3 UK Penny Stocks With Market Caps At Least £40M

As an investor, you're always on the lookout for undervalued stocks that can provide significant returns. Penny stocks, with their low share prices and market capitalizations, often catch the eye of investors seeking growth opportunities. However, not all penny stocks are created equal, and it's crucial to conduct thorough research before investing. In this article, we'll explore three UK penny stocks with market capitalizations of at least £40M that have caught our attention.



1. DP Poland (LSE: DPP)
DP Poland operates the Domino's Pizza chain in Poland and Croatia. This company is growing rapidly, with revenue expected to reach £65.8M in 2025, representing growth of more than 20% year-on-year. The company plans to open hundreds more stores in the years ahead, which should boost growth significantly. Despite the risks associated with expanding into new markets, DP Poland's strong performance and growth prospects make it an attractive investment opportunity.

2. 1Spatial (LSE: SPA)
1Spatial is a tech company that helps government, utility, and transport organizations make sense of their geospatial (location) data. This company has grown at a healthy rate in recent years, with revenues climbing from £17.6M in FY2019 to £32.3M in FY2024. Analysts expect near-term earnings to surge, with earnings per share growth of 63% projected for the year ending 31 January 2026. The company's forward-looking price-to-earnings (P/E) ratio of 26 is not particularly high for a software company, indicating potential undervaluation.



3. Calnex Solutions (LSE: CLX)
Calnex Solutions provides test and measurement solutions for the global telecommunications and cloud computing markets. This stock has been a challenging investment in recent years due to slowdowns in the telecoms market. However, the company believes it will return to growth in the second half of the financial year ending 31 March 2025. If conditions in the telecoms market improve and growth picks up, the shares could see a major re-rating. While this stock is high up on the risk spectrum, its potential for growth makes it an interesting investment opportunity for those with a longer-term perspective.



In conclusion, these three UK penny stocks with market capitalizations of at least £40M offer attractive investment opportunities for those willing to take on the risks associated with penny stocks. By conducting thorough research and maintaining a balanced portfolio, investors can capitalize on the potential gains offered by these undervalued stocks. However, it's essential to remember that penny stocks are volatile and can be risky, so always proceed with caution and stay informed about the latest developments in the market.