crunch some numbers.

Compounding cash

Imagine you dump £15,000 into a portfolio of high-yielding dividend stocks that achieve a 10% annual return. That’s a meaty £1,500 gain – but you could lose £300 (or more) of that to tax!

If you put it into an ISA and avoid tax? It compounds. And after 10 years you’re up to £40,000. Without the ISA? You’d have likely lost at least £7,000 of that to tax.

That’s not pennies, that’s real money. And the longer it compounds, the bigger it gets — exponentially.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

So what’s the catch?

Well, we ARE talking about the stock market. It’s unpredictable and for novice investors, all the numbers and graphs can be intimidating. But in reality, it’s little more than eBay for trading shares.

Still, money can be lost. That 10% return one year can just as easily be a 10% loss the next. So how can we trust a company to keep turning a profit?

For the same reasons we trust a dentist in a town where everyone has healthy teeth. A much needed service, consistent demand, repeat customers, and a reputation for quality.

So which shares match that criteria?

Identifying quality

Becoming truly familiar with the ins-and-outs of a business can take years. Fortunately, fundamental analysis gives us a nice snapshot of what’s going on behind the scenes.

For example, few people are familiar with the biopharma outfit Oxford BioMedica (LSE: OXB). Yet the stock is up 113% in the past year — more than almost any other healthcare stock on the FTSE 100 or FTSE 250.

The company isn’t even profitable yet, posting a £30m loss in latest results. Yet revenue is up 31% year on year and the average broker expects a 47% price gain in the coming year. Case in point: analysts at Jefferies recently raised its price target to £8.27, reiterating a Buy rating.

So why would anyone be that optimistic about a £680m experimental gene therapy company?

On Monday (13 April, 2026), Oxford Biomedia launched a fast-track offering for its adeno-associated viral (AAV) and lentiviral vector platforms. This wasn’t just a promo stunt — it was a response to growing client demand and will help cut manufacturing timelines in half.

And that’s just one development as part of a wider and aggressive expansion into the US, one that promises to fuel momentum well into 2028.

But that doesn’t guarantee anything. If its US expansion doesn’t go as planned and financing runs dry, it could run into trouble — and lose investor confidence.

The bottom line

Investing in shares can deliver greater returns than a standard savings account, and using an ISA can maximise that growth.

But whether investing in FTSE 100 blue chips or emerging small-caps, there’s always risk. And when it comes to unprofitable companies like Oxford BioMedica, that risk is amplified. Still, with impressive developments and strong demand, it’s one worth considering, in my book.

The post Is a Stocks and Shares ISA really worth the effort? Here’s what the numbers say… appeared first on The Twelfth Magpie.

I’ve got a few ideas, but I’m worried I might be missing something. So just for fun, I asked ChatGPT to pick three UK shares with serious, if not epic, growth potential.

I’d never actually use AI to pick stocks, that’s not what it’s designed for, but I hoped it would point me towards something interesting. To my surprise, given my focus on income, I already own the first stock it highlighted.

I shouldn’t really be surprised, given that the stock is Rolls‑Royce Holdings (LSE: RR.). It’s rocketed 1,150% in three years, and 99% over the last 12 months. Which is pretty epic.

Rolls‑Royce Holdings is risky now

ChatGPT says the engineering giant has benefitted from the rebound in aviation, combined with optimism around future nuclear and aerospace contracts. It listed risks as “execution and cash flow”, which is very generic.

Personally, I’d be wary about Rolls-Royce. Expectations are sky-high, with a price-to-earnings ratio of 55. If profits, revenues or margins disappoint, it could smash the shares at these levels. I’m seriously thinking of taking profits rather than buying more. It’s a good example of why investors should never take ChatGPT as written, but do their own research.

Kainos Group shares

By contrast, the next pick came out of the blue. FTSE 250-listed Kainos Group (LSE: KNOS), a digital technology services firm I hadn’t considered before. ChatGPT says it’s riding a wave of enterprise tech spending, with revenue growth expected to outpace the broader market. The Kainos shares price jumped 30% in 2025, though the five-year trend has been patchy.

The board reported a 16% drop in first-half profits to £32m, but that was mostly due to investing in the business and taking on new staff. Six-month revenues actually rose 7% to £196.1m. Kainos further cheered investors by hiking the interim dividend and announcing a £30m share buyback.

