Summary 

• Penny stocks refer to the common stocks that are traded below £1 and have a market capitalisation of less than £100 million.
• Penny stocks are generally linked to small companies and traded occasionally.
• The stocks usually are small companies offered in the marketplace are mainly in growing stage with limited resources and cash.

While investing in stocks, one should look for a well-balanced portfolio. Besides having dividend paying stocks for long term, penny stocks are grabbing the eyeballs of investors worldwide due to their low price offers immense opportunity. Penny stocks can be classified as the stocks or shares which trade below £1 in the United Kingdom. Shares of companies, which have a market cap below £100 million in the UK, and below $300 million in the US, are considered as penny stocks. The stocks usually are of small companies offered in the marketplace are mainly in growing stage with limited resources and cash. The penny stocks are known for its volatile and risky nature. Penny stocks are traded or listed on the FTSE AIM (Alternative investment market) Index.

Why to choose penny stocks

Though there is risk attached with penny stocks, one cannot overlook that they can give a massive profit at a faster rate. Other major advantage as they are cheaper, any investor can put in their money without engaging a big amount of money.

Besides, penny stocks give an opportunity to add niche businesses to one’s portfolio that might have the potential to grow in the future.

Points to remember

• One should not put all his money in just penny stocks. A balanced portfolio consisting of large, medium, small caps is always beneficial.
• Penny stocks should be constantly monitored as their value can fluctuate very frequently.

Top 10 Penny Stocks in UK

1. Quantum Blockchain Technologies Plc (LON: QBT)

Founded in 1999, Quantum Blockchain Technologies Plc, formerly known as Clear Leisure plc, is a development-stage company engaged in the business of investing, identifying, and acquiring companies, projects and assets in the technology sector. The company’s current market capitalization is £7.85 million, as of 26 July 2021. In the last 52 weeks, the company gave a 452% return to its shareholders. Quantum Blockchain shares were trading at GBX 1.25 on 26 July at 12.12 pm GMT+1.

2. Itaconix Plc (LON:ITX)

Itaconix Plc is a UK-based company engaged in the business of production and commercialization of functional ingredients which are used in consumer products such as auto dish wash pods, laundry detergents, hair styling and odor management products. The company operates through two segments including personal care, and homecare and industrial.  The company’s current market capitalisation is £45.45 million, as of 26 July 2021. Recently, the company announced that its overall revenue was up by 39% in the first five months of 2021 as compared to 2020. Itaconix stock has given over 620% return to its shareholders in the last one year, as of 22 July 2021. Its shares were trading at GBX 10.75 on 26 July at 12.20 pm GMT+1.

3. PetroNeft Resources Plc (LON:PTR)

PetroNeft Resources plc is a global exploration company engaged in the production, development and exploration of oil and gas. The company is registered in Dublin and mainly operates in Dublin. The company listed on the London Stock Exchange and Dublin ESM Markets.  This year, the company converted around US $2.9 million of debt into equity and issued around 126 million new shares. Its stock has given over 457.63% return to its shareholder in the last one year, as of 26 July 2021. The company’s current market capitalisation is £34.49 million as of 26 July 2021. Its shares were trading at GBX 3.30 on 26 July at 12.20 pm GMT+1.

4. Comptoir Group Plc (LON:COM)

Comptoir Group Plc is a UK-based company engaged in operating restaurants that offers Lebanese and Middle Eastern cuisine menus. The company owns and operates approximately 15 Lebanese and Eastern Mediterranean eateries in the greater London and Manchester area. Comptoir Libanais is the primary brand of the company and operates 11 Lebanese and Eastern Mediterranean restaurants. Its stock has given over 212.50% return to its shareholder in the last one year, as of 26 July 2021. The company’s current market capitalisation is £9.20 million, as of 26 July 2021. The company reported revenue of £12.5 million and gross profit of £9.3 million for FY20. Its shares were trading at GBX 7.50 on 26 July at 12.20 pm GMT+1.

5. Zephyr Energy Plc (LON: ZPHR)

Formerly known as Rose Petroleum plc, Zephyr Energy Plc is a UK-based oil and gas company that was founded in 2007. The company offers investment platform of oil and gas, which operates in the Rocky Mountain region of the US. The company’s headquarters are located in the UK. Its stock has given over 587.53% return to its shareholder in the last one year, as of 26 July 2021. The company’s current market capitalisation is £ 72.27 million, as of 26 July 2021. Its shares were trading at GBX 6.55 on 26 July at 1 pm GMT+1.

6. MobilityOne Limited (LON:MBO)

MobilityOne Limited is a provider of e-commerce infrastructure payment solutions and platforms, founded in 2007. The company’s headquarters are located in the Malaysia. The company operates through various segments including electronic commerce solutions, Hardware and Telecommunication services. The company offers its technology through MoCS brand and ABOSSE brand. MobilityOne stock has given over 91% return to its shareholder in the last one year, as of 22 July 2021. The company’s current market capitalization is £28.70 million, as of 26 July 2021. The company reported a 45.6% rise in revenue in 2020 at £246.7 million (2019: £169.4 million). Its shares were trading at GBX 27 on 26 July at 1 pm GMT+1.

7. ADVFN Plc (LON:AFN)

ADVFN Plc is a UK-based company engaged in the development and provision of financial information mainly with research services, exploitation, and development of ancillary websites. It also deals with cryptocurrency and forex information. Its stock has given over 263.14% return to its shareholder in the last one year, as of 26 July 2021. The company’s current market capitalization is £17.89 million, as of 26 July 2021. Its shares were trading at GBX 70 on 26 July at 1 pm GMT+1.

8. Premier African Minerals Limited (LON:PREM)

Premier African Minerals Limited is mining company engaged in mining and development of natural resources, founded in 2007. The company’s headquarters are located in the Togo. The company’s focus is on acquiring and developing mineral properties. The company operates through various segment including Zulu and Zulu Mauritius segment and RHA and RHA Mauritius segment. Its stock has given over 323.08% return to its shareholder in the last one year, as of 26 July 2021. The company’s current market capitalisation is £37.30 million as of 26 July 2021. Its shares were trading at GBX 0.21 on 26 July at 1 pm GMT+1.

9. Oilex LD (LON:OEX)

Oilex LD is an oil and gas company that was founded in 1997. The company is engaged in development, production and exploration of oil and gas prospects. The company has its operations in Australia, Indonesia, India, and Joint Petroleum Development Area (JPDA). The company’s headquarters are in Australia. Its stock has given over 174.83% return to its shareholder in the last one year, as of 26 July 2021. The company’s current market capitalisation is £8.32 million as of 26 July 2021. Its shares were trading at GBX 0.21 on 26 July at 1 pm GMT+1.

10. Ebiquity Plc (EBQ)

Founded in 1997, Ebiquity Plc is a UK-based holding marketing and media consultancy company. The company operates in three segments: Marketing Performance Optimization, Media Value Measurement and Market Intelligence. The company has 18 offices globally and operates in 14 high-value advertising markets, including Singapore, Sydney, Paris, Madrid, London, Shanghai, New York, and Madrid. Its stock has given over 187.44% return to its shareholder in the last one year, as of 26 July 2021. The company’s current market capitalisation is £57 million as of 26 July 2021. Its shares were trading at GBX 0.21 on 26 July at 1 pm GMT+1.