Interactive Investor

Stocks that made you a fortune in the 2020-21 tax year

7th April 2021 13:59

Graeme Evans from interactive investor

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Investors who bought these stocks could have made incredible profits over the past 12 months.

The gains that a full tax year can deliver for early bird investors have been highlighted in spectacular fashion after 17 blue-chip stocks more than doubled their value in 2020/21.

A further 19 FTSE All-Share companies surged by 200% or more, led by Halfords (LSE:HFD) and Lamprell (LSE:LAM), while there were 32 AIM-quoted stocks up by at least 500% during the tax year. 

Such performances provide ample reward for investors who took advantage of the tax year in full, including those who immediately utilised some of their £20,000 ISA allowance.

As it turned out, their early actions ensured they stocked up on undervalued assets just a few days after the FTSE 100 index had plunged to its pandemic low at under 5,000.

Best buys included popular stocks such as Next (LSE:NXT) and Anglo American (LSE:AAL), with the retailer and mining giant up almost 140% over the tax year as the market recovery took hold.

Ladbrokes owner Entain (LSE:ENT), which started the year known as GVC Holdings, posted the biggest top flight gain after improving 216% between 3 April 2020 and last Thursday.

Entain's surge, alongside gains of 121% for blue-chip rival Flutter Entertainment (LSE:FLTR) and 260% for 888 Holdings (LSE:888) in the FTSE 250 index, reflects a surge in online gaming during the lockdown and the impact of US-driven consolidation after the takeover of William Hill (LSE:WMH).

Plant hire business Ashtead (LSE:AHT) was the second-best tax year stock in the FTSE 100, followed by steel and mining company EVRAZ (LSE:EVR) and then B&Q owner Kingfisher (LSE:KGF) after its UK stores stayed open to meet a surge in demand from DIYers during the lockdown.

FTSE 100 company

Ticker

6 April 2020 - 5 April 2021 (%)

Entain (LSE:ENT)

ENT

216

Ashtead (LSE:AHT

AHT

179

EVRAZ (LSE:EVR)

EVR

148

Kingfisher (LSE:KGF)

KGF

141

Next (LSE:NXT)

NXT

139

Keeping faith in the fundamentals underpinning the likes of Barclays (LSE:BARC) and JD Sports Fashion (LSE:JD.) also paid off for investors after their shares rallied 129% and 108% respectively.

Not all household names delivered for tax year investors in the FTSE 100, with Tesco (LSE:TSCO) down 19% after unwinding earlier gains from customers stockpiling groceries at the start of the crisis.

BP (LSE:BP.) and Royal Dutch Shell (LSE:RDSB) were also down 6% and 14% respectively after hitting investors with dividend cuts to reflect the pain of sharply lower oil prices and significantly reduced demand.

In the FTSE All-Share, Halfords benefited from the staycation surge in cycling during the lockdown as shares rose 474% to their highest level since 2016. AO World (LSE:AO.) wasn't far behind — up 396% — as the closure of rival bricks-and-mortar stores enabled the online household goods retailer to build a wider customer base.

The logistics sector's biggest winners included Royal Mail (LSE:RMG), with record levels of parcels business helping the popular retail stock to rally 290% to around 500p for the first time since May 2018. Clipper Logistics (LSE:CLG), which provides e-fulfilment operations for the fashion industry, rose 264%.

FTSE All-Share company

Ticker

6 April 2020 - 5 April 2021 (%)

Halfords (LSE:HFD)

HFD

474

Lamprell (LSE:LAM)

LAM

459

AO World (LSE:AO.)

AO.

396

John Menzies (LSE:MNZS)

MNZS

355

De La Rue (LSE:DLAR)

DLAR

305

On AIM, one of the tax year's best performing stocks was Avacta (LSE:AVCT) after the developer of Affimer-based biotherapeutics disclosed a partnership with Cytiva — formerly GE Healthcare Life Sciences — to deliver a rapid test for Covid-19.

Shares rose 1,040% to reward interactive investors customers who for a period of time made the stock more popular than traditional heavyweights BP and BT Group (LSE:BT.A).

EQTEC (LSE:EQT) shares were also among the best performing on AIM in the last tax year, having caught the eye in the alternative energy sector by using various waste streams as feedstock to create syngas, which can then be used to generate electricity. Shares jumped 1,110%.

AIM company

Ticker

6 April 2020 - 5 April 2021 (%)

All Active Asset Capital (LSE:AAA)

AAA

4,430

Clear Leisure (LSE:CLP)

CLP

1,470

EQTEC (LSE:EQT)

EQT

1,110

Avacta (LSE:AVCT)

AVCT

1,040

Alien Metals (LSE:UFO)

UFO

1,020

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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