Quite a few fitting the bill are due to bring us updates in September. Today, I’m looking at three I think might be worth buying, depending on those figures.

Bricks

Lords Group Trading (LSE: LORD) is in the building materials business. The share price has slumped in 2022, continuing a downward trend since its initial public offering (IPO) on AIM in July 2021. It was an interesting time to float, the year after Covid-19 severely hammered the stock market.

Lord is set to deliver first-half results on 6 September, following July’s trading update. Revenue in the half appeared largely flat, and the company said trading was in line with full-year expectations.

The market expects revenue of £435m, with adjusted EBITDA of £26m. The company also says it’s on track for £500m revenue in 2024.

Why do I think it might be one to buy in September? Investors seem very wary of building-related stocks right now. But we just heard that house prices are up 10% year on year. So Lords might just be undervalued.

Medical

First-half results from EKF Diagnostics Holdings (LSE: EKF) should be here on 20 September. August’s trading seemed positive enough, with things largely in line with 2021.

That seems good to me, considering Covid contributions to medical businesses are declining. The EKF share price has fallen over the past 12 months, presumably as the pandemic factor recedes.

Forecasts suggest a forward price-to-earnings (P/E) ratio for EKF of around 26, which might seem a bit high. But with further predicted earnings growth, that would drop to around 16 by 2024.

EKF is involved in a number of medical diagnostics, from lab-based to point of care in surgeries and clinics. I’m looking for evidence of non-Covid growth potential in the upcoming results. And if I see it, EKF might be one to buy for long-term growth.

Property

I think Regional REIT (LSE: RGL) is worth a closer look, with its shares down nearly 25% in 12 months and falling 33% in five years.

It invests in commercial properties outside of the M25. And considering the wreckage that Covid created, I think that’s actually a reasonably resilient share price performance.

As a real estate investment trust (REIT), it must pay 90% of its rental profits as dividends. The 6.5p paid in 2021 was only just covered by earnings, in a very tough year. But it yielded a very nice 6.9%.

For the current year, the trust has already announced a 3% increase in its latest quarterly dividend, to 1.65p. And forecasts indicate better than 9% for the full year. That suggests confidence, as UK workers increasingly get back to the office. First-half results are due on 15 September.

Penny shares

I’d never buy a penny share just because its price makes it look cheap. And I’d dig into the risks of all these before I made any decision. But I do think results from all of them should be worth investigating.

Tritax Eurobox

Tritax Eurobox (LSE: EBOX) is the smaller sibling of FTSE 250-listed real estate investment trust Tritax Big Box. Like the latter, it specialises in developing and managing warehouses (or ‘sustainable logistics assets’). As the name says, all of these are located in Continental Europe.

Demand for warehouse space from retailers went through the roof during the pandemic. This sent Eurobox’s share price up roughly 50% between March 2020 and August 2021. Since the beginning of 2022 however, the stock has crashed 20% in value.

This strikes me as a potential opportunity, especially as the current economic headwinds all look temporary. That said, a P/E of 23 certainly doesn’t strike me as a bargain valuation and there’s a risk Eurobox could fall some more.

Still, a 5.3% dividend yield isn’t to be sniffed at. It will also come in handy for tackling inflation. So I’m tempted to open a position in this penny stock.

EKF Diagnostics

Holders of AIM-listed EKF Diagnostics (LSE: EKF) have had an awful 2022, by any standard. The share price has been cut in two, leaving the company with a market capitalisation of just £160m.

Looking on the bright side, this valuation is still 60% above where it was when the first national lockdown in the UK was announced. This shows how well the company performed over 2021, thanks to Covid-19-related demand.

Having fallen so far, EKF stock now trades at 18 times forecast earnings. This looks fair considering that Wednesday’s AGM statement highlighted trading in Q1 had been “strong” with revenues “in line” with that achieved last year. That doesn’t sound like a company in crisis to me! The shares yield 3.6% dividend as well.

Analysts are expecting earnings growth of almost 25% in 2023. However, this is likely dependent on new non-Covid products being launched on time. A clear risk.

On balance, I’d be willing to begin building a position here too.

