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Spotlight On UK Penny Stocks: 3 Picks With Market Caps As Low As £8M

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The UK market has recently shown signs of strain, with the FTSE 100 and FTSE 250 indices closing lower amid concerns over China's economic recovery. In such a climate, investors may seek opportunities in smaller or newer companies that demonstrate financial resilience. Penny stocks, though an older term, remain relevant as they offer potential for growth when backed by strong fundamentals.

Top 10 Penny Stocks In The United Kingdom

Name

Share Price

Market Cap

Financial Health Rating

Tristel (AIM:TSTL)

£3.70

£174.08M

★★★★★★

Foresight Group Holdings (LSE:FSG)

£3.80

£455.09M

★★★★★★

Polar Capital Holdings (AIM:POLR)

£4.905

£468.49M

★★★★★★

Begbies Traynor Group (AIM:BEG)

£0.918

£146.62M

★★★★★★

ME Group International (LSE:MEGP)

£2.185

£812.03M

★★★★★★

Helios Underwriting (AIM:HUW)

£2.23

£158.38M

★★★★★☆

Secure Trust Bank (LSE:STB)

£4.31

£81.05M

★★★★☆☆

Van Elle Holdings (AIM:VANL)

£0.38

£41.12M

★★★★★★

QinetiQ Group (LSE:QQ.)

£3.646

£2.03B

★★★★★☆

Stelrad Group (LSE:SRAD)

£1.435

£183.39M

★★★★★☆

Click here to see the full list of 444 stocks from our UK Penny Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Billington Holdings

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Billington Holdings Plc, with a market cap of £60.49 million, designs, manufactures, and installs structural steelworks in the United Kingdom and Europe through its subsidiaries.

Operations: The company's revenue is primarily derived from its Structural Steelwork segment, which generated £118.38 million, complemented by £12.44 million from Safety Solutions.

Market Cap: £60.49M

Billington Holdings Plc, with a market cap of £60.49 million, has demonstrated significant earnings growth, averaging 29.4% annually over the past five years and accelerating to 42.5% last year, surpassing industry averages. The company maintains high-quality earnings and a strong financial position with no debt and short-term assets (£55.6M) exceeding liabilities (£27.9M). Its Price-To-Earnings ratio (6x) suggests it is undervalued compared to the UK market average (15.8x). Despite these strengths, future earnings are forecasted to decline by an average of 23.1% per year over the next three years, indicating potential challenges ahead.

AIM:BILN Revenue & Expenses Breakdown as at Feb 2025
AIM:BILN Revenue & Expenses Breakdown as at Feb 2025

Iofina

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Iofina plc, operating in the United States and the United Kingdom, is engaged in the exploration, development, and production of iodine and halogen-based specialty chemical derivatives from oil and gas operations, with a market cap of £42.69 million.