In the last week, the UK market has been flat, but it is up 7.8% over the past year and earnings are expected to grow by 15% per annum in the next few years. Penny stocks may be a throwback term, but they offer opportunities for growth at lower price points, particularly when backed by strong balance sheets and solid fundamentals. This article highlights three such penny stocks on the UK exchange that stand out as potential hidden gems with promising prospects.

Click here to see the full list of 470 stocks from our UK Penny Stocks screener.

Let's explore several standout options from the results in the screener.

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

Overview: AdvancedAdvT Limited currently does not have significant operations and has a market cap of £193.14 million.

Operations: AdvancedAdvT Limited has not reported any revenue segments.

Market Cap: £193.14M

AdvancedAdvT Limited, with a market cap of £193.14 million, has transitioned from being pre-revenue to reporting sales of £19.87 million for the half year ended August 31, 2024, up from £15.15 million the previous year. The company achieved net income of £7.85 million compared to £3.14 million a year ago, indicating profitability growth despite its low return on equity at 3.7%. AdvancedAdvT's short-term assets significantly exceed its liabilities, and it remains debt-free with no shareholder dilution over the past year. Trading below estimated fair value by 37%, it presents potential investment interest amidst stable weekly volatility and experienced board tenure.

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

Overview: Boku, Inc. offers local payment solutions for merchants across the Americas, Asia Pacific, Europe, the Middle East, and Africa with a market cap of £577.74 million.