Up 136%, is this under-the-radar growth stock the UK’s hottest opportunity for 2026?
Amcomri Group‘s (LSE:AMCO) a growth stock that a lot of investors probably havenât heard of. It only appeared on the stock market a year ago, but itâs already climbed 136% since.
Thatâs a big move, but the underlying company has a business model that some of the UKâs most successful companies have employed. And this one might just be getting started.
Buying and building
Amcomri’s a small-cap, a collection of 12 smaller businesses that focus on supplying industrial products or services in highly specialised markets. And this is a structure I like very much.
Operating in these smaller markets can mean limited scope for growth. But the firm looks to get around this by buying other businesses and improving them using its existing network. This can involve centralising back office operations, combining supply chains, or opening up new markets. Importantly though, Amcomri looks to maintain a degree of decentralisation.
This means individual subsidiaries can be more responsive to specific customer needs. And in industries where quality matters more than price, this is extremely important.
A strategy for success
This strategy has worked for a number of firms. The likes of Halma and Diploma in the UK and AMETEK and Amphenol in the US have all had success with this approach.
Amcomri’s a much smaller organisation than any of these. And that means it needs to find ways to repel competition from larger operators that benefit from economies of scale. One important strategy for doing this involves focusing on subsidiaries that sell products into highly specialised markets. This is an approach that bigger companies have benefited from.
Smaller markets often means the opportunity set is too small to attract competition from larger firms. On top of this, regulatory requirements can provide further barriers to entry.
Full steam ahead
The underlying business is showing strong growth signs heading into 2026. In its most recent update, the firm reported 17% revenue growth and earnings per share up 12%. Management also sees further opportunities to improve existing businesses ahead, as well as further acquisition opportunities. Thatâs an encouraging sign.
One of the big risks with this strategy is the possibility of paying too much for an acquisition. And this usually comes as a result of having to compete to get deals done. Amcomri though, can focus on opportunities that are too small for most competitors. It typically does deals at EBITDA ratios below 5 and it expects to be able to continue this.
Under the radar
As a small company thatâs only been on the stock market for a year, Amcomri doesnât attract much analyst attention. But that could present an opportunity for investors right now. The firm has a clear plan for growth and a price-to-sales (P/S) ratio of 1.5 isnât hugely demanding. That however, could change as more analysts start to take note.
It’s hard to say if it’s the hottest opportunity out there. But it’s still one I think growth investors ought to make a point of checking out in 2026. Itâs certainly on my list to look at adding to my Stocks and Shares ISA in the New Year.
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Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended Diploma Plc and Halma Plc. 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.