Victorian Plumbing

Bathroom products retailer Victorian Plumbing (LSE: VIC) is a company I’ve followed ever since it was listed in June last year. Concerned that it might be coming to market as the pandemic-influenced boom in DIY reached its peak however, I chose not to dive in. This proved to be a good call. The share price has tumbled 80% since then.

Are investors being too pessimistic? Possibly. Victorian has a good share of its market and benefits from a flexible online-only business model. Founder Mark Radcliffe still owns just under half of the company’s stock.

But, again, there can be no guarantees. With living costs hitting the consumer hard, plans to install a new bathroom suite are easily postponed. Throw in high marketing costs and a P/E of 18 doesn’t exactly feel cheap.

As such, I do wonder if there could be another drop to come if the next set of numbers don’t convince the market. I’ll wait to see evidence of better trading first.

With this in mind, I’ve been screening for penny stocks that have high earnings growth forecasts. Here are two I’m considering buying in my portfolio.

The first high growth penny stock

Accrol (LSE: ACRL) is the first penny stock I’ve been researching. It’s a manufacturer of soft tissue paper that is used in various products such as toilet roll and kitchen paper. It came up on my stock screen as the earnings per share (EPS) forecast for next year is an impressive 44%.

There’s been a turnaround situation at Accrol since the current CEO joined in 2017. The company reduced headcount and the number of products it offered, and also streamlined its supply chain. The gross margin has been rising since 2019 when it was 14.7%. It reached 27.7% in its fiscal year 2021 (the 12 months to 31 April 2021). This, to me, shows that the turnaround is working. The share price has responded too, and has risen from around 7p in 2018, to a 35p at time of writing.

However, in a trading update for the full fiscal year 2022, Accrol said it’s been impacted by rising costs for its raw materials. The company has also seen additional distribution costs related to a shortage of HGV drivers, and this has reduced its achievable revenue growth for this fiscal year. These are key risks to consider before buying Accrol shares as I don’t see the end of the current global supply chain issues just yet.

I’m not sure there’s a strong economic moat in the business either. This might weaken profits in the future if competitors are able to undercut prices of Accrol’s products. So on balance, I’m going to sit this one out for now.

A stock to buy

The next penny stock is EKF Diagnostics (LSE: EKF), a medical diagnostics company. It manufactures point-of-care testing equipment for common infectious diseases, and products for use in a laboratory. The company has also been manufacturing and distributing Covid test kits during the pandemic.

I came across EKF Diagnostic on my screen as its EPS is forecast to grow by almost 55%. Indeed, in the company’s half-year report, net profit grew by a huge 122%. The outlook statement was even better, because management said the core business is trading well. They said that the full-year results will be “comfortably ahead of already materially upgraded management expectations”.

This says to me that EPS growth may even be larger than the current forecast of 55%. Therefore, there could be significant upside in the share price from here.

I have to keep in mind that EKF Diagnostics has benefitted from the increased need for testing due to Covid. This revenue stream should decline when the virus is under control. Nevertheless, the board said the business is capable of double-digit profit growth over the next three to four years. This is beyond any Covid-related revenue.

Gross and operating margins have been increasing in recent years, too. This is a sign of pricing power in the business, in my view. I’m strongly considering this penny stock for my portfolio.

Growth industry

When it comes to gaming, one of my favourite shares is Team17 (LSE: TM17), which I bought during 2020 but have sold and no longer hold. The shares, while expensive relative to many other industries, have faltered in recent months so are better value than they have been in the past. Team17’s price-to-earnings ratio (P/E) is well below that of Sumo Group and even below that of Frontier Developments. So in an expensive sector, its share seem good value to me.

It’s founder-led and the CEO has around 22% of the shares, so Team17 management has every incentive to run the group well and in the interests of shareholders. Aligned incentives between management and private investors are things I like to see, as do investors like Lord Lee, the first ISA millionaire.

When it comes to downsides the stock pays no dividend, so growth has to come just from the share price performance. That has been underwhelming in recent months. The high P/E also means anything less than stellar growth is likely to be punished. I might wait for the shares to fall further before buying again.

