Which UK growth firms have the greatest long-term potential? Prime Minister Sir Keir Starmer has pledged to “turbocharge” his government’s growth strategy after the US’s introduction of new tariffs. It promises to prioritise a handful of growth-driving sectors, including advanced manufacturing, the creative industries and ‘digital and technologies’. Our head of UK equity, Iain McCombie, has already invested in leading companies in each of these fields. In this episode, he discusses their ambitious growth plans, the importance of adaptability and why he remains confident of delivering strong long-term returns despite the trade restrictions.
Background:
Iain McCombie is a partner in Baillie Gifford, our head of UK equity and joint investment manager of the Baillie Gifford UK Growth Trust. He also jointly manages our flagship Managed Fund.
In this episode, he discusses a selection of his portfolio companies that align with the growth-driving sectors the UK government promises to prioritise in its Invest 2035 strategy. These holdings include:
- the engineering company Renishaw, which specialises in measuring and manufacturing systems providing high accuracy and precision to customers including the semiconductor industry
- the wargame miniatures maker Games Workshop, which is embarking on a TV and movie deal with Amazon
- the self-driving car software developer Wayve, which signed a deal with Nissan to use its technology shortly after we recorded this episode
- the financial services company Experian, whose vast collection of consumer debt data could become more valuable as artificial intelligence opens the door to new uses
In addition, McCombie discusses how the government’s ambitious housebuilding targets could benefit Volution Group, whose ventilation products defend against dampness and mould, and the reason why his passion for history has taught him to be an optimist.
Resources:
Baillie Gifford UK Growth Trust
Investing in the UK’s best growth companies (webinar)
Creo Medical: at the spearhead of surgery
UK Growth Trust: a 2024 perspective
Calder Walton: Spies – the epic intelligence war between East and West
Companies mentioned include:
AJ Bell
Auto Trader
Experian
Games Workshop
Kainos
Renishaw
Volution Group
Wayve
Wise
Timecodes:
00:00 Introduction
01:35 Three decades at Baillie Gifford
02:20 UK equities’ appeal
02:55 Jointly managing the UK Growth Trust with Milena Mileva
03:35 The relationship with the Trust’s independent board
04:40 The UK government’s growth plans
05:40 Responding to US tariffs
06:50 Taking a long-term perspective
07:55 Advanced manufacturing: Renishaw
09:45 Industrial 3D printers
10:50 Creative industries: Games Workshop
12:45 Licensing Warhammer to Amazon
14:15 Digital and technologies: Wayve’s self-driving vehicle software
16:45 Kainos and AI
19:20 Auto Trader car-selling digital business
21:35 Financial services: Wise and AJ Bell
23:35 Experian’s consumer debt data
25:20 Volution Group: ventilation for new homes
27:25 The advantage of active investing
28:35 Book choice and lessons from history
Short Briefings on Long Term Thinking - Baillie Gifford 