There are 41 stocks in the list this year, including 15 that are carried over from last year’s list, namely: 4imprint (LON:FOUR) ASOS (LON:ASC), boohoo (LON:BOO), Brooks MacDonald (LON:BRK), discoverIE Group PLC (LON:DSCV), Dunelm (LON:DNLM), GBG (LON:GBG), Genus (LON:GNS), Gulf Keystone Petroleum (LON:GKP), Harworth Group (LON:HWG), Homeserve (LON:HSV), JD Sports and Fashion (LON:JD.), Learning Technologies Group PLC (LON:LTG), Loungers PLC (LON:LGRS) and WH Smith (LON:SMWH).
In size, they stretch from FTSE 100-listed Ocado down to a number of AIM-listed names, the smallest being Loungers at just under GBP225mln.
Other new additions in the FTSE 350 include 888 Holdings (LON:888), based on several key technology investments the gaming company has maturing at the same time, particularly with its US strategy expected to start garnering more attention; and Pets at Home (LON:PETS), which since the pandemic broker “has gone from being an interesting option for investors, to a market darling” and the probability of a special dividend “makes this very interesting for all types of investor”.
CMC, which is one of several of the broker’s corporate clients among the portfolio, is seen as having a significant opportunity to build further third-party relationships and generate material incremental revenue on the back of the current exceptional year, which “should change the perception of the business and drive an upwards re-rating of the stock”.
Smaller newcomers include Ergomed, where analysts believe the pharmaceutical services provider is “well positioned” to take market share in the US$6.5bn contract research outsourcing market, which itself is growing due to the increased number of clinical trials, the surge in outsourcing, rising regulatory requirements, and the need for cost efficiencies.
Pure Gold, another client, is expected to produce its first gold, and as the exploration rigs continue to drill is management are likely to sketch out expansion plans at the plant, which “could see plant capacity double, providing another leg to the growth profile as the mine moves into its deeper, higher-grade zones”.