The UK stock market has been experiencing some turbulence, with the FTSE 100 and FTSE 250 indices both closing lower recently due to weak trade data from China. Despite these broader market challenges, penny stocks continue to capture investor interest as they offer unique opportunities for growth, particularly when backed by strong financials. Though often associated with smaller or newer companies, these stocks can provide a blend of affordability and potential upside that larger firms might not offer.

Click here to see the full list of 445 stocks from our UK Penny Stocks screener.

We'll examine a selection from our screener results.

★★★★☆☆

SpaceandPeople plc markets and sells promotional and retail licensing space for shopping centers, retail parks, railway stations, and other venues in the UK and Germany, with a market cap of £1.81 million.

The company's revenue is derived from three segments: £0.574 million from UK retail, £4.002 million from UK promotions, and £2.02 million from German retail activities.

£1.81M

SpaceandPeople, with a market cap of £1.81 million, has demonstrated a strong sales performance, reporting unaudited 2024 revenue of approximately £6.8 million, surpassing market expectations. The company became profitable recently and maintains high-quality earnings supported by operating cash flow that covers its debt well. However, short-term liabilities exceed short-term assets (£5.1M vs £2.7M), which could be a concern for liquidity management. Despite this, the company's strategic investments in staff to secure contracts and drive growth align profitability with market expectations and suggest a focus on long-term expansion within the UK and Germany markets.

Simply Wall St Financial Health Rating: ★★★★☆☆