Although the latest UK inflation figures are easy off, the cost-of-living crisis is still alive and kicking, as food, energy and petrol costs remain stubbornly high.

This is bad news for consumers but good news for some companies who are benefiting from the doom and gloom on the high street and in households. Here are 10 names doing well.

Shoe Zone

Footwear retailer Shoe Zone (SHOE:AIM) sells shoes at low prices and has over 400 stores across the UK.

By offering value to customers when it comes to shoe-buying it is no surprise that the company is doing well in the current environment. It recently raised its pre-tax profit forecast for the second time in five weeks after reporting ‘exceptional’ sales.

Year-to-date Shoe Zone shares are up 9%, and it continues to put in a solid performance as families trade down to cheap shoes, boots and trainers.

H&T

H&T (HAT:AIM) is the UK’s biggest pawnbroker and is thriving in the current climate as cash-strapped consumers who can’t get credit from banks seek short-term loans, pledging jewellery and valuables as collateral. It also makes money from selling new and used jewellery, foreign currency and trading gold.

The company delivered a strong trading update for the first six months of 2023 – H&T’s pledge book closed the period at £113 million versus £85 million a year earlier, while retail sales rose 10%.

Chief executive Chris Gillespie sees demand continuing: ‘I am very pleased with the progress we have made in the first half of 2023 in an environment of rising interest rates and persistent inflation. I am particularly encouraged by the growing momentum with which we enter the busy second half of the year.’

Interestingly, the shares are down 10% year-to-date, with investors perhaps nervous the current sales momentum is unsustainable.

McBride

Some investors might not have heard of white labelling cleaning products company McBride (MCB) but it is another winner of the cost-of-living crisis.

McBride supplies supermarkets with own-label products including dishwasher tablets and surface cleaners and consumers have been snapping these up to cut their weekly shopping bills, rather than opting for the more expensive branded alternatives. Its shares are up 59% year-to-date.

Earlier this month the company said its forthcoming full-year results would show a return to profit after previously suffering losses from supply chain disruption, the pandemic and the Ukraine crisis. Sales volumes were up 12.7% in the three months to 30 June 2023.

B&M

Discount variety retailer B&M European Value Retail (BME) sells everything from garden furniture, desks, kettles, and bed linen at cheap prices and is ideally positioned for cash-strapped consumers in the middle of a cost-of-living crisis.

In the past, consumers might have chosen Argos as the logical place for these items, but it feels like B&M has now superseded this brand.

B&M reported a strong first quarter, its French arm is doing well, so too is its Heron Foods retail chain. The shares are up 34% year-to-date.

Begbies Traynor

Earlier this month insolvency practitioner Begbies Traynor (BEG:AIM) reported a strong set of full-year results, ahead of original market expectations.

With businesses increasingly becoming cash-strapped or insolvent due to cost pressures – staff, energy, raw materials, rent and more – a company like Begbies Traynor is in its element. It is paid to either oversee insolvency proceedings or help companies in administration to keep trading while a buyer is found for the business.

According to UK government figures, 22,109 companies were registered as insolvent in 2022. That was the highest number since 2009 and 57% higher than 2021.

For the year ending 30 April 2023, Begbies reported an 11% increase in revenue growth to £122 million and a strong order book of insolvency revenue, up 19% in the year. Adjusted pre-tax profit rose 16% to £20.7 million.

Although its shares are down 10% year-to-date, high interest rates continue to put pressure on companies, suggesting that corporate struggles and failures could remain elevated for at least the rest of the year which in theory creates a favourable backdrop for Begbies’ earnings.

JD Wetherspoon

Pubs chain JD Wetherspoon (JDW) says business has really picked up this year, including 12.9% like-for-like sales growth in the calendar year to 12 July 2023.

The pandemic was a torrid time for the pubs group and there was a slow recovery, not forgetting other obstacles including rail strikes and bad weather.

But the truth of the matter is people still enjoy having a pie and a pint especially if it is billed as value for money which the pubs group claims to be.

Shares in JD Wetherspoon are up 55% year-to-date.    

Card Factory

Greetings card seller Card Factory (CARD) raised its full-year outlook in April, before reporting an impressive set of results in early May, announcing that its revenue had returned to pre-Covid levels.

Store revenue grew by 7.6% on a like-for-like basis ‘reflecting a return of customers to the high street, the success of our new ranges and strong value for money proposition’ which is key for any firm during a cost-of-living crisis.

Two thirds of the like-for-like growth came from pushing up the price of its cards and related products. Even with these hikes, Card Factory’s products remain significantly cheaper than cards you might find in places like WH Smith and Marks & Spencer. That’s why shoppers continue to flock to its stores. Card Factory’s shares are up 19% year-to-date.

Greggs

With food inflation reaching a peak of 19.1% in April this year, people have been turning to more affordable food on the go, with Greggs (GRG) remaining one of the nation’s favourites. Helping to strengthen its appeal has been menu expansion to include more hot food like pizza and chicken goujons and opening for longer hours.

Greggs has seen its shares rise 12% year-to-date. With 2,365 stores across the UK, the company plans to keep opening more outlets in places such as train stations and airports, among others.

The only fly in the ointment for Greggs is cost inflation related to energy and staff pay, however the firm has passed some of this on to consumers by raising the price of certain items, for example
its sausage rolls have gone up from £1 in 2022 to
£1.20 this year.

Warpaint London

Shares in Warpaint London (W7L:AIM) have been a roll
this year as the cosmetics supplier shows its ongoing popularity with investors. Despite the cost-of-living crisis, Warpaint’s demographic are still keen on buying ‘high-quality cosmetics at an affordable price.’

It targets shoppers looking for essentials such as lipstick and eyeliner but who do not want to pay a high price. Earnings have been driven by two key factors – first, customers are coming back for more and second, its products are increasingly being stocked by more stores. Furthermore, people are trading down to its products from more expensive brands such as Rimmel and Maybelline as the
cost-of-living crisis forces them to rethink their spending decisions.

Various pilots with supermarkets, retailers and pharmacies have been going well and clients have agreed to roll out Warpaint’s products to more stores. The company also sells products online.

With the UK already a success for Warpaint, a lot of attention is now being paid to expansion plans in countries such as the US and China. Its shares are up 63% year-to-date.

Moneysupermarket

The price comparison website Moneysupermarket (MONY) is a beneficiary of the cost-of-living crisis as more people shop around to find the best deals for insurance, loans and credit cards when household budgets are tight.

Moneysupermarket grew its revenue from insurance, which includes home and motor policies, by 23% to £50.6 million in the first three months of 2023. There was also a 9% rise in revenue from financial products including credit cards, loans and savings sourced via Moneysupermarket’s website to £26.9 million. The firm’s shares are up 43% year-to-date.

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