Picking the best UK shares to buy today is tricker than usual in these difficult times. Profits across many London Stock Exchange businesses are in danger of slumping as the British economy splutters and interest rates rise.
But things are not all bad. There are still plenty of stocks that could deliver excellent returns in 2023 and beyond. Here are two rock-solid British shares I’d buy to build wealth right now if I had the cash to spare.
Begbies Traynor Group
Insolvency specialist Begbies Traynor (LSE:BEG) is considered by some as the ultimate safe haven share. In fact, trading here is already picking up strongly as businesses feel the strain.
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The AIM-quoted company advised in May that revenues would rise 11% in the 12 months to April. This was ahead of the company’s prior expectations.
Latest data from the Insolvency Service suggests Begbies Traynor is about to get a whole lot busier too. Insolvency numbers in England and Wales soared to 2,552 in May. That was up 40% year on year and the highest level since records began in 2019.
Purchasing shares in the insolvency firm could be an great idea from a long-term perspective too. Growing via acquisitions can be risky business but Begbies Traynor has a strong track record on this front.
It also has plenty of room for further profits-boosting takeovers. The firm is ranked number one in the insolvency market nationally, but commands a market share of just 13%. It has plenty of financial firepower to help it keep building its footprint as well. Net cash stood at £3m as of April and it had credit facilities of £30m, including a facility of £5m earmarked just for acquisitions.
Grainger
I also believe Grainger (LSE:GRI) could be a top buy as the economy struggles. People need a roof over the their heads even in tough periods, so the rental income at residential property business remains stable, regardless of broader economic conditions.
Latest financials from the FTSE 250 firm illustrate my point. In May, it said like-for-like rental growth was up 6.8% in the six months to March. Meanwhile, occupancy levels increased 40 basis points to 98.5%.
In fact Grainger noted that “rental growth momentum has continued to accelerate” as the market’s supply and demand imbalance has worsened. According to property listings business Zoopla, 11% of all homes listed for sale were previously rented out. This reflects an exit of buy-to-let investors due to rising costs.
At the same time, new home construction is sinking as the housing market struggles. Building work in May dropped to its lowest (excluding the pandemic) since 2009.
It’s perhaps no surprise that Grainger is building its homes portfolio to capitalise on these favourable market conditions. It owns 10,000 homes and has another 6,000 in its development pipeline. It has plans to double EPRA earnings over the next four years.
I’d buy the company even though high build cost inflation is impacting profits growth.
