Money Week

MoneyWeek’s comprehens­ive guide to this week’s share tips

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Five to buy Revolution Bars The Sunday Times

Despite rising coronaviru­s cases, “the return to normality could be quicker than feared”, making Revolution Bars worth “a small punt”. The potential for further restrictio­ns is “dismal, but not terminal”. The group has raised £34m from shareholde­rs throughout the pandemic, leaving it with net cash of £4.6m, something “few of its rivals can say”. There are 18% fewer nightclubs and 7% fewer bars competing for its customers than before the pandemic, and many of the remaining ones might not cope with upcoming restrictio­ns. That means Revolution is likely to be left in a stronger position when regular trading returns. It’s a risky buy. 18p

K3 Capital The Mail on Sunday

Talk of mergers and acquisitio­ns conjures up the image of big American banks, but K3

Capital is a Bolton-based, “down-to-earth” company that has bought and sold more businesses than any other firm in the UK. It completed 605 deals between 2017 and 2020, placing it 50% ahead of its nearest rival. In 2021 it sold 167 businesses in the first half alone, focusing on privately-owned British businesses in a wide array of sectors with sales ranging from “a few thousand pounds to £100m”. The company “keeps tabs” on around half of the four million small, privately-owned businesses in the UK, providing ample opportunit­y in the future. 337p

Hollywood Bowl Investors’ Chronicle

Lockdown was “a down period” for bowling chain Hollywood Bowl. But after reopening, “customers awash with saved cash and no ability to spend it abroad returned to the alleys”. The company saw record sales of £20.1m in August, up 50% from the same month in 2019. There was a 28.6% increase in revenue compared with 2019 for the months the sites were open. People “were bowling more frequently and were eating and drinking more” as they did so. The company was productive in lockdown, opening two new centres, and it plans to open at least ten more by 2025. It has retained most of its coronaviru­s measures, which have protected it from cancellati­ons. This might change as Omicron cases rise, but the firm’s resilience so far bodes well. 227p

Tristel Shares

Infection-prevention and contaminat­ion-control specialist Tristel’s total potential market has increased significan­tly as demand for infection prevention has climbed. Its products are used by hospitals and laboratori­es to disinfect non-invasive medical devices, a lot of which were out of use after patient examinatio­ns were put on hold throughout the pandemic. The resumption of these services should fuel growth. Tristel has “barely scratched the surface of the global market opportunit­y for its patented products”. 492p

Bellway The Daily Telegraph

Housebuild­er Bellway’s prospects remain “attractive”. There have been only 167,000 new housing starts in England in the last year, so the longterm imbalance of supply and demand is unlikely to change. However, mortgage payments account for less than 30% of average earnings, meaning house prices “continue to be relatively affordable”. The scheduled end of the Help to Buy scheme in 2023 could also persuade first-time buyers to bring forward their plans, all of which would bode well. The group has a solid financial position and plans to raise its annual output of new houses by 20% in two years. 3,320p

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