There are numerous UK penny stocks that have the potential to generate market-crushing returns. But it always needs to be pointed out that enterprises this small are inherently higher risk.
With this caveat in mind, here are two penny stocks worth considering buying in June.
Kromek
Let’s start with Kromek (LSE:KMK) which, at 9p per share, has a £59m market-cap. The stock’s up 57% over one year but down 84% since IPO in 2013.
Kromek designs and manufactures advanced radiation detection and bio-detection systems. So the firm’s technology has a range of applications, from advanced medical devices and defence to airport scanners.
One thing that’s plagued the firm is inconsistent top-line growth. But it appears to have turned a corner here, with FY26 revenue expected to be about £27.2m, up from £19.4m in FY24.
Crucially, the firm also recently turned profitable, with a pre-tax profit of £2.15m expected for FY26 (which finished in April). This comes after Kromek won new orders worth £8.8m in the second half of the year.
In January 2025, the firm signed a four-year $37.5m deal with Siemens Healthineers to supply cadmium zinc telluride (CZT) detectors, as well as intellectual property and non-exclusive patent licenses.
Beyond validating Kromek’s technology, this deal strengthened the balance sheet. And it gave management the confidence to believe this will make a “material contribution” to revenue over the next couple of years.
That said, ongoing supply chain snags could interrupt the timing and delivery of orders. Plus, when profit margins are still so slim, it wouldn’t take many setbacks to tip Kromek back into the red.
Longer term though, the firm looks to have solid growth opportunities in biosecurity and the civil nuclear space. And from a low price-to-sales ratio of 1.6 today, the stock could end up as a hidden gem, assuming the firm capitalises upon these opportunities.
Currently, the average broker price target is 22.5p — around 147% above the current level!
Made Tech
Another intriguing penny stock is Made Tech (LSE:MTEC), which today has a £57m market-cap.
The company specialises in providing digital, data, and cloud services to the UK public sector. It helps institutions including the Department for Education, NHS, and local housing authorities adopt modern technology, including AI.
To my mind, there are a few attractive things here. For a start, there’s strong top-line growth, with revenue rising from £13.3m in FY21 to an expected £57.5m in FY26 (which ended last week).
Alongside this, we have profits (a rarity for most penny stocks). For FY26, Made Tech’s expected to report a net profit of about £3.5m, rising to almost £5m this year.
Based on these forecasts, the valuation doesn’t look demanding at all. The forward price-to-earnings multiple is just 13.7, which is cheap for a company posting strong profitable growth.
Note the P/E-to growth (PEG) ratio is 0.6 (any number under 1.0 is seen as potentially undervalued). The balance sheet is also cash-rich with no debt.
However, one risk to be aware of is that bookings can be unpredictable, resulting in potentially lumpy financial results.
At 38p though, I like this stock as an under-the-radar play on the digital transformation of the government and UK public sector. The ongoing adoption of AI should provide plenty of opportunities.
Should you invest £5,000 in Made Tech Group Plc right now?
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Ben McPoland has no position in any of the companies mentioned.