ChatGPT warned that “growth may stall if budgets tighten or competitors nibble at market share”, which is so generic as to be meaningless. I’ll dig deeper, but I think this one deserves a longer look.

Oxford Biomedica has momentum

Finally, ChatGPT tossed out FTSE 250 cell and gene therapy specialist Oxford Biomedica (LSE: OXB). It’s clearly chasing momentum here, as the company’s shares are up 40% this year and 200% over two.

In September, Oxford Biomedica posted a 44% rise in first-half revenues to £73.2m, and the order book more than doubled year-on-year. Consensus forecasts are optimistic, suggesting the shares may rise another 24% over the next year, to 748p.

Biotech’s a little too volatile for my liking. Regulatory approvals and long development cycles can make share prices swing dramatically if anything goes wrong. This one’s not for me.

Investors might consider both Kainos and Oxford Biomedica but, like me, they should do their own due diligence. And then tread very carefully around Rolls-Royce. Investing is a personal thing. It’s fun to play with AI, as it’s brought two exciting stocks to my attention, but the rest is down to me.

The post I asked ChatGPT to name 3 epic growth stocks to buy in 2026 and it said… appeared first on The Twelfth Magpie.

But what if I were limited to buying a single UK growth stock? With so many choices available for investors, it’s hard to choose one company above all others. I was curious to see if ChatGPT had a spectacular suggestion I might have missed.

Genetics for growth

The AI chatbot started with boilerplate wording cautioning against going all-in on one growth stock, describing it as “extremely risky“. I agree. But it played along with my crazy idea, selecting Oxford Biomedica (LSE:OXB) as the stand-out share to consider.

I must admit, I’d only come across this FTSE 250 gene and cell therapy business before in passing during the pandemic. Back in 2020, the firm signed a prominent manufacturing agreement with AstraZeneca to produce Covid-19 vaccines. Naturally, ChatGPT’s answer encouraged me to look deeper.

The company, which now trades as OXB, started life as a spin-out from the University of Oxford in 1995. Today, it’s a pure contract development and manufacturing organisation (CDMO).

This means OXB’s boffins handle complex lab work and large-scale production so its customers don’t have to. The firm serves major pharma companies, such as Novartis and Bristol Myers Squibb, by manufacturing viral vectors and gene therapy components.

Risk and reward

The biotech sector suffered in a post-pandemic world, and OXB was no exception. Its share price is still down nearly 40% over five years. But this year has been more promising with the shares rising from 420p in January to over 600p today.

Recent results show a positive trajectory. In the first half of FY25, revenue surged 44% to £73.2m, and the group’s order book skyrocketed 166% to £149m.

It’s still a loss-making company, which brings risks for investors considering the £728m valuation rests on the firm’s future potential. However, pre-tax losses have narrowed to £26m from £35.7m, so the direction of travel looks good.

Expanding production capacity is a major priority for OXB. Those ambitions were given a huge boost from a successful £60m fundraising earlier this year. In October, the company used some of those funds to acquire a commercial-scale, FDA-approved viral vector manufacturing site in North Carolina, which is expected to be fully operational in early 2026.

The investment opportunity in OXB shares needs to be weighed against a price-to-sales (P/S) ratio above 4 and a price-to-book (P/B) ratio above 22. While growth stocks in the biotech sector often have higher valuation multiples, I think these figures leave little room for error. Any clinical trial setbacks or the loss of a key customer could send the share price tumbling.

My view

ChatGPT’s growth stock champion was an interesting choice, but it wouldn’t be my number one pick. In any event, I already invest in AstraZeneca, so I won’t be buying OXB shares today. Diversification matters and I don’t want too much biotech exposure in my portfolio. But I’ll keep a close eye on this company to see if it can realise its potential.

The post I asked ChatGPT to pick 1 growth stock to put 100% of my money into, and it chose… appeared first on The Twelfth Magpie.

The company operates on a contract development and manufacturing organisation (CDMO) strategy. It partners with pharmaceutical and biotech firms to provide end-to-end services for drug development and manufacturing.

Increased industry recognition coupled with significant US expansion helped it achieve 100% share price growth over the past six months.

