The flip side, of course, is that penny stocks are notoriously high-risk. For every Filtronic, there are many dozens that completely bomb. Therefore, while exciting, I would only ever invest a very small part of my portfolio in an ultra-small-cap stock.

But that might be all that’s needed. Returning to Filtronic, for example, £150 invested in this stock five-and-a-half years ago would now be worth nearly £5,000!

With this in mind, here’s an interesting 7p penny stock. It might not generate Filtronic-style returns, but I still think it’s worth attention today.

Aiming to top the market

DP Poland (LSE:DPP) is the operator of Domino’s Pizza stores and restaurants across Poland and Croatia. In the first quarter, group system sales jumped 18.9% to £17.2m at constant currency (up 22.7% on a reported basis). Orders rose 13.7% to 1.3m and like-for-like sales were up 8.9%.

The firm added six new stores to the network during the period, bringing the total Domino’s stores to 141 (135 in Poland and 6 in Croatia). And after acquiring local Polish rival Pizzeria 105 last year, it also has 71 of these locations. It has so far converted 17 to the Domino’s brand.

While DP Poland is still loss-making, it’s moving towards a franchise-led, capital-light operating model. Some 35% of the estate is now franchised, and as more locations head that way, management expects margins to improve significantly.

With 141 Domino’s stores now operating across the group and strong sales momentum in both markets, we see significant opportunity ahead. Our priorities remain clear: accelerating the franchise transition and conversion of Pizzeria 105 stores to Domino’s, expanding towards our 200‑store target by the end of 2027, and delivering sustainable margin improvement and long‑term shareholder value.
CEO Nils Gornall

A few potential risks

Of course, DP Poland is a penny stock for a reason. It has a long history of losses, and there’s no guarantee its franchise-led strategy will pay dividends (metaphorically and literally!)

Moreover, I see two specific risks worth highlighting. The first is pressure on consumer spending — and DP Poland’s input costs — from the inflationary Iran war (higher fuel, food and energy bills).

The second is the rise of GLP-1 weight-loss drugs, which tend to suppress cravings for calorie-rich food like pizza. While DP Poland could always adapt its menu in response, it’s still a potential future threat to sales growth.

However, as a speculative high-risk, high-reward penny stock, I think DP Poland at 7p is worth considering. Analysts expect the company to start posting profits in the next couple of years, driven by the capital-light franchising pivot and Poland’s strong economy (the fastest-growing among large EU nations).

I see no reason why Domino’s can’t continue expanding over time in Poland and Croatia. Just six stores in Croatia sounds quite low to me.

That said, I don’t think investors should go daft with the position sizing. The stock’s only a small part of my own portfolio today and I’m happy to keep holding at that level.

The post £150 to spare? Consider buying this 7p penny stock appeared first on The Motley Fool UK.

Below, I’m going to highlight three stocks that came up on my screen. If analysts are right, these penny shares could be set to soar.

An AI play

First up, we have Made Tech (LSE: MTEC). It’s a small tech company that’s helping the UK government with digital transformation (data, automation, AI, etc)

At present, it trades for around 38p. However, the average analyst price target is 60p – 58% higher.

I think this stock could be worth a closer look. Because it appears to offer a nice combination of growth and value right now.

This financial year (ending 31 May), revenue is expected to grow 19%. The valuation isn’t high though – the forward-looking price-to-earnings (P/E) ratio is only 15.

Of course, a risk is a cutback on tech spending by the UK government. This could see growth slow.

A trading update in December was very encouraging, however. Trading was better than expected and management said that it was “optimistic” and “confident” in relation to the outlook.

A pizza chain trading at a discount

Next, we have DP Poland (LSE: DPP). It operates the Domino’s Pizza chain in Poland and Croatia.

It currently trades for around 7.6p. Yet the average price target is 14p – about 84% higher.

This is another company that could be worthy of further research. Because like Made Tech, it appears to offer both growth and value.

Last year, the company delivered group system sales growth of 11.3%, so it’s growing at a healthy rate. As for the valuation, it currently sports a price-to-sales ratio of just 1.1 – well below the ratio of 2.6 that US-listed Domino’s Pizza has today.

