Five AIM share tips for 2026
The UK market for growth companies underperformed last year, but award-winning AIM writer Andrew Hore has picked a handful of stocks he thinks will succeed this year.
2nd January 2026 08:25
by Andrew Hore from interactive investor
After three winners and two losers in 2025, this year’s choices all have potential for significant profit growth over the next few years, whether it is because of recovery from a reduced level or because past investment is beginning to pay off.
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Accsys Technologies
Recommendation price: 61.4p
Accsys Technologies (LSE:AXS) has been quoted on AIM for more than two decades and it is finally on the brink of becoming a highly profitable business. The 60%-owned US joint venture with Eastman is building up production and using more of its capacity. Operational gearing is high so this will further boost profitability.
In the six months to September 2025, group revenues generated by the Arnhem facility improved from €72.2 million (£62.9 million) to €76.1 million, with the transfer of US business from the Netherlands to the joint venture freeing up capacity for other customers. It was also boosted by an increase in royalties and licence revenues from €496,000 to €2.14 million. Operating profit jumped from €3.7 million to €6.42 million. There is room for further improvement in margins.
The US joint venture revenues built up from €1.9 million to €13.8 million and the company’s share of the loss fell from €6.1 million to €4.37 million. The business is moving towards breakeven as capacity utilisation increases.
Net debt reduced from €42.6 million to €39.8 million in the six months to September 2025. Panmure Liberum believes Accsys could have net cash by 2030.
There could be a small loss this year and a pre-tax profit of around €7 million in 2026-27, rising to €17.6 million the following year.
Ineos sold its 7.5 million shares for 61p each. That was a modest discount of around 3% to the then market price. Management is putting a lot of effort into promoting the shares to investors. Greater awareness should help the share price to continue its rising tend. Buy.
Celebrus Technologies
Recommendation price: 135p
Celebrus Technologies (LSE:CLBS) is moving to a subscription model which holds back the progress of profitability in the short term. Instead of a sale making an immediate contribution to the figures, the income is spread over a longer period. This means that Celebrus Technologies has slipped into loss. A small full-year deficit is expected before a return to profit next year and an acceleration of profit growth after that.
Panmure Liberum forecasts a swing from pre-tax profit of $8.7 million (£6.4 million) to a loss of $700,000 following interim results. Revenues are set to fall from $38.7 million to $22.5 million. Annualised recurring revenues increased from $13.6 million to $15.6 million over six months to September 2025. That is a better indication of how well the company is doing.
Other software companies, such as Eleco (LSE:ELCO), have gone through the same process and, just like Celebrus Technologies, the figures were hit at the beginning of the process and the share price initially slumped.
Admittedly, Panmure Liberum did cut its forecasts after the interims. That was partly down to lower services revenues as well as a slowing of new contracts. This year should mark the bottom. Next year, a modest return to profit of $1 million could be followed by a jump to $4.7 million the following year.
Net cash should be maintained at around $32 million in March 2026, which covers roughly 50% of the market capitalisation. How fast the share price will rebound is uncertain. It may still be too early to be buying, but in one year’s time there should be confirmation of the move back into profit. Buy for long-term growth.
Focusrite
Recommendation price: 217.5p
Audio and content creation equipment supplier Focusrite (LSE:TUNE) appears to be getting back on a growth trajectory. A Covid-related boost had led to a jump in profit in 2020-21, and it has declined since then due to weak consumer spending and US tariffs. Profit is not getting back to the peak level any time soon, but there should be an upward trend. There is also a valuable collection of brands owned by the company.
The content creation market is valued at around £2 billion and equipment for live events is worth more than £3 billion. There appears to be a recovery in some content creation markets with retail stock levels reduced. The international nature of the business helps to offset weakness in North America. Focusrite has manufacturing flexibility that enables it to cope better with tariffs than some rivals. ADAM Audio, Sequential and Novation are some of the content creation brands.
Demand for equipment for live venues grew after lockdowns ended, but that market is returning to more normal levels. Brands include Martin Audio and Optimal Audio.
In the 12 months to August 2025, revenues rose 6% to £168.9 million and there was a small dip in profit. There was growth in second-half revenues despite the uncertainty brought about by tariffs. Net debt was £11 million at the end of August 2025. There is plenty of room to acquire other brands if the opportunity arises.
The year end is being changed to February, and the next figures will be for 18 months. Cavendish forecasts a pre-tax profit of £12.6 million for the 12 months to February 2026, rising to £16.6 million in the following year.
There is already an upward share price trend because of the lowly rating, but the 2026-27 multiple is only 10. Buy for recovery.
Cake Box
Recommendation price: 206.5p
Egg-free celebration cakes supplier Cake Box Holdings Ordinary Shares (LSE:CBOX) reported a fall in pre-tax profit in the first half, but it is starting to see the benefits of the acquisition of Indian sweets supplier Ambala. These benefits should help the company more than make up for its first-half shortfall.
Cake Box is a franchised retail business that provides egg-free, fresh cream celebration cakes. There are 264 Cake Box stores with13 opened in this financial year. Many franchisees operate multiple stores.
Early in 2025, Cake Box bought Indian sweets maker Ambala Foods from the executors of the founder for £22 million. This included the factory where the sweets are manufactured. Ambala is being integrated, and management believes that more than 10 franchise stores can be opened each year.
Loyalty programme Cake Club has signed up more than 138,000 people, while the subscription database has grown to 909,000. This also provides a potential marketing base for Ambala.
Cake Box has been able to prosper even though consumer confidence is low. Like-for-like sales have grown strongly despite the tough consumer environment, and group revenues were £28.8 million in the six months to September 2025 with the Cake Box contribution 19% ahead including new store openings. Pre-tax profit fell 4% to £2.6 million.
Like-for-like sales growth slowed, but it was still 5% in the weeks after September. Full-year pre-tax profit is forecast to rise from £7.1 million to £8.6 million and earnings, after the fundraising for the Ambala purchase, should be 10% higher at 14.3p/share. The forecast dividend is 11p/share.
If Cake Box can achieve forecast earnings growth in the teens, the prospective multiple of 14 will come down to 12 and there will be a steady increase in dividends while increasing dividend cover. Buy for income and growth.
Shearwater
Recommendation price: 43p
Accounting changes by the new finance director hit the 15-month figures of cybersecurity services provider Shearwater Group (LSE:SWG) and knocked the share price. This provides a buying opportunity for a business with strong growth prospects.
Shearwater provides cybersecurity and professional advisory services to a broad range of companies and government institutions. It sells cybersecurity software through a global network of resellers.
There should be further government opportunities as a new framework comes into force, and it decides where to spend money.
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An accounting change means that Shearwater will recognise around 10% of income over the period of a contract rather than everything straight away. It will not change cash flow. The other main change in the latest figures was an £11 million write-down of the goodwill on past acquisitions.
The financial year end was changed because so much of the business tended to be in the quarter to the end of March. Annualised revenues improved from £24.4 million to £31.6 million, while a loss was turned into a small profit.
Cavendish forecasts a 2025-26 pre-tax profit of £1.1 million on revenues of £35.5 million. More than £3 million could be generated from operating activities, which more than covers capitalised investment.
There will be £3.5 million recognised in 2025-26 from a newly won £7.3 million contract extension and expansion with a UK telecoms company. That takes 2025-26 contracted revenues to £13.8 million. Net cash of £7 million is forecast for the end of June 2026, which underpins the valuation.
Shearwater has an inconsistent record, but its cost base is realistic, and it is winning contracts. The prospective multiple is less than 10. Buy.
Andrew Hore is a freelance contributor and not a direct employee of interactive investor.
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