UK Penny Stocks To Watch: 3 Picks With Market Caps Over £40M

Simply Wall St

The UK stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting global economic uncertainties. Despite these broader market fluctuations, certain investment opportunities continue to attract attention, particularly in niche areas like penny stocks. Although the term "penny stocks" might seem outdated, these investments can still offer significant growth potential when backed by strong financial health and fundamentals.

Top 10 Penny Stocks In The United Kingdom

NameShare PriceMarket CapRewards & Risks
Foresight Group Holdings (LSE:FSG)£4.66£521.72M✅ 4 ⚠️ 0 View Analysis >
Warpaint London (AIM:W7L)£3.18£256.9M✅ 4 ⚠️ 2 View Analysis >
FDM Group (Holdings) (LSE:FDM)£1.294£141.45M✅ 2 ⚠️ 4 View Analysis >
Van Elle Holdings (AIM:VANL)£0.4175£45.17M✅ 4 ⚠️ 3 View Analysis >
RWS Holdings (AIM:RWS)£0.882£326.14M✅ 5 ⚠️ 2 View Analysis >
LSL Property Services (LSE:LSL)£2.66£273.39M✅ 4 ⚠️ 1 View Analysis >
Alumasc Group (AIM:ALU)£3.4245£123.15M✅ 4 ⚠️ 3 View Analysis >
Begbies Traynor Group (AIM:BEG)£1.19£189.42M✅ 4 ⚠️ 3 View Analysis >
Croma Security Solutions Group (AIM:CSSG)£0.7728£10.64M✅ 2 ⚠️ 3 View Analysis >
Braemar (LSE:BMS)£2.37£72.83M✅ 3 ⚠️ 4 View Analysis >

Click here to see the full list of 299 stocks from our UK Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Cora Gold (AIM:CORA)

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

Overview: Cora Gold Limited, with a market cap of £46.06 million, is engaged in the exploration and development of mineral projects in West Africa through its subsidiaries.

Operations: Currently, there are no reported revenue segments for the company.

Market Cap: £46.06M

Cora Gold Limited, with a market cap of £46.06 million, remains pre-revenue and unprofitable, having reported a net loss of US$0.689 million for the first half of 2025. Despite its seasoned management and board, the company faces challenges with high volatility in its share price and limited cash runway under one year based on current free cash flow levels. However, it benefits from being debt-free and having short-term assets exceeding liabilities by US$1.7 million to US$282k respectively. Shareholders have not experienced significant dilution recently, providing some stability amidst financial hurdles.

AIM:CORA Financial Position Analysis as at Aug 2025

everplay group (AIM:EVPL)

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

Overview: Everplay Group PLC, along with its subsidiaries, develops and publishes independent video games for both digital and physical markets in the United Kingdom, with a market cap of £550.40 million.

Operations: The company's revenue is derived from developing and publishing games and apps, totaling £166.62 million.

Market Cap: £550.4M

Everplay Group PLC, with a market cap of £550.40 million, has shown resilience by becoming profitable recently, despite past earnings declines. The company is debt-free and maintains a strong short-term asset position (£108.5M) against liabilities (£48M). Recent strategic moves include the acquisition of Hammerwatch and new game developments like Hell Let Loose: Vietnam, aligning with its strategy to enhance first-party IP and evergreen franchises. However, the board's inexperience may pose challenges as it navigates growth opportunities while managing large one-off financial impacts such as a £9.3 million loss affecting recent results.

AIM:EVPL Revenue & Expenses Breakdown as at Aug 2025

Volex (AIM:VLX)

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

Overview: Volex plc manufactures and sells power and connectivity solutions across North America, Europe, and Asia, with a market cap of £644.99 million.

Operations: The company generates revenue from three main regions: $503.5 million in North America, $412.6 million in Europe, and $170.4 million in Asia.

Market Cap: £644.99M

Volex plc, with a market cap of £644.99 million, has demonstrated financial stability through consistent revenue streams across North America (US$503.5M), Europe (US$412.6M), and Asia (US$170.4M). Recent developments include a settlement agreement with Credo Technology Group, resolving patent disputes and potentially reducing legal uncertainties. The company has increased its dividend to 4.5 pence per share for FY2025, reflecting confidence in cash flow management despite rising debt levels over five years. Volex's earnings growth of 21.9% last year surpasses industry averages, supported by strong interest coverage and satisfactory net debt to equity ratio at 34%.

AIM:VLX Debt to Equity History and Analysis as at Aug 2025

Summing It All Up

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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