It’s worth noting that DP Poland hasn’t been profitable up to now. So, it’s higher up on the risk spectrum.

I see potential, however. With the company shifting to a franchise-led, capital-light model, there’s plenty of room for profit (and share price) growth.

A takeover target?

Last but not least we have Corero Network Security (LSE: CNS). This is a small UK cybersecurity company that specialises in Distributed Denial of Service (DDoS) protection. A DDoS attack is an attempt to disrupt a server, service, or network by overwhelming it with a flood of internet traffic.

The share price here is 12p. Yet the average analyst price target is 19p – about 58% higher.

This stock has been a poor performer over the last year or so. And at current levels, I think it’s worth checking out.

In January, the company posted a strong trading update in which it advised that it experienced positive trading momentum throughout the second half of 2025. Encouragingly, annualised recurring revenues (ARR) increased 23% to $23.9m, signalling high demand for its cybersecurity solutions.

It’s worth pointing out that competition from larger players in the industry is a risk here. That said, the cybersecurity industry is experiencing a period of consolidation right now and I wouldn’t be surprised if this company was to attract takeover interest.

The post 3 penny shares tipped to soar in 2026 appeared first on The Motley Fool UK.

Unsurprisingly, the performance of this handful of speculative shares diverges wildly. For example, one (Joby Aviation) is up more than 200% since I first invested at $4, while another — DP Poland (LSE:DPP) — has dropped 25% since I bought it at 10p.

DP Poland’s a little disappointing. This is the Manchester-based operator of Domino’s Pizza stores across Poland and Croatia.

The penny stock is down 70% over a decade, but up 80% in six years. So it’s been a wild ride. Where might it go next?

Why I’m optimistic

As mentioned, the firm operates the Domino’s brand in Poland and Croatia. It recently exercised its 10-year renewal option for the franchise rights, through to 31 August 2035.

But why Poland (where most of the firm’s operation is today)? Well, the country’s economy is growing faster than Western Europe, with major cities developing rapidly (boosted by tourism and a rising middle class).

This should drive higher demand for Domino’s over the long run, as it tends to do well in markets with high-density cities. Obviously, Domino’s is famous for its speedy food delivery service. 

The company is growing, with revenue expected to hit £70m next year (up from £14m in 2020). Earlier this year, it snapped up Pizzeria 105, the fourth-largest pizza brand in Poland. This accelerated its pathway to 200 stores in the country.

With record trading levels, profitability improving, and a scalable platform for growth, DP Poland remains well positioned to deliver sustained, profitable expansion and long-term market leadership.

DP Poland

What are the risks?

The main risk is that DP Poland is still unprofitable. Back in September, it reported a £0.46m loss.

Of course, that’s a small loss, meaning the firm is moving closer to profitability. But it still adds risk because the business doesn’t have a track record of generating positive earnings (and might never do so).

Given this, there’s a possibility that the company will need to tap shareholders for more money in future, resulting in share dilution.

Finally, while the company reported a 6.5% increase in orders in Q3, like-for-like sales in Poland only grew by 1.1%. So there seems to be a bit of consumer weakness right now.

ChatGPT

Have I made a mistake then? I asked ChatGPT for its input, despite it being a robot that has never visited Poland nor eaten a pizza. It might give me something valuable.

ChatGPT started off by saying DP Poland is “the kind of thing that can make your portfolio feel like a dodgy kebab after a night out“. It knows me well.

Then it proceeded to tell me what I already knew. The bull case revolves around a strong brand, growing store count, improving margins, and Poland’s growing economy. The bear case is summed up as losses, dilution, and competition.

The bot said if it’s more than 1%–2% of my portfolio, I’ve taken too much risk. Thankfully it’s under 0.3%.

One thing ChatGPT didn’t mention was the firm’s pivot to a capital-light franchise model. I’m expecting this to noticeably improve margins over time.

I’m going to keep holding. But investors considering this penny stock should know it remains a risky moonshot near 7p.

The post I asked ChatGPT if I made a big mistake buying this 10p penny stock appeared first on The Motley Fool UK.

