Seven UK Penny Stocks That Are Worth a Look For 2024

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High-growth small-cap companies are the backbone of the British stock markets and allocating a little bit of capital to penny stocks can pay off. These shares are high up on the risk spectrum. However, they can potentially deliver explosive returns.

Here, I am going to highlight seven UK penny stocks that I feel are worth a look in January 2024. Among the seven stocks, you’ll find a video gaming business, a clinical trials company, a cellular agriculture investment company, a 5G play, and more.

Costain Group

First up is Costain Group (LON:COST). It’s a leading sustainable infrastructure solutions company.

Costain shares have had a good run recently. Thanks to strong H1 results – and talk of a return of dividends – they rose about 60% last year.

However, there could be more gains to come here. For 2023, Costain’s earnings per share (EPS) are expected to come in at 10.8p. At today’s share price of 63p, that puts the company’s price-to-earnings (P/E) ratio at just six – less than half the UK market average.

It’s worth noting that in September, analysts at Peel Hunt upgraded Costain from ‘hold’ to ‘buy’. They also raised their price target from 60p to 80p. That implies upside of around 27% from current levels.


Another penny stock that looks really cheap as we start 2024 is Renold (LON:RNO). It’s an international supplier of industrial chains and related power transmission products.

Renold recently produced a strong (record) set of interim results. For the half year ended 30 September, revenue was up 7.7% year on year while adjusted EPS were up 40.7%.

This momentum doesn’t seem to be reflected in the share price, however. For the year ending 31 March 2024, analysts expect EPS of 6.8p. That puts the company’s P/E ratio at less than six right now. At that multiple, there is plenty of scope for gains in 2024 if the company can continue to deliver.


In the healthcare space, one stock that is worth highlighting is hVivo (LON:HVO). It’s a fast-growing contract research organisation (CRO) that specialises in testing infectious and respiratory disease vaccines and antivirals for biotech companies.

This company has a lot of momentum at present. In December, it told investors that recent trading had been strong across the group (and ahead of guidance). Meanwhile, on 2 January, it advised that it had won a new £6.3 million contract with a biotech client.

hVivo shares currently trade on a P/E ratio of around 22, using the EPS forecast for 2024. That multiple seems very reasonable given the growth the company is generating right now.

Calnex Solutions

Turning to the Technology sector, Calnex Solutions (LON:CLX) stands out as a potential hidden gem. It’s a Scottish company that specialises in testing and measurement services for the telecoms industry.

Up until recently, Calnex had an excellent growth track record. However, lately, growth has stalled as a result of a downturn in spending across the telecoms industry. This has pushed the company’s share price down significantly.

There’s scope for a rebound, however. In the years ahead, the continued rollout of 5G technology should create high demand for network testing services. And Calnex has said that it expects to return to growth soon.

It’s worth noting that Calnex is led by founder Tommy Cook, who owns a lot of shares in the company. So, management’s interests are aligned with those of shareholders.

Seeing Machines

Another technology company that looks interesting at present is Seeing Machines (LON:SEE). It’s an under-the-radar business that specialises in technology that helps machines (cars, trucks, buses, planes, etc.) see, understand, and assist human operators.

Seeing Machines’ most recent results were very strong. For the year ended 30 June 2023, revenue was up 48% to $57.8 million (ahead of market expectations).

Looking ahead, we can expect to see further growth. By FY2026, Seeing Machines expects its revenue to be at least $125 million.

It’s worth noting that this company is not profitable at the moment, so the stock is more speculative. With this kind of penny stock, it’s crucial to right-size your position to manage risk.

Gaming Realms

Investors that like tech stocks may also want to check out Gaming Realms (LON:GMR). It’s a B2B developer, licensor, and distributor of mobile-focused gaming content.

This is another company with plenty of momentum at present. For the six months to the end of June, total revenue was up 36% year on year while profit before tax was up 74%.

And management appears to be confident about the future. “The Group has a strong pipeline of new business and the outlook for the Group remains positive,” commented CEO Mark Segal in the H1 results.

Looking at analysts’ EPS forecasts, Gaming Realms currently trades on a forward-looking P/E ratio of 14. That’s a low multiple given the growth the company is generating. So, now could be a good time to take a closer look at the penny stock.


Finally, we have Agronomics (LON:ANIC). It’s an Isle of Man-based investment company that is focused on investment opportunities within the field of cellular agriculture (the production of animal-sourced foods from cell culture).

Cellular agriculture has the potential to address many of the world’s biggest challenges, including future food shortages, greenhouse gas emissions, water pollution, deforestation, ocean health, animal cruelty, and climate change in general. So, there appears to be a lot of investment potential here.

Of course, cellular agriculture is a relatively new field. That means it’s risky from an investment perspective.

However, with the stock down from 30p in late 2021 to around 10p today, and revenues and profits on the rise, the risk/reward proposition is looking quite attractive at present.

Edward Sheldon has a position in Calnex Solutions

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