3 UK Penny Stocks With Market Caps Under £500M

The UK stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices slipping due to weak trade data from China, highlighting global economic interdependencies. Amidst these broader market fluctuations, investors may find opportunities in smaller or newer companies known as penny stocks. Though the term might seem outdated, these stocks can still offer surprising value and potential for growth when backed by solid financials.

Top 10 Penny Stocks In The United Kingdom

Name	Share Price	Market Cap	Financial Health Rating
ME Group International (LSE:MEGP)	£2.125	£821.34M	★★★★★★
Polar Capital Holdings (AIM:POLR)	£4.78	£471.81M	★★★★★★
FRP Advisory Group (AIM:FRP)	£1.55	£360.49M	★★★★★★
Next 15 Group (AIM:NFG)	£4.025	£391.86M	★★★★☆☆
Supreme (AIM:SUP)	£1.53	£180.75M	★★★★★★
Stelrad Group (LSE:SRAD)	£1.53	£191.03M	★★★★★☆
Luceco (LSE:LUCE)	£1.324	£205.74M	★★★★★☆
Ultimate Products (LSE:ULTP)	£1.42	£115.25M	★★★★★★
Serabi Gold (AIM:SRB)	£0.86	£68.92M	★★★★★★
Tristel (AIM:TSTL)	£4.15	£200.13M	★★★★★★

Click here to see the full list of 475 stocks from our UK Penny Stocks screener.

Let's review some notable picks from our screened stocks.

Avingtrans (AIM:AVG)

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

Overview: Avingtrans plc, with a market cap of £133.12 million, operates through its subsidiaries to deliver engineered components, systems, and services across the energy, medical, and infrastructure sectors in various regions including the UK, Europe, USA, Africa, Middle East, Americas, Caribbean, China and Asia Pacific.

Operations: The company generates revenue from two primary segments: Energy Advanced Engineering Systems (aes) contributing £132.94 million and Medical and Industrial Imaging (Medical MII) providing £3.68 million.

Market Cap: £133.12M

Avingtrans plc, with a market cap of £133.12 million, operates in the energy and medical sectors. The company's seasoned management and board bring stability, while its net debt to equity ratio is satisfactory at 1.6%. However, operating cash flow covers only 9.6% of its debt, indicating potential liquidity concerns despite sufficient asset coverage for liabilities. Earnings have grown significantly over five years but declined by 42.4% last year against industry trends. Recent earnings reports show sales growth to £136.62 million but a drop in net income to £3.66 million; dividends increased slightly to 4.7 pence per share for the year.

• Navigate through the intricacies of Avingtrans with our comprehensive balance sheet health report here.
• Examine Avingtrans' earnings growth report to understand how analysts expect it to perform.

Renold (AIM:RNO)

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

Overview: Renold plc manufactures and sells high precision engineered products and solutions across the UK, Europe, the US, Canada, Australasia, China, India, and other international markets with a market cap of £103.67 million.

Operations: The company generates revenue through its Chain segment, contributing £192.8 million, and its Torque Transmission segment, adding £53.5 million.

Market Cap: £103.67M

Renold plc, with a market cap of £103.67 million, shows strong financial health and growth potential in the penny stock segment. Its earnings have grown significantly by 28.5% annually over five years, accelerating to 44.9% last year, outpacing industry trends. The company maintains high-quality earnings and robust interest coverage at 5.6x EBIT, despite a high net debt to equity ratio of 49.6%. Renold's short-term assets exceed both short- and long-term liabilities, indicating solid liquidity management. Recent events include an AGM discussing dividends and director re-elections, reflecting ongoing shareholder engagement and corporate governance stability.

• Get an in-depth perspective on Renold's performance by reading our balance sheet health report here.
• Understand Renold's earnings outlook by examining our growth report.

Hunting (LSE:HTG)

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

Overview: Hunting PLC, with a market cap of £486.34 million, operates globally by manufacturing components, technology systems, and precision parts.

Operations: The company's revenue is derived from several segments, including Hunting Titan at $247.6 million, Asia Pacific at $150.3 million, Subsea Technologies at $134.8 million, and Europe, Middle East and Africa (EMEA) at $88.4 million, with a segment adjustment of $376.1 million.

Market Cap: £486.34M

Hunting PLC, with a market cap of £486.34 million, is positioned in the penny stock segment with promising growth potential. The company has demonstrated substantial earnings growth of 1285.4% over the past year, significantly outpacing its five-year average and industry benchmarks. Its financial health is underscored by well-covered debt through operating cash flow and satisfactory net debt to equity ratio at 1.4%. Recent strategic alliances, such as the expansion with CRA Tubulars B.V., aim to enhance its Titanium Composite Tubing technology for energy transition markets. However, earnings are forecasted to decline by an average of 7.9% annually over three years despite revenue growth projections at 9.37% per year.

• Click here to discover the nuances of Hunting with our detailed analytical financial health report.
• Explore Hunting's analyst forecasts in our growth report.

Key Takeaways

• Click here to access our complete index of 475 UK Penny Stocks.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Jump on the AI train with fast growing tech companies forging a new era of innovation.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com