So let’s take a look at why I believe it’s one of the most exciting companies in the UK right now.

US expansion

Earlier this year, Oxford BioMedica completed the acquisition of an FDA-approved viral vector manufacturing facility in North Carolina for $4.5m. The move drastically increases its US commercial-scale manufacturing capacity. It also improves service delivery for its North American client base, particularly in the high-growth adeno-associated virus (AAV) field.

The site contains multiple drug substance suites, a fill-finish suite and space ready for further expansion. Key functions are expected to be operational in Q1 2026. It also complements the businesses already well-established US network, with an existing Massachusetts site focused on early-stage development.

The acquisition helps cement the company’s commitment to above-market growth and EBITDA profitability from fiscal 2025 onwards. It expects a single-digit gain from the purchase in 2025, broadly offsetting any associated costs for the new facility. Notably, funding for the expansion was secured via a £60m share placement and a new $125m loan facility raised this year.

Groundbreaking technology

Despite being a relatively small and so-far unprofitable company, I believe Oxford BioMedica’s at the forefront of innovation in the UK. And don’t just take my word for it — it’s been officially recognised as a ‘Champion’ at the 2025 CDMO Leadership Awards Europe in the Cell & Gene Therapy category.

Winners of the prestigious awards are selected based on direct feedback from biopharma professionals evaluating quality, capabilities, expertise, and reliability. It validates the company’s vision to become a pure-play, innovation-led CDMO operating multiple sites across the UK, US and France.

What this means for investors

When it comes to new, developmental technology, the risks can’t be ignored. Oxford BioMedica posted a £43m loss in fiscal 2024 and has a trailing 12-month loss of £37m as of late 2025. To meet expectations, it would need to achieve an aggressive 68% average annual growth rate in the coming two years.

Any deviation below this growth trajectory could delay profitability significantly and hurt the share price. And with currently more debt than equity, the financial impact could be challenging.

Still, considering its wide moat, impressive £222m order book and successful acquisitions, I think it’s in a strong position to meet those targets. In H1 2025, it delivered a 44% year-on-year revenue increase to £73.2m, outpacing analyst expectations and reducing operating losses by 59%.

As such, I think its future holds significant promise, making it one of the most compelling growth stocks to consider on the FTSE 250.

The post The FTSE 250 stock that doubled my money in just 6 months! appeared first on The Twelfth Magpie.

During the height of the Covid crisis, it was this firm that manufactured over 100m doses of AstraZeneca’s adenovirus-based vaccine. It did so at a record pace for such a vaccine and without a hitch in the process.

Aside from providing such manufacturing services to top-flight pharmaceutical firms, it also works on its own therapies. These include experimental treatments for Parkinson’s, cancer, central nervous system disorders, and eye diseases.

Since the firm’s one-year traded low of £2.32 on 9 April, the share price has gone up 163%.

So, I took a deep dive into the business to find out why. I also ran the key numbers to see if there is any value left in the stock.

Why’s the share price soared?

The the firm’s full-year 2024 results were released on 9 April.

These showed revenue jumping 44% year on year to £128.8m, while gross profit rose 34% to £53m. The previous year’s operating loss of £184.2m shrank to a deficit of £39.4m.

The contracted value of client orders signed in the year was around £186m – a 35% increase over 2023.

At that point, the firm forecast fiscal year 2025 revenue of £160m-£170m, which would be a 24%-32% rise over 2024.

Over the medium-term, it expects to be the global leader in the viral vector supply market. This centres on engineered viruses that are manufactured to deliver therapeutic genes into human cells. According to industry data, this market is forecast to increase in size from $6.3bn (£4.7bn) now to $18.8bn by 2030.

A risk to the firm is a failure in any of its key products. This could damage its reputation and be extremely costly to fix.

That said, consensus analysts’ estimates are that its earnings will grow by a whopping 68% a year to the end of 2027. And it is these that ultimately drive any firm’s share price over the long term.

How were the latest numbers?

Its H1 2025 results released on 23 September also looked very positive to me. These showed revenue jump 44% year on year to £73.2m.

Over the same time, there was a 166% increase in the contracted value of client orders signed over the period – to £149m.

Oxford Biomedica also provided a revenue forecast for full-year 2026 – of £220m-£240m. It added that it expects revenue growth of 25%-30% in both 2027 and 2028.  

