Stock Analysis

Norman Broadbent Leads 3 Promising Penny Stocks On UK Exchange

Published

The UK market has faced challenges recently, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting global economic uncertainties. In such a climate, identifying promising investment opportunities requires a focus on financial strength and growth potential. Penny stocks, although an older term, still represent an intriguing area for investors seeking smaller companies that combine value and growth prospects.

Top 10 Penny Stocks In The United Kingdom

NameShare PriceMarket CapFinancial Health Rating
Polar Capital Holdings (AIM:POLR)£5.00£481.98M★★★★★★
Begbies Traynor Group (AIM:BEG)£0.972£153.33M★★★★★★
Foresight Group Holdings (LSE:FSG)£3.68£420.17M★★★★★★
ME Group International (LSE:MEGP)£2.045£770.58M★★★★★★
Stelrad Group (LSE:SRAD)£1.415£180.2M★★★★★☆
Secure Trust Bank (LSE:STB)£3.58£68.28M★★★★☆☆
Next 15 Group (AIM:NFG)£3.505£348.59M★★★★☆☆
Tristel (AIM:TSTL)£3.90£186M★★★★★★
Ultimate Products (LSE:ULTP)£1.05£89.71M★★★★★★
Helios Underwriting (AIM:HUW)£2.02£144.11M★★★★★☆

Click here to see the full list of 445 stocks from our UK Penny Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Norman Broadbent (AIM:NBB)

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

Overview: Norman Broadbent plc, with a market cap of £2.24 million, provides professional services in the United Kingdom and internationally through its subsidiaries.

Operations: The company generates revenue from two primary segments: £8.50 million from the United Kingdom and £2.80 million from the Rest of The World.

Market Cap: £2.24M

Norman Broadbent plc, with a market cap of £2.24 million, has recently become profitable and is actively seeking acquisition opportunities to drive growth and expand its international presence. The company generates significant revenue from both the UK (£8.50 million) and internationally (£2.80 million). Despite a high net debt to equity ratio of 48.5%, its debt is well-covered by operating cash flow (90.3%), and interest payments are well-covered by EBIT at 5.6 times coverage. The board and management teams are experienced, though the stock remains highly volatile compared to most UK stocks.

AIM:NBB Debt to Equity History and Analysis as at Jan 2025

ValiRx (AIM:VAL)

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

Overview: ValiRx plc is a biopharmaceutical company focused on developing oncology therapeutics and companion diagnostics in the United Kingdom, with a market cap of £1.16 million.

Operations: The company has not reported any revenue segments.

Market Cap: £1.16M

ValiRx plc, with a market cap of £1.16 million, is a pre-revenue biopharmaceutical company focused on oncology therapeutics. Despite being unprofitable, the company has managed to reduce its losses by 3.5% annually over the past five years and maintains more cash than total debt. Recent developments include raising £1.573 million through a follow-on equity offering and securing a contract potentially worth over £100,000 for cell-based assays with Amply Discovery Limited. While ValiRx's short-term assets exceed its liabilities, it faces high share price volatility and an inexperienced board with an average tenure of 0.8 years.

AIM:VAL Revenue & Expenses Breakdown as at Jan 2025

MJ Gleeson (LSE:GLE)

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

Overview: MJ Gleeson plc operates in the United Kingdom, focusing on house building and land promotion and sales, with a market cap of £281.08 million.

Operations: The company generates revenue through two primary segments: Gleeson Land, contributing £16.34 million, and Gleeson Homes, accounting for £329.01 million.

Market Cap: £281.08M

MJ Gleeson plc, with a market cap of £281.08 million, operates debt-free and demonstrates financial stability through its short-term assets (£368.2M) covering both short-term (£63.6M) and long-term liabilities (£16.7M). Despite recent negative earnings growth, the company maintains high-quality earnings and an experienced board with an average tenure of 5.3 years. The stock shows potential for price appreciation as analysts predict a 38.6% rise, though it faces challenges such as declining profit margins from 7.4% to 5.6% and an unstable dividend track record following a reduction to 7 pence per share in November 2024.

LSE:GLE Debt to Equity History and Analysis as at Jan 2025

Make It Happen

Ready For A Different Approach?

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.

Valuation is complex, but we're here to simplify it.

Discover if Norman Broadbent might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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