Ashmore Group And 2 Other UK Penny Stocks To Watch For Growth

The London stock market has recently experienced a downturn, with the FTSE 100 and FTSE 250 indices closing lower amid concerns over weak trade data from China, highlighting global economic challenges. Despite these broader market pressures, certain investment opportunities remain attractive, particularly in the realm of penny stocks. Though often considered a niche area, penny stocks can offer significant growth potential when backed by strong financials. In this article, we explore three UK penny stocks that may present promising prospects for investors seeking hidden value in quality companies.

Top 10 Penny Stocks In The United Kingdom

Name	Share Price	Market Cap	Financial Health Rating
ME Group International (LSE:MEGP)	£2.155	£811.93M	★★★★★★
Next 15 Group (AIM:NFG)	£4.05	£402.8M	★★★★☆☆
Secure Trust Bank (LSE:STB)	£3.56	£67.89M	★★★★☆☆
Ultimate Products (LSE:ULTP)	£1.255	£107.11M	★★★★★★
Serabi Gold (AIM:SRB)	£0.925	£70.05M	★★★★★★
Supreme (AIM:SUP)	£1.65	£192.41M	★★★★★★
Luceco (LSE:LUCE)	£1.27	£195.87M	★★★★★☆
Stelrad Group (LSE:SRAD)	£1.41	£179.57M	★★★★★☆
Integrated Diagnostics Holdings (LSE:IDHC)	$0.3955	$229.91M	★★★★★★
Tristel (AIM:TSTL)	£4.40	£209.85M	★★★★★★

Click here to see the full list of 464 stocks from our UK Penny Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Ashmore Group (LSE:ASHM)

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

Overview: Ashmore Group plc is a publicly owned investment manager with a market cap of £1.13 billion.

Operations: The company generates £186.8 million from its investment management services segment.

Market Cap: £1.13B

Ashmore Group, with a market cap of £1.13 billion, demonstrates financial stability through its debt-free status and strong asset coverage for liabilities. The company reported net income growth to £93.7 million, up from £83.3 million the previous year, despite a slight revenue decline to £189.3 million. Its experienced management team and board bolster confidence in governance quality. However, earnings are forecasted to decline by 4.9% annually over the next three years, posing potential challenges ahead. While Ashmore's dividend yield is high at 9.88%, it's not well-covered by earnings or free cash flows, indicating sustainability concerns.

• Take a closer look at Ashmore Group's potential here in our financial health report.
• Assess Ashmore Group's future earnings estimates with our detailed growth reports.

Breedon Group (LSE:BREE)

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

Overview: Breedon Group plc operates in the quarrying, manufacture, and sale of construction materials and building products primarily in the UK, Republic of Ireland, and internationally, with a market cap of £1.60 billion.

Operations: The company's revenue is derived from three main segments: Cement (£311.3 million), Ireland (£237.6 million), and Great Britain (£1.01 billion).

Market Cap: £1.6B

Breedon Group, with a market cap of £1.60 billion, operates in the construction materials sector with significant revenue from Great Britain (£1.01 billion), Ireland (£237.6 million), and Cement (£311.3 million). Despite having high-quality past earnings and an experienced management team, Breedon's Return on Equity is low at 8.5%, and its short-term assets do not cover long-term liabilities of £674.2 million. The company's debt is well-covered by operating cash flow (36.8%), but its dividend yield of 3% is not adequately supported by free cash flows, raising sustainability concerns despite trading below estimated fair value.

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

Irish Continental Group (LSE:ICGC)

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

Overview: Irish Continental Group plc is a maritime transport company with a market cap of £748.84 million.

Operations: The company generates revenue through its Ferries segment, which accounts for €430.1 million, and its Container and Terminal operations, contributing €195.8 million.

Market Cap: £748.84M

Irish Continental Group, with a market cap of £748.84 million, shows a solid financial foundation in the maritime transport sector. The company reported half-year sales of €285.5 million and net income of €13.7 million, reflecting steady growth from the previous year. Earnings per share increased slightly to €0.083, while dividends rose to 5.11 cents per share, indicating shareholder returns are prioritized despite an unstable dividend history. Although short-term liabilities exceed assets (€193.4M vs €150.3M), debt management is robust with a reduced debt-to-equity ratio (53.5%) and strong interest coverage (10x EBIT).

• Click here and access our complete financial health analysis report to understand the dynamics of Irish Continental Group.
• Examine Irish Continental Group's earnings growth report to understand how analysts expect it to perform.

Turning Ideas Into Actions

• Investigate our full lineup of 464 UK Penny Stocks right here.
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Curious About Other Options?

• 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.

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