Discovering 3 UK Penny Stocks With Market Caps As Low As £9M

The UK market has recently faced challenges, with the FTSE 100 closing lower due to weak trade data from China, highlighting global economic interdependencies. Despite such fluctuations in major indices, there remains a niche for investors seeking opportunities beyond blue-chip stocks. Penny stocks, though often associated with smaller or newer companies, can offer significant potential when backed by strong financials and fundamentals.

Top 10 Penny Stocks In The United Kingdom

Name	Share Price	Market Cap	Financial Health Rating
ME Group International (LSE:MEGP)	£2.20	£828.88M	★★★★★★
Next 15 Group (AIM:NFG)	£3.76	£373.95M	★★★★☆☆
Supreme (AIM:SUP)	£1.575	£183.66M	★★★★★★
FRP Advisory Group (AIM:FRP)	£1.44	£355.43M	★★★★★★
Serabi Gold (AIM:SRB)	£0.81	£61.34M	★★★★★★
Ultimate Products (LSE:ULTP)	£1.21	£103.3M	★★★★★★
Luceco (LSE:LUCE)	£1.33	£205.12M	★★★★★☆
Impax Asset Management Group (AIM:IPX)	£3.405	£435.71M	★★★★★★
Integrated Diagnostics Holdings (LSE:IDHC)	$0.372	$216.25M	★★★★★★
Stelrad Group (LSE:SRAD)	£1.475	£187.85M	★★★★★☆

Click here to see the full list of 465 stocks from our UK Penny Stocks screener.

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

MYCELX Technologies (AIM:MYX)

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

Overview: MYCELX Technologies Corporation is a clean water technology company that offers water treatment solutions to various sectors including oil and gas, power, marine, and heavy manufacturing across the Middle East, the United States, Australia, and internationally; it has a market cap of £9.15 million.

Operations: The company's revenue is generated from its Pollution and Treatment Control Products segment, which amounts to $8.84 million.

Market Cap: £9.15M

MYCELX Technologies Corporation, with a market cap of £9.15 million, operates in the clean water technology sector and has recently secured a CAD 1.5 million project in the Middle East for its REGEN installation, boosting its 2025 revenue forecast. Despite being unprofitable with declining earnings over the past five years, MYCELX is debt-free and has sufficient short-term assets to cover liabilities. The company reported half-year sales of US$3.5 million but faced a net loss of US$1.36 million compared to last year’s figures. Recent equity offerings indicate shareholder dilution but also provide additional capital for operations.

• Jump into the full analysis health report here for a deeper understanding of MYCELX Technologies.
• Gain insights into MYCELX Technologies' future direction by reviewing our growth report.

Tandem Group (AIM:TND)

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

Overview: Tandem Group plc is involved in the design, development, distribution, and retail of sports, leisure, and mobility products in the United Kingdom with a market cap of £9.17 million.

Operations: No specific revenue segments are reported for this company.

Market Cap: £9.17M

Tandem Group plc, with a market cap of £9.17 million, has shown resilience despite being unprofitable. Recent half-year earnings reported sales of £9.79 million and a reduced net loss compared to the previous year, suggesting some operational improvements. The company's debt management appears prudent with a satisfactory net debt to equity ratio of 16.9%, and short-term assets comfortably exceed both short and long-term liabilities, providing financial stability. The appointment of Simon Bragg as non-executive director adds strategic expertise to the board, potentially guiding future growth initiatives amidst ongoing challenges in profitability and revenue growth acceleration.

• Click to explore a detailed breakdown of our findings in Tandem Group's financial health report.
• Gain insights into Tandem Group's past trends and performance with our report on the company's historical track record.

TheWorks.co.uk (AIM:WRKS)

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

Overview: TheWorks.co.uk plc operates as a retailer offering art and craft products, stationery, toys, games, books, gifts, and seasonal items across the United Kingdom and Ireland with a market cap of £14.72 million.

Operations: The company's revenue is primarily generated from its retail operations in the Toys & Hobby Stores segment, amounting to £282.59 million.

Market Cap: £14.72M

TheWorks.co.uk plc, with a market cap of £14.72 million, reported annual sales of £282.59 million but saw a decline in net income to £6.38 million from the previous year. Despite an outstanding return on equity at 63.2%, the company faces challenges with short-term assets (£42.9M) not covering liabilities (£50.4M). The recent appointment of Simon Hathway as Independent Non-Executive Director brings substantial retail experience, potentially enhancing strategic direction amidst board changes and negative earnings growth over the past year (-29%). The company's debt-free status offers some financial flexibility despite these operational hurdles.

• Get an in-depth perspective on TheWorks.co.uk's performance by reading our balance sheet health report here.
• Evaluate TheWorks.co.uk's historical performance by accessing our past performance report.

Taking Advantage

• Embark on your investment journey to our 465 UK Penny Stocks selection here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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.

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