UK Penny Stocks To Watch In October 2025

The UK stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices both closing lower amid concerns over weak trade data from China, a key trading partner. Despite these broader market pressures, certain investment opportunities remain appealing to investors seeking growth potential. Penny stocks, often associated with smaller or newer companies, continue to offer intriguing possibilities for those willing to explore beyond the traditional blue-chip options.

Top 10 Penny Stocks In The United Kingdom

Click here to see the full list of 296 stocks from our UK Penny Stocks screener.

Let's review some notable picks from our screened stocks.

Frontier Developments (AIM:FDEV)

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

Overview: Frontier Developments plc develops and publishes video games for the interactive entertainment sector, with a market cap of £175.24 million.

Operations: The company generates revenue from its Computer Graphics segment, amounting to £90.6 million.

Market Cap: £175.24M

Frontier Developments has recently launched Jurassic World Evolution 3, potentially boosting its revenue stream with this high-profile game release. The company reported £90.6 million in sales for the fiscal year ending May 31, 2025, marking a return to profitability with a net income of £16.39 million compared to a loss the previous year. Despite having no debt and an experienced management team, Frontier faces challenges with forecasted earnings expected to decline by an average of 15% annually over the next three years. The company's price-to-earnings ratio stands at 10.7x, below the UK market average of 16.7x.

• Dive into the specifics of Frontier Developments here with our thorough balance sheet health report.
• Review our growth performance report to gain insights into Frontier Developments' future.

Funding Circle Holdings (LSE:FCH)

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

Overview: Funding Circle Holdings plc operates online lending platforms in the United Kingdom and internationally, with a market cap of £403.65 million.

Operations: The company generates revenue from its operations in the United Kingdom through FlexiPay (£26.4 million) and Term Loans (£146.9 million).

Market Cap: £403.65M

Funding Circle Holdings plc has shown resilience in the penny stock category with a market cap of £403.65 million, supported by a robust business model. Recent financial agreements, including a £300 million partnership with TPG Angelo Gordon and Barclays and a £750 million commitment from Waterfall Asset Management and BNP Paribas, underscore investor confidence in its lending platform. The company reported revenue growth to £92.3 million for H1 2025 and achieved profitability with net income of £5.8 million compared to losses previously. Despite negative operating cash flow, its short-term assets comfortably cover liabilities, reflecting strong liquidity management.

• Click here and access our complete financial health analysis report to understand the dynamics of Funding Circle Holdings.
• Assess Funding Circle Holdings' future earnings estimates with our detailed growth reports.

Hunting (LSE:HTG)

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

Overview: Hunting PLC, with a market cap of £541.57 million, manufactures components, technology systems, and precision parts on a global scale.

Operations: The company's revenue is primarily generated from its North America segment at $384.7 million, followed by Asia Pacific at $316.6 million, Hunting Titan at $212.9 million, Subsea Technologies at $127.4 million, and the Europe, Middle East and Africa segment (EMEA) contributing $80.4 million.

Market Cap: £541.57M

Hunting PLC, with a market cap of £541.57 million, operates globally in manufacturing components and systems. Despite being unprofitable with a negative return on equity of -3.36%, the company maintains financial stability through its cash reserves exceeding total debt and short-term assets covering both short and long-term liabilities. Recent strategic moves include share repurchase programs worth $40 million to enhance shareholder value and liquidity of $336.5 million for potential acquisitions, indicating a focus on growth through strategic investments. The interim dividend increase by 13% reflects confidence in future cash flow sustainability amidst ongoing operational challenges.

• Click to explore a detailed breakdown of our findings in Hunting's financial health report.
• Gain insights into Hunting's future direction by reviewing our growth report.

Summing It All Up

• Navigate through the entire inventory of 296 UK Penny Stocks 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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