Antibody testing

The healthcare group EKF Diagnostics (LSE: EKF) is another stock I expect could benefit from even just increased talk of another lockdown. Part of its business is involved in antibody tests, which have been used in the fight against the pandemic. There’s an immediate catalyst for growth.

Beyond that though, based on the fundamentals, there’s a lot to like. Revenue and operating profit are growing year-on-year and at a strong rate. For example, the latter grew from £5.78m in 2019 to £16.9m in 2020. The business has high margins and returns on capital invested – indicating that it has pricing power and should be able to do well longer term.

If there’s a situation where Covid recedes significantly then the share price might take a temporary knock given that EKF Diagnostics is associated with antibody testing and Covid specifically. Yet despite that, I think the stock has long-term potential based on its growth, margins and high returns on capital, so I may buy the shares.

One of the best growth stocks

Tech was another winner under previous lockdown conditions, which only served to accelerate the trends towards digitalisation that was already under way. I feel one of the best stocks for tapping into this long-term trend is Kainos (LSE: KNOS). Over five years, its shares have just about 10-bagged. That rapid share price growth indicates that Kainos is an impressive company but that it’s no ‘hidden gem’.

Again, because the P/E is very high, the company needs very good operating performance and strong earnings growth. Yet the company taps into some trends that will last for years, if not decades, to come and so I’d be confident buying the shares.

The first is cleaning products maker McBride (LSE: MCB), due to deliver a full-year report on 7 September. But even before we get to see it, it’s being eclipsed by an August trading update for the next year.

Due to uncertainties regarding raw materials, the company decided in July it wouldn’t offer any 2022 outlook guidance. McBride now says it expects first half EBIT to be around break-even, with profit “heavily weighted towards the second half.”

Pre-tax profit for 2021/22 should drop to around 55-65% below the current 2021 consensus, with debt at 30 June 2022 around 5-10% higher. The share price took a dive in response, though it’s pulled back a little bit since. Despite that, McBride shares are still up more than 30% over the past 12 months. So there’s still some investor confidence there.

Once supply difficulties are passed, I think McBride could have a better future ahead of it. But, for now at least, it’s a penny stock for me to watch and wait.

Pandemic profit boost

EKF Diagnostics (LSE: EKF) shares have had a cracking time during the pandemic. They’re up more than 150% over the past two years, though still at penny stock levels. Interim results are due on 14 September, and an update in July told us to expect “H1 2021 performance in-line with already upgraded management expectations.”

EKF told us its trading reflects “ongoing strong demand for our contract manufacturing services for Covid-19 sample collection devices and associated kits.”

The half is expect to deliver adjusted EBITDA around £12.75m, up from £8.93m a year previously. Cash, net of borrowings, stood at £20.39m at 30 June. Oh, and there’s a 1.1p per share dividend coming, in line with the company’s “modest but progressive dividend policy.”

The board’s hoping for “significant double-digit growth in adjusted EBITDA over the next 3 to 4 years,” even aside from Covid-related revenue. Will I buy? Not without seeing the full results and thinking hard about the stock’s valuation. But I’m definitely adding EKF to my candidates list.

Penny stock troubles

Double glazing firm Safestyle UK (LSE: SFE) is my final penny stock pick, with H1 results scheduled for 23 September. The Safestyle share price has been hovering in the 50-60p range for the past couple of months. But that’s after falling back from nearer 70p in May.

Overall, the stock hasn’t done too badly in the pandemic, up a bit above 10% in two years. But that hides longer-term difficulties, with the shares having lost nearly 80% of their value over the past five years. That’s not really surprising, seeing the earnings collapse of the recent past leading to three years of losses.

July’s trading update told us to expect H1 revenue of about £72.9m, up 13% from pre-pandemic 2019. That seems positive, and the £14.4m net cash at 4 July is another good sign. And the firm said it’s “now generating sustained positive net cash inflows.”

I’d still want to see firm evidence of a sustained turnaround before I’d buy though. It’s wait and see again for me.

With this in mind, here are what I believe to be three of the best penny stocks to buy now.

