Just released: our top 3 stocks to buy in November [PREMIUM PICKS]

Premium content from Motley Fool Hidden Winners UK

Our monthly Best Buys are now designed to highlight three of our team's favorite, most timely Buys from our growing list of small-cap recommendations, to help Foles build their stock portfolio.

Why we love it: “Manage (LSE: TET) is a specialty chemical business focused on supplying ingredients to customers mainly in the food and beverage sector. Between 2012 and the end of 2023, CEO Daemon Reeve and the board have successfully repositioned the company from a wholesale chemical supplier to the top player it is today. They have done this by increasing the value-added chain and working closely with customers to provide special ingredients for their products.

“While Reeve has left the business, Treatt's performance over the past few years has been positive, and new boss David Shannon inherits a company that operates in a dynamic area. The company's newly developed UK HQ and expanded facility in Florida provide it with expanded and improved lab, manufacturing, and warehouse facilities, which management believes will provide the foundation for continued growth. With a large and growing market to target, and an attractive strategy to continue working up the value-added chain, we believe Treatt's long-term potential is exciting, even if the new manager will have to work to earn trust. market the same way long-time CEO Reeve has done.”

Why we love you now: Treatt is showing strong financial performance, with 16% H2 revenue growth driven by organic business expansion and a 7% increase in adjusted EBITDA, thanks to growth momentum in China. In addition, the company reduced its total debt to £0.7 million, reflecting strong cash generation and cost behavior. It now trades at 20.9 times earnings compared to industry leaders of 36 times. We're confident that its recent track record of growing profits and managing spending against tough market conditions makes this a price worth paying.