The UK stock market has performed robustly over the past year, with several companies standing out significantly. In this article, we will examine the top-performing large-cap, mid-cap, and small-cap stocks of 2024, dissected across four different market valuation categories.

£5 BILLION+ MARKET CAP

After a stellar 2023, aeronautical engineer Rolls-Royce (RR.) has once again rallied hard during 2024 as the company worked tirelessly on recovery. A market response that stands testament to chief executive Tufan Erginbilgic’s ‘tough love’ approach to optimising the firm’s commercial operations and grinding out cost efficiencies.

With planes back in the air and disruption to travel from the pandemic firmly in the rear-view mirror, the firm’s traditionally lucrative engine sales and long-run servicing contracts has got returns on investment and margins in a much healthier state, and crucially, investors back on side.

As many analysts had predicted, 2024 was a banner year for the Big Four high-street banks especially Barclays (BARC) and NatWest (NWG).

The interest rate cycle finally turned, stoking demand for loans and mortgages, but rather than easing quickly as had been expected, the Bank of England took a more cautious approach which meant lenders were able to maintain their net interest margins.

Both banks also grew their UK loan and deposit base with Barclays buying Tesco Bank and NatWest buying Sainsbury’s [SBRY) personal loan, credit card and deposit portfolio.

Private equity firm 3i (III) was one of the best performers, posting a gain of more than 50%, which for a company which started the year with £15 billion of assets was no mean feat.

The standout performer in the portfolio was once again Benelux discount retailer Action, which keeps delivering impressive results, adding almost £2 billion to the value of 3i’s holding.

International sports betting firm Flutter Entertainment (FLTR) has had the wind in its sales in 2024, driven in part by its decision to move its main listing to the New York Stock Exchange in May, reflecting investor hopes the business will attract a higher valuation.

2024 has seen British Airways owner International Consolidated Airlines (IAG) put in a better performance than European competitors. Not only have shares gained 75% year-to-date but the airline group continues to see strong customer demand in the North Atlantic region, Europe, and Latin America. A recently announced €350 million share buyback reflects the long-term prospects of the business and confidence in the strategy and business model.

£1 BILLION TO £5 BILLION MARKET CAP

Convenience foods maker Greencore (GNC) served up a tasty 134% share price gain as margin improvements, profit upgrades and debt reduction powered a re-rating and the sandwiches-to-salads supplier rewarded investors with buybacks and a return to the dividend roster. Dalton Philips-led Greencore, which supplies UK supermarkets, coffee shops and convenience retailers, has delivered an impressive comeback after being hard-hit by the pandemic where fewer office workers nipped out to buy its sandwiches at lunchtime.

After an unconvincing start to listed life, Trustpilot (TRST) really hit its stride in 2024, putting up the sort of attractive and reliable growth numbers to justify the early hype. It leaves the firm’s shares ending the year at close to record highs but lots of investors will be happy to continue backing a business that promises plenty more to come as it reaps the rewards of the model’s network benefits from a platform that now hosts more than 300 million consumer reviews across hundreds of thousands of websites.

Building services group Morgan Sindall (MGNS) has continued to confound analysts this year by beating forecasts and raising its outlook.

In the latest example, the company revealed in October that thanks to ‘material profit growth ahead of expectations’ at the Fit Out division, full-year earnings would be significantly above estimates, leading to a rash of upgrades and a further rally in the shares.

The simple truth is that what powered Zegona Communications (ZEG) in 2024 is the same story as last year – the shock €5 billion acquisition of Vodafone’s (VOD) Spanish operations in September 2023. That said, there’s been plenty of operational progress this year, particularly around securing a 50-50 joint venture with France’s Orange and Spain’s MasMovil Ibercom to create a joint fibre network company that will reach 11.5 million premises.

Latin American silver and gold miner Hochschild Mining (HOC) has been boosted by strong precious metals prices and operational progress which has lifted output from Peru and Brazil.

Shares in annuities specialist Just Group (JUST) have enjoyed an excellent year as a surge in corporate pension deals helped drive big earnings upgrades.

Nigerian oil and gas producer Seplat Energy (SEPL) received a boost as it moved closer to completing its protracted acquisition of assets from US oil major ExxonMobil (XOM:NYSE), which will result in a step change in the company’s production profile.

