Many of us will be encouraged by the recent declaration that ‘70 is the new 50’. This assertion did not come from a cosmetics firm or health spa, but from the respected International Monetary Fund.
Based on improvements in physical and mental health, the agency argues that people in their seventies today are as intellectually sharp and as strong as fifty-somethings were just a quarter of a century ago.
And it looks set to continue, not least because people are increasingly conscious of their fitness and nutrition. Under-30s are in the vanguard but they are not alone. A recent survey suggests that consumers of all ages would rather spend their cash on wellbeing than almost anything else.
Longer lifespans are great, but they do present society with challenges on elder care – and make it even more important to build our investment portfolios so we can enjoy the extra years.
Here are three shares that should profit from current trends.
Gym Group
Chief Executive of The Gym Group, Will Orr, has developed a plan for growth – focused on retaining members, attracting new ones and expanding the chain
More than 11 million Britons are members of a gym, and this is good news for low-cost chain The Gym Group. Founded by former squash champion John Treharne in 2007, it started with one outlet in West London and today has almost 250 dotted across the country.
Treharne had a strategy in mind from the start – low-cost, no-frills gyms that offer clean, well-equipped spaces, friendly staff and flexible membership. The formula continues to this day.
Members can join from as little as £14.99 per month and average prices are less than half those of fancier clubs and chains.
Times have changed since 2007, however. Fitness fads have evolved and most new members come via social media sites.
When Will Orr joined as chief executive in 2023, the business had rather lost its way – investors were frustrated and the shares had fallen to below £1.
Orr developed a plan for growth, focused on retaining members, attracting new ones and expanding the chain, while keeping a weather eye on profits.
Results for 2024 were encouraging. Sales rose 11 per cent to £226 million, underlying profits were 24 per cent ahead at £48 million and membership numbers increased 7 per cent to almost 1 million. Crucially, the financial returns are rising on new and existing gyms.
Orr aims to open around 50 more gyms over the next three years, funded from cash within the business.
Brokers are supportive too, expecting strong growth in sales and profits this year and next. That makes the shares seem undervalued at £1.40.
Encouragingly, Orr spent £30,000 of his own cash on stock just last month, buying 22,000 shares at £1.37. Follow his lead.
Traded on main market Ticker: GYM
Contact: tggplc.com
Camellia
Extensive research has shown that tea, in moderation, can reduce the risk of heart disease, manage blood sugar levels and boost immunity against disease.
Welcome news for a nation of tea drinkers, and also for Camellia, the world’s largest independent producer. Based in Kent, each year Camellia handles more than 100,000 tons of tea leaves from plantations in India, Bangladesh and East Africa.
They can be found in almost every UK cuppa but are also sold around the world.
New chief executive, Byron Coombs, has been selling non-core businesses, bolstering the balance sheet and focusing on growth
The group also specialises in avocados and macadamia nuts, both of which have been credited with health benefits.
Camellia’s avocado estates are in Kenya, where production has soared to more than 15 million tons in recent years.
And American and Japanese consumers are big fans of macadamia nuts, using them for salads and confectionery.
Results for 2024 were encouraging. A new chief executive, Byron Coombs, has been selling non-core businesses, bolstering the balance sheet and focusing on growth.
Dividends have been reinstated, with expectations of steady increases to come.
Profits fell year-on-year but a plan to enhance value for shareholders is due to be unveiled later this month.
Camellia is built for the long term and its choice of crops plays into global health trends. At £46, the shares should deliver sustainable rewards for patient investors.
Traded on Aim Ticker: CAM
Contact: camellia.plc.uk
Target Healthcare
One consequence of improvements in health is longer life expectancy. In 2013 the UK boasted 10.4 million over-65s. Today, there are around 13 million.
But many will be affected by conditions such as dementia and frailty in later years. Target Healthcare caters to these senior citizens, helping them to enjoy their old age rather than suffer through it.
Investmenr expert Joanne Hart lists three shares that should profit from current trends
The company was founded by Kenneth MacKenzie when he discovered that most care homes did not offer private bathrooms. Appalled, he set up Target. Today there are 94 sites, with 6,400 bedrooms, almost every one of which has ensuite facilities.
Target owns the properties and leases them to care home operators, mostly small businesses.
MacKenzie takes welfare seriously and results suggest he is doing a good job. Rents are rising, profits are growing and brokers expect a dividend of 5.88p for the year to June, which is rising steadily. Target shares have risen more than 25 per cent to 99p since Midas recommended them 18 months ago, but the price is still low as assets have been independently valued at £1.12 a share.
MacKenzie is keen to expand his business. Recent bid activity in the sector proves that predators are circling too. At 99p the stock is a buy – and the near 6 per cent yield is an added attraction.
Traded on main market Ticker: THRL
Contact: targethealthcarereit.co.uk
