UK Penny Stocks To Watch In December 2025

The UK market has been experiencing turbulence, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China, highlighting ongoing global economic challenges. Despite these conditions, penny stocks continue to attract attention for their affordability and potential for growth. Although the term 'penny stock' might seem outdated, these smaller or newer companies can offer significant opportunities when backed by strong financials.

Top 10 Penny Stocks In The United Kingdom

Name	Share Price	Market Cap	Rewards & Risks
Foresight Group Holdings (LSE:FSG)	£4.28	£491.52M	✅ 5 ⚠️ 0 View Analysis >
Warpaint London (AIM:W7L)	£1.95	£157.54M	✅ 4 ⚠️ 2 View Analysis >
Quartix Technologies (AIM:QTX)	£2.75	£133.18M	✅ 5 ⚠️ 2 View Analysis >
Ingenta (AIM:ING)	£0.995	£15.02M	✅ 2 ⚠️ 3 View Analysis >
System1 Group (AIM:SYS1)	£2.30	£29.18M	✅ 3 ⚠️ 2 View Analysis >
Integrated Diagnostics Holdings (LSE:IDHC)	$0.715	$415.65M	✅ 4 ⚠️ 2 View Analysis >
Impax Asset Management Group (AIM:IPX)	£1.53	£185.3M	✅ 3 ⚠️ 2 View Analysis >
Spectra Systems (AIM:SPSY)	£1.53	£73.88M	✅ 3 ⚠️ 2 View Analysis >
M.T.I Wireless Edge (AIM:MWE)	£0.46	£39.65M	✅ 3 ⚠️ 3 View Analysis >
Begbies Traynor Group (AIM:BEG)	£1.145	£184.26M	✅ 6 ⚠️ 1 View Analysis >

Click here to see the full list of 303 stocks from our UK Penny Stocks screener.

Here's a peek at a few of the choices from the screener.

Anglo Asian Mining (AIM:AAZ)

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

Overview: Anglo Asian Mining PLC, with a market cap of £305.86 million, owns and operates gold, silver, and copper producing properties in the Republic of Azerbaijan.

Operations: The company's revenue from mining operations amounted to $67.14 million.

Market Cap: £305.86M

Anglo Asian Mining PLC, with a market cap of £305.86 million, is actively expanding its operations in Azerbaijan. Recent upgrades at the Gedabek flotation plant are set to boost future copper production, following the installation of new filter presses and flotation cells. The company has secured a concentrate sales contract with Trafigura and obtained necessary operational licenses from the Azerbaijani government. Despite being unprofitable with negative return on equity, Anglo Asian's debt levels are manageable, supported by strong operating cash flow coverage. The stock remains volatile but trades below estimated fair value without significant shareholder dilution recently.

• Click here to discover the nuances of Anglo Asian Mining with our detailed analytical financial health report.
• Gain insights into Anglo Asian Mining's outlook and expected performance with our report on the company's earnings estimates.

Filtronic (AIM:FTC)

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

Overview: Filtronic plc designs, develops, manufactures, and sells radio frequency (RF) technology globally with a market cap of £367.30 million.

Operations: The company generates revenue of £56.32 million from its Wireless Communications Equipment segment.

Market Cap: £367.3M

Filtronic plc, with a market cap of £367.30 million, is advancing its position in the RF technology sector through strategic contracts and innovations. Recent client announcements include a £7 million Authorisation to Proceed from a major European defence prime and a €7 million contract for Low Earth Orbit satellite constellations. The company benefits from no debt and strong financial metrics, such as high return on equity (39.7%) and significant earnings growth (347.3% last year). Despite these strengths, future earnings are forecasted to decline by 13.7% annually over the next three years, indicating potential challenges ahead.

• Get an in-depth perspective on Filtronic's performance by reading our balance sheet health report here.
• Learn about Filtronic's future growth trajectory here.

AO World (LSE:AO.)

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

Overview: AO World plc, along with its subsidiaries, operates as an online retailer specializing in domestic appliances and ancillary services in the United Kingdom and Germany, with a market capitalization of approximately £621.06 million.

Operations: The company generates revenue of £1.21 billion from its online retailing of domestic appliances and ancillary services.

Market Cap: £621.06M

AO World plc, with a market cap of £621.06 million, shows financial stability through well-covered interest payments and short-term assets exceeding liabilities. Despite experiencing negative earnings growth of -57.6% over the past year, its revenue for the half-year ended September 30, 2025 increased to £585.6 million from £512.1 million the previous year, indicating potential recovery momentum. The company has reduced its debt-to-equity ratio significantly over five years and maintains more cash than total debt, supporting a strong balance sheet despite recent insider selling and lower profit margins impacted by one-off losses of £22.9 million.

• Dive into the specifics of AO World here with our thorough balance sheet health report.
• Explore AO World's analyst forecasts in our growth report.

Where To Now?

• Click here to access our complete index of 303 UK Penny Stocks.
• Looking For Alternative Opportunities? Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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