UK Penny Stocks Under £400M Market Cap: 3 Promising Picks

The UK market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting global economic uncertainties. Despite these broader market pressures, investors often turn their attention to penny stocks for potential opportunities that larger companies might not offer. While the term "penny stocks" may seem outdated, these smaller or newer companies can still provide significant growth potential when supported by strong financials and sound business strategies.

Top 10 Penny Stocks In The United Kingdom

Name	Share Price	Market Cap	Financial Health Rating
ME Group International (LSE:MEGP)	£2.16	£806.27M	★★★★★★
Secure Trust Bank (LSE:STB)	£3.53	£67.32M	★★★★☆☆
Solid State (AIM:SOLI)	£1.235	£68.45M	★★★★★★
Serabi Gold (AIM:SRB)	£1.015	£78.01M	★★★★★★
Tristel (AIM:TSTL)	£3.65	£183.61M	★★★★★★
Ultimate Products (LSE:ULTP)	£1.125	£98.14M	★★★★★★
Luceco (LSE:LUCE)	£1.28	£200.5M	★★★★★☆
Stelrad Group (LSE:SRAD)	£1.38	£174.47M	★★★★★☆
Next 15 Group (AIM:NFG)	£4.46	£443.08M	★★★★☆☆
Integrated Diagnostics Holdings (LSE:IDHC)	$0.416	$249.68M	★★★★★★

Click here to see the full list of 470 stocks from our UK Penny Stocks screener.

We'll examine a selection from our screener results.

Angling Direct (AIM:ANG)

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

Overview: Angling Direct PLC, with a market cap of £29.75 million, operates in the sale of fishing tackle products and equipment across the United Kingdom, Europe, and internationally.

Operations: The company's revenue is derived from £4.29 million in Europe, £46.48 million from physical stores, and £33.39 million through UK online sales.

Market Cap: £29.75M

Angling Direct PLC, with a market cap of £29.75 million, has demonstrated robust growth in earnings, increasing by 66.1% over the past year and outpacing the Specialty Retail industry. The company is debt-free, ensuring financial stability with short-term assets exceeding liabilities. It has not diluted shareholders recently and maintains experienced management and board teams. Despite a low return on equity at 4.1%, Angling Direct is trading significantly below its estimated fair value. Recent announcements include a share buyback program worth up to £4 million to optimize capital allocation, reflecting confidence in its financial position and future prospects.

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

Calnex Solutions (AIM:CLX)

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

Overview: Calnex Solutions plc designs, produces, and markets test instrumentation and solutions for network synchronization and emulation across telecoms networks, enterprise networks, and data centers globally, with a market cap of £56.91 million.

Operations: The company generates revenue primarily from its Electronic Test & Measurement Instruments segment, totaling £15.79 million.

Market Cap: £56.91M

Calnex Solutions, with a market cap of £56.91 million, is currently unprofitable and has seen its net losses increase over the past year. Despite this, the company remains debt-free and has strong short-term assets (£18.8M) covering both short-term (£3.4M) and long-term liabilities (£4.6M). The board's average tenure suggests experience in navigating industry challenges, while recent efforts to seek acquisitions indicate a strategic focus on expansion opportunities. Calnex's stock trades significantly below its estimated fair value, which may attract investors looking for potential upside as earnings are forecast to grow substantially per year.

• Get an in-depth perspective on Calnex Solutions' performance by reading our balance sheet health report here.
• Gain insights into Calnex Solutions' outlook and expected performance with our report on the company's earnings estimates.

FRP Advisory Group (AIM:FRP)

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

Overview: FRP Advisory Group plc, with a market cap of £372.70 million, offers business advisory services to companies, lenders, investors, individuals, and other stakeholders through its subsidiaries.

Operations: The company generates revenue of £128.20 million from its specialist business advisory services segment.

Market Cap: £372.7M

FRP Advisory Group, with a market cap of £372.70 million, has demonstrated robust financial health and growth potential. The company reported significant revenue growth of 32% for H1 2025, driven by both organic and inorganic factors through recent acquisitions. Its short-term assets comfortably exceed both short-term and long-term liabilities, indicating strong liquidity. Despite shareholder dilution over the past year, FRP maintains high-quality earnings with an impressive net profit margin increase from last year. The board's experience supports strategic expansion efforts like the new Belfast office, enhancing its service offerings in forensic services amidst stable operational performance.

• Dive into the specifics of FRP Advisory Group here with our thorough balance sheet health report.
• Assess FRP Advisory Group's future earnings estimates with our detailed growth reports.

Summing It All Up

• Access the full spectrum of 470 UK Penny Stocks by clicking on this link.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Want To Explore Some Alternatives?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com