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Highlights
- Rising inflation and interest rates may have a negative impact on the high-growth tech stocks.
- The UK stock market isn’t very tech heavy, and the FTSE 100 index also doesn’t comprise of many tech stocks.
Rising inflation is a trend being observed across the globe and the increase in interest rates to counter the impact of inflation has the potential to knock down the high-growth tech stocks. Inflation in the UK has recently touched record high levels, and the BoE is raising the rates as its 2% inflation target has been heavily breached. This has increased the pessimism among UK investors.
Tech stocks don’t play a key role in the UK stock market, unlike tech-heavy exchanges like Nasdaq in the US. The FTSE 100 index also doesn’t comprise of many tech stocks. However, there are hundreds of tech stocks floating on the London Stock Exchange in the small and mid-cap areas. These high growth stocks have provided huge returns to their shareholders over the past few years.
Let’s take a look at 5 UK tech stocks that you can buy in 2022 for maximum long-term returns.
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© 2022 Kalkine Media®
Softcat plc (LON: SCT)
Marlow-based company Softcat plc provides the corporate and public sectors with IT infrastructure and related services. The financial status of the company is quite strong, and it has seen a significant revenue increase from £672m to £1,157m in the last five years. The market cap of the FTSE250-listed company stands at £3,417.68 million and it has provided a return of 9.80% to its shareholders in the last one year as of 20 January 2022. Softcat plc’s shares were trading at GBX 1,730.00, up by 0.88%, at 8:01 AM (GMT) on 20 January 2022.
Kainos Group plc (LON: KNOS)
Belfast-headquarter software firm Kainos Group plc offers digital transformation services to its customers, including the NHS, Home Office, and Travelex. The company has shown robust growth with its revenue growing by 205% in the last five years. The market cap of the FTSE250-listed company stands at £1,972.93 million and it has provided a return of 44.79% to its shareholders in the last one year as of 20 January 2022. Kainos Group plc’s shares were trading at GBX 1,592.00, down by 0.06%, at 8:07 AM (GMT) on 20 January 2022.
Gamma Communications plc (LON: GAMA)
UK-based company Gamma Communications provides Unified Communications as a Service (UCaaS) to the UK, German, Spanish, and Dutch business markets. The company has a good financial track record and its revenues have gone up from £192 million in 2015 to £394 in 2020. The market cap of the FTSE AIM UK 50 Index constituent stands at £1,506.49 million and it has provided a return of -3.67% to its shareholders in the last one year as of 20 January 2022. Gamma Communications plc’s shares were trading at GBX 1,576.00, up by 0.77%, at 8:19 AM (GMT) on 20 January 2022.
© 2022 Kalkine Media®
RELATED READ: Nasdaq tech stocks plunge 50% or more, echoing dot-com crash
Dotdigital Group plc (LON: DOTD)
London-headquartered software company Dotdigital Group plc is an online digital marketing business which provides its customers with solutions for brand expansion and connection with customers. Over the past five years, the company’s revenue has gone up to £58.1 million from £26.9 million, representing an annual growth rate of 16.7%. The market cap of the FTSE AIM UK 50 Index constituent stands at £544.96 million, and it has provided a return of 8.93% to its shareholders in the last one year as of 20 January 2022. Dotdigital Group plc’s shares were trading at GBX 180.20, down by 1.42%, at 8:42 AM (GMT) on 20 January 2022.
Calnex Solutions plc (LON:CLX)
UK-based telecommunications equipment firm Calnex Solutions plc offers test and measurement solutions, which help its customers in analysing the performance of critical telecom networks. The company has been growing rapidly and it has bright future prospects because of its 5G testing equipment. The market cap of the company stands at £115.50 million, and it has provided a return of 18.14% to its shareholders in the last one year as of 20 January 2022. Calnex Solutions plc’s shares were trading at GBX 137.500, up by 4.17%, at 9:45 AM (GMT) on 20 January 2022.
