UK Penny Stocks To Watch In October 2025

The United Kingdom's stock market has recently faced challenges, as the FTSE 100 index experienced a decline due to weak trade data from China, highlighting global economic interdependencies. Despite these broader market fluctuations, certain investment opportunities can still be found within the realm of penny stocks. Although the term "penny stocks" may seem outdated, these smaller or newer companies continue to offer potential for growth and value when supported by strong financials.

Top 10 Penny Stocks In The United Kingdom

Click here to see the full list of 294 stocks from our UK Penny Stocks screener.

Let's uncover some gems from our specialized screener.

Gattaca (AIM:GATC)

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

Overview: Gattaca plc is a human capital resources company that offers contract and permanent recruitment services across private and public sectors, with a market cap of £30.74 million.

Operations: The company's revenue is primarily derived from its Infrastructure segment (£147.63 million), followed by Defence (£101.98 million), Energy (£58.98 million), Digital Technology (£41.45 million), Mobility (£22.64 million), Commercial & Professional (£12.28 million), Gattaca Projects (£11.86 million), and International operations (£2.09 million).

Market Cap: £30.74M

Gattaca plc, with a market cap of £30.74 million, has demonstrated significant earnings growth of 142.1% over the past year, outpacing the Professional Services industry average. The company reported sales of £398.9 million for the full year ended July 31, 2025, and net income improved to £2.2 million from £0.186 million a year ago. Despite its low return on equity at 6.3%, Gattaca is debt-free and covers its short-term liabilities with assets totaling £77.3 million against liabilities of £51.1 million, although its dividend coverage remains weak due to high non-cash earnings levels.

• Navigate through the intricacies of Gattaca with our comprehensive balance sheet health report here.
• Gain insights into Gattaca's outlook and expected performance with our report on the company's earnings estimates.

Gateley (Holdings) (AIM:GTLY)

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

Overview: Gateley (Holdings) Plc, with a market cap of £156.54 million, offers commercial legal and consultancy services across the United Kingdom and various international regions including Europe, the Middle East, North and South America, and Asia.

Operations: Gateley (Holdings) generates revenue through four primary segments: People (£17.54 million), Property (£94.50 million), Corporate (£39.01 million), and Business Services (£28.45 million).

Market Cap: £156.54M

Gateley (Holdings) Plc, with a market cap of £156.54 million, operates across multiple regions and segments including People, Property, Corporate, and Business Services. Despite recent challenges such as declining net profit margins from 5.8% to 0.8% and negative earnings growth of -86.5%, the company maintains satisfactory debt levels with a net debt to equity ratio of 9.8%. Gateley's short-term assets significantly exceed both its short-term (£32.1M) and long-term liabilities (£45.4M). The management team is experienced with an average tenure of 10 years; however, the board's shorter tenure may indicate less experience in governance roles.

• Take a closer look at Gateley (Holdings)'s potential here in our financial health report.
• Learn about Gateley (Holdings)'s future growth trajectory here.

Peel Hunt (AIM:PEEL)

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

Overview: Peel Hunt Limited operates as an integrated investment banking firm providing research, distribution, and execution services in the United Kingdom with a market cap of £132.63 million.

Operations: The company's revenue is derived from three primary segments: Execution Services (£33.67 million), Investment Banking (£31.53 million), and Research & Distribution (£26.11 million).

Market Cap: £132.63M

Peel Hunt Limited, with a market cap of £132.63 million, operates in the investment banking sector and is currently unprofitable. Despite this, its short-term assets (£605.0M) comfortably cover both short-term (£519.4M) and long-term liabilities (£16.8M), reflecting solid liquidity management. The company has reduced its debt to equity ratio significantly over the past five years from 75.8% to 10.1%, indicating improved financial health, while its debt is well covered by operating cash flow (106.7%). However, the management team lacks extensive experience with an average tenure of 1.8 years compared to a more seasoned board at 4.1 years.

• Click here to discover the nuances of Peel Hunt with our detailed analytical financial health report.
• Understand Peel Hunt's earnings outlook by examining our growth report.

Turning Ideas Into Actions

• Take a closer look at our UK Penny Stocks list of 294 companies by clicking here.
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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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