Summary
- Investors often include penny stocks in their portfolios to exponentially increase return prospects, sometimes capable of outperforming large-cap and mid-cap funds.
- Stocks like Zephyr Energy Plc and Sareum Holdings Plc have returned over 800 per cent to the investors in last one year.
Penny stocks are usually traded at a low price (up to £1) and are issued by firms with a lower market capitalisation and relatively small business operations or have been in business for a significantly lesser amount of time. As a result, penny stocks are often looked at as market traded security which attracts smaller prices from investors.
Hence, penny stocks generally carry a much higher return and have vast growth potential. Consequently, the risk associated with penny stocks is high due to their response to market fluctuations. Additionally, an investor may need to purchase a substantial amount of stock units to become profitable.
Some of these stocks may potentially evolve into multi-baggers (shares that yield in multiples of the investment value). Investors often include penny stocks in their portfolios to exponentially increase return prospects, sometimes capable of outperforming large-cap and mid-cap funds. However, given that the issuers of penny stocks are startups, there is limited information about its growth prospects and financial performance. The international investment landscape has plenty of examples of penny stock scams. Companies and scammers often buy a considerable amount of penny stocks resulting in inflation of their value which attracts other investors to follow.
Here is a list of the top 10 penny stocks that have given a return of 200 per cent or more in the last one year.
1. Zephyr Energy Plc (LON: ZPHR)
Zephyr Energy Plc (formerly Rose Petroleum Plc) is an oil and gas firm focused on carbon-neutral operations and responsible resource development.
In March 2021, Zephyr raised £10 million in the capital, of which $3.5 million funds were used to drill a horizontal appraisal well on existing Paradox Basin acreage and $300,000 for the acquisition of non-operated working interests in five wells operated by Whiting Petroleum Corp, among others. Post the acquisition, Zephyr obtained scheduled monthly revenue payments associated with the Iverson well developments.
On 28 July 2021, Zephyr announced an agreement to acquire an additional 12,260 leased acres to increase its land position in the Paradox Basin.
In the last one year, shares of Zephyr Energy have given 1,099.37 per cent returns as of 04 August 2021, and the stock’s market cap stood at £73.56 million.
2. Sareum Holdings Plc (LON: SAR)
Sareum Holdings, a specialist drug development firm, is developing targeted small molecule therapeutics to improve cancer and autoimmune disease treatment. Despite the COVID-19 pandemic, the company continued to make progress. It received the UK Research & Innovation grant of £174,000 in December 2020 to investigate the therapeutic potential of SDC-1801 in severely infected Covid-19 patients. On 19 July 2021, Sareum announced raising £1 million before expenses through a subscription by a high net worth individual to progress proprietary TYK2/JAK1 programs into clinical development.
In the last one year, shares of Sareum Holdings have given a return of 809.74 per cent as of 04 August 2021, and the company’s market cap stood at £280.02 million.
3. Kodal Minerals Plc (LON: KOD)
Kodal Minerals is engaged in the exploration and development of minerals. The company’s application for Bougouni Mining Licence is now in the final stages of approval at the Mali Ministry of Mines. The company also announced success at its first gold exploration drilling operation at the Nielle concession. The company expects to undertake maiden mineral resource exploration drilling in September 2021. Apart from gold, the company plans to step up its spodumene lithium production used in batteries of EVs, in response to the growing demand for electric vehicles across the globe,
In the last one year, shares of Kodal Minerals returned 658.87 per cent returns as of 04 August 2021, and the company’s market cap stood at £57.72 million.
4. GSTechnologies Ltd (LON: GST)
GSTechnologies Limited is a provider of integrated information and communication technology infrastructure solutions. It is engaged in offering electronic cabling, optimal wireless, and security solutions to infrastructure development projects.
For the year ended 31 March 2021, GSTechnologies’ registered a total income of US$3.41 million, down by 25.1 per cent from the prior year (2020: US$4.55 million). However, the total loss for the year reduced to US$0.33 million as compared to US$0.46 million loss in 2020. In February 2021, the company announced the setting up of a wholly-owned subsidiary GS Fintech Ltd in the UK, and GS Fintech Pte Ltd in Singapore, to expand into blockchain technologies and services.
Recently, on 28 May 2021, GSTechnologies collaborated with Wise MPay Pte Ltd, a Singapore-based blockchain payment company, to expand its blockchain products offerings.
In the last one year, shares of GSTechnologies gave a return of 409.43 per cent as of 04 August 2021, and the market cap of the company stood at £17.31 million.
