Where I’m picking attractive opportunities.

In terms of 2024 picks, alongside e-commerce companies, early-stage enterprise software businesses have probably experienced the greatest change in how they are viewed and valued by investors over the last three years.

We think they now represent some of the best opportunities.

We have positions in ActiveOps (AOM:AIM), GetBusy (GETB:AIM), 1Spatial (SPA:AIM) and Kooth (KOO:AIM) and have recently initiated a position in Windward (WNWD).

These are all companies with a high proportion of high-quality recurring revenue, net revenue retention in excess of 100% and high gross margins.

Each business has strong net cash on its balance sheet (on average 11% of market cap) and scope to deliver double-digit top line growth, margin expansion and improving return on capital. Yet on average they trade on a multiple of just 1.7 times 2024 sales.

ES R&M UK Listed Smaller Companies Fund

The fund offers investors the opportunity to invest primarily in the smallest 10% of the UK stock market, which has historically proved to be an attractive section of the market.

Visit Fund

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