Is the stock undervalued?

The best way I have found of ascertaining a share’s ‘fair value’ is to use the discounted cash flow (DCF) method. This identifies the price at which a stock should trade, based on cash flow forecasts for the underlying business.

In Oxford Biomedica’s case, the DCF shows its shares are a stunning 63% undervalued at their current £6.09 price.

Therefore, their fair value is £16.46.

As I’m over 50, I focus on high-dividend-paying shares as I want to use the income to reduce my working commitments. As this firm pays no dividend at present, it is not for me.

However, if I were even 10 years I would buy it today. I think its strong earnings growth prospects should push its share price up, and it has a long way to go to meet its fair value.

The post Up 163%, what’s going on with this FTSE 250 biotech innovator’s share price? appeared first on The Twelfth Magpie.

A rising star in gene therapy?

OXB (LSE:OXB) isn’t a commonly discussed company in the world of pharmaceuticals. Yet it lists many of today’s industry titans as its customers, including AstraZeneca, Bristol Myers Squibb, Novartis and Sanofi, among others.

The business has undergone a bit of restructuring in recent years, refocusing its operation on becoming a contract development and manufacturing organisation (CDMO). And looking at its latest results, this shift in strategy’s seemingly yielding terrific results.

Revenue in 2024 surged by 44% to £128.8m, with operations even becoming profitable in the second half of last year (on an EBITDA basis) for the first time since the post-pandemic boom in 2021. Demand for its services remains strong, with contracted client orders reaching £186m, and management expects the bottom line to reach the black later this year with 20% EBITDA margins.

Of course, this isn’t a risk-free enterprise. OXB’s highly dependent on a few key customers (Novartis, AstraZeneca, and Boehringer Ingelheim), which could compromise cash flows if one of these decides to cut ties. Similarly, operating in the biotech sector comes with its own set of regulatory threats and hurdles that can jeopardise long-term growth.

Nevertheless, with the progress made so far, OXB’s a UK share investors may want to mull.

Opportunities in electronics

Two other businesses with promising potential, in my opinion, are Filtronic (LSE:FTC) and Solid State (LSE:SOLI). Both specialise in electronic components used in a variety of applications.

Filtronic specialises in RF telecommunications, which is essential to the aerospace, defence, and space exploration industry. Solid State also has a portfolio of electronic telecommunications components that serve the defence sector. However, it also has more diversified offerings for the industrial sector through numerous industry-recognised brands such as Custom Power, Solsta, Active Silicon and Durakool, among others.

There’s some overlap between these businesses. Yet the electronics sector’s sufficiently large enough for multiple winners. And with European defence spending on the rise, both companies have enjoyed a sudden uptick in customer orders.

Of course, there are always risks to consider. Just like OXB, Filtronic’s revenue is largely dependent on SpaceX as a key customer. Meanwhile, with notable defence contracts driving its sales, Solid State’s somewhat at the mercy of political cycles as well as industrial and defence budgets.

Having said that, both firms still have promising long-term potential, which makes them worthy of further research, in my opinion.

The post 3 under-the-radar UK shares that could make investors richer appeared first on The Twelfth Magpie.

Central Asia Metals

What it does: Central Asia Metals is a base metals producer with copper operations in Kazakhstan and a zinc and lead mine in North Macedonia.

By Paul Summers. Holders of shares in Central Asia Metals (LSE: CAML) endured a volatile 2024. Starting the year at just over 150p a pop, the stock soared as high as 235p by May as the company benefited from strong prices and solid operational performance. However, this gain had all been lost by the end of December. As far as I can tell, this is due to general geopolitical concerns and lacklustre demand for lead. 

The shares now yield a monster 10% for FY25. Assuming analysts aren’t wrong, that would represent a good return on its own. On an optimistic note, profit is expected to cover this cash distribution and the balance sheet looks robust.

Although rising costs could prove problematic, a price-to-earnings (P/E) ratio of seven suggests quite a bit of negativity is already priced in. When sentiment for base metals improves, the stock could do very well.

Paul Summers has no position in Central Asia Metals.

Filtronic

What it does: Filtronic makes power amplifiers and transceivers that are used in the telecommunications, aerospace, and defence sectors.

