UK Penny Stocks To Watch: 3 Picks Below £200M Market Cap
The UK market has recently experienced some turbulence, with the FTSE 100 index closing lower due to weak trade data from China, highlighting ongoing global economic challenges. Despite such broader market pressures, investors continue to seek opportunities in niche areas like penny stocks, which can offer access to growth in smaller or newer companies. While the term "penny stock" may seem outdated, these investments remain relevant for those looking for potential value and long-term gains when backed by strong financial health.
Name
Share Price
Market Cap
Financial Health Rating
Foresight Group Holdings (LSE:FSG)
£4.03
£452.79M
★★★★★★
Warpaint London (AIM:W7L)
£4.37
£353.04M
★★★★★★
Stelrad Group (LSE:SRAD)
£1.55
£197.4M
★★★★★☆
Cairn Homes (LSE:CRN)
£1.852
£1.15B
★★★★★☆
Ultimate Products (LSE:ULTP)
£0.742
£62.4M
★★★★★☆
Van Elle Holdings (AIM:VANL)
£0.42
£45.44M
★★★★★★
Polar Capital Holdings (AIM:POLR)
£4.475
£431.41M
★★★★★★
Begbies Traynor Group (AIM:BEG)
£1.11
£177.08M
★★★★★★
Croma Security Solutions Group (AIM:CSSG)
£0.865
£11.91M
★★★★★★
Braemar (LSE:BMS)
£2.28
£71.01M
★★★★★★
Click here to see the full list of 302 stocks from our UK Penny Stocks screener.
Here's a peek at a few of the choices from the screener.
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Gear4music (Holdings) plc is a retailer of musical instruments and equipment operating in the United Kingdom, Europe, and internationally, with a market cap of £42.79 million.
Operations: The company generates revenue of £146.72 million from the sale of musical instruments and equipment.
Market Cap: £42.79M
Gear4music (Holdings) plc, with a market cap of £42.79 million, has shown improved financial metrics over the past year. The company's earnings grew by 27.8%, surpassing its five-year average decline of 51.3% annually, and its debt to equity ratio decreased significantly from 62% to 30.5%. Despite high volatility in share price and low return on equity at 2.1%, Gear4music's short-term assets comfortably cover both short- and long-term liabilities. Recent earnings results revealed modest sales growth to £146.72 million and an increase in net income to £0.832 million, reflecting stable operational performance amidst industry challenges.
Unlock comprehensive insights into our analysis of Gear4music (Holdings) stock in this financial health report.
Learn about Gear4music (Holdings)'s historical performance here.
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Stelrad Group PLC manufactures and distributes radiators across the United Kingdom, Ireland, Europe, Turkey, and internationally with a market cap of £197.40 million.
Operations: The company generates £290.58 million in revenue from its radiator manufacturing and distribution operations.
Market Cap: £197.4M
Stelrad Group PLC, with a market cap of £197.40 million, is trading at a good value relative to its peers and industry, currently 39.1% below estimated fair value. The company reported revenues of £290.58 million from radiator manufacturing and distribution operations. Despite high debt levels with a net debt to equity ratio of 102.5%, the company's interest payments are well covered by EBIT at 4.9 times coverage, and operating cash flow covers debt well at 32.7%. Earnings grew by 7.1% last year, outpacing the Consumer Durables industry's decline, though growth has slowed compared to its five-year average rate of 23.4%. The board is experienced with an average tenure of 6.6 years; however, management experience data is insufficient for assessment.
Get an in-depth perspective on Stelrad Group's performance by reading our balance sheet health report here.
Evaluate Stelrad Group's prospects by accessing our earnings growth report.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: WeCap plc is a UK-based investment company with a market cap of £6.06 million.
Operations: No revenue segments are reported for WeCap.
Market Cap: £6.06M
WeCap plc, with a market cap of £6.06 million, is a pre-revenue company in the UK, indicating it has not yet generated significant income. Despite its unprofitability and increased losses over the past five years, WeCap maintains a strong cash position with more cash than debt and sufficient runway for over three years. Recent executive changes include the termination of director John Edward Taylor as of April 30, 2025. The stock exhibits high volatility compared to other UK stocks but hasn't seen meaningful shareholder dilution recently. Short-term assets comfortably cover both short- and long-term liabilities.
Take a closer look at WeCap's potential here in our financial health report.
Examine WeCap's past performance report to understand how it has performed in prior years.
Unlock our comprehensive list of 302 UK Penny Stocks by clicking here.
Seeking Other Investments? We've found 17 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free.
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.
Companies discussed in this article include AIM:G4M LSE:SRAD and OFEX:WCAP.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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