Growth-focused penny stock

Trading at just under a pound, as I type, is Record (LSE: REC). This is a business that tries to reduce the impact of currency movements on institutional clients’ investment portfolios. 

Unfortunately, Record’s recent move to invest for growth has been at the expense of a “short-term decrease in profitability.” However, the firm is still cash-generative and boasts a healthy balance sheet. The payment of a special dividend smacks of confidence too. 

Speaking of which, Record started its new financial year in April with its highest recorded Assets Under Management Equivalents (AUME). It’s also been developing new products, including the recently-launched Emerging Market Sustainable Finance Fund.

Aside from this, Record also scores well on the quality metrics, such as returns on capital and margins. These are high, relative to the market in general, and go some way to making up for industry risks, such as regulatory hurdles. Nevertheless, the latter still has the potential to knock the share price.

On a P/E of a little less than 20 for FY22, I think Record could be a good stock for me to buy now. 

Recovering well

Also featuring in my selection of the best penny stocks to buy now is retailer Topps Tiles (LSE: TPT). Unsurprisingly, this is a company that really suffered at the hands of the pandemic. However, the tide has clearly turned.

Last month’s update said the company’s retail business had “performed well” in Q3, helped by the reopening of stores in April. Topps went on to say it expected to benefit from “high levels of consumer demand” going forward as the home improvement boom continues. A return to sales growth at its Commercial business is also expected.

Of course, hindsight shows that March 2020 was the time to pile in. The shares have multi-bagged since then. However, a P/E of under 15 now still doesn’t feel unreasonable for a debt-free company with an encouraging outlook. That said, its cyclical nature coupled with warnings that Covid-19 could get worse before it gets better makes this a cautious rather than automatic buy.

Ahead of expectations

A final pick is EKF Diagnostics (LSE: EKF). For under a pound a share, I can buy inmto a company that achieved record sales and profits in 2020.

According to May’s AGM statement, this form has carried on into 2021, thanks to “a very meaningful recovery in trading.” EKF’s core business “performed more strongly than expected” in Q1, again thanks to ongoing demand for sample collection devices generated by the pandemic. Indeed, the company now believes that full-year numbers are likely to be “comfortably ahead of already upgraded management expectations.” 

Naturally, all this hasn’t gone unnoticed by the market. In the last year, EKF’s stock jumped by 72% in value and now trades on a forecast P/E of 28. Unfortunately, this high valuation could mean the share price falls heavily if the company disappoints.

With a solid growth strategy and balance sheet, however, I’d still buy EKF today.

At 74.8p per share, the EKF Diagnostics is currently 10% up from Tuesday’s close. The medical diagnostics giant touched three-week highs of 75.8p earlier in mid-week business.

A strong start to 2021

The EKF Diagnostics share price has risen 50% over the past year as demand for its medical kits has exploded during the pandemic. Indeed, the AIM-quoted company reported record sales and profit in 2020.

Pleasingly, EKF declared today that “this strong performance continues into the new financial year”. It has seen “a very meaningful recovery” in its core business, despite ongoing challenges created by Covid-19. In fact, EKF said it had “performed more strongly than expected”. That  included growth in the first quarter of 2021.

Furthermore, EKF said that it had “continued strong demand for our contract manufacturing services for Covid-19 sample collection devices and associated kits”.

EKF Diagnostics upgrades forecasts again!

Thanks to its strong trading in the year to date, EKF Diagnostics now expects to beat its recently upgraded full-year forecasts.

The business has a rich history of raising forecasts. And back in March it delivered another meaty upgrade to its full-year sales and profits expectations. This was prompted by the “significant expansion” of a multi-million dollar contract to supply Covid-19 sample collection kits to a global customer.

EKF said that March’s forecast bump was built “just on visible orders under the supply agreement and a continuing conservative approach to forecasting on the core business”. It said today, though, that continued strong trading during Q2 means that full-year trading should be “comfortably ahead” of that last upgrade.

Ambitious growth plans

EKF Diagnostics also painted a rosy picture for beyond the current period. It said that “there is clear scope to evolve our contract manufacturing activities beyond the current pandemic catalyst and to capture the significant additional potential for the core business”.