Here are two penny shares I think are worth considering today.

A potential hidden gem

Windar Photonics (LSE: WPHO) is a Danish firm with a £61m market-cap that manufactures innovative, affordable LiDAR systems for turbine tuning. These measure wind direction and speed so the turbines can face into the wind more accurately and generate extra power.

Last year, the company reported revenue of €4.6m, with an EBITDA loss of €0.4m. However, this year the top line’s expected to increase substantially, to around €9.5m, with a small profit to boot.

Then forecasts for 2026 put revenue at €14.6m and net profit at €4.3m.

Windar has also had early success with its Nexus software offer, which monitors turbine performance. Launched in 2024, it’s been included in a handful of new contract wins, as well as receiving its first standalone software order.

On this pure software deployment, the firm said: “The order comes from an existing customer and is a positive step towards Windar’s vision of becoming a leading provider of Turbine Optimization and Monitoring solutions with transition towards achieving significant recurring revenues“.

Of course, the fact that Windar’s loss-making adds risk. The company will need to keep winning contracts for the stock to do well.

Looking ahead however, management’s confident about its pipeline of opportunities in North America, Europe, Asia and Australasia.

Earlier this year, Windar initiated its first major test with a large European independent power producer involving offshore wind turbines. So the opportunity extends to retrofitting systems onto offshore as well as onshore wind turbines. The market opportunity’s therefore expanding.

This small-cap company’s on the cusp of profitability and has real business momentum on its side. And the best news is that the price-to-earnings growth (PEG) ratio’s just 0.3. That sits well under the PEG ratio of 1, typically seen as the benchmark for fair value.

Pizzas in Poland

Turning to DP Poland (LSE: DPP) now, this penny stock has a market-cap of £94m. It operates the Domino’s Pizza franchise in Poland and Croatia.

Last year, revenue jumped 20% to £53.6m, with a strong 11.4% increase in like-for-like (LFL) order count. And while LFL sales slowed to 2.9% in the first half of 2025, the company acquired the fourth-largest pizza brand in Poland (Pizzeria 105) in March.

This acquisition moves the company closer to establishing Domino’s as the market leader in Poland.

Now, it should be noted that there’s a lot of competition in Poland, so it won’t be easy. Speaking personally, whenever I’m in the country, I prefer Zapiekanka. That’s the famous street-food pizza baguette that’s as delicious as it is dangerous for my waistline. 

However, given the strength of the brand, I don’t think DP Poland’s ambition to be the market leader is far-fetched. At the end of June, the group operated 117 Domino’s stores and 90 Pizzeria 105 locations. Longer term, it’s aiming for 500+ stores.  

Meanwhile, DP Poland’s advancing to a capital-light, franchisee-led model, which should see it turn profitable over the next couple of years.

The post 2 penny shares to consider for an ISA in September appeared first on The Motley Fool UK.

This week, DP Poland (LSE:DPP) caught my attention. The penny stock’s been quietly making progress over the last five years, and its share price is actually already up over 70% since September 2023. Yet if analyst forecasts are right, more chunky dividend growth could be just around the corner. At least that’s what a 17p price target suggests, versus the 10p shares that are currently trading at.

So what does DP Poland do? What’s behind the bullish forecast? And is now the time to think about buying?

Capital-light pizza

DP Poland’s a very similar business to another London incumbent – Domino’s Pizza Group. The company holds the master franchise rights for Domino’s Pizza in Poland and Croatia, operating a network of 122 stores. However, following its acquisition of Pizzeria 105 earlier this year, 90 new franchise locations have since been added to its network, which are in the process of being re-branded as Domino’s.

This deal’s a big catalyst behind the bullish sentiment. Beyond adding scale, it pushes the firm even further into its franchise-led, capital-light model while reaching new cities and customers overnight. The impact of this is only amplified by the rapid expansion of the online food delivery market in Poland, which is currently booming at a 50% annual growth rate. And a similar story’s beginning to emerge in Croatia.

