I’m looking for the best cheap UK shares to buy today. Here are four low-cost stars I’d spend £1,000 on.
Laundry giant
I think laundry service provider Johnson Service Group could be a great way to play the rebounding hospitality sector. Volumes at the business are climbing strongly following the rolling back of Covid-19 lockdowns. Latest financials show volumes from hotels, restaurants and cafes at 80% of normal levels in August.
This isn’t the only thing that’s caught my eye. Johnson Service Group’s Workwear business has also proved remarkably resilient during the public health emergency. Volumes here fell just 12% during the worst part. I’m bearing in mind though, that fresh hospitality sector lockdowns is a constant threat that could compromise the company’s recent turnaround.
Deep impact
It’s possible you haven’t heard of TPXimpact Holdings. It’s just six weeks since the IT services provider changed its name from Panoply. The move is designed to “simplify and strengthen its offer to clients,” whatever that means. Regardless, I think this cheap UK share has a lot to look forward to as the digital revolution clicks through the gears.
TPXimpact provides AI-driven technology predominantly to government departments, local councils and charities. It’s used to help them collaborate on projects more efficiently and at a lower cost than usual. There’s a lot of competition in the IT sector, of course, which threatens long-term profits here. But, right now, I’m encouraged by the rate at which this operator is growing business. Order intake leapt 177% in the five months to 1 September.
Another cheap UK tech share
Changing employer and employee expectations in the wake of Covid-19 suggest that remote working will become increasingly popular in the year ahead. A Gartner survey suggested that a whopping 74% of companies plan to shift some of their workers onto remote working models.
This also provides excellent opportunities for UK tech investors. I’m considering snapping up Redcentric, a company whose network and cloud computing software allows employees to remain connected. Even though its operations are sensitive to broader economic conditions, I think this could be a great share to own for the long haul.
Taking a tipple
People love to socialise and get together for a drink. They always have and you don’t need to be brave to suggest they always will. In fact, recent consumer spending data shows that the percentage of earnings Britons are spending on leisure activities like indulging in a tasty beverage is growing. A recent KPMG study showed that the average UK family spends 22% of its weekly budget on leisure.
All this is why I’d buy Mitchells & Butlers. The business operates some of the country’s most famous brands of bars and restaurants, including All Bar One, Harvester and Toby Carvery. I think the long-term outlook here remains bright in spite of the problem of rising labour expenses/shortages and other costs.
Royston Wild has no position in any of the 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.
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