UK shares often gets a bad rap for lacking innovation and growth potential. But Schroder UK Mid Cap fund manager Jean Roche begs to differ. She argues that investors have a better chance of unearthing top-performing ‘multibagger’ stocks — companies that surge more than 100% — right here in Britain.

Roche’s points to the impressive success stories of several UK-listed companies that have delivered exceptional returns for shareholders, including Cranswick, Halma, Diploma, Games Workshop, 4Imprint, Ashtead Group, and JD Sports.

These companies have not only thrived but have become multibaggers, delivering returns several times the original investment. Their success challenges the notion that the UK market lacks growth opportunities and innovation.

So, that’s got me thinking, where could we see the next multibagger?

Quantum trends

The quantum revolution promises to reshape technology, offering breakthroughs in computing, cryptography, materials science, medicine, and artificial intelligence. Central to this shift is innovation like Google‘s Willow Chip, which can compute calculations in five minutes that would take a conventional super computer 10 quadrillion years.

Oxford Instruments (LSE:OXIG) is one UK-listed company that stands to gain as an enabler of the quantum revolution. In fact, it’s one of the few UK stocks in the space, which is a shame given there’s a continent-topping 39 quantum startups in the country.

The company’s expertise in advanced instrumentation and cryogenic technologies positions it as key beneficiary and enabler of quantum technologies. These cryogenic technologies are particularly important for obtaining the ultra-cold environment needed to maintain qubit coherence — the ability of a quantum bit to remain in a predictable wave-like state.

With strategic investments in R&D and industry partnerships, including one to build the UK’s first quantum computer by around 2030, Oxford Instruments could emerge as a major player in the sector.

It’s not a pure quantum play, but it could emerge as a multibagger based purely on the forecasts that the quantum industry could grow by 40 times over the next 15 years.

However, investors should be wary of near-term earnings growth, which isn’t particularly strong according to forecasts. This could push shares down given the above-average valuation. The caveat is these forecasts may not account for a quantum boom.

There’s potential everywhere

There’s certainly potential elsewhere as well.

One promising candidate is Kodal Minerals, a small-cap mining company focused on the Bougouni Lithium Project in Mali. With funding secured and plans to begin lithium production, the surging demand for electric vehicle batteries could significantly boost Kodal’s stock price if operations progress smoothly.

Celebrus Technologies, a data analytics firm with a market cap of £116m, is also promising. Its Celebrus platform helps companies optimise customer interactions, and steady earnings growth positions it well for expansion as demand for data-driven solutions increases.

In the sustainable construction space, Alumasc Group is an AIM-traded firm that could benefit from a growing focus on green building solutions. Alumasc specialises in water management and energy-efficient products, which are increasingly relevant as industries adapt to stricter environmental standards.

Finally, Rockhopper Exploration, an oil exploration firm in the Falkland Islands, offers high-risk/high-reward potential. The stock has surged in recent months, but it could go higher if everything runs to plan.

These companies operate in sectors poised for growth, but their smaller size and sector-specific risks mean careful research is essential.