3 UK Penny Stocks With Market Caps Over £20M To Watch

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 interdependencies. Amid these broader market shifts, investors may find opportunities in lesser-known areas such as penny stocks. Although the term "penny stocks" might seem outdated, these smaller or newer companies can still offer surprising value and potential growth when backed by strong financial health.

Top 10 Penny Stocks In The United Kingdom

Name	Share Price	Market Cap	Financial Health Rating
Tristel (AIM:TSTL)	£3.775	£180.04M	★★★★★★
Begbies Traynor Group (AIM:BEG)	£0.97	£153.01M	★★★★★★
ME Group International (LSE:MEGP)	£2.12	£798.74M	★★★★★★
Secure Trust Bank (LSE:STB)	£3.54	£67.51M	★★★★☆☆
Ultimate Products (LSE:ULTP)	£1.1775	£100.6M	★★★★★★
Luceco (LSE:LUCE)	£1.298	£200.19M	★★★★★☆
Stelrad Group (LSE:SRAD)	£1.40	£178.29M	★★★★★☆
Next 15 Group (AIM:NFG)	£4.23	£420.7M	★★★★☆☆
Serabi Gold (AIM:SRB)	£1.15	£87.09M	★★★★★★
Impax Asset Management Group (AIM:IPX)	£2.455	£313.69M	★★★★★★

Click here to see the full list of 468 stocks from our UK Penny Stocks screener.

Let's uncover some gems from our specialized screener.

Blackbird (AIM:BIRD)

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

Overview: Blackbird plc develops and operates a cloud-based video editing and publishing software platform under the Blackbird name, serving markets in the United Kingdom, Europe, North America, and internationally, with a market cap of £20.71 million.

Operations: The company's revenue is derived from its integrated web-based platform, totaling £1.64 million.

Market Cap: £20.71M

Blackbird plc, with a market cap of £20.71 million, operates a cloud-based video editing platform and is currently unprofitable. The company has no debt and its short-term assets (£6 million) exceed its short-term liabilities (£844.5K), indicating strong liquidity. Despite having sufficient cash runway for 1.8 years, shareholders have experienced dilution over the past year as losses have increased by 3.7% annually over five years. Revenue remains modest at £2 million, limiting growth prospects relative to the broader software industry growth rate of 18%. Management and board members bring significant experience with an average tenure of 5.7 years each.

• Unlock comprehensive insights into our analysis of Blackbird stock in this financial health report.
• Explore historical data to track Blackbird's performance over time in our past results report.

Public Policy Holding Company (AIM:PPHC)

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

Overview: Public Policy Holding Company, Inc. offers consulting services in the United States and has a market cap of £166.32 million.

Operations: The company's revenue is comprised of $9.84 million from Diversified Services, $99.27 million from Government Relations, and $31.29 million from Public Affairs Consulting.

Market Cap: £166.32M

Public Policy Holding Company, Inc., with a market cap of £166.32 million, is currently unprofitable and has seen its net loss increase over the past year. Despite this, it maintains a sufficient cash runway for more than three years due to positive free cash flow growth. The company's revenue streams are diverse, with significant contributions from Government Relations and Public Affairs Consulting. However, its debt to equity ratio has increased significantly over five years, raising concerns about financial stability. Recent earnings reports show sales growth but also highlight shareholder dilution and an unsustainable dividend yield of 8.19%.

• Navigate through the intricacies of Public Policy Holding Company with our comprehensive balance sheet health report here.
• Review our growth performance report to gain insights into Public Policy Holding Company's future.

Vianet Group (AIM:VNET)

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

Overview: Vianet Group plc offers smart, cloud-based, and Internet of Things solutions for the hospitality, unattended retail vending, and remote asset management sectors across the UK, Europe, the US, and Canada with a market cap of £32.78 million.

Operations: The company's revenue is derived from two main segments: Smart Zones, generating £8.92 million, and Smart Machines, contributing £6.75 million.

Market Cap: £32.78M

Vianet Group plc, with a market cap of £32.78 million, has demonstrated significant earnings growth of 1377.6% over the past year, surpassing industry averages. The company's Smart Zones and Smart Machines segments generate substantial revenue (£8.92 million and £6.75 million respectively). Its debt is well-managed, with interest payments covered by EBIT (3.6x) and operating cash flow covering debt at 132.6%. However, shareholders experienced dilution recently with a 2.1% increase in shares outstanding. Vianet has initiated a share buyback program to reduce its capital base using existing cash resources while maintaining stable weekly volatility at 5%.

• Click to explore a detailed breakdown of our findings in Vianet Group's financial health report.
• Assess Vianet Group's future earnings estimates with our detailed growth reports.

Seize The Opportunity

• Dive into all 468 of the UK Penny Stocks we have identified here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

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.

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