£500 MILLION TO £1 BILLION MARKET CAP

It has been a remarkable year for ‘challenger’ financial Metro Bank (MTRO), which has undertaken a strategic pivot away from consumers with the sale of its £2.5 billion residential mortgage portfolio.

The bank is now focused on higher-yielding commercial and corporate loans, and as of September was profitable on an underlying basis in line with its guidance.

Investors have been excited by increased cash flow, strong gold prices and a recent acquisition at Pan African Resources (PAF:AIM). The company’s Mintails project in South Africa is now up and running and the $52.4 million acquisition of Tennant Consolidated Mining Group could provide gold production from Australia from the second quarter of next year.

Instant service vending equipment maker ME International (MEGP) delivered its fourth consecutive year of double-digit profit growth in 2024, driven by the continued rollout of its automated Revolution laundry machines.

The company installed a record 1,111 machines in the year across 211 locations largely in France and the UK, driving 21% revenue growth in constant currencies. The laundry division generates higher margins than the photobooth business and is expected to be a key driver of future profit growth.

Shares in online greeting cards-to-gifting platform Moonpig (MOON) rallied 61.4% as debt reduction progress and reassuring trading updates soothed sentiment towards a pandemic-era winner whose trotters are now on a firmer footing. A well-received capital markets day (16 October), where Moonpig set out its ambition to return to double digit annual sales growth and return surplus cash to shareholders, sparked further gains.

Currys’ (CURY) stock sparked up 57% in an eventful year for the electricals retailer, which delivered a number of profit upgrades after rebuffing opportunistic takeover bids from US firm Elliott Advisors. The TVs, laptops and mobile phones sellers’ turnaround under CEO Alex Baldock continued to impress, with updates highlighting market share gains in tough markets. With new AI-enabled computers exciting customers, Currys could be in for a very Merry Christmas.

Payment services and delivery platform Paypoint (PAY) has cashed in big time this year on the twin trends of convenience shopping and parcel delivery.

Its terminals connect millions of consumers with over 60,000 retailers and small businesses, while its Collect+ service offering ‘first and last mile’ delivery has been a big hit with online buyers and sellers.

£10 MILLION TO £500 MILLION MARKET CAP

Mobile gaming business and app store Mobile Streams (MOS:AIM) has got investors very excited by the promise of a casino and sports betting business in Mexico in which the company invested. The company has been a returns graveyard for years, which hasn’t stopped some betting the house on that changing.

One of the biggest success stories in the small-cap market this year has been Roadside Real Estate (ROAD), whose shares have almost quadrupled.

The Abingdon-based firm, which buys and develops commercial property for its clients, recently signed a £70 million deal to acquire 12 sites from low-cost supermarket group Lidl, build stores and lease them to the German group for 25 years with annual inflation-linked rent increases.

A string of small-cap resource stocks have shone in 2024. Global Petroleum (GBP:AIM) has been in demand as it works towards a potential farm-in agreement for its oil and gas exploration licence offshore Namibia. There have been multiple big discoveries in the country’s Orange basin this year.

Mining outfit Kore Potash (KP2:AIM) has been energised by the introduction of a new management team looking to progress its Kola project in the Republic of Congo.

Oil and gas minnow PennPetro (PPP) shares rose sharply in July in anticipation of drilling in Texas but are currently suspended pending the delayed release of its most recent annual accounts.

Helium firm HeliumOne (HE1:AIM) got investors very excited at the start of the year on successful drilling in Tanzania, although the stock has drifted in the interim.

Communications equipment specialist Filtronic (FTC:AIM) has seen its shares gain a staggering 290% in 2024 as it continues to benefit from its relationship with Elon Musk’s space exploration company SpaceX. The company is looking to expand into the LEO (low-earth orbit) satellite communications market which is ‘a very important growth driver’ say analysts at Cavendish.

It’s hard to know what to make of injection mouldings minnow Carclo (CAR), which seems to periodically get microcap investors excited without ever delivering much, from an operational point of view. Better profits potential seems to have done the trick this year, although its margins are all over the place and returns on investment dismal.

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