Needless to say, having a market-leading brand, a debt-free balance sheet, double-digit revenue growth, and expanding profit margins is an impressive feat. And it’s especially rare for a penny stock trading at what seems to be a pretty cheap valuation. After all, its price-to-operating cash flow ratio sits at just 17.5 – half of its historical levels. So is this a screaming buy?

Taking a step back

There’s a lot to like about this business. However, even the most promising enterprises have their weak spots. And in the case of DP Poland, there are a few things investors need to carefully consider.

Profit margins have been expanding over the years, but the bottom line is still in negative territory, resulting in a long history of cash burn. As a result, the company’s been raising a lot of capital over the years, resulting in enormous equity dilution. For reference, the number of shares outstanding has surged from 153 million in 2018 to 920 million today.

With the company on the verge of entering the black, that may no longer be a prominent concern. However, this is also dependent on the acquisition of Pizzeria 105 going smoothly. That’s far from guaranteed, especially considering this is the firm’s first large-scale merger. Any hiccups along the way or weaker-than-expected sales from acquired locations could push margins back in the wrong direction.

All things considered, DP Poland seems to be an attractive opportunity right now. That’s why I think this penny stock deserves a closer look from investors seeking some exposure to the burgeoning Polish fast food market and geographic diversification.

The post At 10p, is this penny stock a screaming buy? appeared first on The Motley Fool UK.

That said, if investors can find the right small-cap share, the gains can be very lucrative. We’ve seen that recently with Filtronic, a former penny stock that has rocketed 627% since the start of 2024 due to a game-changing partnership with SpaceX.

DP Poland at a glance

One penny stock I think has a lot of potential is DP Poland (LSE: DPP). The AIM-listed company operates the Domino’s Pizza franchise across Poland and Croatia.

At the end of March, the group had 120 stores under the Domino’s brand (115 in Poland and 5 in Croatia), and 90 stores under Pizzeria 105, following a recent acquisition.

In 2024, revenue jumped 20.2% year on year to £53.6m, with strong like-for-like (LFL) sales growth of 17.9% in local currencies. This was the firm’s third consecutive year of double-digit LFL sales growth.

Management says performance was “driven by a significant rise in order volumes and successful customer acquisition initiatives.” It’s also got a well-oiled delivery operation, as one would expect from Domino’s, which is increasingly popular in Poland.

Impressively, last year’s average weekly order count reached 827, a 13.2% increase. And trading in the first few months of this year is off to a good start.

Moving towards profitability

There are a handful of things I like here. The strategic acquisition of Pizzeria 105, the fourth-largest pizza brand in Poland, accelerates the firm’s push towards operating 200 Domino’s stores by the end of 2027.

We are positioned to become the leading player in the Polish pizza sector in the coming years.

David Wild, DP Poland Non-Executive Chair

This acquisition, which cost £8.5m, also fast-tracks the group’s transition towards a predominantly franchised, capital-light model. Pizzeria 105 already operates a 100% franchised network of 90 stores, and this deal gives Domino’s an additional presence in 31 new Polish cities.

The company ended the year with a debt-free balance sheet and £11.3m in cash. And losses narrowed significantly, falling to £0.5m from £5m the year before. Adjusted EBITDA jumped 37.6% to £4.8m.

Risks to bear in mind

Encouragingly then, DP Poland appears to be moving towards profitability. But a key risk here is that the firm has quite a long track record of losses, and this shouldn’t be ignored.

There’s also lots of competition in Poland, with more restaurants and takeaways offering home delivery options.

Meanwhile, any spike in inflation could increase the cost of raw ingredients, as well as put pressure on consumer spending. In this scenario, the march towards profitability could suffer a setback.

Worth a look

The stock is down 21% since March and now trades at just under 10p. This gives DP Poland a £90m market cap and reasonable price-to-sales ratio of 1.7.

Due to the risks involved, I only have a small position in the stock. But I think it has solid growth potential and is worth considering.

Over the next few years, disposable incomes are expected to rise in Croatia and Poland (two of Europe’s fastest-growing economies). Consequently, management thinks there’s potential for 500+ locations over the long run.

The post 1 penny stock to consider snapping up while it’s still under 10p!  appeared first on The Motley Fool UK.

