A SIPP (Self-Invested Personal Pension) is an investment vehicle that can last for decades. It therefore suits my long-term approach to investing. It also gives me the opportunity to try and benefit as the potential of fast-growing companies is revealed over the long run.
With that in mind, here are three growth shares I would happily snap up for my SIPP today, if I had spare cash to invest.
Hollywood Bowl
I already own shares in leisure operator Hollywood Bowl (LSE: BOWL) and would be happy to buy more.
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The company hit a new 12-month high this week. But I still consider it to offer good value when considering the long-term commercial prospects.
Revenues grew 11% last year. The business expects to report earnings before interest, tax, depreciation and amortisation (EBITDA) growth ahead of market expectations. Hollywood Bowl operates in a lucrative market niche and continues to expand both in the UK and Canada.
A weaker economy could hurt consumers’ discretionary spending. That is a risk to revenues and profits. But over the long term, I see large growth opportunities for the business which, at the end of September, was sitting on a cash pile of £52m.
Safestore
Self-storage operator Safestore (LSE: SAFE) is set to benefit from long-term growth in the UK market, which is far less developed than the US. I own the shares in my ISA and would happily buy more for my SIPP too.
So far this year, revenues have grown 7% compared to the same period last year. The company recently acquired new sites in Watford and Eastleigh. It also continues its European expansion, with sites in Madrid and Barcelona having opened in recent months.
The ongoing growth story here is reflected in the dividend. It more than doubled between 2017 and last year. Dividends are never guaranteed but I am optimistic that there may be more large rises in future.
I do see risks, such as low barriers to entry in the industry pushing down pricing. But I think Safestore’s brand, branch network and existing customer base are all strengths.
PZ Cussons
Consumer goods firm PZ Cussons (LSE: PZC) has been hit by currency devaluations in Nigeria, a key market. In the short-term, that is a risk to revenues and profits. Or, as the chief executive put it in the company’s interim results, “there are well-documented challenges to be navigated in Nigeria”.
But the long-term potential here remains strong in my view. The first half saw both revenues and pre-tax profits grow in double digits year-on-year.
Long experience in frontier markets, a strong distribution network and trusted brands are all key assets I reckon can help PZ Cussons do well in future.
For now, investors remain nervous about Nigeria (as a shareholder in Airtel Africa, battling Nigerian currency challenges itself, I well understand that). But I expect that the currency situation there will be resolved one way or another and PZ Cussons’ business will power on.