By Ben McPoland. With a market cap of £232m as I write, Filtronic (LSE: FTC) is still a relatively under-the-radar UK stock. That said, it’s been a popular one recently, surging 172% over the past year.

This can be almost entirely put down to one word: SpaceX. That’s because Elon Musk’s reusable rocket company has been ordering components from Filtronic for ground stations that form part of its fast-growing Starlink satellite network.

In future, SpaceX intends to add tens of thousands more satellites to its mega-constellation. This could support years of rising sales at Filtronic, given its small size (less than £50m in revenue).

What could go wrong? Well, losing the SpaceX contract it signed last year would be extremely negative, as this key customer is now contributing around 50% of sales.

Also, the stock isn’t cheap, trading at a forward price-to-earnings multiple of 38.

Finally, the company doesn’t have a history of sustained revenue and earnings growth. That might be about to change, but there could be lumpiness as SpaceX orders ebb and flow in future.

Ben McPoland does not own shares in Filtronic.

OXB

What it does: OXB is a contractor that develops and manufactures gene cell therapies for biotech and pharmaceutical firms.

By Mark Hartley. OXB (LSE: OXB), previously Oxford Biomedica, is a UK-based contract development and manufacturing organisation (CDMO) specialising in cell and gene therapies. It was founded in 1995 as a spin-out from the University of Oxford and has evolved into a global leader in viral vector production, including lentivirus, adeno-associated virus (AAV) and adenovirus.

As a contractor, OXB relies on securing partnerships with biotech and pharmaceutical firms. If it loses out on contracts to competitors, its performance could be impacted. Although its net margin has improved recently, the company is not yet profitable. If full-year results for 2024 miss expectations, it could hurt the share price. 

But a recent trading update outlined expectations of 78% organic revenue growth for FY2024, based on increasing demand for their CDMO services. Plus, its order book nearly doubled since August 2024, indicating strong commercial demand. 

I expect it will become a global leader in its field.

Mark David Hartley owns shares in Oxford Biomedica.

TBC Bank

What it does: TBC Bank is listed on the FTSE 250 and provides financial services in Georgia and Uzbekistan.

By Royston Wild. TBC Bank (LSE:TBCG) doesn’t attract anywhere near the same degree of attention as FTSE 100 firms like Lloyds, Barclays and NatWest.

Yet this is a bank which — thanks to its focus on fast-growing Georgian and Uzbekistani markets — could provide far better shareholder gains.

Past performance isn’t a reliable guide to future returns. But TBC Bank’s 208% share price explosion over the last five years underlines its incredible investment potential.

By comparison, Lloyds’ share price has risen just 21% over the same period.

Given the  varying economic outlook for the UK and Georgia, I expect this outperformance to keep rolling on. While the IMF thinks Britain’s economy will grow 1.1% in 2025, Georgian GDP is tipped to expand a whopping 6%, continuing the trend of recent decades.

If accurate, earnings at TBC could soar as financial services demand rises. Pre-tax profit here leapt 15.8% over the course of 2024.

A deterioration in Georgia’s fragile political landscape could impact future growth. However, I believe this potential hazard is baked into the bank’s low price-to-earnings (P/E) ratio of 5.2 times.

Royston Wild does not own shares in any of the shares mentioned above.

Yu Group

What it does: Yu supplies gas and electricity to UK business customers and installs and operates smart meters.

By Roland Head. Yu Group (LSE: YU.) has delivered strong growth through a volatile period for energy markets.

Revenue has risen fivefold to £578m since 2019. Profitability has also improved, with operating profit rising from £3.5m in 2021 to £47m over the 12 months to 30 June 2024.

Yu is still run by its founder and 51% shareholder Bobby Kalar. I believe Kalar’s twin role as CEO and major shareholder means he’s likely to maintain tight financial discipline.

This is a key risk for energy suppliers. Yu is exposed to big swings in commodity prices, customer bad debt and the financial hazards of fixed price contracts.

Growing usage of smart meters, a new energy trading deal with Shell and falling bad debt levels suggest to me that Mr Kalar is managing this £252m business well.

If he can continue to do so, the reward for shareholders could be higher profits and generous dividends.

Roland Head owns shares in Yu Group.

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