In other words, we’re not simply looking to cash out when a former penny stock hits the big time. Instead, as Fools, we’re looking for long-term investments in quality — but perhaps underappreciated — companies. Here are four of our contributors’ favourites for investors to consider buying right now!

Agronomics

What it does: This investment company focuses on cellular agriculture, precision fermentation, and biomanufacturing.

By Charlie Carman. From deforestation to greenhouse gas emissions to antibiotic use on livestock, there are many problems with conventional farming methods. Agronomics (LSE:ANIC) invests in companies offering innovative solutions to these issues.

The UN predicts that global food output needs to rise 60% by 2050. Novel agricultural developments will be required to meet exploding demand, and Agronomics is well-placed to benefit.

The group has exposure to over 20 companies that produce animal products from cell cultures, such as meat, leather, and dairy. This process removes the need for animal slaughter.

Granted, these nascent biotechnologies carry significant risks. Encouraging mainstream consumer adoption is a major challenge, since many people are reluctant to consume lab-grown meat. There are also regulatory hurdles and trade barriers to contend with.

Despite the risks, trading at 7p today, this penny stock offers a promising long-term investment opportunity to consider in an industry with massive growth potential. 

Charlie Carman does not own shares in Agronomics. 

DP Poland

What it does: DP Poland operates the Domino’s Pizza franchise in Poland and Croatia.

By Ben McPoland. I reckon DP Poland (LSE: DPP) has a lot of promise. As I write, it’s priced at 9p, giving the small enterprise a market cap of £89m.

Admittedly, this penny stock has been drifting in recent years. This is partly because small-cap stocks are out of favour with higher interest rates, but also because the firm is still loss-making. This lack of profitability is a key risk here.

Having said that, losses are narrowing and the market anticipates a first profit next year. The move towards a capital-light, franchise-led model should help things advance from there.

Meanwhile, growth remains decent, with like-for-like sales rising 2.9% and system sales up 6.5% in the first quarter. Revenue is expected to reach nearly £66m this year, which would be 47% higher than 2023.

The company recently acquired rival Pizzeria 105, expanding its footprint into 31 new Polish cities while bringing in 76 experienced franchisees. By 2027, the firm is aiming to operate 200 Domino’s stores across Poland, up from 113 last year, then eventually 500+.

Ben McPoland owns shares of DP Poland.

Premier Miton

What it does: Premier Miton is a UK-based investment firm offering a range of funds and trusts, as well as a portfolio management service.

By Paul Summers. The last few years have been tough for holders of shares in Premier Miton (LSE: PMI). Revenue and profit have tumbled due to volatile markets and low investor confidence, with more people throwing their money into cash accounts as interest rates have climbed. The threat of US tariffs impacting the global economy has only made things worse.

Still, there’s an argument that investors may now look to active managers for ways to outperform the market. Should this be the case, the current valuation of less than 11 times forecast earnings may already offer a good margin of safety.

For those seeking income, there’s also a monster dividend yield of 10%. To be clear, this is at risk of being cut if trading doesn’t improve. So, half-year numbers, due in late May, will be worth checking out. 

But risk-tolerant contrarian investors may find a lot to like here.

Paul Summers has no position in Premier Miton.

Ultimate Products

What it does: Ultimate Products owns a number of brands it uses to sell household goods primarily in its home UK market.

By Christopher Ruane. Ultimate Products (LSE: ULTP) does not strike me as a share for widows or orphans given its risk profile. This year’s interim results showed a year-on-year revenue decline, sharply higher net debt and a reduced interim dividend.

A business model based on manufacturing in the Far East and shipping to Europe has taken hits from higher shipping rates and longer journey times. That means more money needs to be tied up in inventory.

But as the owner of brands such as Salter, the company has a strong offering for retailers and their customers. Demand in such product areas is likely to be resilient over the long term. The British love of a cuppa means that, when most consumers’ kettle breaks, they immediately replace it.

Despite challenges, the company was free cash flow positive in its first half and trades on a price-to-earnings ratio of just 9.

Christopher Ruane does not own shares in Ultimate Products

.

