UK Small Caps: Undervalued and Gaining Strength

UK small-cap stocks are rebounding, up nearly 10% since April, while still trading 14.5% below their 10-year average¹. Earnings growth is set to exceed 16% in 2025, far outpacing the UK’s 1% GDP forecast.²

Momentum is building, with bullish technical signals and rising M&A activity. As global capital rotates out of the US, UK small caps are back on the radar.³

Stock Pick #1: MARSHALLS (MSLH)

Marshalls operates through threedivisions: Landscape Products, Building Products, and Marley Roofing. Itmanufactures and supplies innovative concrete, stone, and roofing solutions forconstruction, landscaping, and home improvement markets in the UK.

 

Fundamentals

Marshallsplc operates through three segments: Landscape Products, Building Products, andMarley Roofing Products. The company is committed to sustainability andinnovation, providing solutions for the built environment. With a strong market presence and a focus onquality, Marshalls is well-positioned to meet the growing demand forsustainable construction materials.

 

Market Capitalisation: £667.84Million

Sector: ConstructionMaterials

12 Month Price Range: 224.5 – 356p

5 Year Price Range: 185.6 – 742p

 

Technical Analysis

Theconsolidation period from January to April, followed by a breakout above the260.5p resistance, confirmed a double bottom formation on Marshalls' dailychart. This technical setup typically suggests potential upside. The subsequentpeak at 289.5p and the retracement back to 260.5p, which is now acting assupport, indicates solid investor interest. If 260.5p continues to hold, it could create a base for future gains, potentially driving the price toward 400pover the coming months.

 

Verdict: 🔒

Buy zone: 🔒

Stop: 🔒

Target: 🔒

🧠 Full trade details (Buy Zone, Stop Loss, Target Price) are included in the complete report.

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Source:

[1] Portfolio Adviser - What does the future hold for UK small caps? – 25 June 2025,

[2] smallcapnetwork.co.uk - Hybrid and Small Cap News – 4 June 2025,

[3] Morning Star - SMALL-CAPWINNERS – 27 June 2025

Disclaimer

Nothing in the above article should be considered investment advice.

Risk warning

Small Cap or Aquis listed companies can be highly illiquid making them difficult to sell at the quoted price, and in some cases, it may be difficult to sell them at any price. Small Cap or Aquis listed companies can have a large bid / offer spread which means there could be a large difference between the buying and selling price. Companies listed on the Aquis market can be highly volatile and are considered high risk speculative investments. The value of your investment can go down as well as up, your Capital is at risk you may not get back the amount invested. Investments in IPO’s & RTO’s involve a high degree of risk and are not suitable for all investors. All investments made into an IPO, RTO in a secondary issue should always be made solely based on the information provided in the relevant prospectus and any other supplementary documentation. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. This document is published by Clear Capital Markets and does not constitute a solicitation or personal recommendation for the purchase or sale of investment. The investments referred to may not be suitable for all investors. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the information, but no assurance or warranties are given. Clear Capital Markets Limited is authorised and regulated by the Financial Conduct Authority FRN 706689.

Conflicts of Interest

Employees and/or directors of Clear Capital Markets may deal in shares of the company for their own personal accounts. These scenarios may give rise to a conflict of interest. The firm has established Conflicts of Interest ("COI") and Personal Account Dealing ("PAD") policies to mitigate the risk of a conflict causing damage to the interests of its clients. The measures taken include requiring internal review and approval from the compliance department for employees or directors entering into personal transactions involving the company. The COI and PAD policies are available upon request. These administrative controls mitigate the risk of a conflict causing damage to the interest of a client, but the inherent risks of this business model cannot be eliminated. Accordingly, Clear Capital Markets is required to disclose this conflict.

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