What are the top 10 FTSE penny stocks?

Summary 

• Penny stock investing has gained favour during the pandemic as investors seek new ways to invest their money.
• They are a low-cost way to diversify one’s investment portfolio and can give high returns depending on the company, but such stocks can also be risky.

Penny stock investing has gained interest among investors, with the global pandemic prompting investors to seek out new ways to invest their money. Such stocks can be seen as a low-cost method to help diversify a portfolio investment due to their relatively lower prices and the possibility of becoming multi-baggers in the future.

However, penny stocks can contain a higher risk element due to low liquidity and being more volatile. Penny stocks in the United Kingdom are equities that trade usually at a price below £1 and have a market capitalisation of less than £100 million.

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In this article, we take a look at the top 10 FTSE listed penny stocks, which have given the highest annual returns in the last one year:

1. Alien Metals Ltd (LON: UFO)

Alien Metals is an exploration and mining project developer based in the UK. It is also an AIM listed stock and is a constituent of the FTSE AIM All Share index. The company recently granted a 30 day further extension at its Elizabeth Hill Silver Tailings project to finish various metallurgical tests and study their results.

Alien Metals’ one-year returns stood at 816.32 per cent and is among the highest returning penny stocks on the LSE. Its market cap stands at £27.40 million.

2. Carclo PLC (LON:CAR)

Carclo PLC is a technology driven global plastics company based in the UK. It recently announced its preliminary FY2021 results. Its annual revenues fell by 2.7 per cent to £107.564 million, from £110.506 million from the year before. However, its net cash from operating activities increased to £8.4 million in FY 2021, compared to £6.9 million in FY 2020.

Carclo’s one-year returns stand at 476.09 per cent, while its market cap stood at £38.91 million.

3. Quantum Blockchain Technologies PLC (LON: QBT)

Another FTSE AIM All Share constituent, Quantum Blockchain is an investment company focused on the technology sector, specifically in blockchain technology and was previously called Clear Leisure PLC. The company announced it would use quantum computing software company D-Wave Systems Inc, to develop cryptography algorithms for mining digital currency.

Quantum Blockchain has given its shareholders an annual return of 333.06 per cent, while its market cap stood at £9.20 million.

Also Read: Which stock under £1 has the most growth potential?

4. Wildcat Petroleum PLC (LON:WCAT)

Wildcat Petroleum is an oil and gas company. It recently announced an oil strategy update, wherein the company plans to focus on Angola for securing and developing a proven upstream in the regions. It also announced plans to have a secondary focus in Namibia for exploration.

Wildcat Petroleum’s has given shareholders a year-to-date return of 663.15 per cent (since 5 Jan), while its market cap stood at £69.60 million.

5. GSTechnologies Ltd (LON:GST)

GSTechnologies Ltd is an information and communications technology solutions provider. The company recently announced a collaboration agreement with Singapore based blockchain company Wise MPay to develop new higher growth  business areas with high levels of synergy underpinned by using blockchain technology.

GSTechnologies has given shareholders an annual return of 450 per cent, while its market cap stood at £15.52 million.

6. Braveheart Investment Group PLC (LON:BRH)

Braveheart Investment Group is an FTSE AIM All Share constituent and is focused on making strategic investments in companies that are expected to outperform.

The group recently announced lab results for a covid-19 test being developed by its subsidiary Paraytec Limited. The test results achieved 94 per cent in sensitivity and 100 per cent in specificity.

The company has given shareholders an annual return of 184.03 per cent, while its market cap stood at £15.53 million.

7. Kodal Minerals PLC (LON: KOD)

FTSE AIM All Share constituent, Kodal Minerals is a mining and mineral development company focused on lithium at the Bougouni Lithium Project and gold assets in Western Africa.

The company recently announced the return of continued high-grade geochemical results from its gold exploration programme at Dabakala Concession site in Côte d'Ivoir.

The company has given shareholders an annual return of 744.28 per cent, while its market cap stood at £64.04 million.

8. Wishbone Gold PLC (LON: WSBN)

Wishbone Gold is a precious metal exploration and trading firm and is listed on the FTSE AIM All Share index. The company announced its final year results for FY 2020, reporting revenue of US$ 1.4 million compared to  US$ 10.760 million in the year before due to covid-19. However, its FY 2020 cash balances increased to US$2.18 million from US$ 17,179 in FY 2019.

The company has given shareholders an annual return of 836.58 per cent, while its market cap stood at £64.04 million.

9. MobilityOne Ltd (LON:MBO)

LSE-listed MobilityOne Ltd is electronic transactions and payments solutions and platform provider.

The company recently announced its unaudited revenues for FY 2020 increased by 45.6 per cent to £246.7 million, from £169.4 million in FY 2019. The company attributed the increase to higher sales in its mobile phone prepaid, airtime reload, and bill payments segment in Malaysia.  Also, its gross profit rose to £12.96 million in FY 2020, from £10.77 million in the year before.

The company has given shareholders an annual return of 647.97 per cent, while its market cap stood at £23.92 million.

10. Zephyr Energy PLC (LON: ZPHR)

Zephyr Energy is an oil and gas company in the Rocky Mountain region, with a focus on investing responsibly and having carbon neutral operations. The company recently announced signing a drilling contract with oil and gas drilling contractor Cyclone Drilling Inc to secure the Cyclone Rig #34.

The rig will be used to drill the State 16-2LN-CC appraisal well in the Paradox Basin located in Utah, US.

The company has given shareholders an annual return of 1025.00 per cent, while its market cap stood at £71.61 million.

Also Read: Top 10 penny stocks for July 2021: A share has returned 200% in June