The post 4 penny stocks to consider buying while their prices are this cheap appeared first on The Motley Fool UK.

DP Poland is the operator of Domino’s Pizza stores and restaurants across Poland and Croatia. What just sent the share price up? And does the news make me want to invest more money?

Strategic acquisition

Yesterday, the firm announced that it had acquired Pizzeria 105, the fourth largest pizza restaurant brand in Poland, for around £8.5m. Pizzeria 105 is a franchised business that operates 90 locations across the country.  

CEO Nils Gornall commented: “This acquisition fast-tracks our transition to a predominantly franchised, capital-light model, with over half of our stores set to be franchise-operated from completion. By welcoming 76 experienced franchise partners, we expand our presence into 31 new Polish cities.”

Pizzeria 105’s main source of income was sales of goods to its franchisee partners and royalty fees. The founder will remain a shareholder to ensure a smooth transition and bring valuable local expertise, the buyer noted. 

Long-term plans

DP Poland says Pizzeria 105 is profitable and the deal is expected to be immediately earnings enhancing from completion.

That said, the numbers are pretty small here. Revenue was £1.7m last year, with £1m in EBITDA, from £30.8m of system sales at the franchised stores. But DP Poland says they will benefit from Domino’s brand and marketing support, which will provide a path to drive a 56% higher order count.

The deal also accelerates the company’s plan to have 200 Domino’s stores in Poland by 2027, with half of the outlets franchise-owned. Longer term, the company aims to have 500+ locations in Poland. Croatia is a much smaller part of the business for now.

Still loss-making

In 2024, like-for-like system sales grew 17.9%, marking the third consecutive year of double-digit growth. Before this acquisition, the firm was tipped to increase revenue to around £65.8m this year, good for 23% growth. A first profit might be also eked out.

However, while recent reductions in net losses and improvements in EBITDA indicate a positive trajectory, DP Poland hasn’t yet officially achieved net profitability. At the end of 2024, it had £13.4m in cash and was debt-free. But the fact that it’s still loss-making adds some risk here. 

Also, new shares are being issued as part of the deal. Further shareholder dilution cannot be ruled out.

Should I order in more shares?

This acquisition fits in nicely with the company’s plan to turn Domino’s into the leading pizza brand in Poland. So I think it could turn out to be a smart move.

Unlike many parts of Europe, Poland’s economy is growing strongly. GDP growth was 2.9% last year, beating forecasts, and it’s expected to accelerate to at least 3% this year, then 3.6% in 2026. That’s a supportive backdrop for consumer spending, dining out, and pizza deliveries. 

If the company continues taking market share and turns profitable, I think the stock could trade much higher than 10p in the years ahead. For context, the market-cap today is just £92m.

Given the risks though, I’m going to keep this as a small but potentially high-reward holding in my portfolio.

The post This 10p penny stock just jumped 9.9%! Should I buy more? appeared first on The Motley Fool UK.

Conversely, due to their often limited financial resources and profits (if any at all), they have the potential to crash and burn. Just because a stock’s 10p, it doesn’t mean it can’t fall to 5p in the blink of an eye!

One 10p penny stock in my portfolio is DP Poland (LSE: DPP). It operates Domino’s Pizza stores and restaurants across Poland and Croatia.

Worth barely a couple of hundred quid, this is currently my joint-smallest holding. I first opened a position back in November, with a view to buying more shares if the firm reported encouraging full-year results.

On 16 January, DP Poland released a trading update for 2024. Here’s what I liked about it.

A year of progress

For 2024, the company expects to report total system sales of £55.4m, which would be a roughly 24% jump over the year before.

In Poland, sales grew 15.9%, with a notable increase of 8.2% in Q4. Like-for-like (LFL) sales rose by an impressive 17.9%, driven by a 20% rise in deliveries (one of Domino’s’ key strengths). This was the third consecutive year of double-digit LFL growth.

Average weekly orders reached a record 827 for the year, a 13.2% increase. Meanwhile, 12 new locations were opened, four underperforming ones closed, and another three are set to open this month. The firm ended the year with 113 stores across Poland.

In Croatia, where it currently has a much smaller presence, total system sales increased by 40.2%.