5. Carclo Plc (LON: CAR)
Carclo Plc is a technology-driven international supplier of fine tolerance; injection moulded plastic components for medical, automotive, diagnostics, aerospace and optical sectors. The company’s revenue from continuing operations was down by 2.7 per cent to reach £107.6 million in 2021 compared to £110.5 million in 2020. The operating profit decreased by £2.5 million to reach £4.8 million in 2021 compared to £7.3 million in 2020 due to the COVID-19 pandemic.
Its largest division, Carclo Technical Plastics, recovered well from the crisis despite supply and operational disruptions. In contrast, the Aerospace division was massively impacted by the pandemic resulting in a significant reduction in order intake.
In the last one year, shares of Carclo has returned 508.65 per cent to its investors, as of 04 August 2021, and the market cap stood at £32.30 million.
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6. Dev Clever Holdings Plc (LON: DEV)
Dev Clever is a company engaged in developing online career guidance and development platforms and consumer engagement programs. Dev Clever reported revenues surge of 531 per cent to reach £2.4 million for the half-year period ended 30 April 2021 (H1 2020: £383k) supported by significant contract wins in its Educate division, while EBITDA loss for the period stood at £162k (H1 2020: loss of £561k).
Recently, on 27 July 2021, it acquired The Inspirational Learning Group Limited, an educational business based in the UK, for £129,200.
In the last one year, shares of Dev Clever Holdings gave a return of 331.03 per cent, as of 04 August 2021, and the market cap of the stock stood at £225.03 million.
7. Jaywing Plc (LON: JWNG)
Jaywing is a data science-driven integrated agency engaged in offering digital marketing services. Recently, on 16 July 2021, the company inked a contract with Skipton Building Society, one of UK’s largest building societies, as its strategic and brand agency partner. Over the next three years, the contract is expected to generate revenues of up to £3 million.
For H1 2020 ended on 30 September 2020, the company’s net revenues reached £9.34 million, down from £12 million in H1 2019. It registered a £2.0 million improvement in adjusted EBITDA to £1.4 million in H1 2020, compared to £0.6 million in H1 2019.
In the last one year, shares of Jaywing have returned 295.69 per cent as of 04 August 2021, and the market cap of the stock stood at £10.50 million.
8. ADVFN Plc (LON: AFN)
ADVFN is a website offering information about global shares, stocks, and crypto. It also offers market-leading financial tools and data to private investors across the world. For the year ended 30 June 2021, Advfn expects to report revenues of around £9 million as compared to £7 million in 2020. The company’s user base grew to 5 million in 2021 from the previous year’s 4.8 million. The expected profit before tax for the period is likely to be £1.6 million.
In the last one year, shares of Advfn have given a return of 261.17 per cent returns as of 04 August 2021, and the market cap stood at £17.89 million.
9. Xpediator Plc (LON: XPD)
Xpediator is a company engaged in providing freight management services in the UK, and Central and Eastern Europe. As per the trading update announced on 25 June 2021, the demand for Xpediator’s services across all divisions has been strong, although some subdivisions of the Transport and Logistics & Warehousing division were impacted by the Covid-19 pandemic. These subdivisions are currently trading positively. Consequently, full-year adjusted profit before tax is expected to reach £8.5 million.
On 8 June 2021, the group also announced the completion of a new purpose-built 200,000 sq. ft. facility at Southampton's Container Port to expand its focus on port centric warehousing and logistics in the UK.
In the last one year, shares of Xpediator have given a return of 236.91 per cent, as of 04 August 2021, and the market cap of the company stood at £111.93 million.
10. MobilityOne Ltd. (LON: MBO)
MobilityOne is a provider of e-commerce infrastructure payment solutions and platforms. For the financial year ended 31 December 2020, revenues were up by 45.6 per cent to reach £246.7 million (2019: £169.4 million), on account of higher sales in Malaysia’s e-payment business, and particularly mobile phone prepaid airtime reload and bill payment business. As a result, the company’s profit before tax increased to £2.26 million in 2020 compared to £1.08 million in 2019.
On 21 May 2021, MobilityOne, through its subsidiary MobilityOne Malaysia received an issuing license for MasterCard prepaid cards in Malaysia. In addition, MobilityOne Malaysia also received permission from the Society for Worldwide Interbank Financial Telecommunication, a leading global provider of secure financial messaging services, to join its network.
In the last one year, shares of MobilityOne has given a return of 203.54 per cent as of 04 August 2021, and the market cap of the stock stood at £26.57 million.
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