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10 small-cap ASX shares with huge potential

Starting Line Potential

I believe the Australian share market is home to a great number of small-cap shares with bucket loads of potential.

Below you will find 10 shares which I’m watching very closely. Although not all of these shares are investable right now, I think all deserve to be added to your watchlist today.

They are as follows:

Avz Minerals Ltd (ASX: AVZ)

Whilst the resources sector isn’t for everyone, for those that can stomach the volatility I would suggest you take a close look at Avz Minerals due to the world class potential of its Manono lithium project in the Democratic Republic of Congo. Early drilling results have revealed the presence of high-grade lithium mineralisation.

Big Un Ltd (ASX: BIG)

Demand for this subscription-based video technology company’s products and services has gone through the roof this year. This led to the company reporting a stunning 429% increase in full-year cash receipts. Impressively the first-quarter of FY 2018 has started just as strongly, with management expecting cash receipts of $12.5 million. This will be an increase of 390% on the prior corresponding period.

Bubs Australia Ltd (ASX: BUB)

Thanks to supply agreements with Brilite Nutritionals and NetEase, this baby food and infant formula company has significantly expanded the availability of its products in the lucrative China market. While only time will tell whether this ultimately leads to sales volumes that rival a2 Milk Company Ltd (Australia) (ASX: A2M), in my opinion it has given itself a fighting chance.

ChimpChange Ltd (ASX: CCA)

ChimpChange, soon to be known as Change Financial, is a US-based digital banking company which aims to disrupt the American banking system with its mobile platform. The company has been growing its user numbers at a very quick rate over the last 12 months and shows no signs of slowing. I believe the launch of revenue-generating features will result in strong top line growth in FY 2018.

GetSwift Ltd (ASX: GSW)

This delivery management software provider is my favourite small-cap share at the moment. The company aims to streamline a company’s logistics through its innovative logistics platform by optimising delivery routes, automating the dispatch process, and providing real-time tracking alerts. During the last quarter the company processed 729,626 deliveries through its platform, an increase of 46% on the prior quarter.

LiveHire Ltd (ASX: LVH)

LiveHire is a growing talent technology company that provides a software platform which creates a pool of pre-qualified job candidates to access when companies need to recruit. Last quarter strong demand for the platform led to the company reporting a 30% quarter-on-quarter increase in cash receipts. Furthermore, the company finished the period with zero debt and a cash balance of almost $18 million.

Livetiles Ltd (ASX: LVT)

This digital workplace platform provider recently announced impressive annualised subscription revenue growth of 292% to $4 million for the 2017 financial year. Furthermore, earlier this month LiveTiles successfully raised $11 million via an oversubscribed placement in order to accelerate its already explosive growth.

National Veterinary Care Ltd (ASX: NVL)

With an estimated 79% of dogs and 65% of cats going to the vet at least once a year and pet ownership at high levels, I believe this veterinary company is in a strong position to deliver above-average earnings growth for some time to come. Especially with the highly fragmented industry providing ample opportunities to grow through acquisition.

Swift Networks Group Ltd (ASX: SW1)

This fast-growing telecommunications and digital entertainment company’s shares have been on a tear this year and for good reason. Thanks to improved profitability and the growing popularity of its services in the resources and aged care sector, the company expects FY 2017’s EBITDA to be $1 million. This will be a remarkable financial turnaround for the company following a normalised EBITDA loss of $1.5 million in FY 2016.

Updater Inc (ASX: UPD)

Updater’s relocation software certainly has been growing in popularity with U.S. consumers this year. Earlier this week the company advised that the estimated market penetration of monthly moves processed reached 15.7% of all U.S. household moves in July. According to the release, Updater processed 234,503 unique household moves during the month, which is an all-time company high.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

Motley Fool contributor James Mickleboro owns shares of ChimpChange and GetSwift. The Motley Fool Australia has no position in any of the stocks mentioned. 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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