I think these three top UK shares have the potential to deliver rock-solid growth in my portfolio for 2021 and beyond.
IT infrastructure services
The FTSE 250’s Computacenter (LSE: CCC) provides information technology infrastructure services. The business has been expanding. And the company has a long record of balanced growth in revenues, earnings and operating cash flow.
The share price has risen by around 360% over the past 10 years. And I think that performance reflects the dependable nature of the steady growth in operations. Looking ahead, I reckon the firm has a good chance of performing well over the coming decade.
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On 10 December, the company released an update describing good trading in the second, third and fourth quarters of the year. The outcome was better than the directors expected, so they upgraded the outlook. I’m always encouraged when a company upgrades its expectations.
City analysts expect a double-digit increase in earnings for full-year 2020 and a flat outcome next year. Meanwhile, with the share price near 2,300p, the forward-looking earnings multiple for 2021 is just below 20. I’d buy some of the shares and hold them for the long term.
Food
Also in the FTSE 250, UK food producer Cranswick (LSE: CWK) reported its half-year results in November. The strength of the business reflects in the way the company continued trading through the pandemic “without recourse to any government assistance.”
The company has delivered balanced growth in revenue, earnings, operating cash flow and the shareholder dividend over several years. And the share price has risen by just over 310% to reflect that progress over the past decade.
But I can see no reason why the business shouldn’t keep expanding over the coming years. Recently, for example, the company has been in discussions regarding a potential bolt-on acquisition. City analysts expect further incremental increases in the shareholder dividend for the current trading year to March 2021 and for the following year. And with the share price near 3,562p, the forward-looking earnings multiple is just over 19 for next year.
Cranswick is a quality business with a strong record of trading success and growth. I’d buy the stock and hold for the next chapter in the evolution of the enterprise.
Soft drinks
In the FTSE Small Cap index, I like soft drinks supplier AG Barr (LSE: BAG). The sector has defensive properties and the company’s brands such as Irn-Bru, Tizer and Rubicon support the business.
However, the Covid-19 pandemic and the lockdowns it brought, did affect profits. And the share price remains depressed from its levels in 2019. But I reckon the business is a strong candidate for surviving the crisis and for making a robust recovery as the pandemic fades.
With the share price near 505p, the forward-looking earnings multiple for the trading year to January 2022 is 21. But there’s potential for recovery and growth in earnings beyond next year and AG Barr has a strong balance sheet to help it weather the Covid storm. I’d buy some of the shares to hold through the coming turnaround and beyond for growth over the next decade or so.