EKF unveiled steps which it believes will deliver “significant double-digit growth” in adjusted earnings during the next few years. These include investing in the core business to drive “aggressive” organic growth and targeting earnings-enhancing acquisitions. EKF said that it plans to spend between £10m and £15m to execute this strategy.

Finally, EKF announced that current chief executive Julian Baines will step down from the role to become non-executive deputy chair. He will be replaced by head of the company’s US operations, Mike Salter.

Today City analysts think annual earnings at EKF will rise 6% in 2021. This leaves the UK healthcare share trading on a forward price-to-earnings (P/E) ratio of 29 times.

An AIM penny stock

EKF Diagnostics (LSE: EKF), with a share price of 66p, is one such AIM-listed penny share, that I think has potential for significant share price growth. The market cap is currently around £300m.

EKF is a medical device manufacturer. It’s not a flash in the pan company, having been listed in London since 2010 and founded in Germany in 1990. It’s also been involved in working with other companies in the fight against Covid-19. For example, it distributes the Kantaro COVID-SeroKlir antibody kits.

I like its strong financial performance. Final results have shown revenue and gross profit up 45% and 58%, respectively. Even more excitingly, regarding future potential, it recently entered into a multi-million dollar contract with Amazon. 

However, I am wary of the chair’s large 29% holding, which he has begun to sell. There are also rumours he may continue to sell off his holding, which could put downward pressure on EKF’s shares. There’s also a risk that the increases in revenue from Covid-19-related activities could tail off in future. I’ll keep an eye on it and may add to my own portfolio. 

Gold as an inflation hedge

As worries about inflation rise once again, I’m reminded of the theory that gold is a good hedge (a way to counter falling share prices). Whether or not that’s true, and independent of inflation fears, I like penny share Greatland Gold (LSE: GGP). It has a share price of 22p at the time of writing.

That means the shares have become significantly cheaper since hitting a one-year high of 37.5p in December 2020. Despite the recent poorer share price performance, the shares have more than doubled over the last 12 months.

For me it’s not clear why the share price has struggled as much as it has this year. I think perhaps the shares just rose very quickly in 2020, leading to some investors banking profits. I think that, combined with the price of gold doing very well in 2020 but not so well this year,  largely explains the share price fall.

For me that creates an opportunity. Operationally, Greatland Gold has made a lot of progress with its Havieron Joint Venture. This exploration, being done with Newcrest Mining, is a very significant mine, with potential further drilling and resource updates through this year. Positive announcements on this front have the potential to boost the share price, in my opinion.

Mining exploration is always a risky business and a run of bad news and drill results could see the share price fall. The company has issued new shares and could continue to do so if it remains loss-making and burns through over £2.5m a year.

Overall though I think Greatland Gold is an AIM-listed penny stock with the potential to grow its share price. Even better, its shares are now much cheaper than six months ago. That’s why I’m tempted to add to my own portfolio. 

Having said that, this area of the stock market can throw up some very lucrative investment opportunities. So, it shouldn’t be ignored completely, in my view.

Here, I’m going to highlight two UK penny stocks I believe are worth a closer look right now. Both companies are profitable and appear to have decent long-term growth prospects.

Strong growth track record

One penny stock I believe looks interesting at the moment is Alliance Pharma (LSE: APH). It’s a UK healthcare company that owns the marketing rights to around 80 consumer healthcare brands and prescription medicines. Some of its key brands include Kelo-Cote, Nizoral, and Amberen.

What stands out to me about Alliance Pharma is that the company had a good long-term growth track record. Over the last five years, revenue has increased by around 170%. Revenue did take a small dip last year (which isn’t surprising given the environment). However, it’s expected to bounce back this year. For FY2021, City analysts expect top-line growth of 28%.

I also like the fact the company is profitable and pays a dividend. Quite often, penny stocks don’t. For FY2020, the company declared a full-year dividend payout of 1.61p. That’s about 46% higher than the one declared five years ago. At the current share price, the yield is about 1.7%.

