3 UK Penny Stocks With Market Caps Under £40M To Consider

As the UK stock market faces challenges, investors are seeking opportunities beyond established companies. Penny stocks, with their lower market capitalizations and higher risk profiles, can offer attractive investment prospects for those willing to take on more risk. In this article, we highlight three UK penny stocks with market caps under £40M that are worth considering.

1. Eleco (LSE: ELCO)
Eleco is a software company that specializes in project management and information management solutions. With a market cap of £37.5M, Eleco is a penny stock that has shown strong growth potential. The company's recent interim results revealed a 25% increase in its interim dividend, indicating management's confidence in the business. Eleco's award-winning project management software has won the 'Project Management Software of the Year' award for the 10th consecutive year, further cementing its position in the market.
2. hVIVO (LSE: HVO)
hVIVO is a contract research organization that specializes in testing infectious and respiratory disease vaccines and antivirals for biotech companies. With a market cap of £39.5M, hVIVO is another penny stock with significant growth potential. The company recently reported strong revenue growth of 52% for the six-month period ended 30 June 2023, driven by its services for clinical trials and lab testing. hVIVO's intention to start paying annual dividends soon indicates management's confidence in the business and its long-term prospects.
3. Creo Medical (LSE: CREO)
Creo Medical is a medical device company that focuses on minimally invasive surgery instruments. With a market cap of £38.5M, Creo Medical is a penny stock that has shown impressive growth in its flagship product, Speedboat Inject. The company reported a 42% year-on-year increase in the volume of procedures and a 44% increase in its user base in the first half of 2023. Creo Medical's expected revenue growth of 24% in 2024 is a key indicator of its growth potential.



In conclusion, penny stocks with market caps under £40M can offer attractive investment opportunities for those willing to take on more risk. Eleco, hVIVO, and Creo Medical are three UK penny stocks that have shown strong growth potential and are worth considering. However, it is essential to conduct thorough research and consider your risk tolerance before making any investment decisions.