December 2024 UK Penny Stocks To Watch Closely

As the year 2024 draws to a close, investors are keeping a close eye on the UK penny stock market, where several companies have shown promising growth and potential. Penny stocks, defined as shares trading for less than £1, offer high risk but also the potential for significant returns. In this article, we will highlight three UK penny stocks that have caught the attention of investors in December 2024.



1. Eleco (ELCO)
Eleco, a software company specializing in solutions for building and project management, has shown strong growth prospects in 2024. The company recently won the 'Project Management Software of the Year' award for the 10th consecutive year at the annual Construction Computing Awards 2023. Eleco's shift to a recurring revenue or software-as-a-service (SaaS) business model has contributed to its growth, with analysts expecting around 16% revenue growth and 25% earnings growth in 2024. Additionally, Eleco recently raised its interim dividend by 25%, indicating management's confidence in the company's future. Although a weak macro environment poses a risk to the building industry, Eleco's forward-looking price-to-earnings (P/E) ratio of 19 suggests that it is a promising investment opportunity in the software sector.



2. hVIVO (HVO)
hVIVO, a small healthcare company offering services for clinical trials and lab testing, has demonstrated significant momentum in 2024. The company reported 52% revenue growth for the six-month period ended 30 June and plans to start paying annual dividends soon. In December, hVIVO announced that recent trading has been ahead of guidance. Although the global pharmaceutical industry may experience ups and downs, hVIVO's P/E ratio of 20 indicates its potential as a penny stock investment. Furthermore, rival Ergomed recently received a takeover offer, suggesting that hVIVO could be an attractive target for acquisitions.



3. Creo Medical (CREO)
Creo Medical, a medical device company specializing in instruments for endoscopic (minimally invasive) surgery, has shown impressive growth in 2024. The company's flagship product, Speedboat Inject, has seen a 42% year-on-year increase in the volume of procedures and a 44% increase in its user base. Although Creo is not yet profitable, its revenues are forecast to rise by 24% in 2024, making it an attractive investment opportunity in the medical device sector.

In conclusion, December 2024 has seen several UK penny stocks demonstrating strong financial health and growth prospects. Eleco, hVIVO, and Creo Medical have all shown promising performance, making them worthy of close attention from investors. However, it is essential to remember that penny stocks are high-risk investments, and thorough research and analysis should be conducted before making any investment decisions.