UK Penny Stocks To Watch: 3 Picks Below £200M Market Cap
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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Anyone with an internet connection can participate, which opens the door to financial tools that may not be available through traditional banks. Combined with the potential for long-term growth and innovation, these qualities make digital assets an appealing option for individuals seeking diversification beyond stocks, bonds or real estate. Factors to Consider Before Buying Crypto Before purchasing any crypto, it is imperative to evaluate key fundamentals. Market capitalization can provide a broad sense of a project's size and potential resilience, but it should not be the only measure of value. Liquidity, often reflected in trading volume, helps determine how easily an asset can be bought or sold without significant price swings. Reviewing price history across different time frames can also reveal whether growth is steady or primarily driven by speculation. Investors should also look at use cases and adoption. A strong ecosystem, a clear white paper and a team with proven experience may suggest a more reliable project. Observing social sentiment and community engagement can provide additional insight, though these signals should be weighed carefully. Finally, cybersecurity should never be overlooked. Best practices include enabling two-factor authentication, avoiding suspicious links or direct messages, keeping private keys secure and limiting how much information you share about your holdings. Careful evaluation and safe practices together help reduce risk in the highly volatile crypto market. The 3 Best Cryptos to Buy With $1,000 in 2025 Putting $1,000 into crypto in 2025 can go further when focused on projects with proven strength and clear momentum. Bitcoin remains the market leader and a cornerstone of the digital asset space. Solana has emerged as a high-performance network with fast transactions and expanding adoption. Bittensor represents an innovative approach, combining blockchain with artificial intelligence in a growing ecosystem. Together, these three cryptos highlight different aspects of security, scalability and decentralization that make them noteworthy in 2025. Bitcoin is considered the foundation of the crypto market and remains the most secure and decentralized network in existence. Its structure relies on thousands of independent nodes, along with bitcoin miners, distributed globally, making it extremely difficult for any single entity to manipulate or control the system. This high level of security and decentralization is a primary reason investors view Bitcoin as a reliable store of value and a hedge against traditional financial risks. However, scalability has long been a challenge. Bitcoin can only process a limited number of transactions per second, which can result in congestion and higher fees during periods of heavy use. 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