The Premier Miton Group (LSE: PMI) share price is down 40% in five years and is well below the 100p level for penny shares. But a modest 2025 rise has pushed the market-cap above the usual £100m limit, but only just.
It’s an investment management company. And faced with high interest rates and shaky economies, investors have been favouring savings accounts, gold, and safer things rather than stocks and funds.
With just £10.4bn in assets under management, this is a sector tiddler. And that has to raise the risk.
But the stock was boosted by first-half results. Profit before tax reached £5.4m, and the company held £31.2m cash with no debt. Also by 22 May, 71% of funds were outperforming their sectors.
There’s a forecast 9% dividend yield, which could be at risk as economic pressures continue. This isn’t the safest penny stock out there. But I’d say the recovery potential makes it worth considering.
Biotech rebound?
Avacta Group‘s (LSE: AVCT) a biotech company specialising in diagnostics and therapeutics. The share price had a couple of good Covid years as the company developed test kits. But that’s long since faded and we’ve seen a five-year fall of more than 75%.
At around 34p, at the time of writing, it’s a penny share on that score. And I don’t think the market-cap’s too far out at £135m. The main problem’s a lack of profit.
With full-year results delivered on 6 June, CEO Christina Coughlin said the company’s oncology technology “has the potential to treat up to 90% of solid tumors by repurposing a range of effective oncology drugs to significantly reduce toxicity and side effects.” But it’s only just moving towards the Phase 1 trial stage.
Results showed a loss from continuing operations of £29m, with cash and equivalents of £12.9m on the books at 31 December 2024.
The likelihood of needing more cash seems high. So it’s a very risky one. But the rewards could be significant. Worth a closer look, I’d say.
Property future
I like housebuilders, but AIM-listed Springfield Properties (LSE: SPR) had escaped my eye. We’re looking at a market-cap of £112m, with the share price a few pennies below the magic pound threshold. It was up over 170p in mid-2021. The forecast price-to-earnings (P/E) ratio’s only 7.5.
Revenue fell 13% in the first half, though some blame was directed at Scottish government delays in affordable housing contracts. Scotland? Oh yes, that’s were this builder lays its bricks.
The report showed higher profits, with a gross margin rising to 17.7% from 14.7%. The company said it has a “large, high quality land bank“. And it added that the “long-term fundamentals of the Scottish housing market remain strong“. Net bank debt fell 33%.
I’d say the smaller focus means more risk than nationwide builders. But if we’re seeing the signs of a new bull run, as I suspect, it could be another cheap stock to consider now.
