The UK’s FTSE 100, which represents the nation’s largest corporations, recently soared to an all-time high, exhibiting a remarkable 15% increase since the start of the year. Similarly, the FTSE 250, comprising the next tier of major companies, has experienced a significant resurgence.

While some companies are recovering at a faster pace due to strategic turnaround efforts, savvy agreements, and an anticipation of future market trends, current valuations suggest they still have room for growth.

Here are three companies that deserve attention.

Burberry

Rejoining the ranks of the FTSE 100, Burberry is once again thriving, thanks to a resurgence in luxury spending.

The luxury fashion house, known for its iconic checkered fabric, has had its ups and downs in recent years. However, under the leadership of CEO Joshua Schulman, Burberry is starting to see the positive impact of its strategic overhaul, dubbed “Burberry Forward,” which is driving a renewed interest in its shares.

The Burberry Forward initiative focuses on revitalizing the brand’s identity after previous missteps—such as deviating from its classic color palette and prioritizing high-priced handbags—led to a significant drop in share value and the exit of former CEO Jonathan Akeroyd.

Star turnaround: Actress Olivia Colman in a Burberry advert

Schulman hopes to rebuild the company’s reputation with the help of British actress Olivia Colman, who stars in Burberry-made short films where she works in a chip shop, shows tourists around Greenwich and watches a cricket match. It’s always Burberry weather, the campaign suggests, focusing firmly on favourites that repel the rain and cold – umbrellas, scarves and coats.

The fashion press is pleased with this back-to-basics approach, with Harper’s Bazaar picking a Burberry piece as its ‘best heritage trench coat’.

The most recent figures, from July, show that Burberry is still struggling with sales but that things are looking brighter.

The return to the FTSE 100 last month – after being relegated a year ago as its share price dropped – will give investors further confidence, while elsewhere in the luxury sector, strong figures from LVMH, which owns Givenchy and Louis Vuitton, give credence to the idea that consumers still want a bit of luxury in their lives.

LVMH said sales were growing again in China, something that Burberry – which has China as a key market – will find encouraging.

Burberry’s shares have recovered along with the turnaround story, up 27 per cent this year so far and 76 per cent in the past 12 months.

But at £12.87 they are still almost half the price of £25 that they reached in 2023.

Fund manager James Bowmaker, who runs VT Tyndall Unconstrained UK Income, is a fan. He believes the shares will have much further to run if the current marketing campaign is as successful as many hope.

‘The combination of a reinvigorated core offering and not having to discount poorly received expensive products is showing early signs of success,’ he says. Midas agrees and investors could do worse than pop a few shares in their trench coat pockets.

Traded on: Main market Ticker: BRBY Contact: burberryplc.com

Brooks Macdonald

Wealth manager Brooks Macdonald has enjoyed a strong recovery since it moved from the smaller Alternative Investment Market (Aim) to the FTSE index in March.

Its shares have risen 23 per cent in the past six months, but still look cheaper than rivals considering the profits it produces.

The wealth manager has refocused, selling its international arm to prioritise the UK market.

Despite a drop in mergers and acquisitions this year, chief executive Andrea Montague hopes they will continue to be the engine that returns the company to growth. Outflows have begun to fall, with the second half of the year in particular showing a slowdown in people selling up, and funds under management increased over 17 per cent to £19 billion last year.

Boost: Brooks Macdonald has enjoyed a strong recovery since it moved from the Aim to the FTSE

But why could Brooks bounce even higher?

Firstly, its ‘reignite growth strategy’ involves investing in tech and AI, cutting costs, focusing on efficiency and rebranding its wealth arm as it takes in new acquisitions.

Secondly, it is targeting the need for advice and management of pensions as more people with flexible pensions approach retirement.

The number of income drawdown plans – pensions that are being managed so that money is taken from them when needed in retirement – is forecast to increase by 20 per cent over the next five years.

With that in mind, Brooks has launched three retirement strategies – bespoke, tailored and modelled – which it hopes will cater to the different types of people who need to manage their pension money to make it last through retirement.

While shares have rebounded, many reckon that they still have a way to go. In terms of valuation, the share price is eight times the value of earnings, compared with the 12-15 times of bigger rivals.

So it could be attractive to a private equity buy-up. Buy.

Traded on: Main market Ticker: BRK Contact: brooksmacdonald.com/investor-relations

Serica Energy

Domestically focused Serica Energy was set to move to the FTSE from Aim next quarter, but it delayed its move unexpectedly on Wednesday.

That means you still have time to get in now before this rebounding company makes it on to the main market, where there is likely to be more investor interest.

The company’s move has been snarled up in red tape, as it has made some acquisitions lately that mean it must prepare new reports to be included in its prospectus.

It did add, however, that it will move ‘at the earliest opportunity’ as soon as it has got full-year accounts out.

Mergers and acquisitions: Serica’s shares have had a good run, up 35 per cent year-to-date

Serica’s shares have had a good run, up 35 per cent year-to-date thanks to those mergers and acquisitions that are delaying the move.

Companies such as Serica struggle with a windfall tax that has made them uncompetitive globally. Many believe that the tax will be reformed in the November Budget, when the Government has said it will be reviewed and updated.

If this happens, Serica will bounce back even more.

If you buy in now, you’re taking a bet on Rachel Reeves realising the policy is resulting in lower tax takes from the North Sea and changing tack.

A buy for the brave.

Traded on: Aim Ticker: SQZ Contact: serica-energy.com/investors 

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