CEO Nils Gornall commented: “2024 has been another year of outstanding growth for DP Poland, reflecting our continued focus on execution and operational excellence. With an expanded and optimised store network, the initiation of a franchising model, and a debt-free balance sheet, we are confident in our ability to capitalise on the opportunities ahead.”

The key takeaway here (pun intended) is that people in Poland and Croatia, like many other places around the world, are really liking their Domino’s pizzas.

Some concerns

However, I do see a couple of risks here. First, a return of inflation in Poland could heap pressure on consumers, leading to lower-than-anticipated sales. In the second half of 2024, inflation there fell 3.9%, but this is worth monitoring with a potential global trade war looming.

Also, the firm isn’t yet profitable, though it’s getting closer. It achieved consistent adjusted EBITDA profitability in Poland for the first time last year. But it’ll need to generate actual bottom-line profits for the stock to really do well in future.

The good news is that the company’s moving towards a franchising model, with the transfer of five stores to new franchise partners in 2024. This transition’s expected to accelerate this year, which is encouraging as this capital-light model has the potential to significantly boost profit margins.

I’m ordering in more shares

DP Poland’s debt-free and intends to open hundreds more Domino’s stores under a franchising model. It has a modest £99m market-cap, translating into a reasonable price-to-sales multiple of 1.9.

I plan to significantly increase my position in the coming weeks.

The post I’m ready to buy more shares of this 10p penny stock! appeared first on The Motley Fool UK.

Recently, I scanned the market for penny stock opportunities to consider for 2025. Here are three shares that caught my eye.

DP Poland

First up, we have DP Poland (LSE: DPP). It operates the Domino’s Pizza chain in Poland and Croatia. This company’s growing rapidly. This year, revenue’s expected to come in at £53.7m versus £44.6m last year. For 2025, analysts expect revenue of £65.8m. That would represent growth of more than 20%.

If the company can continue to grow like this, its share price should rise. It’s worth noting that the company plans to open hundreds more stores in the years ahead – this should boost growth significantly.

Now, while Domino’s Pizza’s been successful in the US and the UK, there are no guarantees the brand will continue to do well in Poland and Croatia. Just because a product works in one market doesn’t mean it’ll work in another.

The company’s seeing success at present though, having registered year-on-year order growth of 15% for the first nine months of 2024. So I’m optimistic about its potential.

1Spatial

Next we have 1Spatial (LSE: SPA). It’s a tech company that helps government, utility, and transport organisations make sense of their geospatial (location) data.

This company’s grown at a healthy rate in recent years as it landed new customers. Between FY2019 and FY2024, revenues climbed from £17.6m to £32.3m. This had led to impressive gains for investors. Over the last five years, the share price has nearly tripled.

But what caught my eye is the fact that near-term earnings are projected to surge. For the year ending 31 January 2026, analysts expect earnings per share growth of a whopping 63%. That growth’s set to bring the valuation down significantly. At today’s share price, the forward-looking price-to-earnings (P/E) ratio’s only 26, which isn’t particularly high for a software company.

The risk with a business like this is that contract wins slow, which could lead to share price volatility. But the company believes it has a “huge opportunity” ahead, so I think it’s worth a closer look.

Calnex Solutions

Finally, we have Calnex Solutions (LSE: CLX). It provides test and measurement solutions for the global telecommunications and cloud computing markets.

This stock’s been a dog in recent years. I know, because I own a few shares and they’ve tanked. The problem has been challenging conditions in the telecoms market. These have led to a major slowdown in growth.

But I continue to see potential here. Calnex operates in an important, growing market. And the company believes it will return to growth in the second half of the financial year ending 31 March 2025. If it does, the shares could see a major re-rating.

Now, this stock’s high up on the risk spectrum. If conditions in the telecoms market remain challenging and growth doesn’t pick up, the share price could tank again.

Taking a three-to-five-year view however, I’m optimistic about the potential. Getting global telecom networks fit for the digital age is likely to require a lot of testing.

The post 3 high-risk/high-reward penny stocks to consider buying for 2025 appeared first on The Motley Fool UK.