3 UK Penny Stocks With Market Caps Up To £200M

The UK market has recently experienced some turbulence, with the FTSE 100 closing lower due to weak trade data from China, highlighting global economic interdependencies. Despite these challenges, investors often seek opportunities in various segments of the market, including penny stocks. While 'penny stock' may seem like an outdated term, these smaller or newer companies can still offer significant potential when backed by strong financials and sound business models.

Top 10 Penny Stocks In The United Kingdom

Name	Share Price	Market Cap	Financial Health Rating
Warpaint London (AIM:W7L)	£4.08	£329.19M	★★★★★★
Polar Capital Holdings (AIM:POLR)	£4.995	£481.5M	★★★★★★
Begbies Traynor Group (AIM:BEG)	£0.922	£146.94M	★★★★★★
ME Group International (LSE:MEGP)	£2.225	£838.41M	★★★★★★
RTC Group (AIM:RTC)	£0.975	£13.27M	★★★★★★
Helios Underwriting (AIM:HUW)	£2.23	£159.09M	★★★★★☆
Secure Trust Bank (LSE:STB)	£4.57	£87.16M	★★★★☆☆
Next 15 Group (AIM:NFG)	£3.295	£327.71M	★★★★☆☆
Van Elle Holdings (AIM:VANL)	£0.38	£41.12M	★★★★★★
Stelrad Group (LSE:SRAD)	£1.425	£181.48M	★★★★★☆

Click here to see the full list of 446 stocks from our UK Penny Stocks screener.

We'll examine a selection from our screener results.

Arcontech Group (AIM:ARC)

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

Overview: Arcontech Group plc develops and sells proprietary software across various regions including the United Kingdom, Europe, Africa, North America, Australia, and the Asia Pacific with a market cap of £14.44 million.

Operations: The company generates revenue of £2.91 million from software development and licence fees.

Market Cap: £14.44M

Arcontech Group plc, with a market cap of £14.44 million and revenue of £2.91 million, is trading at 33.1% below its estimated fair value, presenting a potentially attractive investment opportunity among penny stocks. The company boasts high-quality earnings and has not diluted shareholders in the past year. Its short-term assets significantly exceed both short-term (£1.8M) and long-term liabilities (£497.4K), reinforcing financial stability without any debt concerns over the past five years. However, while revenue is forecast to grow modestly at 4.77% annually, earnings are expected to decline by 15.1% per year over the next three years.

• Click here to discover the nuances of Arcontech Group with our detailed analytical financial health report.
• Review our growth performance report to gain insights into Arcontech Group's future.

Somero Enterprises (AIM:SOM)

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

Overview: Somero Enterprises, Inc. designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment both in the United States and internationally with a market cap of £150.45 million.

Operations: Somero Enterprises generates revenue primarily from its Construction Machinery & Equipment segment, totaling $113.69 million.

Market Cap: £150.45M

Somero Enterprises, with a market cap of £150.45 million and revenue of US$113.69 million, is trading at 52.6% below its estimated fair value, suggesting potential appeal among penny stocks in the UK market. The company benefits from high-quality earnings and a robust Return on Equity of 30.3%, although recent earnings growth has been negative at -8.9%. Somero remains debt-free with short-term assets comfortably covering both short-term (US$12.4M) and long-term liabilities (US$2.5M). However, dividends are not well-covered by free cash flows, and earnings are forecast to decline by 15.4% annually over the next three years amidst management changes with CEO Jack Cooney's upcoming retirement in March 2025.

• Dive into the specifics of Somero Enterprises here with our thorough balance sheet health report.
• Evaluate Somero Enterprises' prospects by accessing our earnings growth report.

Kelso Group Holdings (LSE:KLSO)

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

Overview: Kelso Group Holdings Plc is an investment company based in the United Kingdom with a market capitalization of £10.14 million.

Operations: Kelso Group Holdings Plc generates its revenue of £0.14 million from its Blank Checks segment.

Market Cap: £10.14M

Kelso Group Holdings, with a market cap of £10.14 million, is a pre-revenue investment company generating £0.14 million from its Blank Checks segment. The firm is debt-free and has not experienced significant shareholder dilution recently. Its short-term assets of £9.8 million comfortably exceed both short-term (£256.9K) and long-term liabilities (£822.9K). Despite being unprofitable, Kelso has reduced losses significantly over the past five years by 62.9% annually and maintains stable weekly volatility at 6%. Management's average tenure suggests experience, while the board remains relatively new with an average tenure of 2.1 years.

• Click to explore a detailed breakdown of our findings in Kelso Group Holdings' financial health report.
• Examine Kelso Group Holdings' past performance report to understand how it has performed in prior years.

Make It Happen

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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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