Forget Woolworths Limited and buy these 3 explosive growth shares

With many of Australia’s normally reliable blue chip shares such as Woolworths Limited (ASX: WOW) having a mixed time of late, I feel investors would be better served taking a closer look at some quality growth shares at the other side of the market.

I believe the following three small cap shares have explosive growth prospects and would be great investments today.

MNF Group Ltd (ASX: MNF)

MNF Group is a leading provider of voice-based internet communications and the company behind the My Net Fone brand. This ambitious company wants to become a leading global provider of wholesale voice minutes and has been making steps to achieve this. Last year’s acquisition of New Zealand-based global voice services provider TZNI has proven to be an excellent move in my opinion. In FY 2016 the TZNI business contributed strongly and has been displaying excellent prospects going into FY 2017 according to MNF Group’s management.

Nanosonics Ltd. (ASX: NAN)

Infection control solutions provider Nanosonics recently posted a whopping 93% jump in full year sales to $42.8 million. The strong result means the company is now in profit and cash flow positive for the first time. I believe the future is bright for Nanosonics thanks to its trophon EPR ultrasound probe disinfector. Clinical studies have shown that the toxic liquid disinfectants being used in high level disinfectant ultrasound probes are completely ineffective against human papillomavirus, whereas the company’s trophon technology is completely effective. This has helped the company grab a 22% share of the North American market in a short space of time. Its shares do come at a premium however, so I would suggest limiting any investment to just a small part of your portfolio.

Touchcorp Ltd (ASX: TCH)

Touchcorp is a provider of secure transaction processing technology and has a growing client list which includes companies such as 7-Eleven, Afterpay Holdings Ltd (ASX: AFY), Optus, and HICAPS. As well as having a growing domestic business, Touchcorp has been making waves overseas in the last few months. Recent deals with Switzerland’s Cornèr Bank and Change Up Holdings for activities in Sweden and Norway go to show that this is a company with global ambitions. Both these deals are expected to provide the company with long-term transactional revenue streams. It is worth pointing out as well that Touchcorp not only provides its services for Afterpay, but also owns around 30% of it. An investment in Touchcorp is therefore a great way of gaining exposure to both of these exciting fintech companies.

Finally, if you're still looking for even more investment ideas then look no further than these three fantastic shares. Each has the potential to provide good returns and a solid fully franked dividend in my opinion.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of TOUCHCORP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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