There are plenty of risks to the investment case here, of course. A poor acquisition could set the company back significantly. Currency risk is also worth mentioning as the group generates substantial sales abroad.

However, the company appears to be confident about the future, stating recently that it looks forward to “regaining the strong momentum and revenue growth that the group has enjoyed in recent years.” So, I think it could be worth a closer look right now.

This penny stock just declared its first dividend

Another UK penny stock I believe is worth highlighting right now is EKF Diagnostics (LSE: EKF). It’s a leading global medical manufacturer that specialises in point-of-care and central lab devices. Its products are used in hospital and research laboratories, doctor’s offices and blood banks in more than 100 countries. EKF also manufactures and distributes products related to Covid-19.

EKF recently posted a very strong set of 2020 results that were boosted by its Covid-19-related activities. For the year, revenue was up 45% to £65.3m while profit before tax was up 180% to £15.4m.

As a result of this strong performance, the company declared a maiden dividend of 1p per share. The company also said it’s confident trading for the year ending 31 December will be “significantly ahead” of already-upgraded management expectations.

I don’t expect the company to keep growing at this prolific rate forever. Post Covid-19, sales and earnings growth are likely to normalise. It’s worth noting that if future growth is disappointing, the share price could fall as the stock has enjoyed a strong run over the last year.

Right now however, the company appears to have a lot of momentum. And after declaring its first dividend, I think it could be worth considering as part of a diversified portfolio.

With this in mind, here are three examples from the small-cap space that have been doing the business for those already invested.

Trading strongly

EKF Diagnostics (LSE: EKF) specialises in manufacturing point-of-care (POCT) devices and tests. These are used in hospitals, clinics and doctors’ surgeries to provide measure hemoglobin, glucose and lactate levels. As you might expect, increased demand since the emergence of Covid-19 hasn’t done business any harm at all. 

In a short-but-encouraging update, the firm stated that “strong trading” last month and a packed order book for the remainder of the year would likely lead it to exceed market expectations on its full-year performance. It’s worth noting that analysts had already adjusted their expectations several times in 2020. 

EKF’s share price is up almost 300% since March’s market crash. That said, I think it’s far more likely to hold on to these gains compared to your typical ‘pop and drop’ penny stock. A valuation of 36 times earnings for FY21 is high but unsurprising.

Blooming sales

Everyone knows Harry Potter. Ask who prints the boy wizard’s tales, however, and many people will draw a blank. Just in case you’re one of them, it’s Bloomsbury Publishing (LSE: BMY). Based on recent trading, it’s a name worth remembering.

A beneficiary of the first lockdown and the move to remote learning, Bloomsbury recently reported record earnings for the six months to the end of August.

All told, revenues climbed by 10% to £78.3m. Year-on-year profits grew 60% to £4m, exceeding even management’s expectations. The shares have understandably rallied.

Will this momentum fall once we’re released from lockdown round 2? It’s possible. Then again, true investors rarely concern themselves with short-term fluctuations. It’s the underlying business that matters, and Bloomsbury looks sound. So sound, in fact, management has reinstated its dividend policy.

Shares currently trade at 23 times forecast earnings. That’s not cheap, but a bulletproof balance sheet (£44.1m in net cash at the end of August) helps justify this valuation. 

A small-cap treat

Last on my list of top small-cap buys would be global ingredients specialist Treatt (LSE: TET). In its most recent trading update, the £375m-cap reported that FY20 pre-tax profits were likely to be “in line with pre-Covid-19 expectations” of around £14m, despite a slight dip in revenue.

Clearly, the outlook remains foggy due to the coronavirus. According to CEO Daemmon Reeve, however, Treatt is “strongly positioned to benefit from key consumer trends including the preference for natural products, a growing interest in health and wellness, and premiumisation.” 

A price-to-earnings ratio of 31 for FY21 is, again, undeniably punchy. Even so, I’d argue that a company with a market-leading position like Treatt is worth paying more for.

Like EKF and Bloomsbury, its finances are in good order. At the end of FY20, the business had £1m in net cash (excluding lease liabilities) in its coffers.

It’s also still paying out dividends. You won’t find many penny stocks doing that!